YOUNGSTOWN, Ohio – Limousine operators in Ohio now have to collect a new sales tax on their services.
In an effort to decrease Ohio’s state budget deficit, Gov. Bob Taft added a permanent sales tax of 6% on a variety of services that were previously untaxed, including limousine and taxi services.
In addition, 87 of Ohio’s 88 counties have tacked on an additional local tax of 0.5 to 1.5%, making the new sales tax as high as 7.5% in some areas.
“It does hurt [business] a little bit because people are thinking you are ripping them off now. ‘[They say], ‘Last month we didn’t pay any tax so what’s going on now?’” said Tom Hirt, vice president of the Ohio Valley Limo Association and owner of Youngstown-based Legend Limousine Services.
“People may grumble initially,” Lori Stevenson, co-owner of Marion-based Black Tie Enterprises told The Cincinnati Enquirer. “But, like with most taxes, either they’re going to get used to it or vote it down eventually.”
All members of the Ohio Valley Limo Association were charging the tax, “adding the percentage on each bill,” Hirt said.
Yet it may be awhile before the state can track down every business that’s subject to the tax, The Cincinnati Enquirer reported.
The new tax was expected to bring in $62 million this fiscal year.