Tax on Architecture Still Off the Table
Ohio Senate Republicans intend to replace the 7% accros the Board Personal Income Tax Cut (PIT), included in the House Passed State Budget Bill (HB59), with a $1.4 billion targeted tax cut to small businesses–by exempting individuals’ first $375,000 of annual business income from the state income tax. The 5% tax on architectural services proposed by Governor Kasich remains off the table.
Senate President, Keith Faber, (R-Celina) said in a statement that the small business personal income tax reduction would help boost “the drivers of our economy.”
“Our plan not only provides a critical incentive to small business creation but also allows these job creators to invest more of their hard-earned dollars into equipment needs, expansion plans, and employee payroll,” he said. “We believe this targeted tax relief will have the most direct impact on encouraging job growth in the state.”
In opting for the business tax break, the upper chamber eliminated the House plan to provide a 7% across-the-board PIT cut for all taxpayers. The House had opted for that tax reduction after removing a good chunk of the governor’s tax package, which included an expansion of the sales tax to cover services and would have generated enough new revenue to cover both the business and individual (20% over three years) reductions.
More changes are expected to emerge this week and next when the Senate expects to vote on its final version of HB 59. Following Senate action a House/Senate Conference Committee will reconcile differences between the two versions.