Southeastern Ohio Port Authority
Where the Pioneering Spirit LivesOperating Costs

Tax Reforms

In 2005, Ohio enacted sweeping tax reforms:

Courthouse
  • Phasing out the Corporate Franchise Tax.
  • Phasing out Tangible Personal Property tax.
  • Reducing Personal Income taxes by 21%.
  • Instituting the Commercial Activity Tax, a low-rate, broad-based tax on gross receipts from sales “inside” Ohio. The first $1 million in sales are exempt. Sales outside of Ohio are also exempt. At full phase in, the rate is .0026 of gross receipts, or $2.60 per $1,000 of sales in Ohio.

Under Ohio’s new tax code, the effective tax rate on new investments has been lowered from the Third Highest to the Third Lowest among the 10 states Ohio most frequently competes against. In fact, the Ohio Business Roundtable calls Ohio’s reformed tax system “one of the most business-friendly tax codes in the country.” Learn more and see a comparison chart by reading “A Business Leader’s Guide to Ohio Tax Reform,"  or go to www.ohiomeansbusiness.com to see an example of the savings.