Thursday, September 08, 2005

 

Car dealers get smooth ride with new tax system

Here's an interesting laugher regarding Ohio's new tax system that's making the rounds of the Capital Square watering holes.

You remember the "tax-reforms" the Ohio GOP rammed thru the legislature that supposed to provide "a powerful new tool to market Ohio’s economy. . . that creates a new business climate that will generate jobs." Yup, those are the ones.

Funny thing, though. It seems that one of the big beneficiaries of the tax changes is one sector of the retail industry that - we'd be willing to guarantee - will not be the source any new jobs: Car dealers.

From a story this week by the Cincinnati Business Journal:
For some auto dealers, the state's new budget/tax reform measure is like the Cadillac of tax cuts.

That is about the value of the savings some dealers will realize, according to the numbers crunched by local accounting firm Jackson, Rolfes, Spurgeon & Co. Based on its research, an auto dealer generating $30 million in annual sales, and who manages an annual inventory of $10 million a year, will see its taxes cut in half over five years, to $110,790 in 2010 from $226,888 in 2005.

. . .

It is a complete reversal of how dealers would have been affected in the original version of the bill, which would have raised their taxes over five years, said Mallory Collier, tax manager at Jackson, Rolfes.

"The car dealers, I have to give them a lot of credit," said Collier, whose firm serves 10 vehicle dealers in Greater Cincinnati. "They really got on this very quickly, they got the car dealers together and they started lobbying. As a result, it actually in the long run is a good thing for them."
A good thing for them? Well, hell yeah, but it's a shitty deal for other Ohioans who are looking for jobs and sending their kids to shitty schools because some other jerks refuse to pay their fair share.

How, exactly, did these car dealers manage to reverse their fortunes and come out smelling like roses? We suspect that maybe the guy behind the Bill Harris Auto Dealerships of Ashland (and elsewhere) might have the answer. Yes, we'd be referring to the Bill Harris.

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