Ohio Society of CPAs wins big on elimination of CAT carveout.

• Author: Johnson, Bruce
• Position: Capitol access - Certified public accountants, commercial activity tax

The Ohio Society scored a major legislative victory by securing the removal of a provision contained in Ohio's transportation budget that would have narrowed the commercial activity tax (CAT) base. Sincere thanks go to House and Senate loaders--particularly Senate President Bill Harris and House Speaker Jon Husted--for protecting the integrity of this new tax

Prior to approving the state's comprehensive budget for Ohio transportation and highway purposes (Am. Sub. HB 67), The Ohio Society successfully lobbied the Senate Highways and Transportation Committee to remove a House-passed provision that earmarks nearly $150 million in CAT revenues into a fund for high-way use instead of the general revenue fund. That revenue would not have been included in the "CAT revenue" total used to determine CAT rate adjustment.

A majority of House conferees agreed to the Society-backed Senate CAT changes. In addition, the conference committee approved language removing the ability of the tax commissioner to raise the CAT rate should revenues be more than 10% lower than budgeted.

It is possible the issue of motor fuel taxation may surface again during deliberations of HB 119, the state's operating budget. As originally proposed by Governor Strickland, H B 119 allows a temporary CAT exemption related to motor fuel sales to expire July 1, with revenue going to the general revenue fund.

The Society has consistently opposed any efforts to narrow the tax base of the CAT--including earmarks credits and exemptions--to ensure it remains a low rate.

For more information, contact Amy Mignogna at amignogna@ohio-cpa.com or 800.686.2727, ext. 362.

Ohio tort reform laws challenged in courts

As expected, several provisions in recently enacted Ohio tort reform laws are now being challenged in a variety of Ohio courts. Several different pieces of legislation, strongly backed by The Ohio Society, have been enacted in recent years. Pending cases include:

* Arbino v. Johnson & Johnson

Oral arguments will occur before the Ohio Supreme Court on May 1. This case is challenging the constitutionality of the non-economic damages limitation in ORC 2315.18; the collateral source provision in ORC 2315.20; and the punitive damages limitations included in ORC 2315.21 from SB 80. The Ohio Society participated in an amicus brief filed with the Court supporting defense of the provisions.

* Groch v. General Motors Corp.

Briefs were to be filed with the Ohio Supreme Court by April 17. This...