News and Analysis
Preliminary figures from the Ohio Office of Budget and Management (OBM) show December’s state revenues came in just under (0.1%) estimates. Overall, the state collected nearly $1.9 billion last month, with $958 million from the combined sales tax and $829 million from personal income tax.
The Commercial Activity Tax’s December revenue trailed estimates by $1.2 million (11.7%) — but for the fiscal year, it has collected $22.7 million (2.9%) more than estimated.
For the fiscal year so far, the state has collected $93.2 million (0.8%) above the forecast. See more details regarding Ohio’s revenues and expenditures.1/7/2020
In Fiscal Year 2019, Ohio’s state government sent $36.45 billion in subsidies and capital funds to Ohio’s 88 counties. Thanks to a report from the Legislative Service Commission, Ohioans can see how those funds were distributed to their county. This map makes it easy to view the breakdown of dollars. 1/7/2020
Late last month, Congress reached an agreement on a massive, must-pass federal spending package. OMA Connections Partner Clark Schaefer Hackett has summarized the key tax-related provisions in the legislation, which extends certain income tax provisions that had either expired or were due to expire. The new legislation continues the following programs through 2020: Incentives for empowerment zones; the New Markets Tax Credit; employer tax credits for paid family and medical leave; and the Work Opportunity Tax Credit.
Meanwhile, OMA Connections Partner GBQ Partners reports that the funding legislation repeals the Affordable Care Act’s so-called “Cadillac tax.” 1/2/2020
A new comparison by the Tax Foundation finds Ohio’s unemployment insurance (UI) program is among the nation’s best-structured UI systems. The think tank says: “The least-damaging UI tax systems are those that adhere closely to the federal taxable wage base, have low minimum and maximum tax rates on each rate schedule, avoid levying surtaxes or creating benefit add-ons, and have straightforward experience formulas and charging methods.”
For the past several years, Ohio has been a top 10 state in the Tax Foundation’s UI comparison. 1/1/2020