This week the Ohio Office of Budget and Management (OBM) made another deposit to the state’s rainy day fund, now topping $2 billion, a little more than 6% of the biennial state budget held in reserve.
With the deposit, the OBM director Tim Keen issued a revised revenue estimate including revising commercial activity tax (CAT) collections downward by more than $10 million due to the recently approved state legislation that extends a CAT credit to movie making enterprises.
Hailed for job creation and economic development, an amendment to SB 390 to exempt movie production enterprises from the state’s business was approved earlier this year by lawmakers. The OMA opposed the credit that erodes the tax base and puts pressure on remaining taxpayers including manufacturers. Aren’t you glad to be subsidizing Hollywood producers like George Clooney?