The legislature put its final seal of approval on the state’s biennium budget this week, voting the bill out of both chambers. The details of the $62 billion spending plan will now be reviewed by Governor John Kasich who may exercise line item veto authority on the measure.
The conference committee members did not reduce the Commercial Activity Tax annual exclusion amount from $1 million to $500,000, as previously announced. Instead, the 0.26 percent tax rate for receipts more than $1 million stays intact and the following new minimum tax payments were established:
- $800 for businesses with receipts from $1 million to $2 million
- $2,100 for businesses with receipts between $2 million and $4 million
- $2,600 for receipts of more than $4 million
The budget includes a 10 percent phased-in income tax cut over the next three years and allows small businesses to realize a 50 percent cut on the first $250,000 of net business income. The budget contains a $717 million increase in spending on primary and secondary education and imposes a two percent cap on tuition increases at public universities.
“This budget is all about increasing opportunity, growing our economy and making sure that all Ohioans are able to find work,” said Finance Chairman Scott Oelslager (R-North Canton).
The legislature is not expected to reconvene until this fall. The governor must make any vetos and sign the bill into law by June 30, 2013.