Ohio Faces Tax Issues On 3 Fronts
Ohio's revenue stream, an initiative to repeal the temporary sales tax increase, and legislative-initiated "tax reforms" have the potential to affect credit unions in 2004 as the state of Ohio looks for new or expanded revenue opportunities.
In the current biennial budget, the General Assembly addressed a projected $4 billion budget deficit by enacting a temporary 1% sales tax increase to raise revenue by almost $2.6 billion. To date, revenue shortfall is about $100 million. However efforts are currently underway to repeal the temporary sales tax and, if successful, would result in a projected $1.3-billion budget shortfall. The General Assembly is also discussing tax reform with one prevalent theme: "lower the tax and broaden the base."
While each of these issues could lead the state legislature to look for alternative sources of revenue, the combination of the three will require extraordinary time and effort to represent and protect the interests of credit unions and their members. How these issues are best addressed will be based on the circumstances and intentions dictated by those parties most affected.