Sept. 17, 2009 – Tax commissioner pleased with
Supreme Court decision on CAT
Ohio Tax Commissioner Richard A. Levin offered this
reaction to the Ohio Supreme Court’s 6-1 decision
Ohio Grocers Association v. Levin:
I’m pleased to see that the Ohio Supreme Court
recognized that the commercial activity tax is not a
tax on the sale or purchase of food. It is, as we’ve
said, a broad-based tax that applies to all businesses
in Ohio, measured by gross receipts. This decision is
an important victory for those who are working to
improve Ohio’s business tax climate and lower the tax
burden in Ohio.
The commercial activity tax is a key part of a
sweeping, five-year effort to reform Ohio’s tax laws.
The plan includes a 21 percent cut in income tax rates,
the elimination of a tax on corporation profits and the
elimination of property taxes on business machinery,
equipment and inventory. Overall, these and other
changes enacted in 2005 mean $2.1 billion in annual tax
Had this case gone the other way, all of these changes
to Ohio’s tax laws may have been at risk.
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News media with further questions should contact John
Kohlstrand at (614) 644-3858.