MAILING ADDRESS

605 N. High St., #175, Columbus, OH 43215

CONNECT
  • Facebook Social Icon
  • Twitter Social Icon

RTA managed-care sales tax fix still needed in Ohio budget: editorial

 

Still undone as Ohio lawmakers scramble to finalize a new two-year budget before the last one expires at midnight June 30 is a fix to keep Ohio counties from losing millions and to avoid a devastating revenue loss for sales-tax-aided transit systems such as the Greater Cleveland Regional Transit Authority.

 

The issue concerns sales taxes on Medicaid managed-care organizations.

 

The federal government has decreed Ohio can no longer impose those taxes after June 30. The budget proposed by Gov. John Kasich included a partial fix to keep state revenues intact and allow a little interim funding for counties -- but a fuller resolution is needed. At stake, according to budget testimony, is $18 million annually for RTA and $30 million for Cuyahoga County -- about 7 percent of the county's general fund -- with tens of millions more for other counties.

 

Luckily, state Sen. Matt Dolan, a Chagrin Falls Republican, has been pushing a solution.

 

And while the exact contours of a fix aren't yet resolved, a Senate budget amendment Dolan sponsored that the Senate approved Wednesday will let debate on the issue continue in the House-Senate conference committee that must hammer out final compromises on the budget in coming days.

 

To replace the sales tax, the budget bill -- House Bill 49 -- would levy a franchise fee on heath insuring corporation plans, producing $615 million a year for the state. But counties and transit systems don't charge franchise fees. Apart from some interim revenue-sharing, they'd be out in the cold.

Dolan is working on a permanent solution. That, not a one-time Band-Aid, is what counties and transit systems need. This issue must get the conference committee's full attention

 

 

Share on Facebook
Share on Twitter
Please reload

Featured Posts

Time to say thanks to Ohio House members for overriding veto of MCO sales tax fix and turn our attention to the Senate

July 7, 2017

1/6
Please reload

Recent Posts
Please reload

Archive
Please reload

Follow Us
  • Facebook Basic Square
  • Twitter Basic Square
  • Google+ Basic Square