BEFORE THE HOUSE WAYS & MEANS COMMITTEE
Proponent Testimony on HB 222
Thursday – May 31, 2001

Madam Chairman and Members of the Committee,
My name is Daniel Navin and I am the director of taxation & public finance for the Ohio Chamber of Commerce. I am here today to testify in support of HB 222.

Since its establishment over 100 years ago, the Ohio Chamber has worked with the state’s government leaders to make changes to our tax laws that affect existing Ohio businesses and companies looking at Ohio as a possible place to locate a new plant or other facility. Most importantly, we have emphasized that a vibrant, diverse and growing Ohio economy is the primary goal of our efforts, since a healthy business climate creates jobs and raises Ohioans’ standard of living.

The last committee to study Ohio’s tax laws was the Commission To Study the Ohio Economy and Tax Structure, which issued its final report in December 1994. That report included a number of recommendations to correct blaring deficiencies in the current tax system, as well as ensuring the tax system fits the present and expected future structure of our state’s economy.

Even though it is a mere seven years later, many of the issues cited by the 1994 study have been addressed through subsequent legislative action. Despite legislation revising the personal income tax, net worth tax, municipal income tax, public utility gross receipts and personal property taxes, and the inventory tax, among others, during the intervening years, this activity has been more piecemeal reform of problems with that particular tax. Make no mistake, those taxes and some others needed those legislative revisions, but perhaps a broader perspective or more comprehensive look at our entire tax system is now in order.

The primary concern of our organization is where our state stands competitively vis-à-vis other states, even internationally. While taxes may not always be the most important item on the list of criteria for a company looking for a place to expand, the overall state tax burden remains a critical factor in any company’s location decision. This also applies equally to existing Ohio companies who receive inquiries and/or inducements from other states.

We think a comprehensive analysis of our tax system as it relates to the state’s economic development potential and competitive position is needed and we ask for your support of HB 222.