This week, the OMA led a coalition of business organizations in defense of the Ohio Commercial Activity Tax (CAT). Since 2005, the OMA and like-minded associations have continually reminded lawmakers the importance of keeping the CAT broad-based and set at a low rate.
On Tuesday, May 21, the Senate Ways and Means Committee reported out Senate Bill 95, which authorizes 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 that creates at least $75 million in Ohio payroll. One of the tax incentives is a CAT exclusion for gross receipts of a mega-project supplier from sales to a mega-project operator.
The OMA and others provided testimony to point out that “the CAT was created to fix an archaic business taxing system in Ohio that was riddled with exemptions and credits. The old system failed to promote sound tax policy by eroding the tax base and piling disproportionate payments on certain industries.”
The OMA remains the state’s only major business organization to fight back and not support an expansion of CAT credits and carveouts. 5/23/2019