TAXES

TAX REFORMS

In 2005, Ohio enacted sweeping tax reforms by phasing out the corporate franchise tax and the tangible personal property tax, as well as reducing personal income taxes by 21%.

The new tax is the Commercial Activity Tax, a low-rate, broad-based tax on gross receipts from sales “inside” Ohio. The first $1 million in sales are exempt. Sales outside of Ohio are also exempt. At full phase in, the rate is .0026 of gross receipts, or $2.60 per $1,000 of sales in Ohio.

The new state tax code has strengthened Ohio’s competitive advantage and made it more attractive to investment. Equally encouraging is the ongoing review of the impact to tax levies on both business and the factors of production.

For more information on Ohio Taxation, see http://www.tax.ohio.gov/ohio_taxes.aspx