Thursday, October 04, 2001
Tax break for business pondered
Gannett Columbus Bureau
COLUMBUS Ohio lawmakers want to help more businesses get started, but some are not sure the state can afford it.
An economic development bill offers a variety of tax incentives designed to help new Ohio businesses and help major employers retain jobs.
While no one is questioning the motives of the bill it passed the House 98-0 Wednesday some wonder if the state budget can take another hit.
Much of that concern is coming from the Senate, which should soon begin hearings on the measure.
There are a lot of good things in the legislation, but we have to be cognizant that we can't sign onto anything that is going to be cost-prohibitive, said Sen. Jay Hottinger, R-Newark, a member of the Senate Finance Committee.
Ohio, under the bill, would lose an estimated $20 million in revenue next fiscal year, and up to $24 million in each of the following years. Plus, implementing the new tax credits would cost an estimated $16 million per year.
This comes at a time when lawmakers are scrambling to deal with a $1 billion revenue shortfall and a Supreme Court order requiring another $2.4 billion in education spending.
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