Governor John Kasich of Ohio has proposed a restructuring of the state’s sales tax, which is being called the ‘bowling tax’ in some reports. According to Ohio.com on Feb. 18, the following are among the new items that would be taxable under the proposal.
Listed alphabetically by commodity:
“Admission and amusements
Admission and games at circuses and fairs, amusement park admissions and rides, billiard parlors, bowling alleys, cable TV services, coin-operated video games, cultural events, pari-mutuel racing, pinball and other mechanical amusements, rental of films and tapes by theaters, school sporting events – both high school and college and professional sporting events.
Parking lots and garages
Horse boarding or grooming as well as pet grooming.
Accounting and bookkeeping; advertising agency fees (not ad placement); architectural, engineering and related services; bail-bond fees; call centers; check and debt collection; commercial art/graphic design; credit information/bureaus; interior design/decorating; legal services; lobbying and consulting; magazine subscriptions; mailroom services; management consulting; marketing; packing and crating; process-server fees; sales of advertising time or space for billboards, magazines, newspapers, radio and television (local); public relations and management consulting; secretarial and court reporting; telemarketing services on contract; telephone answering service; test laboratories (nonmedical); travel-agent services.
Custom software programming; modifications to pre-written programming
Finance, insurance and real estate
Insurance services (not policies); investment counseling; loan broker fees; property sales agents; real-estate management fees; real-estate title abstract services; banking service charges; financial/ ticker-tape reporting
Downloaded books, videos, music or other electronic goods; online dating sites.
Accounting; cutting, coloring, styling of hair; dating services; debt counseling; fishing/hunting guide services; funeral services; coin-operated laundry and dry cleaning; legal services; mailbox rentals; tax-return preparation; travel-agent services
Accounting and bookkeeping; architects; attorneys; credit-rating services; data mining; engineers; land surveying; public relations; sound recording; stenographic services
Marine towing; packing/ crating
Industrial refuse collection
So what is left in the exempt category? Not much. The items not taxable under Kasich’s plan pertain to healthcare, housing, utilities and education. Some items such as music classes, tutoring, day care, bus fare, veterinary care for livestock and some industrial and mining services will not be taxed under this proposal.
The state’s actual sales tax would decrease from 5.5% to 5% under the proposed plan but with all the added taxable items, the state expects to earn an additional $1.8 billion in tax revenue per year.
On the bright side, bowlers may have a little more to spend at the bowling alleys. If the plan is approved, state income tax will also be reduced by early 20% or $2 billion per year.
Would you vote for the bowling tax?
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