(June 21, 2013)  Two Major Items This Week….

1.    FARM BILL and SNAP

In a somewhat surprising turn of events, the US House of Representatives failed to pass a five-year Farm bill on Thursday. By a vote of 234 to 195 the measure failed to muster enough support for final passage, a telling sign for future budget and immigration pieces of legislation this summer and into the fall. Of particularly interest, OGA signed on to a letter of opposition to an amendment filed by Rep. Marion (R-PA) which would have imposed a food surveillance-type program on SNAP. Specifically, this amendment would have required retailers to report SNAP items (brand description, product, size, quantity sold, price) to USDA on a quarterly basis and such information would have been posted on the internet (including store information) for public use. OGA thanks those of you who reached out to your US representative in opposition to this amendment. It was handily defeated on the House floor by a recorded vote of 79-346. Looking ahead, much uncertainly remains as the US Senate continues to wait for a House Farm bill to engage in conference committee discussions on. OGA will spend the summer educating policymakers on the SNAP program and the business implications of placing too many restrictions and/or cuts for this safety net program.

2.    STATE BUDGET

As the Ohio House and Senate continue to deliberate on the budget in conference committee, Republican leaders from both chambers announced yesterday they had agreed to a major tax overhaul coinciding with the state’s two-year budget. Overall, the leaders indicated the combined tax cuts would total $2.6 billion over the next three years.

Some of the highlights include:

• Plan to raise the state 5.5 percent sales tax to 5.75 percent
• A phased-in 10 percent personal income tax cut – 8.5 percent cut from the current tax rates would take effect in fiscal year 2014, 9 percent the following year, and 10 percent the next.
• A 50 percent small business tax cut for small-business owners who claim small-business earnings on their personal tax filings on their first $250,000 they earn (pass-through entities).
• Specifying the 12.5 percent property tax reduction homeowners receive would not apply to any new taxes and future seniors above a determined income level would not qualify for the current homestead exemption on property taxes (seniors who currently received the homestead exemption would continue to qualify for it but the eligibility requirements would change over time)
• Current practice is that no CAT is taken from businesses with gross receipts of up to $150,000. Those businesses with gross receipts between $150,000 and $1 million pay a flat $150 tax. The new proposal would make businesses with gross receipts greater than $500,000 subject to the .26 percent tax currently reserved for those with receipts greater than $1 million.
• A new earned income tax credit patterned closely after the federal program; closure of tax loopholes that apply taxes to digital goods such as ebooks and music downloads; a tax increase on cigarillos (small cigars) to the same level of cigarettes; and elimination of the gambling loss deduction.

Not included in the tax overhaul is a far-reaching expansion of the sales tax to include most services and an increase to the cigarette excise tax and OTP tax, both of which OGA testified against and has continued to educate lawmakers.  Additionally, we are hopeful our WIC language that requires the Department of Health to review and process a new WIC application within 45 days for existing vendors as well as the spirits tastings language will remain in the final version of the budget.

Overall, many of the leadership proposals pattern the combined efforts of the Governor’s version as well as both chambers versions of the budget. Given that the Governor has publically come out in support for the tax plan, it is expected the proposal will pass early next week with a finalized budget delivered to the Governor. OGA credits the Governor and members of the House and Senate for their commitment to cutting taxes and creating a more business friendly environment in this budget plan. We should be able to provide a final budget update on our next Government Affairs call.

As a reminder the next OGA Government Affairs Conference Call will be held on June 28. This will most likely be our last GA conference call until September with the Legislature going on summer recess. The call will begin at 9am and last for a half hour or so. You can participate by dialing toll-free into 855-753-5255.

If you have any questions please contact OGA President/CEO, Kristin Mullins for further information on these items or any government relations issue.

(June 7, 2013)  Five items or less….

1. The US Senate Farm Bill took the finishing steps on Thursday for a final vote on passage this Monday evening. By a 75-22 roll call vote, the measure is set to be on the full Senate Chamber floor Monday evening at 5:30pm. As many as 240 amendments have been filed to date and are awaiting action, although few are expected to be heard on the floor. OGA continues to work with NGA and FMI in urging our Senators to oppose an amendment filed by Senator Coburn (R-OK) and Senate Harkin (D-IA) which would require the U.S. Department of Agriculture (USDA) to design and implement state-level pilot programs that would prevent SNAP benefits from being used to purchase certain foods or beverages. We encourage you to contact Senator Brown and Senator Portman and urge them to reject this costly and burdensome amendment for grocers.
2. Based on preliminary analysis of the proposed rates for more than 200 health insurance plans filed with Ohio Department of Insurance (ODI) by 14 companies, Lt. Gov. and Department of Insurance Director Mary Taylor anticipates that insurers will see costs rise under the Affordable Care Act (ACA) requirements. Ms. Taylor projects that the costs associated with providing coverage could range from $282 to $577 per month. For example, estimates according to an ODI analysis anticipate a 25-year-old-male who purchases health insurance with a large Ohio provider in 2013 could see his costs increase from $29 to just under $200 in 2014. Ohio has until July 31, 2013 to review all the insurance plans and submit them to the federal government. The exchange program will begin openly enrolling individuals into plans in October, with such coverage set to take effect on January 1, 2014.
3. The Ohio Senate concluded its work on the governor’s two-year budget plan Thursday, setting up a conference committee showdown between the two GOP-controlled chambers over differences between the two versions. By a party line vote of 23-10, the Senate passed the $61.7 billion package which reinstates the governor’s small business tax cut and increases public school education funds to its highest level in more than a decade. Democrats criticized the bill for falling short in school and local government funding and for failing to utilize the governor’s Medicaid expansion plan.

OGA successfully included language that will require the WIC office of the Department of Health to review and process a new WIC application within 45 days of submission for existing WIC vendors. Additionally we worked with the Ohio Spirits Association in including language that will allow for greater flexibility and frequency of spirits tastings in grocery stores. Lastly we continue to fight any proposals for an increase to the cigarette excise tax and other tobacco products as well any potential tax increase to the CAT or services such as swipe fees and advertising.

As a reminder the next OGA Government Affairs Conference Call will be held on June 14. The call will begin at 9am and last for a half hour or so. You can participate by dialing toll-free into 855-753-5255. See below for a list of upcoming conference call dates.

• June 14
• June 28

If you have any questions please contact OGA President/CEO, Kristin Mullins for further information on these items or any government relations issue.