FOR IMMEDIATE RELEASE
Wednesday, March 4, 2015
SECRETARY HUSTED TESTIFIES BEFORE HOUSE ECONOMIC DEVELOPMENT COMMITTEE ON REDUCING OHIO’S BUSINESS FILING FEE
House Bill 3 would reduce the cost of starting a business in Ohio by 21 percent.
COLUMBUS– Ohio Secretary of State Jon Husted today appeared before the Ohio House Standing Committee on Economic and Workforce Development as a proponent of House Bill 3, which would reduce Ohio’s business filing fee by 21 percent, from $125 to $99. The legislation is one of the House leadership’s priority bills.
“We want Ohio to be the best place to start a business,” Secretary Husted said. “Cutting the cost of doing that by 21 percent is another step in the right direction.”
Secretary Husted’s administration has used modern technology to streamline the process of starting a new business in Ohio over the past four years. This effort, combined with responsible fiscal stewardship, has significantly reduced costs in the Secretary of State’s Office, saving Ohio taxpayers more than $14 million.
“Through technological improvements, the Secretary of State’s office has been able to streamline operations, making it easier and less expensive to start a business in Ohio,” added the Secretary. “These efforts have led to a success dividend of record filings and increased revenues that we want to now pass on to our customers.”
In January, Secretary Husted called on the General Assembly to reduce Ohio’s business filing fee to continue the state’s efforts to make Ohio a more attractive place to start a business and create jobs. Read his press release here.
See below to review Secretary Husted’s testimony in its entirety. You can also click here to read letters of support from business and community leaders.
For more information, please contact Joshua Eck at (614) 466-2729
House Bill 3 Proponent Testimony
House Standing Committee on Economic & Workforce Development
Ohio Secretary of State Jon A. Husted
Wednesday, March 4, 2015
Chairwoman Baker, Vice Chairman Romanchuk, Ranking Member Smith, and members of the House Economic and Workforce Development Committee:
I am here to testify in support of House Bill 3, jointly sponsored by Representatives Tim Derickson and Mark Romanchuk.
For many who choose to do business in our state, my office is their first stop as the Secretary of State is the custodian of business filings in Ohio.
To make those interactions positive ones, over the past four years my office has worked to ensure Ohio’s entrepreneurs receive the best possible service, which has led to record business filings and increased revenues.
When you combine those efforts with my administration’s responsible fiscal stewardship that over the past four years has saved taxpayers more than $14 million in spending compared to the previous administration – a 16 percent cut – Ohio is now positioned to benefit from a success dividend that we want to pass on to our customers by way of a 21 percent cut in new business filing fees.
More specifically, House Bill 3 would reduce the required fee for starting a new business in Ohio from the current $125, to $99 and mark the first time in modern history the fee has been cut.
My office estimates this fee reduction will save Ohio businesses $2 million each year.
Before I was elected secretary of state, I promised to use technology to streamline operations in order to make it easier and less expensive to start a business in Ohio. By moving many business filings online, my office has been able to increase efficiency and decrease administrative cost.
Today, more than half of all Ohio businesses are started online and business filings have grown 24 percent over the past five years. In addition, the time to process a business filing has gone from an average of four days to just one day.
Among other initiatives, this streamlined system is one example of how we have reduced spending in the secretary of state’s office by 16 percent over the last four years.
It is my belief that House Bill 3 makes Ohio more competitive with other states. Taking into account the cost of starting and maintaining an LLC in Ohio and our surrounding states over a five-year period, this fee reduction will make Ohio one of the least expensive states in the region to start a new business.
I want to thank Speaker Rosenberger and his leadership team for ensuring this important piece of legislation receives the consideration it deserves. I also extend my thanks to Representatives Derickson and Romanchuk and to you, Madam Chair, for your leadership on this important measure.
I appreciate your time today and urge your support for House Bill 3.
Madam Chair, I would be happy to answer any questions the committee may have.