Signed by Governor John Kasich

Vote Smart's Synopsis:

Vote to pass a bill that establishes the financial activities tax in place of the current corporate franchise tax.

Highlights:

• Establishes the financial activities tax for financial institutions that do business in the state to be the greater of the following (Sec. 1):
• At least $1,000; or
• The product of the total Ohio equity capital of the financial institution multiplied by the following:
• $0.008 for each dollar of the first $200 million of equity capital;
• $0.004 for each dollar of total equity capital greater than $200 million and less than $1.3 billion; and
• $0.0025 for each dollar of total equity capital above $1.3 billion.

• Exempts financial institutions from the corporate franchise tax (Sec. 1).

• Repeals the tax on dealers in intangibles, effective January 1, 2014 (Sec. 1). 

• Requires dealers in intangibles to pay the commercial activity tax, effective January 1, 2014 (Sec. 1).

• Requires the Tax Commissioner to decrease each tax rate provided in this bill by the percentage of state revenue collected from the tax provisions established in this bill over $200 million (Sec.1).

• Requires the Tax Commissioner to increase the tax rate on Ohio equity capital above $1.3 billion if the total amount of taxes collected by the provisions of this bill is less than 90 percent of $200 million (Sec. 1).

• Requires the real estate of a financial institution or dealer in intangibles to be taxed in the place where it is located (Sec. 1).

Full Bill Text