A RESOLUTION IN OPPOSITION OF CENTRALIZED TAX COLLECTION IN THE STATE OF OHIO.
WHEREAS, during the recent discussions regarding the State Biennial Budget Bill (HB 153), it was suggested that the Ohio Department of Taxation assume the responsibility for the collection of municipal income taxes; and
WHEREAS, although legislation has yet to be introduced to authorize the State to take control of municipal income taxes, such legislation may be considered before June of 2012; and
WHEREAS, businesses currently have a centralized local income tax collection opportunity through the Ohio Business Gateway to file and pay taxes to all municipalities in the State of Ohio; and
WHEREAS, income tax is the largest source of revenue for most municipalities and disruption or interference with the current collection process will be harmful to the financial operations; and
WHEREAS, the local administration of municipal income tax collections by municipalities provides exemplary customer service including, but not limited to, walk-up assistance, the preparation and filing of individual income tax returns, answering questions, and timely resolution of delinquencies, and
WHEREAS, the prospect of State control of municipal income tax collection generates numerous administrative difficulties and questions including, but not limited to, the proper administration of local tax ordinances, retention of and access to tax records, timing and frequency of distribution of collected revenues to municipalities, effectiveness of delinquency collections, reporting of tax collections to municipalities and the impact of planned budget and staffing cuts to the Ohio Department of Taxation’s ability to undertake and properly perform such significant new responsibilities; and
WHEREAS, centralized tax collection is in direct opposition of Home Rule and would undermine the ability of a Village to enforce its code and therefore serve Village residents; and
WHEREAS, in the wake of sweeping reductions of State aid to local governments through changes to the Local Government Fund formula and the elimination of State Estate Taxes, municipalities cannot afford another potential loss in revenue caused by the anticipated increased costs of collection by the State when compared to a municipality’s cost of collection of income tax.
NOW THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE VILLAGE OF GRANVILLE, OHIO THAT:
Section I: The Granville Village Council does hereby declare its strong opposition to any effort by the State of Ohio to take over the collection of municipal income taxes in Ohio and urges its state legislators to reject and oppose any amendment to pending bills or introduction of new legislation that proposes to transfer collection and/or local control of municipal income taxes to the State of Ohio.
Section II: The Clerk of Council is hereby authorized and directed to send a certified copy of this Resolution to State Senator Tim Schaffer, State Representative Jay Hottinger and Governor John Kasich.
Section III: This resolution shall take effect and be in full force from and after the earliest period allowed by law.
Passed this 21st day of December, 2011.