Transit Agencies Gird for Loss of Tax Revenue

Eight Ohio public transportation agencies are looking at losing as much as 10 percent of their sales tax revenue in 2017, including agencies in Cleveland, Akron and Canton.

OhioThe cuts are being prompted by the ending of a practice of taxing twice purchases made by Medicaid managed care organizations.

All Aboard Ohio, a passenger advocacy group has called on the Ohio Legislature to provide funding to thee agencies in order to make up for the lost revenue.

AAO said the transit agencies may have to impose service cuts, raise fares and undertake fewer repair projects. Also affected are transit agencies in Portage, Mahoning and Lake counties.

The lost sales tax revenue will hurt the most those agencies that rely heavily on sales tax revenue, including Greater Cleveland Regional Transit Authority.

Under current practices, sales tax is applied twice to purchases from Medicaid managed care organizations.

The state of Ohio expects to lose $550 million annually from sales tax receipts once the double application of sales taxes ends.

AAO wants the legislature to double the $7 million it appropriates to help fund public transportation. It noted that despite being the 7th most populous state, Ohio ranks 46th in support for public transportation.

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