Gov. Kasich Releases Ohio Budget Proposal
Ohio Governor John Kasich unveiled his budget proposal for fiscal years 2016 and 2017. The budget provides for $5.7 billion of tax cuts and $5.2 billion in tax increases. Hearings on the budget are currently underway in the Ohio House and are expected to last several months. The tax highlights of the budget proposal include:
- Across-the-board individual income tax rate cuts (15% for tax year 2015 and 23% total for tax year 2016)
- Eliminate income tax for businesses and pass-through entities with gross receipts of $2 million or less
- Increase personal exemption from $2,400 to $4,000 for incomes less than $40,000 and $1,950 to $2,850 for incomes between $40,000 – $80,000
- Lower alternative minimum tax on the commercial activity tax from $800 to $150 for those with gross receipts from $1 million to $2 million
- Increase state sales tax rate from 5.75% to 6.25%
- Expanding the sales tax to include lobbying, market research/public opinion polling, public-relations, management-consulting, lobbying and debt-collection services
- Impose sales tax on cable subscriptions, parking and travel services.
- Reduce the motor-vehicle and watercraft trade-in value tax exemption to 50%
- Increase cigarette tax rate from $1.25 to $2.25 per pack
- Increase Commercial Activity Tax rate from 0.26% to 0.32%
Click here to view Governor Kasich’s budget proposal in its entirety.