Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

CU System
Ohio League Applauds Removal Of Sales Tax Expansion From Bill
COLUMBUS, Ohio (4/12/13)--The Ohio House Finance and Appropriations Committee this week released a substitute budget bill that removed the state sales tax overhaul proposed by Gov. John Kasich.

"We are glad they realized the burden that expanding the sales tax would not only put on credit unions, but on others in the state as well," said John Kozlowski, general counsel for the Ohio Credit Union League, told News Now Thursday.

Kasich's biennium budget would have expanded the products and services subject to sales tax and lowered the overall sales tax rate to 5% from 5.5% (Toledo Blade April 10.)

Sub Bill 59 would kill the plan to expand the sales tax base to professional services and would keep state sales tax rate at 5.5%. The tax proposal still includes an "immediate and permanent" 7% income tax reduction.

Under the tax expansion proposed by the governor, all credit unions that provide or charge fees for services would have been required to collect and remit sales taxes for some services they provide to members.  These include "bank service fees," debt counseling, investment services, and sale of amusement park tickets and entertainment books.  Credit unions would also have been considered "vendors" and would have been required to obtain a vendor's license, plus collect and remit sales taxes to the state for these services. 

"They are still not done in the tax area," John Kozlowski said of the state lawmakers. "We still have to be vigilant as we go forward."

The Ohio House is expected to vote on a final bill next week, Kozlowski said.  The Senate begins hearings next week, with a vote to follow, possibly in two weeks, he added.


RSS print
News Now LiveWire
St. Louis treasurer taps #creditunion to serve unbanked #NewsNow http://t.co/lWtcezJOej
11 hours ago
.@CUNAMutualGroup has committed $35K to @trustdotcoop over the next year to suppor the future of #creditunions.
12 hours ago
.@madison_mag gets the cooperative scoop from @SummitDoMore's @kimsponem http://t.co/RxSCeSegie
12 hours ago
.@VantageWestCU emeritus chairman Whittaker inducted into @DCUC_HQ Hall of Fame http://t.co/dpeP4ME49U
14 hours ago
Australian newspaper covers Gen Y tips from @ServusCU at @WOCCU conference http://t.co/xqmLfZVwaI
15 hours ago