Ohio Senate leadership this week unveiled its version of the state budget (House Bill 110). The $75 billion, two-year budget bill includes provisions that would eliminate Ohio’s sales tax on employment services used by businesses to hire temporary or permanent workers — saving Ohio employers an estimated $303 million over the biennium. It also includes a 5% across-the-board personal income tax cut, worth an estimated $874 million.
The elimination of the employment services tax has been a longtime priority for Ohio manufacturers. (Read the OMA’s comments on the budget’s tax relief measures.) Overall, the Senate budget includes roughly $1.3 billion in tax cuts. (This budget comparison document shows all the changes made by the Senate thus far.)
Other key tax-related provisions include:
Once the full Senate passes its version of the budget — expected to occur next week — House and Senate leaders, along with the governor, have until June 30 to iron out differences and enact a final budget. Ohio’s new fiscal year begins July 1. 6/2/2021