Counties, Transit Authorities Say They'd Suffer Devastating Loss Without MCO Tax Vetoed In Budget

Jul 11, 2017

One of Gov. John Kasich’s vetoes overridden by the House last week involves a tax on managed care organizations that helps raise money for counties and transit authorities. And those local groups are hoping Senators go along with that override.

Kasich had vetoed a plan to ask for a tax increase on those managed care organizations. But Kent Scarett with the Ohio Municipal League said counties and transit authorities raise $200 million each year through piggyback sales taxes on that MCO tax, so the loss would be devastating. “They’re really going to be on their own to try and make up these differences, and we’re all in the pot together to try and continue with the level of services that businesses and residents expect,” Scarrett said.

Business groups have come out for Kasich’s veto, saying an override and the tax increase that could result could raise insurance costs. If the Senate agrees to override. the state will ask the feds to broaden and hike the tax, and Kasich says he doubts the federal government would ok it.