Menu

OFBF has succeeded in reducing the number of small family farms impacted by a proposed state commercial activity tax (CAT).

The CAT is part of Gov. Bob Taft’s sweeping tax and budget reform proposals, which aim to make it more attractive to do business in Ohio and make the state more fiscally responsible. Farm Bureau research indicates that all Ohio farmers would benefit from Taft’s proposed 21 percent across the board reduction in income taxes.

On June 2, the Senate passed its version of the biennial budget, which included Sen. Ron Amstutz’s amendment for the CAT, also known as a gross receipts tax. As originally proposed, the CAT would levy .26 percent on all annual sales of $1 million or more and those with sales of between $40,000 and $1 million would pay a $100 fee.

Farm Bureau felt the $40,000 threshold was too low and sought to raise it. The version passed by the Senate proposed that Ohioans who have annual sales of between $200,001 and $1 million pay a $175 fee. Those with under $200,000 in sales would not pay anything.

"The good news is that most family farms and agribusinesses are exempt from paying the tax," said Rocky Black, OFBF’s director of legislative affairs.

Black praised Amstutz, R-Wooster, for listening to Farm Bureau’s concerns and proposing the CAT changes. Black was optimistic that the current CAT proposal would not change before Taft signs the budget, which has to be done by July 1.

"If things stay on track, we came out very well," Black said. "Ron Amstutz was the quarterback who got the CAT amendment in the Senate bill."