State Rep. John M. Rogers (D-Mentor-On-The-Lake) today announced his recent appointment to serve as a member on the Tax Expenditure Review Committee.
“It is an honor to be chosen to serve on this committee,” said Rogers. “My colleagues and I will work together in evaluating tax deductions and exemptions to ensure they are indeed serving their intended purpose with helping the growth of Ohio’s economy through genuine efforts to create or retain jobs, rather than being exploited and giving an unfair advantage to the recipient.”
Tax expenditures are provisions that provide deductions, exemptions and credits to specific activities or groups of taxpayers. There are over 100 different tax exemptions in state law, and dozens more are proposed each year in the Ohio General Assembly.
HB 9 passed unanimously in both chambers during the 131st General Assembly, forming a committee of six legislators and the state tax commissioner who are tasked with reviewing all tax expenditures in Ohio.
According to the Ohio Revised Code, the committee will review multiple factors to determine the effectiveness of a tax expenditure, including:
- The number and classes of persons, organizations, businesses or types of industries that are benefiting from a tax expenditure
- The fiscal impact of the tax expenditure on state and local taxing authorities
- Public policy objectives that might support the tax expenditure, which include the sponsor's intent in proposing the tax expenditure, effects on economic development and growth or retention of high-wage jobs in the state, or aiding community stabilization
- Whether the objective of a tax expenditure could have been accomplished through the use of appropriations
- The extent of whether the expenditure is more expansive than intended and creates negative effects or an unfair competitive advantage for it’s recipient
- Potential negative effects on population of terminating a tax expenditure
“Tax credits have been thoroughly vetted before becoming law through the legislative process,” said Rogers. “However, I believe the legislature should thoroughly examine our state’s tax expenditure policy on a regular basis to ensure that existing credits and exemptions continue to serve for the benefit of all Ohio, as opposed to being outdated or no longer of value.”
The Tax Expenditure Review Committee is tasked with preparing a report by July 1 of every even-numbered year while in existence, detailing its findings and recommendations.