Note: This editorial has been updated with additional information. Our readers and advertisers should be aware that the Ohio Senate’s recently passed state budget would increase their taxes.
Republican senators, without any warning to our industry and others, inserted language removing a variety of sales tax exemptions, including for the sale of newspapers and subscriptions. This exemption has been in place since Ohio began charging a sales tax in 1935.
Things like refrigerated food vending machines and jukebox song plays would also be impacted.
Although the wording is confusing, we also believe lawmakers intend to remove an exemption on advertising in newspapers, while maintaining the exemption for all other forms of media advertising, including television, radio and digital.
Change would mean new taxes on businesses
For a state working to be “business-friendly,” it would be patently wrong to tax marketing expenses differently depending on the platform being used.
There are a host of other exemption removals for rental vehicles, sales of advertising catalogs, items needed by direct marketing vendors, printing equipment, telemarketing equipment and electronic publishing equipment to name a few.
If included in the final state budget, newspapers and other businesses would be required to begin charging sales tax, which is currently 8% in Franklin County, on Jan. 1.
We’re told the Senate added these changes to balance its budget to pay for a new 2.75 percent flat income tax that would lower taxes on those making more than $100,000. In reality, they’re simultaneously raising taxes on many businesses and newspaper readers across Ohio.
Republicans should stick to the no new taxes pledge
House and Senate lawmakers are now negotiating a final version of the budget, which must be signed by Gov. Mike DeWine by June 30.
We’re hopeful Republicans in the Ohio House of Representatives will stick by a no new taxes or fees pledge made by many representatives. While there are many Ohioans demanding property tax reform, we’re unaware of any similar concerns about the state income tax, which has been lowered many times in recent decades, including in 2023.
If these sales tax changes remain, we urge DeWine to use this line-item veto power.
This editorial was written by Dispatch Executive Editor Michael Shearer on behalf of the editorial board of The Columbus Dispatch. Editorials are fact-based assessments of issues of importance to the communities we serve. These are not the opinions of our reporting staff members, who strive for neutrality in their reporting.
This article originally appeared on The Columbus Dispatch: Senate’s proposed tax increase on newspapers, vending machines, other items bad | Our View
Reporting by Columbus Dispatch Editorial Board / The Columbus Dispatch
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