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Last week, the Ohio House and Senate approved the state budget and sent it to Governor Kasich for his signature. The budget spending plan maintains a 6.3 percent across-the-board personal income tax cut, further reduces taxes on small businesses, and eliminates earlier proposals to raise/expand the sales tax and Commercial Activities Tax.
“We are pleased with the General Assembly’s work on the tax reform plan in the state budget,” said Greater Cleveland Partnership President and CEO Joe Roman. “We are grateful that we were able to work in partnership with our elected leaders to ensure Ohio’s tax plan keeps Ohio competitive and primed for further economic growth.” Read more.
The Greater Cleveland Partnership, Cleveland Development Advisors and several metro chambers from across the state have joined in opposition to proposed changes to the Historic Preservation Tax Credit that was unveiled in the Senate version of the state operating budget late last week.
The proposed change would have suspended the tax credit program for 2016 and 2017 and converted it into a grant program in 2018.
“This tax credit is a critical tool in advancing redevelopment projects throughout the City of Cleveland,“ said GCP President and CEO Joe Roman. “The proposed changes would have a devastating effect on the current and future development momentum in our region.”
The Greater Cleveland Partnership and seven other Ohio metro chambers have submitted a joint letter to the Ohio Senate Finance Committee expressing concerns “with the proposed changes in HB 64 regarding the Ohio Historic Rehabilitation Tax Credit program (Sec. 149.311 (D)(8)).
“This tax credit has been a vital tool in supporting economic development and revitalization efforts across the State of Ohio. We fear that the proposed changes will hamper this work.”
Click to read the letter.
The Ohio Senate today unveiled its version of the state operating budget. The Greater Cleveland Partnership has closely monitored several key issues including tax reform, education, and health care.
Major highlights include a net income tax cut of $1.7 billion over the biennium without raising or expanding the sales tax or increasing the Commercial Activities Tax rate. The budget also eliminates income taxes on all small businesses up to $250,000 and increases the cigarette tax per pack by 40 cents.
Click for the budget overview and GCP's priorities.