Ohio Supreme Court to decide grocery tax
Who will prevail? The Governor or the Ohio Grocers Association? That’s at the basis of the decision facing the Ohio Supreme Court, Blade coverage which in part points out:
Under then-Gov. Bob Taft in 2005, the Republican-controlled General Assembly, with a single Democratic vote, approved a tax reform plan that is gradually being phased in over five years.
In addition to decreasing personal income taxes by 21 percent, the plan replaces an unpopular tax on business inventory, machinery, equipment, and furniture and a loophole-laden tax on corporate profits with a new tax on business gross receipts.Unlike the sales tax, which consumers pay at the cash register, the CAT is paid by the business on all of its receipts, including money earned from food sales.
The constitution bars taxing food for take-out.
The district appellate court determined there wasn’t enough of a distinction between the two forms of taxation.
Ironically, that puts the Strickland administration in the position of defending the tax when his fellow Democrats voiced the same argument advanced by the grocers in 2005.
Two recommended posts that provide background information, Tax Law Center and Bricker & Eckler LLP. I also recommend reading the ruling from the 10th Appellate District.
