On Sunday, June 30th Ohio Governor John Kasich used his line-item veto authority to strike twenty-two provisions from the budget bill that passed through both houses of the state legislature. Of particular interest was a provision that he vetoed that would’ve compelled retailers with an online storefront to collect the sales tax for all sales into Ohio. In his veto message the Governor cited a need for Congressional action, the costly risk of litigations and the lack of revenue that would likely materialize from pursuing the change in state tax policy. Thus far it looks like the governor’s veto will hold and will not be overridden by the legislature. While the issue could always come back during next year’s legislative session as a standalone bill, it is heartening that Governor Kasich chose to omit this provision in the state’s budget bill it would have had significantly negative implication for retailers with an online presence.
Read more about the Governor’s action on Internet sales tax.