Thursday, November 04, 1999
Sales-tax holiday gives counties no joy
Hamilton Co. could lose $1M a year
BY DAN KLEPAL
The Cincinnati Enquirer
COLUMBUS — A lawmaker wants to give shoppers a present early next year: A two-week holiday from paying Ohio sales tax on clothing and shoes.
County governments around Ohio say the measure would be no present for them — more like a lump of coal.
The sales-tax holiday, which would be granted during the third week of August and the third week of January, could end up costing Ohio $50 million every year, according to the Ohio Department of Taxation.
In Hamilton County, which uses a half-percent of the sales tax for its general fund and another half-percent for stadium bonds, the sales tax holiday would drain about $1 million.
Hamilton County Commissioner John Dowlin said the proposal isn't a good idea in a county and state that has gone into debt and is counting on sales tax revenue to pay the bills.
“What will we get for this?” Mr. Dowlin asked. “Will the state make up to us what they have taken away? This may be good for business, but it's bad for the county.”
The bill, introduced by Rep. John R. Willamowski, R-Lima, is in the House Ways and Means Committee.
The soonest it could be voted on in the House is January, meaning the measure could take effect no sooner than August 2000.
Mr. Willamowski said the bill aims to give a break to families buying back-to-school clothing, and lure shoppers from Kentucky, Indiana and West Virgina.
States such as New York, New Jersey and Rhode Island have similar sales-tax holidays.
“It will reduce the tax burden on everyday folks,” Mr. Willamowski said.
Ohio Senate President Richard Finan, R-Evendale, has questions about the proposal's practicality and impact.
“It's a complicated thing for business to do.”
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