Effort to Expand CAT Carveouts Fails in Lame Duck

Score another victory in the ongoing effort to protect the commercial activity tax (CAT) from increased carveouts. This week, Ohio’s General Assembly failed to pass Senate Bill 95, which originally would have provided tax incentives for the operators and certain suppliers of a “mega-project” – such as a development project with at least $1 billion in investment, or a project that created at least $75 million in Ohio payroll.

Under the bill, one of the tax incentives would have been a CAT exclusion for gross receipts of a mega-project supplier from sales to a mega-project operator. The bill was loaded with a variety of other tax provisions in the final days of the legislative session. The OMA expects the bill to be reintroduced in the upcoming 134th General Assembly. 12/23/2020