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Gerberry seeks restoration of tax deduction for casino losses
By Marc Kovac
COLUMBUS
Gamblers could deduct casino losses up to the amount of their winnings, under legislation being considered in the Ohio House.
HB 268 was offered by state Reps. Ronald Gerberry of Austintown, D-59th, and Lou Blessing III of Colerain Township, R-29th, to reverse language included in the biennial budget bill earlier this year.
“It is clear that the removal of the gambling-loss tax deduction will continue to discourage gambling in Ohio,” Blessing told members of the House’s Ways and Means Committee. “After all, why would someone who enjoys gambling do so knowing that he or she is going to get hit with a hefty tax bill? This is basic economics: The more that something is taxed, the less it is demanded.”
HB 268, which had its first committee hearing Wednesday, would enable taxpayers to deduct wagering losses from their adjusted gross income, as is already allowed in federal tax filings.
Blessing said the deduction could be used only in cases where gamblers have comparable winnings and is not aimed at providing deductions against other income.
He used the example of a man who won $10,000, then lost $10,000. Under existing law, that individual would be on the hook for state taxes on the $10,000 in winnings; under HB 268, the losses could be deducted and eliminate the tax liability.