March 12, 2008 - State Tax Burden
Falls to 38th in the Nation
COLUMBUS, Ohio - The state tax burden in
Ohio fell to 38th in the nation last year when ranked on a
per capita basis, according to a new report.
The new ranking, published by the Federation of Tax
Administrators last week, represents a marked decline from
2005, when Ohio’s per capita state tax burden ranked 27th.
Ohio Tax Commissioner Richard A. Levin said the falling
ranking is an unmistakable result of the tax cuts enacted by
the Ohio General Assembly in 2005 and embraced by Governor
“These tax reforms are clearly having an impact, and we are
seeing that impact in these new numbers,” Levin said. “Most
states have a higher state tax burden than we do.”
The FTA report also shows that Ohio’s per capita state tax
burden is now lower than any of its neighboring states.
Indiana, at 35th, was nearest to Ohio, according to the FTA
Ohio’s five-year tax reform includes a 21 percent cut in
state income tax rates and the elimination of the corporation
franchise tax in favor of a commercial activity tax with a
low rate and a broad base. It also includes the elimination
of the tangible personal property tax, Ohio’s largest local
The Federation of Tax Administrators, an association of the
nation’s state tax agencies, developed its comparison of
state tax burdens based on data from the U.S. Census Bureau.
The new FTA analysis, for 2007, only compares state tax
burdens; the organization’s last analysis of state and local
tax burdens was for 2005, before Ohio’s tax reform package
began taking effect.
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Note: Tables showing how the state tax
burden in Ohio compares to other states are available at:
Ohio's state tax burden March 2008
The original FTA analysis is available at http://www.taxadmin.org/fta/rate/burden.html