20150406-NEWS--1-NAT-CCI-CL_-- 4/3/2015 2:37 PM Page 1 $2.00/APRIL 6 - 12, 2015 Proposed bill that would allow open containers in certain areas has detractors — P. 5 SPECIAL SECTION: Crain’s Cleveland honors some of the region’s top CIOs — Pages 15-22 Governor’s tax cuts are painful Hotels digging in other areas local landscape Many small biz owners say plan’s positives are negated by hikes that would be costly Once-slow market has been booming in region By JAY MILLER governor’s plan, a large segment of By STAN BULLARD [email protected] the small business community, [email protected] ADDING IT UP: judging from interviews and from You’d think small business own- testimony before the Ohio House Suburban hotel development in North- ers would be jumping on the band- Ways and Means committee, sees east Ohio, typically measured in one or two wagon to support a tax reform plan the increases in other taxes as a year, is kicking into a much higher gear. that broadly cuts the income tax negating the income tax cut. More than 10 hotels are under construc- 1, 078 and even exempts the owners of the Kasich spokesman Rob Nichols tion or scheduled to start this spring in the smallest of businesses from paying did not respond by presstime last region. Four of those are rising or are Rooms/suites proposed any Ohio income tax. Friday, April 3, to requests for com- scheduled to go up this year in western It hasn’t happened since Gov. ment. Cleveland suburbs and Lorain County. or under construction John Kasich rolled out his budget Even the Ohio chapter of the Na- Along with the just-completed Cambria Inn proposal in February. The reason? tional Federation of Independent in Avon, they are the first new West Side ho- While Kasich’s office says the plan Businesses, generally a supporter of tels since the 1990s. would save the owners of 971,000 business tax cuts, isn’t supporting this Capturing resurgent business travel and small businesses about $696 million bill. Instead, it’s neutral. Roger Geiger, growing leisure travel is the objective for $135M in income taxes over two years, it vice president and executive director this batch of inns, but the looming Repub- asks for large chunks of that back in of the 25,000-member NFIB/Ohio, lican National Convention in 2016 is giving Investment* other tax increases that businesses said the group has supported Kasich’s developers an extra reason to push their would end up paying for. past income tax cuts and might have projects through. Broadly, Kasich’s two-year, $72.3 supported this most recent cut had it Next to I-77 immediately north of Rock- billion general revenue budget pro- been a standalone cut. side Road in Independence, a line of trees posed a cut in the income tax for all “If that were it, we’d be ecstatic See HOTELS, page 24 taxpayers by an average of 23% over with what he’s doing,” Geiger said. the two years. Beyond that, it ex- “The problem is he raises about 13 empts from the income tax all in- different taxes, and those are taxes come for small business owners many small businesses pay.” with gross receipts of less than $2 In particular, Geiger referred to RESEARCH million annually. the increase in the commercial ac- Those income tax reductions tivity tax, or CAT, which is levied would reduce tax collections by $5.7 against gross receipts regardless of CRAIN’S billion. But those cuts would be off- whether a business is profitable. set by nearly $5.2 billion in tax in- The Kasich plan increases the CAT creases, producing net tax cuts of to 0.32% from 0.26%. only $523 million. Those increases affect retailers While a number of business own- the hardest. ers and trade association represen- “We are a high sales, low margin tatives are offering support of the See TAX, page 26 Vol. 36, No. 14, Entire contents © 2015 by Crain Communications Inc. 14 7 NEWSPAPER 74470 83781 0 MAP: GOOGLE MAPS, FACTBOX: *USING INDUSTRY ESTIMATES (COST PER KEY), 20150406-NEWS--2-NAT-CCI-CL_-- 4/3/2015 2:16 PM Page 1 Small Business Matters i Want more information and resources on this week's topics, ideas and events? Go to www.cose.org/smallbizmatters. PRESENTED BY RAISE YOUR VOICE Small Business Big Impact COSE’s job is to raise your voice with poli- April 6 J`THRLYZHUKLSLJ[LKVɉJPHSZ[VLUZ\YL6OPV is a place your business can thrive. Every two years, we convene small business owners to set our priorities for the upcoming legislative By The Numbers sessions in Columbus and Washington, D.C. The experiences of those small business own- ers, the challenges they face and the issues they believe will be at the forefront, help us to form a hit list of issues and opportunities in the work we do advocating on your behalf. In addition to proactively reacting to issues 2,000 that surface without a lot of warning, we’ll also be working to push several important priorities State of Ohio to the top of the pile of issues and conversa- Business-Related [PVUHTVUNV\YLSLJ[LKVɉJPHSZ*6:,»ZSLNPZ lative and regulatory goals for 2015-2016 will Rules & Regulations focus on: Filed on Average Energy – More support for small businesses Annually that want to reduce their costs through energy LɉJPLUJ`"TVYLLULYN`JOVPJLZMVYZTHSSI\ZP [OL ILULÄ[Z ZTHSS I\ZPULZZ V^ULYZ NL[ MYVT ULZZ[OH[Z[HIPSPaLJVZ[Z"HUKTVYLVWWVY[\UP personal income tax reductions. Get on the Bus! ties for education, technical support and project Workers’ Compensation – Provide more Connection Calendar Join us for COSE Day at the ÄUHUJPUNMVYZTHSSI\ZPULZZLULYN`LɉJPLUJ` training program support for employers and Capitol on Tuesday, May 12 and Health Care – Achieve greater uniformity TVYLZHML[`LK\JH[PVUMVY^VYRLYZ"NL[YPKVM OHTEC PITCH NIGHT take advantage of the unique oppor- IL[^LLU Z[H[L HUK MLKLYHS OLHS[O JHYL SH^Z" rules that put a former building occupant’s tunity to meet with policymakers and Hear pitches on some of the coolest new tech support state payment reform initiatives that re- workers’ compensation liability on the new discuss ways in which we can work businesses, products and ideas in NEO. duce the total cost of health care claims. occupant of a building when there is no rela- together to enhance the small busi- MONDAY, APRIL 13 Rules and Regulations ¶ ,UZ\YL LɈLJ[P]L tionship between their businesses. ness climate in Ohio. Our day in Co- 5:30 – 8:30 PM implementation of the entrepreneur-in-resi- Workforce Development – Improve the lumbus includes meetings with legis- LockKeepers, Valley View KLUJLWPSV[WYVNYHT"JVU[PU\LKYLWYLZLU[H[PVU support that state workforce programs pro- lative leadership, presentations from on Ohio’s Common Sense Initiative (CSI) Small vide to small employers—especially as it LSLJ[LK VɉJPHSZ HUK H JOHUJL MVY PU Cost: OHTec (formerly NEOSA) )\ZPULZZ(K]PZVY`*V\UJPS"HUKJOHTWPVUUL^ relates to workers getting training and edu- formal conversation with other small HUK*6:,4LTILYZ " and proposed revisions to rules and regula- cation on the skills and support capabilities business owners, legislators and their Non-Members $40 tions that remove unnecessary barriers to doing small businesses need right now. RL`Z[HɈK\YPUNV\YLUKVMKH`JVJR[HPS Register at www.cose.org/events. business in Ohio. reception. Round-trip transportation and Taxes – Make taxes easier to understand i To view COSE’s complete Public meals are included. Save your seat on the LINKING IT TALENT and simpler to administer and comply with, Policy Agenda for 2015-2016, visit COSE bus by contacting Adina Magda TO OPPORTUNITY including simplifying the way small businesses www.cose.org/publicpolicyagenda at [email protected]. Presented by the Greater Cleveland OH]L[VYLWVY[SVJHS[H_LZ"LUZ\YLZ[H[L[H_YL or call 216-592-2392 to request Partnership (GCP), this event connects job forms don’t penalize small business or ignore a printed copy. seekers to opportunities in the tech space. THURSDAY, APRIL 16 1 - 4:30 PM COSE Volunteers: Leading the Way Since 1972 Independence Civic Center Cost: Free for GCP, OHTec (formerly NEOSA) In recognition of National Volunteer Week April 12-18, COSE would like to recognize the outstanding volunteers who dedicate their HUK*6:,4LTILYZ"5VU4LTILYZ valuable time and enormous talents to drive the organization’s initiatives. Since 1972, Northeast Ohio small business owners have Reserve your space at served as the lifeblood of COSE. We thank you for your expertise, insights, and most of all, your passion for helping other small www.gcpartnership.org/events. business owners succeed. BEST OF TECH AWARDS DINNER Honoring the top technology companies in our region. THURSDAY, APRIL 16 52 TIPS FOR YOUR BUSINESS 5:30 – 9:30 PM Red Space at HotCards, Cleveland #14 - Raise Your Voice Cost: OHTec (formerly NEOSA) and COSE Members $35, Now, more than ever before, there is intended public policy initiatives or forces ]VPJL QVPU [OL LɈVY[Z Non-Members $50 a recognition of the importance of the beyond what the market can address, limit of COSE advocacy in Reserve your seat at www.cose.org/events. contribution of the small business community the way small business owners can pursue making Ohio a better to the broad economic performance of our opportunity. place to do business. WEBED SERIES: CONTENT JV\U[Y` HUK [V [OL ZWLJPÄJ HIPSP[` VM V\Y When small business owners in Ohio band MARKETING - CREATE A most urban and rural communities to create together and raise their voice on common is- i E-mail COSE’s MINI-PUBLISHING EMPIRE jobs and build wealth.