The Ohio Supreme Court will again have to decide whether a state tax, the commercial activities tax – also known as the CAT, that was created in 2005 can apply to a specific product.
The suit was filed by an excavating company, and it was joined by truckers, builders and contractors. Anthony Ehler said the constitution requires money from taxes on motor vehicle owners and operators go to roads. Since CAT revenues go to schools, local governments and the state general fund, Ehler said lawmakers couldn’t put the CAT on gasoline sales.
Small business owners are salivating at the prospect Ohio might raise up to $1 billion over five years by hiking taxes on natural gas liquids drillers and using the revenue to pay for a general income tax cut.