Taxation in Ohio History
Ohio Taxation history of changes.
Commercial Activity Tax
2012 The Ohio Supreme Court ruled that the statutory allocation of CAT revenues derived from the sale of motor-vehicle fuel violates the Ohio Constitution because the funds are not dedicated to highway expenditures.
2013 Modifies the method of collecting the tax due. It excludes from the CAT base receipts of licensed agricultural commodity handlers from the sale of agricultural commodities. Beginning July 1, 2014, it excludes from the CAT base receipts from the sale or exchange of motor fuel. The bill also replaces a fixed minimum tax with a variable rate minimum tax, beginning Jan. 1, 2014.
Corporation Franchise Tax
2012 Qualified financial institutions allowed to elect to calculate the base upon which the tax is imposed using a single sales apportionment factor.
Dealers in Intangibles Tax
The dealer in intangibles tax is repealed and remains in effect only for tax years prior to 2014. Depending on one’s business activity, a taxpayer may be responsible for filing either a financial institution tax return or a commercial activity tax return in 2014.
The tax is paid by the administrator, executor, or other estate representative in possession of the property subject to tax.
Horse Racing Tax
The tax is paid by holders of racing permits issued by the Ohio State Racing Commission.
Individual Income Tax
2011 Enactment of the fifth and final year of income tax rate reductions. H.B.153 creates new donation for the Ohio Historical Society. H.B. 167 creates a new income tax deduction for Pell Grant recipients.
2013 House Bill 59 launches a 10 percent reduction in income tax rates over three years. Rates are scheduled to fall 8.5 percent for the 2013 tax year filing, another 0.5 percent for the 2014 tax year and the final 1 percent with the 2015 tax year filing. HB 59 also freezes the indexing of income brackets and the personal/dependent exemption during the three-year period of time. The bill also makes the $20 personal/dependent credit income-based. H.B. 59 introduces two new credits: the nonrefundable Earned Income Credit and the 50 percent Small Business Investor Income Credit.
2014 House Bill 483 accelerated the phase-in of a 10 percent income tax rate reduction to taxable year 2014 from taxable year 2015. Personal exemption amounts were increased to $2,200 for taxpayers with OAGI of $40,000 or less and to $1,950 for taxpayers with OAGI of $40,001 to $80,000. The state Earned Income Tax Credit (EITC) was increased to 10 percent from 5 percent of the federal EITC beginning in 2014.
• Electric distribution companies.
• End users that self-assess.
Motor Vehicle Fuel Tax
The tax is paid by fuel use tax permit holders. The tax applies to fuel used on Ohio highways by tractor-trailer combinations, trucks with three axles or more, and two-axle trucks with a gross vehicle weight or a registered gross vehicle weight over 26,000 pounds.
Motor Vehicle License Tax
The tax is paid by operators of motor vehicles on the public roads or highways.
Natural Gas Distribution Tax
The tax is paid by natural gas distribution companies.
Pass-Through Entity and Trust Withholding
The pass-through entity tax is a system of withholding from pass-through entities designed to collect the individual income tax that is otherwise due and payable by the entities’ investors.
Public Utility Excise Tax
The tax is paid by the following types of public utilities: Natural gas companies, waterworks companies, pipeline companies, heating companies, and water transportation companies.
Replacement Tire Fee
2011 House Bill 153 extended the tire fee through June 30, 2013 and stipulated that a portion of the revenue be distributed to the Soil & Water Conservation District Conservation Fund.
2013 House Bill 59 extended the tire fee through June 30, 2016.
Sales and Use Tax
House Bill 59 increases the state sales and use tax rate to 5.75%, effective Sept. 1, 2013.
2014 Ohio became a full member of the Streamlined Sales Tax Project.
House Bill 59 required electronic filing and payment of the tax.
The tax applies to operators of movie theaters, theme parks, professional sporting events, and other activities for which there is an admissions charge.
Casino Gross Revenue Tax
H.B. 386 makes many regulatory changes to Ohio’s gambling laws that mainly affect the Ohio Casino Control Commission, the Ohio Racing Commission, and the Ohio Lottery Commission, The bill includes related provisions for the Inspector General, Attorney General, the Development Services Agency, the Department of Taxation, and also addresses video lottery terminals, gambling addiction services, charitable gaming activities, and sweepstakes terminal devices. The bill did not make significant changes to the casino tax or to its statutory distribution allocations.
2013 General Assembly establishes a Lake Facilities Authority for the area around Grand Lake St. Mary’s and permits the authority to levy a lodging tax with voter approval.
2014 General Assembly permits Stark County to use up to $500,000 from existing lodging tax to finance projects to improve and maintain a stadium located in the county. General Assembly permits Allen County, within six months after the effective date of H.B. 483, to levy a tax on hotel lodging transactions of up to 3.0 percent to expand, maintain or operate a soldiers’ memorial (the Veterans Memorial Civic and Convention Center in Lima).
Manufactured Home Tax
1986 Legislature extends homestead exemption to certain owners of manufactured homes, effective tax year 1988.
1999 General Assembly requires that manufactured homes be taxed like (but not as) real property when first located in Ohio on or after Jan. 1, 2000 or when ownership is transferred on or after that date. Such homes remain on the manufactured home tax list, but the same tax rates and credits apply as apply to residential real property.
Manufactured or mobile homes sitused in Ohio prior to Jan. 1, 2000 remain subject to depreciation method of taxation, unless the owner elects to have the home taxed like real property. The legislature also: subjects used manufactured and mobile homes to transfer fees and taxes beginning Jan. 1, 2000.
Requires owners who wish to move a manufactured or mobile home to first obtain a relocation notice from the county auditor and pay the outstanding taxes charged against the home.
2003 Manufactured home park operators are permitted to remove an abandoned home from the park for sale or destruction.
2004 The Ohio Manufactured Homes Commission is established to regulate the installation of manufactured housing in Ohio. The commission is charged with setting a statewide standard for a permanent foundation, to which a manufactured or mobile home must be affixed before it can be converted to real property.
2007 House Bill 119 extends the expansion of the homestead exemption (see Property Tax – Real Property chapter) to qualified manufactured home owners, regardless of how the manufactured home is taxed.
2013 House Bill 59 restricts the homestead exemption for homeowners who do not receive the exemption for tax year 2014 to owners with an Ohio adjusted gross income of $30,000 or less.
2014 House Bill 85 creates an enhanced homestead exemption for qualifying veterans
Municipal Income Tax
The tax is paid by residents of a city or village that has imposed municipal income taxes well as nonresidents who work in such a municipality. The tax also applies to businesses that have earned net profits within the municipality. Also, withholding responsibilities generally apply to employers located within municipalities that have enacted a tax.
Real Property Tax
2014 House Bill 85 increases the homestead exemption available to veterans who are permanently and totally disabled due to a service-related disability from a value of $25,000 to $50,000. The bill also exempts such veterans from the $30,000 income threshold to be eligible for the homestead exemption.
Resort Area Gross Receipts Tax
The tax is paid by persons making general sales or providing intrastate transportation within a designated resort area.
Sales and Use Tax- County and Transit Authority
The tax is remitted by holders of vendor’s licenses, direct-payment permits, and consumer use tax accounts as well as registered out-of state sellers and clerks of court. The tax applies to sales and rental of personal property and selected services.