Ohio: Planned Sales Tax Hike Jeopardized by Wrong Tax Code
- Jul 27, 2015 | Gail Cole
A planned local sales tax rate increase in Ohio may not be able to proceed as predicted due to an incorrect tax code.
County Commissioners in Portage decided last week to raise the local rate by a quarter percent as soon as possible, in order to generate direly needed revenue for prisons and drug treatment facilities. Putting the fate of the increase into the hands of voters was discussed and rejected. Had all gone according to the commissioners’ plan, the higher rate could have taken effect as soon as October 1, 2015.
Regrettably for the commissioners, their plan had a kink. Ohio Department of Taxation. It allows local jurisdictions to impose an additional 1% sales tax, and Portage County already imposes an additional 1% sales tax.
Once the commissioners pick a code on which to base the sales tax rate increase, the matter will be discussed in a public hearing.