Use current location
Better than expected tax revenues provided the General Assembly with the means to further reduce Ohio personal income tax rates by 3% via the biennial budget bill, House Bill 110, signed by the Governor on June 30. The rate reduction will take effect beginning with tax year 2021.
The additional revenue is largely the result of Ohio’s 2019 law requiring online sellers to collect and remit sales and use tax, which was enabled by the US Supreme Court’s 2018 Wayfair decision.
The legislature also saw fit to eliminate the highest tax bracket and to reduce the tax rate of the new highest bracket to 3.99%. Additionally, they raised the income threshold for the lowest tax bracket from $22,150 to $25,000, increasing the number of Ohioans who will not owe state income tax. These changes are also effective starting with tax year 2021.
Another welcome tax change included in the bill is the exemption from sales tax on employment services, also known as temporary and placement services. This burdensome tax unique to Ohio has been in place for nearly 30 years, increasing every time the legislature raised the state sales tax rate. This tax change will become effective on October 1, 2021.
We are pleased to the report that the budget bill as signed by the Governor includes an appropriation of $20.5 million for industry-recognized credentials made available for high school students. The OTAA has been a strong advocate for investment in Ohio’s workforce as the labor market continues to tighten. Industry-recognized credentials, which include many automotive-related certifications, are crucial for preparing our students for the jobs of today and the future. We thank the General Assembly, Governor DeWine and Lt. Governor Husted for making this significant investment, which will undoubtedly benefit Ohio’s students and businesses.
The business community received welcome news late last week as the House and Senate reached an agreement to use a portion of funds from the American Rescue Plan to pay off Ohio’s over $1.5 billion unemployment compensation debt. At the height of the pandemic, the state system hit a zero balance. As a result, Ohio borrowed funds from the federal government to maintain the payment of benefits to the high number of unemployed workers. Without the recent action to pay off this debt, Ohio businesses would have been faced with substantial unemployment tax increases. The OTAA greatly appreciates the efforts of the General Assembly, Governor DeWine and Lt. Governor Husted who made it a collective priority to address this issue.
FOR IMMEDIATE RELEASE:May 2, 2022
OTAA Backs Legislation Aimed at Curtailing Theft of Catalytic Converters OTAA Board Member John Marshall Recently Provided Proponent Testimony for HB 408
For more information, contact Alex Boehnke[email protected]937-623-2073
COLUMBUS, OH – The Ohio Tire & Automotive Association (OTAA) recently announced that its board voted unanimously to endorse House Bill 408, legislation which seeks to add additional proof of ownership requirements for transactions involving catalytic converters at scrap metal facilities. The legislation is an effort to cut down on the rampant theft of catalytic converters, which often can be sold for quick cash by criminals peddling these valuable parts to scrap metal dealers.
“The OTAA is proud to support this legislation,” stated OTAA President Jeff Wallick of K&M Tire. “The impact of these thefts is felt across our industry. OTAA members have seen a dramatic increase in cases where these parts are stolen off their fleet vehicles and even more unfortunate, their customers are increasingly falling victim to these crimes.”
OTAA board member John Marshall of Grismer Tire Company recently testified in support of the measure in front of the House Criminal Justice Committee. “The catalytic converter is one of the most valuable parts on a car. It contains precious metals that have rapidly increased in value and, due to inflation and the ongoing conflict in Ukraine, that value will only continue to increase,” stated Mr. Marshall. “House Bill 408 would put in place additional guardrails that require scrap metal dealers to stipulate proof of ownership when individuals are seeking to sell a catalytic converter. We feel this is a commonsense approach to overseeing these transactions. Simply by requiring this proof of ownership, which reputable business are happy to provide, we can dramatically curtail the ability of criminals to access quick cash.”
According to the National Insurance Crime Bureau, the number of catalytic converter thefts reported in claims to insurance companies jumped from 3,389 in 2019 to 14,433 in 2020. The average cost of replacing a catalytic converter is between $1,300 and $2,000 dollars.
House Bill 408, sponsored by Representative Bob Young (R-Green), has currently received two hearings in the House Criminal Justice Committee. In addition to OTAA’s formal support, the legislation has the support of various law enforcement agencies, Attorney General Dave Yost, the Ohio Prosecuting Attorneys Association, and the Ohio Automobile Dealers Association. To become law, HB 408 would need to be passed by the House and undergo a similar process in the Senate before being signed by the Governor. The OTAA will continue to work to advance this priority legislation and keep members updated.
[1] Police take down catalytic converter theft ring operating in central Ohio. Landers, K. The Associated Press (March 29, 2022) Retrieved April 5, 2022 from https://www.10tv.com/article/news/crime/catalytic-converter-theft-ring-central-ohio/530-2951fd3b-e612-4c26-b294-30527cd55c91
The Ohio Tire & Automotive Association, or OTAA, is a statewide trade association representing the interests of Ohio tire and automotive dealers, their suppliers, and other members of Ohio's tire industry.
Please click anywhere to continue browsing our site.