OMA Advocates for Tax Exemption Clarity in Budget

This week, the OMA sent a letter to the chairman of the Senate Finance Committee stressing the importance of two House changes to the budget bill.

The current version of House Bill 166 includes two provisions that add much needed clarity to the state‚Äôs manufacturing sales-and-use tax exemption. The bill’s current language would provide parity by exempting from sales tax the equipment and supplies used to clean equipment that produces or processes food for human consumption. Current law allows the exemption only if the food produced or processed is a dairy product.

A second provision in HB 166 provides much needed clarity for the entire manufacturing sector. The House-passed version exempts from the sales-and-use tax any supplies or janitorial services purchased to clean machinery in a manufacturing facility. Some manufacturers have been audited or faced legal action brought by the Ohio Department of Taxation over this issue as various administrations have had different interpretations of current law. Codifying this exemption into law will eliminate the costly guessing game that has taken place over the years.

By clicking here, you can take action on these two issues — in addition to advocating for the eligibility expansion of the Job Retention Tax Credit, and the restoration of the business income tax deduction. 5/23/2019