Vindicator Logo

COLUMBUS Group seeks to create limit on tax-rise power

By Jeff Ortega

Thursday, September 18, 2003


The association said limits are necessary to restrict the growth of government.
By JEFF ORTEGA
VINDICATOR CORRESPONDENT
COLUMBUS -- A taxpayers group is pushing an alternative to Republican Secretary of State J. Kenneth Blackwell's proposal to repeal an increase in the state sales tax passed by the Legislature earlier this year.
The Ohio Taxpayers Association, a statewide group with about 5,000 members, is pushing for a constitutional amendment to be voted on in November 2004 that would limit the Legislature's ability to raise taxes.
Under the proposed ballot issue, any new taxes or tax increases or the elimination of a current tax exemption would require a two-thirds vote by the Legislature. Now, only approval by a simple majority of the Legislature is necessary.
Tax revenue growth
The proposed ballot issue, if approved by voters, would also limit the growth in state tax revenue every year to the rate of growth in personal income or inflation unless the Legislature approves with a two-thirds majority.
Under the proposal, state spending growth would also be limited to the rate of inflation or growth in personal income unless a super-majority of state lawmakers agree.
The taxpayers association said the limits are necessary to restrict the growth of government.
"Clearly state spending is out of control," Taxpayers Association chairman-CEO Scott Pullins said Monday. "And state spending drives the taxes."
The association's proposed ballot issue comes on the heels of Friday's announcement by Blackwell, a potential Republican candidate for governor in 2006, that he will seek the repeal of the temporary, 1 percent increase in the state sales tax passed earlier this year as part of the two-year, $48.8 billion state budget that took effect July 1.
A better plan?
Pullins said the taxpayers association's proposal is better than Blackwell's proposal.
"What Blackwell's talking about doing can be changed by the Legislature," Pullins said.
Blackwell couldn't be reached to comment on the taxpayers association's proposal.
Blackwell has said he will be circulating a petition with the aim of forcing the GOP-dominated Legislature to either repeal the sales-tax boost or placing the sales-tax increase before voters on November 2004.
Under the current state budget, the sales tax increase is to expire June 30, 2005, at the end of the two-year budget period.
The sales tax boost is projected to generate $1.3 billion in new revenue per fiscal year.
Taft's stance
Some prominent Republicans, including Gov. Bob Taft, are fighting Blackwell's proposal, saying the move, if successful, would hurt state services. Aides to Taft said the governor would also campaign against the Blackwell proposal if it makes it onto the ballot.
Taft spokesman Orest Holubec said the Taft administration didn't have any immediate comment on the taxpayers association proposal.
But Holubec said the administration is committed to working with General Assembly when the next two-year state budget is developed in 2005.
Pullins said the taxpayers group is drafting the language for its proposed constitutional amendment. Once drafted, Pullins said the proposed ballot measure would be submitted to the state attorney general's office for approval of the language.
The taxpayers group hopes to begin circulating petitions this November, Pullins said.
Under the Ohio Constitution, if the taxpayers association gathers valid signatures of at least 10 percent of the votes cast in the last gubernatorial election -- 322,899 signatures -- the proposal will be placed on the November 2004 ballot.