OHIO Revise in business taxes stalls

A Valley lawmaker said the situation is frustrating for many.
COLUMBUS --Efforts to revise the state's business taxes may be dead for this two-year legislative session, the leader of the Ohio House says.
& quot;It's going to have to move a lot faster than it's moved for the last year, & quot; House Speaker Larry Householder said this week of a plan pending in the Legislature to change the business-tax structure.
& quot;It looks like it's dragging still, & quot; said Householder, a Glenford Republican.
A bill that would replace the corporate franchise and personal property taxes with a proposed tax that would be based on payroll, property and company sales was introduced in the Ohio House in 2003.
But the measure, sponsored by state Rep. Sally Conway Kilbane, a Rocky River Republican, remains mired in the House Ways and Means Committee that Kilbane chairs.
Householder said lawmakers will have many issues to clear up before next month's scheduled adjournment of the two-year legislative session. It doesn't appear that tax reform will be among those, the speaker said.
& quot;I can't say enough about the need in Ohio for reforming our tax code, & quot; Householder said. & quot;I'd love to do it right now, but we've got a lot of things on our plate. & quot;
Concern about solid data
The speaker, who must leave the House next month because of state term limits, also expressed concern with obtaining solid financial data to base tax revisions on.
& quot;It's very difficult for us to get numbers that we can verify as good solid numbers to be able to move forward with any type of tax policy in this state, & quot; Householder said.
At least one House Democrat who's been involved with studying tax policy said those most affected by proposed changes to the business-tax laws have been very vocal.
& quot;Every ox that's getting gored is yelling about it, & quot; said state Rep. Kenneth A. Carano, an Austintown Democrat who sits on the House Ways and Means Committee.
& quot;Right now, everyone is just frustrated, & quot; Carano said.
The basis
Under Kilbane's bill, the state corporate franchise and tangible personal property taxes would be replaced with a so-called & quot;business activity tax & quot; that would be based 60 percent on sales, 20 percent on property and 20 percent on payroll.
After the next two-year Legislature is seated in January, it may not be any easier to revise the state tax system.
The current two-year, $48 billion state budget expires in June.
The next budget cycle is reported to be out of balance by as much as $5 billion, partly because a temporary 1-cent boost in the state sales tax is set to expire June 30.