Ohio inks two-year budget

| Thursday, July 31, 2003

Ohio Gov. Bob Taft recently signed the state’s two-year budget, which includes a provision increasing the penalty for operating a truck with an expired fuel tax license.

The $49 billion budget bill also eliminates certain tax exemptions.

HB95 increases the International Fuel Tax Agreement suspension for failure to file from a fourth-degree misdemeanor – carrying a penalty of as much as $250 and/or 30 days in jail if convicted – to a first-degree misdemeanor, carrying a penalty up to $1,000 and/or up to six months in jail, the Ohio Trucking Association reported.

While the majority of the bill’s provisions make changes in education and human services, there were several significant tax changes.

Among the most significant is the sales tax increase from 5 percent to 6 percent. This temporary increase is set to expire in June 2005. The increase is expected to generate $1.1 billion in additional revenue in each of the next two years, The Toledo Blade reported.

Other provisions include taxing towing and certain other services. Additionally, certain delivery charges will be taxed, as well as 800 and WATS-line telephone service.

Another provision of the bill that did not pass would have endangered the sales tax exemption for motor carrier rolling stock.