By John C. Calabrese
Earlier this month, the Ohio General Assembly proposed legislation within H.B. 59 that would result in a 5.5% tax on legal services. Prior to this proposed legal tax, there were only three other states to have such a tax on legal services, Hawaii, New Mexico and South Dakota. Florida had a legal tax but repealed it.
If this legislation were to pass, Ohioans would now pay more for legal services. Plevin & Gallucci believes that the proposed “service tax” would place an unnecessary burden on Ohioans who need legal services and encourage Ohio clients to hire out-of-state lawyers. As Ohio residents, you deserve access to competent legal counsel without the added burden of paying a sales tax on essential legal services.
The proposed legislation is not limited to injured victims. Whether legal services are needed to administer an estate, write a will, buy or sell a home, or during an adoption or divorce proceeding, all these activities would be subjected to the added cost of the sales tax.
No one deserves to pay a tax associated with helping you address a hardship you may face. Such an event is taxing enough without the added cost. When you need a lawyer, you need one now – it’s not a choice; it’s a necessity!
Luckily for Ohio residents, members of the House Finance & Appropriations Committee changed H.B. 59 to remove the expansion of the sales tax on legal services. Citizens throughout Ohio, including the clients of Plevin & Gallucci and the Plaintiff’s Bar, the Ohio Association for Justice, made sure the members of the General Assembly heard the message loud and clear: LEGAL SERVICES ARE ESSENTIAL to the citizens of Ohio.
Our work is not complete, however. Policy leaders and Ohio Governor Kasich will continue to examine tax reform proposals in the upcoming future as well as ways to pay for revenue reductions from tax breaks. Therefore, we all need to remain vigilant; nothing is completely off the table as the budget bill progresses.
The law firm of Plevin & Gallucci will continue to fight for the rights of all Ohioans and will keep clients and others informed as developments occur.