Ohio is currently in the process of implementing a historical tax reform intended to make the state globally competitive.
The reforms include phasing out corporate income and personal property taxes, which respectively tax profits and investment. At the same time, sales and personal income taxes are being reduce.
In lieu of these taxes, a gross receipts tax called the Commercial Activities Tax (CAT) is being phased-in. The CAT only taxes sales within the State of Ohio at a low rate of .26%. Sales that occur to entities outside of Ohio are exempt, profits aren't taxed, and investment is not taxed.
The new tax code allows Ohio companies to reduce costs, invest, and maximize profits, which is ideal for companies competing in the global economy.
The Ohio Tax Reform: Year 2 in Review report demonstrates the overall impact of these changes. As you can see, a significant drop in state tax liability has occurred and will continue to occur for Ohio companies in each major industry. Not only is the change significant relative to the old 2005 code, it places Ohio ahead of its Midwestern competition. The most telling graphic of the report shows that Ohio has already improved 11 positions nationally to become the 12th lowest state tax liability. This has occurred only two years into the reform.
You can view the full report by visiting ohiomeansbusiness.com/
The reforms include phasing out corporate income and personal property taxes, which respectively tax profits and investment. At the same time, sales and personal income taxes are being reduce.
In lieu of these taxes, a gross receipts tax called the Commercial Activities Tax (CAT) is being phased-in. The CAT only taxes sales within the State of Ohio at a low rate of .26%. Sales that occur to entities outside of Ohio are exempt, profits aren't taxed, and investment is not taxed.
The new tax code allows Ohio companies to reduce costs, invest, and maximize profits, which is ideal for companies competing in the global economy.
The Ohio Tax Reform: Year 2 in Review report demonstrates the overall impact of these changes. As you can see, a significant drop in state tax liability has occurred and will continue to occur for Ohio companies in each major industry. Not only is the change significant relative to the old 2005 code, it places Ohio ahead of its Midwestern competition. The most telling graphic of the report shows that Ohio has already improved 11 positions nationally to become the 12th lowest state tax liability. This has occurred only two years into the reform.
You can view the full report by visiting ohiomeansbusiness.com/
