Gov. John Kasich unveiled his final state biennial budget, January 30, proposing a $1.9 billion increase in sales tax to offset a 17 percent income tax cut. The sales tax rate would increase from 5.75 percent to 6.25 percent and expand the number of goods and services subject to taxation (including elective cosmetic medical procedures).

 

The budget also increases the cigarette tax by 65 cents per pack (from $1.60 to $2.25) and raises the tax on other tobacco products and e-cigarettes to the same cigarette rate. 

 

Health-related priorities in the budget focus on four themes: modernize Medicaid; streamline health and human services; pay for value; and improve population health. Budget proposals align with three priorities in the State Health Improvement Plan: mental health and addiction; chronic disease; and maternal and infant health. Read more about the health-related budget provisions.