Ohio Governor John Kasich (R) has released his Ohio’s Jobs Budget 2.0 which outlines major changes to the state’s tax code – including an expansion of the sales tax to advertising and other services.
Under the Governor’s plan, the sales tax, individual income tax and small business tax rates would all be reduced. Losses of revenue would be offset in large part by a broadening of the sales tax base to include a wide variety of personal and professional services, including advertising, marketing and management consulting services. The Governor is expected to formally introduce his budget during his state of the state address on February 19.
Lobbyist with ties to the advertising industry are currently gathering intelligence to try to predict how these proposals will be received in the legislature. The advertising/communications industries will be forming a coalition to strategize and coordinate the fight against the harmful and counterproductive proposal to tax advertising. I will make sure that you have the opportunity to participate in that coalition.
It is premature to launch an all-out lobbying campaign against the proposal. However, if you know a member of the legislature, it is not too soon to call and express your concern about a possible tax on advertising and ask about their feelings about the proposal.
I will continue to keep you informed as I learn more. Please do not hesitate to contact me with any information or questions you may have.
Clark Rector Executive Vice President-Government Affairs American Advertising Federation
Been trading emails all afternoon with the Exec Director of AAF Dayton, and we just may jump into this fight in a big way. Kind of exciting!
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