Ohio’s March tax receipts take a hit because of COVID-19

COLUMBUS — Ohio's tax revenue in March came in $159.4 million below the monthly estimate, an indication of the COVID-19 pandemic's impact on the state's economy, according to preliminary estimates from the Office of Budget and Management.

General Revenue Fund tax receipts were 10.5 percent below the original estimate.

Despite the shortage in March, the total fiscal-year-to-date tax receipts exceed the estimate by $89.5 million, or 0.5 percent. They are $362 million, or 2.2 percent, above total tax receipts during the same period last year.

"The impact of the COVID-19 global pandemic became apparent in Ohio's March General Revenue Fund receipts," OBM Director Kimberly Murnieks said in a statement.

While sales and use tax revenues for March were 8.3 percent below estimates, year-to-date sales tax receipts exceed estimates by $77.4 million, or 1 percent.

Additionally, income tax revenues for March were $22.3 million, or 5.1 percent, below estimates. OBM officials anticipate April's income tax revenues will miss previous estimates because of the decision to move the income tax filing deadline to July 15.

Gov. Mike DeWine has taken a number of steps to stem the spread of COVID-19, the disease caused by the novel coronavirus that originated in China in December, including an order for Ohio residents to stay at home except to conduct essential business.

"OBM continues to monitor economic indicators daily to manage the financial situation of state government and continue providing critical services to Ohioans," Murnieks added. "In the past weeks, Gov. DeWine instituted spending controls, including a state agency hiring freeze and purchasing restrictions, and we work with agency leaders to implement those actions."

Other economic recovery efforts are underway.

House Speaker Larry Householder, R-Glenford, named two dozen lawmakers to the Ohio House 2020 Economic Recovery Task Force, a bipartisan group tasked with helping a post-COVID-19 economic recovery.

"The COVID-19 pandemic has impacted all aspects of our lives, including the economic well-being and future of Ohio families and businesses," Householder said in a statement.

"What are the barriers to economic recovery? How do we help Ohio's families and employers recover and emerge stronger than before?" Householder said. "This is a critical time for Ohio's future. I believe we can rebound from this challenge in a better position than anyone in the nation if we plan ahead and implement well."

In response to the announcement, Ohio House Minority Leader Emilia Strong Sykes, D-Akron, said, "Ohioans struggling to get by cannot afford to wait for us to act in this time of crisis."

Last week, House Democrats called on the legislature to reconvene and address "outstanding issues" that "cannot wait until after the pandemic subsides."

"The reality is that right now, too many Ohio families are struggling to pay the bills, put food on the table and access the essential services they need — including health care — through no fault of their own," Sykes said in a statement. "The work of the legislature remains unfinished, and we continue to fight for our constituents who need us more than ever during this uncertain time."

— Story courtesy of The Center Square.

This story was originally published April 8, 2020 at 2:55 PM with the headline "Ohio’s March tax receipts take a hit because of COVID-19."