In 2004, with the formation of the Greater Cleveland Partnership, Cleveland was declared “on the edge.” Three economic development organizations merged to form the GCP in an effort to create efficiencies (reduce redundancies) and focus the resources of the business community on the serious issues confronting the region.
One of the major issues cited in the strategic plan that was created to guide the new Greater Cleveland Partnership was the tax burden on the citizens of the region. While Ohioans enjoy a low cost of living, tax reform was one of the first areas where the GCP achieved success.
Joining with the Ohio Business Roundtable, the Greater Cleveland Partnership advocated for sweeping reform of Ohio’s business tax structure. In late 2005, Governor Taft signed the Commercial Activity Tax (CAT) into law. This reform–the first in 75 years—ushered in a modernized tax code in Ohio that not only provided relief for Ohioans, but also created incentives to business growth and job creation. In October 2006, the Ohio Business Roundtable did one year in review. The Ernst and Young analysis found that the tax reform, which is being phased in over a few years, is working.
According to the report:
“By using the tax burden ration to compare Ohio with other benchmark states, Ohio will have the 13th lowest tax burden among all 50 states after the changes are completely phased in.”
Details about the CAT can be found here.
Amanda Marko
Greater Cleveland Partnership
