A key figure in the Ohio budget discussions suggests Gov. Mike DeWine’s proposed sports betting tax hike will not be in the final package.
Rep. Brian Stewart, who chairs the House Finance Committee, said proposed tax increases on cigarettes, Ohio sports betting operators and marijuana are likely to be cut in the House.
“Day 1, I don’t think anything’s dead on arrival,” Stewart said Thursday, per the Statehouse News Bureau. “But I do think that any time you’re talking about tax increases in a Republican Party that’s going to get, a skeptical eyebrow raise.”
Unlikely to include Ohio sports betting increase
Stewart told the publication, “It’s very unlikely we include tax increases in this budget.”
DeWine’s proposed budget includes a doubling of the sports betting tax rate to 40% from 20%. In 2023, DeWine doubled the tax rate to 20% from 10%.
He also proposed a $1.50 increase in cigarette taxes and a doubling of the marijuana tax rate.
Tax increase hesitancies
The Ohio sports betting tax rate doubled in 2023 just months after the market launched.
Last year, lawmakers from both sides of the aisle said the hike might have been premature. In December, a key lawmaker in legalizing sports betting proposed lowering the tax rate back to 10%.
Now, members of DeWine’s own party will determine whether it is doubled again. The proposed increase would help pay for new stadiums in Ohio.
“We have to be aware that every tax credit we introduce or every tax deduction that we introduce makes it harder for us to get to our ultimate goal — that being, eliminating the income tax or having a flat income tax in the state of Ohio,” Senate President Rob McColley said.
Tax increases ticking up
DeWine is not the only governor to propose a gambling tax hike this year. Maryland Gov. Wes Moore proposed doubling the rate to 30% from 15%.
Last year, Illinois implemented a tiered tax system ranging from 20% to 40%. It started at 15%.
Lawmakers in Indiana, Louisiana and Michigan also floated tax hikes.
