Analysis: CAT Changes Create Tax Uncertainty


The Corporate Activity Tax (CAT) — with its broad-based rate of 0.26% — was a key part of Ohio’s 2005 tax reform. Overall, the CAT has helped Ohio’s manufacturing competitiveness by replacing the former franchise tax and tangible personal property tax, both of which imposed a disproportionate burden on manufacturers. But changes are in store for the CAT following this summer’s enactment of the current state budget (House Bill 33). In this new “Retooling Ohio,” the OMA examines the shrinking CAT base under HB 33 — and how it adds more uncertainty for manufacturers going forward. 9/6/2023