Three Thoughts: Taxing Squirrels? Tax What You Don’t Want. Exempt What You Do.

Ohio once had a squirrel tax. No kidding.

The legislature made a quota for every property owner. To reduce the out of control squirrel population in 1807, Ohio would exempt your property tax bill for every squirrel skin one provided as proof of squirrel population reduction.

Ohio has an agricultural value reduction program to reduce property tax on land used for agriculture.  Manufacturing equipment is automatically exempt from sales and use tax.

Thus, the pattern has been clear for 220 years: Tax what you don't want. Exempt what you do.

Taxes can be both counterproductive and counter intuitive.

➊ ONE THOUGHT: TAX WHAT YOU DON’T WANT

Taxes on alcohol, tobacco, and cannabis are "sin" taxes designed to generate revenue on things that government wishes to discourage.

Ohio's 1807 squirrel tax is a shining example. Bring us your squirrel skins or pay more tax.

Arguably, some local places in Ohio have purposely taxed themselves more in order to keep certain real estate investments out.

 

➋ ANOTHER THOUGHT: EXEMPT WHAT YOU DO WANT

 Exemptions for job-creating globally-competitive capital investment just makes sense.

Ohio automatically reduces property taxes on agriculture land and has for decades. It's called CAUV. Tax farmland more? You'll get less farmland.

Trade this year's revenue for a longer-term future of more revenue is the biggest point with local property tax exemption authority.

Trade incremental property tax one year for greater income tax now and in the future.

 

➌ WATCHING THE GREAT TAX DEBATE IN OHIO

Though action has been taken from the Ohio General Assembly, there could be more to come in the debate sparked by rising property taxes.  And it’s not just property taxes in play.  Talk about redirecting local income taxes, removing sales tax exemptions, and curbing real estate tax diversions are among the items open for debate.  Should an over $20 billion hole emerge in Ohio’s collective state and local tax portfolio from a possible statewide referendum, there’s nothing off the table.

That’s why the principle from 1807 is key to remember.

Tax what you don't want. Exempt what you do.

By the way, that Ohio squirrel tax had to be repealed in 1808, because it worked. The squirrel population was decimated and taxpayers were afraid they couldn't gather enough squirrel skins to avoid the tax.

 ---------------------

This column is a business page regular column in The Dispatch. 

 

Blackhand Gorge: My Vehicle For Instilling History with Local Relevance

Why do I like this place so much? Blackhand Gorge's paved path just re-opened.  Thanks to the Ohio Department of Natural Resources for a job well done.  We can walk, hike, bike, and stroller through here again.  

As the footprints in the cold snow attest, it's a popular place.

That's for good reason.  I can't think of anyplace that has more history and natural history packed into one compact location.  

The Gorge was formed by the northwestern-flowing Teays River where the river met the glaciers. The glaciers won, sort of. The place didn't get flattened though the river now flows southeast.

A twice-the-size of a human hand black petroglyph was put on the Gorge wall. That's from where the name of this place, and the sandstone of this part of Ohio comes.

The canal builders inadvertently destroyed the petroglyph to build a stretch of the Ohio Erie Canal. The sandstone stacked here once carried horses or mules which were the locomotion for the canal boats. You can walk through a lock that is still there today.

Then, the railroads came. On the north side was the interurban, including the first tunnel for an electric railway in the U.S. built here. The tunnel remains though the railway is long gone.

On the south side, rail freight went that moved stone from the quarries. Glassmaking was part of the rails' purpose, and still is today.

In this 250th year of our country, it's our chance to instill an appreciation for history among generations. There's no better way to do that than with a big dose of local relevance.  

Blackhand Gorge will be my vehicle for that.  My granddaughter is already a frequent visitor, but she'll get some extra visits this year.  I promise.

'Tis the Season for STEM Learning

Thanksgiving family gatherings are a time to reflect on the year behind us and the year ahead. Join me in putting our holiday gatherings to work with a double purpose this year.  Enjoy time together but, also, persuade those gathered to stay in Ohio or return to Ohio.  STEM jobs in manufacturing are at the heart of that convincing.  

Try a little word association with your family and friends.

STEM is the acronym for science, technology, engineering, and math.  Make these holidays the season for STEM learning.

S  is for stuffing.  It’s also for science. 

Life sciences, in particular, have made huge gains in Central Ohio.  Amgen makes its medicines in new fill lines here in Western Licking County.  Pharmavite’s Nature Made brand gummy vitamins are made right here too.  [Note: It was a homesick Ohioan CEO who brought the new plant here.]

OhioMeansJobs.com shows nearly 50 job openings with these two companies among over 300 chemistry jobs within commuting time of Columbus. Science is indeed a career path in Ohio and a reason to return to a job here.

T is for turkey.  Technology is the T in STEM.

That delicious bird is the star of the season’s family dinner and technology is the star in STEM learning.  While all the technology talk for the last three years has been about Intel, the real story is that the same technology skills that a semiconductor manufacturer needs—fabrication, mechanical, industrial maintenance, and material handling—are, today, needed by growing Central Ohio manufacturers.

In our Port Authority park, manufacturing jobs have increased by 150% in the last ten years.  Reshoring of manufacturing is real and technology skills are behind every one of those new jobs.  One estimate has over 1,800 manufacturers and 89,000 jobs in manufacturing in the Columbus region.  Ohio is the third largest manufacturing state with nearly 700,000 jobs in manufacturing.

E is for that edible cranberry thing.  E is for engineering too.

Grandma brought that cranberry mold again.  Yes, it is edible.  To make that thing hold up, she put her engineering skills to work for sure.  Engineering skills are in demand and manufacturing is where it’s most in demand in Central Ohio. 

Unique engineered products are a standout in our region.  Covestro in Hebron can turn an idea at 9 into a new product line and a bag of material to make it by 5. Anduril needs both mechanical and software engineers for their products to be made in Pickaway County. A job search in Newark shows more than 8,000 jobs open with “engineering” in the title.

M is for mashed potatoes.  In STEM, it’s math.

Math is an essential part of every manufacturer’s day.  Plaskolite couldn’t deal in volumes and tolerances of its plastic sheets without math skills at its core.  Ariel compressors rely on multiple decimal points after zero levels of accuracy.  Boeing’s missile guidance systems miss their mark without precision math.

Enjoy your STEM dinner.  Partake of STEM learning talk too.

Happy Thanksgiving!

---------------------------------

This column was submitted as a regular development column for The Dispatch and The Advocate.