Ohio Tax Reform
Ohio is implementing a tax reform to help business located in the state to have a more competitive edge in the global economy. The reform made changes to state and local taxes and will create full impact in 2010, which will reduce operating costs with the lowest taxes in the Midwest.
Ohio's tax reform:
- Phases out corporate income tax
- Eliminates tax on inventory and equipment and machinery investments
- Has a substantially lower personal income tax, reduced by 21 percent
- Exempts sales outside the state from taxation
- Exempts the first $1 million in annual gross receipts
Ohio further protects business interests through recent tort reform limiting liability.
Ohio's tort reform:
- Caps emotional damage
- Limits punitive damages
- Increases liability protection
Coupled with reform maximizing corporate profits, Ohio also offers
attractive development incentives at all levels of government that can make the state even more appealing to business investors. These incentives can even further lower Ohio’s competitive tax rates, facilitating the best possible return on investment during the critical first years of a business location or expansion project.
The state has created a report that reviews Year 2 of the reform. The report includes the benefits for businesses and industry specific impacts that the reform has had. In addition, the report compares the taxes of Ohio to other states nearby and across the nation. Click the image bellow to view the report.
