From OAR: Ohio Tax Plan Update
On Monday, Ohio Gov. John Kasich announced a sweeping $63.3 billion, two-year budget proposal that includes a series of tax law revisions–from cuts in personal and small business income taxes to an expansion of the sales tax base, including all services that are part of a real estate transaction.
Your Ohio Association of REALTORS will be conducting a thorough analysis of the proposal–focusing on what it will mean for the profession and for your clients and customers–once the actual budget details are released on Tuesday, Feb. 12. The OAR Legislative Steering Committee will be holding a special meeting to address the budget plan.
The OAR Daily Buzz will be your go-to resource for insights of the budget plan’s impact on the real estate industry, offering coverage from the Ohio State House as it happens.
Additionally, OAR has launched a special “Ohio REALTOR Talk” on the Daily Buzz…providing you with an interactive forum so that you will be able to add your voice to the ongoing discussion of the proposal.
As we’ve reported, the wide ranging plan cuts personal income taxes by 20 percent (over a three-year period) and will cut the income tax by half for the first $750,000 in net income for small business owners. On the revenue side, the Governor’s proposing to expand the sales tax base by eliminating an array of currently exempt economic activities, such as legal, accounting, marketing, lobbying and real estate services. Almost everything outside of health care, education and rental of residential property will be subjected to a state sales tax rate of 5 percent (reduced from the current 5.5 percent rate).
Resources currently available on OAR’s website:
- A special VIDEO featuring OAR’s Public Policy Team;
- Make your voice heard by offering your thoughts at the OAR Daily Buzz “Ohio REALTOR Talk.” This forum offers you the ability to share your feelings with your peers from across the state;
- Review a listing of some services that are currently exempted from the state sales tax that would be subject to the 5 percent sales tax under Gov. Kasich’s plan;
- OAR’s initial post on the plan–which we offered hours before Gov. Kasich made his official announcement–and our follow-up post that provided some insight on what the sales tax expansion would generate in revenue for Ohio.
SOURCE: Ohio Association of REALTORS, e-Connections, 2.6.13