COLUMBUS -- State Representative Gary Scherer (R-Circleville) today applauded the House's passage of legislation that would help produce further income tax cuts for Ohioans.
House Bill 23 includes three key provisions. First, it establishes that any increased sales tax revenue received by the state if and when Congress passes the Marketplace Fairness Act (MFA) will be credited to the Income Tax Relief Fund (ITRF), which is then returned to the taxpayers. The MFA is currently being considered by Congress and would compel online retailers to collect tax on all online sales and distribute it to state and local governments.
"I am heavily involved in the issue of the Marketplace Fairness Act through my work on the National Streamlined Sales Tax Governing Board," Scherer said. "As we work with our friends in Congress, I am hopeful that they will pass this legislation so Ohioans can benefit from a decrease in income tax and an increase in local government revenue."
The second provision of the legislation directs revenues raised via the lease and production of oil and natural gas on state-owned lands into various funds. One-third of this income is directed to the ITRF for cutting income taxes on Ohioans; one-third goes to a new Local Royalty Fund to provide funding for local government bodies in which the leased parcels of land are located for the use of capital improvements; and one-third goes to funds in which nearly all such funds are collected, which largely go toward paying capital costs and renovations and repairs.
Finally, HB 23 lays the groundwork to secure future permanent cuts to the state's income tax. Every six months, the Director of the Office of Budget and Management would inform the General Assembly as to when ITRF funds could be converted to permanent income tax cuts by legislative action.
The bill now heads to the Ohio Senate for further consideration.