Kasich Tax Structure Proposal Could Cause Hike In Everything From Dog Grooming, Music Downloads


UPDATED: Thursday February 7, 2013 7:24 PM

Gov. John Kasich is trying to change the tax structure, but the plan already is running into a giant political buzz saw.

“Wow” is the word realtor Sue Lusk-Gleich used to describe Kasich’s proposed budget.

She said that if the proposal is approved, it would increase consumer real estate fees on everything from the termite report to home inspections to contractors.

“I think the timing of it is critical, because we’re just coming out of this really down economic time in housing,” Lusk-Gleich said.

Kasich’s proposal cuts the state sales tax from 5.5 percent to 5 percent, but it also adds new taxes on a long list of services.

“When we created the state sales tax in the 1930s, all we really thought about were goods, but the bulk of the activity of the state now is services,” Kasich said this week.

Some of the additional taxes include haircuts, dog grooming; dating services; book, movie and music downloads; Buckeye, Browns and Bengals games; Cedar Point and King’s Island visits; bowling lanes; and magazine subscriptions.

Ohio Democratic Party Chairman Chris Redfern said that the proposal taxes gets taxpayers everywhere they go.

“He gets you coming, he gets you going. He gets you in your funeral casket, he gets you when you’re born,” Redfern said.

State Republican Party Chairman Bob Bennett says the party has not officially endorsed Kasich’s budget, but supports the various tax cuts contained in it.
 
“This gives an overall $1.4 billion dollar tax reduction to taxpayers,” Bennett said.

Lusk-Gleich said that if costs rise in the world of real estate because of a new sales tax, Ohio will lose.

“If this goes through, does that make real estate in the state of Ohio less attractive to potential investors and homeowners? Lusk-Gleich said.

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The following items and services could be taxed:

Horse boarding and training

Pet grooming

Intrastate courier service

Marine towing service

Packing and crating

Refuse collection

Insurance services

Investment counseling

Loan broker fees

Property sales agents

Real estate management fees

Real estate title abstract services

Service charges of banking institutions

Tickertape reporting

Accounting

Cutting, coloring, styling of hair

Dating services

Debt counseling

Fishing and hunting guide services

Funeral services

Laundry and dry cleaning services

Legal services

Mailbox rentals

Tax return preparation

Travel agent services

Accounting & Bookkeeping

Advertising agency fee

Architectural, engineering and related services

Bail bond fees

Call center

Check & debt collection

Commercial art and graphic design

Credit information, credit bureaus

Interior design and decorating

Legal services

Lobbying and consulting

Magazine subscriptions

Management consultant services

Marketing

Packing and crating

Process server fees

Sales of advertising time or space

Billboards

Magazines

Radio & television, local advertising

Public relations consulting

Secretarial and court reporting services

Telemarketing services on contract

Telephone answering service

Test Laboratories (excluding medical)

Travel agent services

Software – custom programs – programming

Software – modifications to pre-written program

Books – Downloaded

Movies/Digital Video – Downloaded

Music – Download

Other Electronic Goods – Downloaded

Parking lots & garages

Admission to cultural events

Admission to professional sports events

Admission to school and college sports events

Amusement park admission & rides

Billiard parlors

Bowling alleys

Cable TV services

Circuses and fairs – admission and games

Coin operated video games

Pari-mutuel racing events

Pinball and other mechanical amusements

Rental of films and tapes by theaters

Accounting and booking

Architects

Attorneys

Credit Rating service

Engineers

Land surveying

Public Relations

Sound recording

Stenographic services

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