JobsOhio Defends Commercial Activity Tax

In a post at, Matt Waldo — a research and analysis expert at the nonprofit development agency — defends Ohio’s Commercial Activity Tax (CAT). His comments come as the CAT has been criticized by the Washington, D.C.-based Tax Foundation. Waldo points out that analysis from other tax-focused organizations, as well as the results of recent business activity, indicate Ohio is one of the best states in the nation in which to do business. “Ohio’s tax policy is about results, not philosophies,” Waldo writes.

Ohio’s broad, 0.26% flat CAT on business gross receipts above $1 million was created by a 2005 law with strong support from the OMA. The same law phased out the tangible personal property tax — which taxed machinery, equipment and inventory — as well as the corporate franchise tax. It also lowered the state’s personal income tax. Prior to the enactment of this tax reform, Ohio was at a major disadvantage in attracting new manufacturing due to the machinery and inventory tax. 6/26/2019