Ohio Gov. John Kasich’s proposed budget, released Feb. 5, includes a reduction in income tax, income tax breaks for pass-through entities, and new extraction taxes. It also proposes to extend sales taxes to most services and payments for intangible property not specifically exempted.
If this budget proposal passes, the Ohio state sales tax rate would go down by 0.5% while bringing in an extra $5.2 billion over three years. It is expected that local sales tax rates would be similarly adjusted.
While many questions regarding the taxability of services remain unanswered, the following services, would remain exempt from sales tax:
The Ohio General Assembly is working their way through the implications of the governor’s proposed budget and decisions are expected before the end June.
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