The chairman of an ad hoc House panel on Ohio’s tax system issued a report Friday calling for more regular reviews of tax breaks and proposing changes to sales and business taxes.
Rep. John Adams (R-Sidney), the House majority whip and chairman of the Tax Structure Study Committee, announced the release of a “Chairman’s Report” based on input the panel received from business interests and other stakeholders.
The House GOP’s announcement said the report could serve as “a springboard for legislative initiatives.”
“During this General Assembly, we have focused on creating an economy where businesses can thrive and Ohioans can compete for jobs right here within our borders,” Rep. Adams said in the release.
“Creating economic prosperity starts with a tax structure that is conducive to business growth and job creation. The people of Ohio made their voices heard when we came to their areas of the state and helped us to put together this report of recommendations, which may serve as the genesis of future legislation.”
Among the reports recommendations:
- Tax expenditures should be reviewed every two years “for validity” by a standing subcommittee of the House Ways & Means Committee.
- Ohio’s sales tax should be applied to all economic activities including goods and services.
- The Commercial Activity Tax “should be modified to establish a tax liability of the lesser of two calculations: a tax on gross receipts, as established by the current CAT law, or a tax on net income.” Mr. Adams said the change would reduce discrepancies arising from “pyramiding” effects of CAT liability depending on industry type.
- A “continuing, open dialogue on tax issues” should be pursued.
The Tax Structure Committee met six times last summer and fielded testimony from more than 80 witnesses, according to House Republicans.
“This has been a productive process and I look forward to further discussing these findings with the legislature,” Rep. Adams said.