Oil industry gets tax break in Ohio budget plan

COLUMBUS (AP) — Ohio’s budget plan would give a tax break to the oil industry at a time when state tax revenue is plummeting because of the recession.

The tax break, pushed by the Republican-controlled Senate, would exempt members of the industry from paying Ohio’s business tax when they swap gasoline to ship it more efficiently. The Ohio Department of Taxation said today the exemption would result in about $20 million less in state revenue each year.

Lawmakers are scrambling to plug a $3.2 billion budget deficit through major program cuts and a possible expansion of gambling. State tax receipts have fallen sharply as the economic recession has hurt individuals and businesses.

The oil industry would get a break on the Commercial Activities Tax, which replaced another business tax that was riddled with loopholes and exemptions.