72 services taxed under Kasich budget – how they stack up

Only four states have a tax system that presumes all services are taxed with certain named exceptions. Governor Kasich’s current plan — contained in his FY 2014-2015 budget — to tax services would make Ohio just the fifth.

The proposal would subject 72 broad categories of services to additional taxation by the state and local taxing authorities.

We looked at sales taxes on services in all 50 states and the District of Columbia and found that the Governor’s proposal will put Ohio among a small group of states that tax certain services, including:

  • Haircuts are taxable in only seven states.
  • Just seven states charge a tax on debt counseling.
  • Advertising sales (radio, print and television) is taxable in only four states.
  • Bail bonds are subject to sales taxes in just four states.
  • Just three states subject service charges of banking institutions to sales taxes.
  • Only five states tax accounting, architectural, engineering and legal services.
  • Six states tax investment counseling and tax preparation services.

Here’s our chart looking at the taxability of 72 broad categories of services that the Kasich budget would make taxable.

(crossposted from our sister organization, Innovation Ohio Education Fund)