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Republican lawmakers who touted $3.1 billion in tax cuts in the budget that took effect last July said higher-than-expected refunds are leading to Ohio's lagging tax collections.
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Senior Policy Manager Marc Von Allmen says the city of Cincinnati is already taxing short-term rentals, but no other municipalities are.
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Commissioner Denise Driehaus says the increase is necessary to keep up with more children in need of services.
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Two months into the fiscal year, the state budget department says its forecast for tax revenues is close to on track.