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Group touts 2 sales-tax holidays
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SALES TAX REFORMER: Bill Johnson of Poland, executive director of the Ohio Sales Tax Reform Incentive, speaks to supporters in Coitsville Township about a sales-tax-holiday bill that was introduced in the Ohio Statehouse.
By Sean Barron
COITSVILLE — If Bill Johnson has his way, Ohioans will be able to mark two additional holidays on their calendars.
The three-day occasions would let residents hold onto more money a little longer because paying state sales tax on several essential items would be suspended.
“It will allow taxpayers to keep more money, which will spawn economic growth,” Johnson said at a rally and press conference Wednesday at the Kings Motel, 6965 McCartney Road. “People can channel the savings to purchase other things that are not tax-exempt.”
Johnson, of Poland, was on hand to drum up support for the Ohio Sales Tax Reform Incentive that he founded, which is being sponsored by state Rep. Kevin Bacon of Westerville, R-21st.
The initiative would suspend the 6.5 percent state sales tax the first Friday, Saturday and Sunday in August and December on items such as school clothes, athletic equipment, personal computers and related software up to a certain dollar amount, he noted.
Johnson also is chief information officer with Warren-based Stoneridge Inc., a manufacturer of electronic components for the transportation industry.
Having the break from sales taxes in early August and December would coincide with many youngsters’ returning to school and the Christmas shopping season, respectively, he said, adding that such items are necessities for most families.
The reform initiative also would entice people from neighboring states to come to Ohio to shop, adding revenue to the state’s economy, Johnson continued.
“It’s time we put more of the hard-earned money of Ohioans back into their pockets,” he said. This is only the first step in making Ohio a retail destination.”
Last year, the state took in around $7.6 billion in general sales tax revenue. The move has the potential to bring in an additional $250 million to Ohio over three years, mainly because it would lead to an influx of additional spending, Johnson predicted.
Meanwhile, there’s been an exodus of Mahoning Valley shoppers to the outlet mall near Grove City, Pa., and elsewhere in that state largely because Pennsylvania has no sales tax on clothing, he noted. More people crossing the state line to shop means less revenue for Ohio, Johnson added.
In addition, the initiative would let more people keep their jobs and would create a greater number of retail positions, he explained.
Despite the tough economy, this is the right time for such an initiative, in part because it will encourage more spending, which will help jump-start the economy, Johnson said.
“Everybody wins with this incentive,” he said, adding that 16 states have enacted similar measures.
For more information, go to www.OhioSalesTaxReform.org.
Also Wednesday, Bacon introduced the measure at the Statehouse.
He said the break would cover clothing purchases up to $250, school supplies up to $150, sports equipment up to $250, computers up to $3,500, and software and related items up to $3,500.
“What we find is when you do offer a little incentive, it does increase sales,” Bacon said. “The retail merchants will tell you that. Also, when you have more activity in the store, people will buy other items. A retail person will tell you that the more traffic you have in a store, that will in turn produce more sales.”
Tax-holiday legislation has been introduced at the Statehouse in past years, but the bills have not gained enough support to pass.
John Kohlstrand, a spokesman for the Ohio Department of Taxation, said his agency will review the legislation. But he said sales- tax holidays generally lead to decreased state revenues.
Ohio already is facing declines in tax collections. Sales tax revenues decreased to $7.1 billion in fiscal 2009 from $7.6 billion a year earlier, Kohlstrand said.
XCONTRIBUTOR: Marc Kovac, Vindicator Columbus correspondent