 |
State Representative Jim Buchy...
Removing the Chains
and Shackles of Taxes in the Budget
Balancing an $8 billion budget was a difficult process, but balancing
it without tax increases was something many doubters did not believe
could happen. When the budget became law it actually included
changes to tax policy that lower taxes and provide opportunities for
Ohio’s citizens to pay their back taxes without penalty.
Tax increases stifle the growth of business and put a damper on any
chance of economic recovery. The policy changes in this budget
will encourage businessmen to invest in their business and create
jobs. It will also encourage economic activity in Ohio. The
budget eliminated the estate tax, created two tax amnesty periods, and
if the state is conducting an audit on individuals or businesses, the
state will be responsible to refund any overpayment of tax for the same
period they are conducting the audit.
The elimination of the estate tax is aimed at helping families, small
businesses, and farmers across Ohio who currently pay this unfair
double-tax. The existing law only allowed for the first
$338,333to be exempt from taxation. If you include specific
exemptions only in place for farmers there could be up to $1.5 million
of an estate exempt. In House District 77, farmers who own more
than 357 acres of farm land with no buildings, homes, equipment or
livestock are subject to the estate tax even with the most exemptions
possible for farmers. Only 30 states have an estate tax in place
and of those 30, the average exemption is $1.7 million. In Ohio,
the tax will not be eliminated until 2013 so that local governments
have ample time to prepare for the loss of this revenue source.
This elimination is a commonsense move that will provide Ohioans the
opportunity to maintain family businesses and pass them from generation
to generation without fear of the double-tax that has caused many
businesses to change hands.
This general assembly has been focused on bringing jobs to Ohio.
The fear of the unknown is often a deterrent to investment. The
budget includes two amnesty programs that will allow Ohioans to be sure
they have paid all their taxes and it will remove the threat of an
audit returning a large tax bill in the future. There will be a
three month general amnesty program that welcomes Ohioans to come
forward in 2012 to pay back taxes and ensure their tax responsibility
is met.
In addition, Senator Faber and I worked closely to get two more
features in the budget. A use tax amnesty program and equal look
back on audits for citizens and the government, were both the result of
two separate calls that came from people in the district. Use tax
is a tax on goods that should have been charged sales tax but for
whatever reason sales tax was not collected at the time of sale.
The Ohio Department of Taxation reports that 96 percent of audits turn
up unpaid or underpaid use tax. The potential of future audits on
use tax would have hampered economic growth in Ohio’s business
sector. An opportunity for amnesty will take place from
October 1, 2011 through May 31, 2013. During this period
businesses will receive notice from the Ohio Department of Taxation
with further details about the opportunity to take part in the amnesty
program. If businesses or citizens are subject to an audit in the
future, they will be able to receive payment from the government for
taxes that they overpaid for the same look-back period as the tax
department is auditing them. This is established by a provision
of the bill that redefined the look-back period for audits. These
commonsense approaches will benefit Ohioans.
I supported Governor Kasich’s budget because it accomplished many of
the goals supported by the people who elected the governor and my
colleagues. I was also pleased by the way this budget reels in
the size of government and promotes business and job growth in
Ohio. These changes in the Ohio tax structure, along with other
tax changes, will make a huge impact in Ohio moving forward.
|
