Advertising Tax Mulled In Ohio, Minnesota
February 8, 2013 at 4:24 AM (PT)
Advertising faces new taxes in OHIO and MINNESOTA under budget plans proposed by the states' governors.
OHIO Governor JOHN KASICH's budget proposal to lower taxes accomplishes its goal in part by extending the lowered sales tax to services not presently subject to sales tax, including advertising. The proposal reduces the state sales tax from 5.5% to 5% but adds services like advertising, legal work, and other previously exempt items, although health care, insurance premiums, utilities, residential rents, education, and construction remain exempt. The change requires approval by the OHIO General Assembly and could be in place by SEPTEMBER if approved.
Meanwhile, MINNESOTA Governor MARK DAYTON's plan to raise taxes to increase state revenue includes extending the sales tax to advertising agencies, PR firms, lawyers, accountants, marketers, and IT companies. The sales tax rate in MINNESOTA is 5.5%.