State and Local Tax Alert: Ohio Governor Kasich Proposes Numerous Tax Changes in 2016-2017 State Budget

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Ohio Governor John Kasich recently outlined the tax changes he will include in his 2016-2017 biennial state budget.  The governor’s proposal is a mixture of cuts, increases and elimination of taxes which he says will result in a net $500 million tax cut for Ohioans. The taxes included in his package are: sales tax, commercial activity tax, oil and gas severance tax, individual income tax and tobacco tax.

No language has been introduced in bill form so the details of these proposals remain unclear. Hearings on the governor’s budget began February 3 in the Ohio House and will continue through mid-April. More details about the tax proposal will come out during these hearings as Tax Commissioner Joe Testa and other cabinet officials testify. The administration will also release more detailed information in the next few weeks.

Vorys is providing this early notice so you can consider how these proposals will affect your business.  We will closely monitor the budgetary process and provide additional updates as events warrant.  Gov. Kasich proposes to:

Sales Tax

Commercial Activity Tax (CAT)

Oil and Gas Severance Tax

Individual Income Tax

Tax on Tobacco Products


Vorys encourages you to review these proposals and contact your Vorys attorney or advisor with questions or concerns about how these tax changes may affect your business.  Please feel free to contact any of the following Vorys attorneys:  Anthony L. Ehler, (614) 464-8282, tlehler@vorys.com; David A. Froling, (614) 464-3022, dafroling@vorys.com; John S. Petzinger, (614) 464-5696, jspetzinger@vory.com.