RESOLUTION NO. 2013-26
A RESOLUTION STRONGLY OPPOSING THE PASSAGE OF HB 5 BY THE OHIO GENERAL ASSEMBLY WHICH PROPOSES UNIFORMITY MEASURES FOR MUNICIPAL INCOME TAX IN THE FORM OF UNFUNDED MANDATES AND A SUBSTANTIAL LOSS OF REVENUE
WHEREAS, the Municipal Income Tax Uniformity Coalition, headed by the Ohio Society of CPA’s, with business community membership including the Ohio Chamber of Commerce, with support from Representative Grossman and Representative Henne, met with members of the Ohio Municipal League and municipal income tax representatives; and
WHEREAS, the purpose of these Interested Parties meetings was to achieve consensus on issues regarding municipal income tax uniformity for the inclusion in legislation; and
WHEREAS, municipalities agree that revenue neutral uniformity on issues that will ease compliance burdens for businesses in and potentially looking to locate in Ohio would be of great benefit to all of Ohio; and
WHEREAS, the Coalition has drafted and introduced language that is detrimental to the financial stability of municipalities, that will reduce revenue for all municipalities in Ohio, and includes unfunded mandates, which would reduce the ability of municipalities to provide basic services to residents and businesses alike; and
WHEREAS, the recent reduction for funding for the Local Government Funds, the elimination of the Estate Tax and the accelerated phase-out of promised reimbursements for the loss of revenue due to the repeal of the Tangible Personal Property Tax has resulted in a significant loss in revenue for the Village of Granville; and
WHEREAS, the proposed HB 5 will result in an additional estimated loss of revenue of $150,000 for the Village of Granville; and
WHEREAS, HB 5 includes provisions that require State oversight of municipal income tax administrations, administrative policies and procedures for municipal income tax collection and administration that dramatically hampers the ability to administer local tax collection in an effective manner; and
WHEREAS, the long term purpose of HB 5 is State oversight of municipal income tax operations, which could lead to a future push for forced state centralized collection of municipal income tax; and
WHEREAS, municipalities have been responsive in the past to efforts to update the rules, regulations and create uniformity in the overwhelming majority of local tax codes creating a streamlined process for all taxpayers; and
WHEREAS, only municipalities can ensure the prompt and proper auditing of local tax returns to ensure all applicable deductions and declarations are reported, thus ensuring all taxpayers pay their fair share without causing higher costs of compliance for all, and be able to do so without burdensome and costly restrictions such as those included in HB 5, created to restrict municipalities from correcting / auditing returns or making assessments; and
WHEREAS, provisions in this bill hamper every municipality’s ability to audit and correct municipal income tax returns, to equitably enforce the municipal income tax laws, create increased costs of administration due to burdensome notification requirements, reduce revenues due to unfunded mandates and eliminate the compliance processes; and the bill has been crafted as a vehicle to control the administrative process of municipal income tax to the benefit of specific taxpayer interests; and
WHEREAS, municipalities must fight to protect their single largest revenue source, which provides essential municipal services that promote a positive quality of life for residents and businesses alike, and any forced reduction in this revenue will have a negative impact on those residents and businesses, creating an environment detrimental to retaining and attracting business to Ohio.
NOW, THEREFORE, BE IT RESOLVED by the Council of the Village of Granville, Ohio that
Section 1. The Village of Granville Council does hereby declare its strong opposition to any effort by the Ohio General Assembly to pass legislation that creates unfunded mandates and a loss of revenue for municipalities.
Section 2. The Village of Granville Council urges its state legislators to reject HB 5 and any amendment to pending bills, and opposes the introduction of new legislation that proposes to reduce municipal income tax revenue to municipalities in Ohio.
Section 3. The Ohio General Assembly should request the drafting of legislation that would address the multitude of issues that were agreed upon as a result of the Interested Parties meetings, which will bring uniformity to areas including, but not limited to, due dates for estimated tax payments, due dates of withholding payments, due dates and procedures for extension request filings and due dates for annual Reconciliation of Returns, all of which will simplify the compliance process for businesses and individuals alike.
Section 4. The Ohio General Assembly should focus on restoring previous funding levels to the Ohio Business Gateway and focus on correcting its multitude of programming problems and customer service issues to make that tool less cumbersome, more useful and relevant to municipalities and businesses as a simple, generic, one-stop method of filing local business income tax returns in one location.
Section 5. Members of the Ohio House and Senate should engage in constructive dialogue with local officials to gain consensus on correcting perceived issues of potential revenue-neutral commonality and uniformity in those few remaining differences in municipal income tax provisions.
Section 6. This Resolution shall be in full force and effect immediately upon its adoption by Council.
Passed this 20th day of March, 2013.