Dec. 5, 2012
May 16, 2012(Key vote)
Title: Repeals the Corporate Franchise Tax
Vote Smart's Synopsis:
Vote to pass a bill that establishes the financial activities tax in place of the current corporate franchise tax.
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).