The Washington, D.C.-based Tax Foundation has released its 2020 State Business Tax Climate Index, with the Buckeye State in the study’s top 10 for business property taxes (No. 9) and unemployment insurance taxes (No. 7).
Overall, the index ranked Ohio 38th out of 50 — due in large part to the foundation’s philosophical opposition to the state’s Commercial Activity Tax (CAT). As reported earlier, the foundation has criticized the CAT even as analysis from other organizations indicates that Ohio is one of the top states in which to do business.
Ohio’s broad-based 0.26% flat CAT on business gross receipts in excess of $1 million was created by a 2005 law with strong support from the OMA. Prior to its enactment, Ohio was at a major disadvantage in attracting new manufacturing due to the machinery and inventory tax. 10/22/2019