One of the Republican Senators who voted to allow the state to accept two and a half billion federal dollars for Medicaid expansion has introduced a bill to give Ohioans a tax break. The legislation is designed to capture savings in state government and give that money back to Ohio taxpayers.
School levies are among the biggest issues on the ballot in the upcoming November 5, 2013 election. Ohio schools depend on these levies as an essential funding stream, and many are facing new or additional levies that can be difficult to pass.
Money for Ohio’s public schools comes from three sources: federal funds, state funds, and local tax levies.
“Levies then become the source really of their chief operating funds,” explains Mark Smith of Cedarville University. “For most cases those local schools are very dependent upon those local property taxes.”
Two big changes are coming to taxes in Ohio this weekend – the state sales tax goes up, and the state’s personal income tax goes down.
The income tax for individuals will drop by 8.5%, while the state sales tax increases from 5.5% to 5.75%. Tax Commissioner Joe Testa says most people won’t notice the sales tax increase unless they’re making major taxable purchases, such as buying cars. But he says even then it’s more than a wash.
Ohio’s economic recovery is showing up in the figures on tax revenue that state government is taking in. The final money tally from state budget year that just ended has Ohio up three percent compared to original estimates.
The newly released final numbers from the budget year which ended June 30 show the state getting more money than predicted, $670 million more over the past year to be exact.
That figure is about three percent more than original estimates.
As Gov. John Kasich’s budget moves through the Statehouse, lobbying groups are meeting with lawmakers, talking with the governor’s office and giving testimony. Among the more controversial pieces is Kasich’s proposal to cut the state’s sales tax and extend it to include services, most of which are currently untaxed. For Ohio Public Radio, WCPN's Nick Castele reports business group lobbyists are weighing how to respond.