Ohio Seeks Grocery Tax Revenue

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Ohio seeks restoration of grocery tax the Strickland administration has asked the Ohio Supreme Court to restore a tax on groceries that was struck down by a state court of appeals.

Officials said in court documents filed Friday that the state was counting on all revenue from a tax on business sales passed by the Legislature in 2005. It was expected to generate $188 million a year when fully phased-in in 2010.

In an appeal filed by grocers, the 10th District Court of Appeals ruled last month that it was unconstitutional to apply the tax to sales of food by supermarkets and wholesalers for consumption elsewhere.

The state contends that the tax is beneficial because it’s structured to be business-friendly and replaced taxes that discouraged major business investments in Ohio.

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