OHIO CHAMBER RELEASES TAX BENCHMARKING STUDY In a press conference at the Ohio Chamber offices on July 23, the Ohio Chamber announced the recommendations formed from its recent tax benchmarking study. The study, “Ohio Tax Benchmarking Analysis: A Deep Dive into Ohio's Tax Competitiveness” was carried out by the Ohio Chamber of Commerce Research Foundation in partnership with EY. The study serves as a comprehensive analysis of Ohio’s tax landscape, and it provides a detailed comparison of Ohio’s state and local taxes with those of six peer states: Indiana, Michigan, Minnesota, Georgia, North Carolina and Texas. “We are presenting this study’s recommendations to help Ohioans better understand our state’s tax landscape and to suggest tax reforms that would benefit the business community,” said Ohio Chamber President & CEO Steve Stivers. “With these findings in mind, we will continue to work with policymakers to create a tax environment that supports economic growth and competitiveness for all Ohioans.” Among its key findings, the study found that Ohio’s economy is strong — its Gross State Product (GSP) ranks third highest among its peer states. Additionally, Ohio’s combined state and local tax burden is moderate compared to peer states. However, Ohio’s local taxes are among the highest in the nation, with property and local income taxes being the key drivers. The Ohio Chamber recommends that policymakers pursue uniformity of tax rates and tax filing requirements to reduce the complexity and compliance burden of municipal income tax. Ohio has over 800 local taxing jurisdictions, and Ohio businesses struggle to navigate this complicated system. The Chamber believes that policymakers should support efforts to standardize filing requirements and rates and improve overall processes. The Chamber also suggests addressing municipal workplace vs. residence tax withholding, as this creates an administrative burden for employers. Given the rise of remote and hybrid work, businesses need clarity and certainty on meeting their tax obligations at the municipal level. Overall, the Chamber’s goal is to encourage uniformity and rate reductions among jurisdictions, ease complexity and reduce withholding amounts and compliance costs, create less complexity and provide simplicity in tax code, and reduce the overall tax burden. The full study can be downloaded here.
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