Taxes

Dan Konik

A panel of lawmakers was asked to look into how the state could transition to a flat tax rate. But they found that the state needs to address a $7 billion question mark first.

The report from the 2020 Tax Policy Study Commission claims a flat tax rate could be beneficial for the state.

But the commission also says a transition would be challenging because of its 120-plus tax expenditures.

The state foregoes $7 billion dollars in revenue a year from these so-called loopholes.

Republican leaders have said a flat tax would reduce taxes and simplify code.

photo of Ohio Supreme Court
DAN KONIK / STATEHOUSE NEWS BUREAU

A state budget provision just taking effect would change an 80-year-old policy, requiring those who want to dispute tax decisions go to one of 12 regional appeals courts instead of the Ohio Supreme Court.  

The Ohio Supreme Court’s Director of Public Information, Edward Miller, says the change was requested after a flood of local property tax disputes, when the court’s main role is to rule on big cases involving the constitution.

photo of Ohio Statehouse
STATEHOUSE NEWS BUREAU

For the second month in a row, the state collected more income taxes than forecasts suggested it would. Statehouse correspondent Karen Kasler reports that’s quite a turnaround from last year, when the two-year state budget had to be trimmed as income taxes fell nearly $850 million short.

  

Personal income tax collections were up nearly 1 percent last month, and that means the state is running almost 3 percent above where it thought it would be in that category.

tax form
FLICKR

Gov. John Kasich’s initial state budget would have required businesses to file certain tax forms with the state instead of in the cities in which they operate. After objections from cities, the final state budget made that an option. It’s still under debate on both sides.

It’s been six years since delinquent taxpayers in Ohio were given a chance to pay up without penalties. The new state budget gives them another opportunity at the beginning of next year.

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