Have you heard about the new Ad Tax in Ohio? Well if you haven’t yet, it’s in the process of becoming law so if you are concerned that you may now have to pay a new tax you better start reading…

According to the Ohio Advertising Tax Coalition article, comprised of local AAF Chapters, the State of Ohio’s Governor John Kasich is proposing a new tax on  advertising services as part of his broad expansion of Ohio’s sales and use tax.

Of the concerns raised in the article some include:

  • An ad creates an unfair “double tax” or tax “Pyramiding”
  • Sends an anti-business signal and gives unfair advantage to out-of-state competitors
  • Creates a burden on businesses and state governments to account for billions of dollars spend on ads in a variety of mediums
  • Potentially a sales tax on advertising would result in the loss of 48,911 marketing jobs in Ohio (Source: LR Klein & IHS Global Insight, 2010).
  • Attempts to tax advertising in other states has failed

Advertising is the most economically efficient means of marketing its products and services to consumers. It’s estimated that the new ad tax would decrease sales in Ohio by $12.1 billion. Meaning less dollars for companies to invest in advertising and new regulations for agencies and media outlets.

As the Northeast Ohio Communications Advocates (NOCA) group explains, marketing communications is a significant part of the Cleveland economy and Ohio tax base. Through its impact studies it has accounted for 3,034 businesses and 44,611 professionals and nearly $5 billion to the Northeast Ohio economy.

So as this new ad tax is considered, ask yourself… should I sit back or do I call my local state representative and say – no ad tax!



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About promotionalguru

A marketing communications professional helping other marketing professionals, business leaders and marketing students gain a better understanding of trends in advertising and public relations as well as tips for being a successful marketer.

2 responses to “ADVERTISING TAX in Ohio”

  1. JSchick says :

    I think the House just put an end to this in their version release last week, but who knows what the Senate will do. Always worth a phone call, that’s why we elect these folks.

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