Report of the Committee to Study State and Local Taxes - Ohio ...

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Overview: State Income Tax • Begin calculation with Federal AGI – Does not take into account itemized deductions • Personal exemptions indexed to inflation • Brackets to be indexed beginning in 2005 • Tax revenues increase as incomes increase • Revenues can be sensitive to economic downturn • Average effective tax rate was 2.86% in tax year 2000 Overview: State Income Tax • The income of unincorporated businesses (partnerships, sole proprietorships) and Scorporations is taxed through the income tax. • Income “flows through” to the owners, and is taxed on their income tax returns. 21
Overview: State Income Tax • Residents are taxed on all income, with credit given for income taxed by other states. • Nonresidents are taxed on income earned in Ohio. 1972 1975 1982 1984 1988 1993 1996 2001 Overview: State Income Tax Basic Changes Bottom Rate Top Rate Number of Brackets Personal Exemptions Lines on Return .5% 3.5% 6 $500/ $3000 maximum Same Same Same Same $650 (no max) 16 / 42 .625% 6.25% 8 Add: Same 17 / 47 .95% 9.5% Same Same Same 23 / 56 .743% 6.9% Same Same Same 25 / 56 Same 7.5% 9 Add: Same 24 / 59 .693% 7.004% Same Same $750/$850 24 / 60 .743% 7.5% Same Same $1150 27 / 62 22 9 on short form; 11
Page 1: REPORT OF THE COMMITTEE TO STUDY ST
Page 6 and 7: I. Introduction This document const
Page 8 and 9: August 27, 2002 Recommendations an
Page 10 and 11: November 26, 2002 Testimony on beh
Page 12 and 13: III. Basic Overview of Ohio’s Tax
Page 14 and 15: Township 2% County 8% Municipal 13%
Page 16 and 17: State/Local Profile: “Business”
Page 18 and 19: Other Taxes 9% Motor Vehicle Licens
Page 20 and 21: State Aid 42% School District Profi
Page 22 and 23: County Profile: Taxes Levied • Pr
Page 24 and 25: Profile: Review • Income and sale
Page 28 and 29: This slide is intentionally blank.
Page 30 and 31: Overview: Municipal Income Tax •
Page 32 and 33: Overview: Property Taxes By Propert
Page 34 and 35: Real Property Tax-Brief History •
Page 36 and 37: Tangible Property Tax-Brief History
Page 38 and 39: Public Utility and Business Tangibl
Page 40 and 41: Sales and Use Tax: Overview • Ena
Page 42 and 43: Sales & Use Tax: What is the Use Ta
Page 44 and 45: Sales and Use Tax - County and Tran
Page 46 and 47: Corporation Franchise Tax: Overview
Page 48 and 49: Corporation Franchise Tax: Definiti
Page 50 and 51: Details: Corporate Tax Historical S
Page 52 and 53: Motor Vehicle Fuel Tax: Overview Fi
Page 54 and 55: IV. Comparison of Ohio’s Tax Syst
Page 56 and 57: Pennsylvania and Illinois to Ohio,
Page 58 and 59: 4.0% 3.5% 3.0% 2.5% 2.0% 1.5% 1.0%
Page 60 and 61: Property Taxes (Real Property and T
Page 62 and 63: Agriculture property is fully taxab
Page 64 and 65: $2,000 $1,800 $1,600 $1,400 $1,200
Page 66 and 67: $400 $350 $300 $250 $200 $150 $100
Page 68 and 69: Conclusion At least three primary a
Page 70 and 71: As services, which tend to be tax e
Page 72 and 73: VI. Economic Development Considerat
Page 74 and 75: since 1998 - two years before the e
Page 76 and 77:
customers, suppliers, infrastructur
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makes payments to out-of-state rela
Page 80 and 81:
Maximum Corporate Income Tax Rates
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often referred to as “no-where”
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Stability: The personal income tax
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PERSONAL INCOME TAX OPTIONS To over
Page 88 and 89:
While these alternatives would not
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SALES & USE TAX OBSTACLES Simplicit
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State State Sales And Use Tax State
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4. Do Not Increase the County Permi
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. A simple tax base consisting sole
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Closely tied to stability is the im
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ownership of the inventory to a non
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entities, they do have some taxatio
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OPTIONS RELATED TO TAX ADMINISTRATI
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APPENDIX A Member Letters 101
Page 110 and 111:
property tax will cost local govern
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APPENDIX C A Comparison of the Busi
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Example #1: Facts: An Ohio company
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APPENDIX D Combined and Consolidate
Page 123 and 124:
Example: Under this method of filin
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Report of the Committee to Study State and Local Taxes - Ohio ...

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