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Labor Day Weekend Brings Festivities, Relaxation, And….A Tax Shift?

Thursday, August 29, 2013 at 5:02 PM

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Two big changes are coming to taxes in Ohio this weekend – the state sales tax goes up, and the state’s personal income tax goes down. Ohio Public Radio’s Karen Kasler runs the numbers.

The income tax for individuals will drop by 8.5%, while the state sales tax increases from 5.5% to 5.75%.

Tax Commissioner Joe Testa says most people won’t notice the sales tax increase unless they’re making major taxable purchases, such as buying cars. But he says even then it’s more than a wash.

“The reduction in the personal income tax is certainly going to more than offset what you would pay typically in additional tax on the quarter percent side.”

But Wendy Patton with the liberal leaning think tank Policy Matters Ohio says the income tax drop is most likely too small to be noticed - but not the sales tax increase.

“For people of low income, there’s an immediate notice of what the state’s sales tax adds to every purchase.”

And Patton says the changes make the tax code less fair.

Tags

Economy, Community/Human Interest, Government/Politics

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