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The Ohio Senate has assigned subHB5 to the Senate Finance Committee, where it will be reviewed further. Click below for more information on why cities still have reason to be concerned.


***Another bill has been introduced that, if passed, will restrict the ability of Ohio municipalities to provide vital services to its residents and resident businesses.  SB 282 seeks to prohibit municipal corporations from levying an income tax on nonresidents’ compensation for personal services or net profits from a sole proprietorship.  A report on the bill from the Ohio Municipal League is linked here.  More information to follow as it becomes available.***

On October 23, 2013, a revised HB 5 substitute bill (subHB5) was introduced during a press conference by Ohio lawmakers. The House Ways and Means Committee voted on November 6, 2013 to pass subHB5 out of committee, over continued concerns from municipalities. It then went to the House floor for a vote.  Concerns from municipalities were again voiced to–and subsequently ignored by–the members of the House, who passed the bill (56-41).  The bill was introduced to the Senate Finance Committee on November 19, 2013, and awaits review.  Click here for more information on where subHB5 can go next on its path towards the Governor’s signature, and click here for a status update on where the bill stands with the Senate (as of January 10, 2014).

The key to stopping subHB5 from gutting the revenue of Ohio’s municipalities is communication, and time is of the essenceClick here to locate your district’s Senator, and send them an email informing them of the negative impact subHB5 will have on your community!

subHB5 Resources:

Click here to read subHB5 as introduced during the press conference.
Click here to read the House Ways and Means Committee’s Omnibus Amendment to subHB5.
Click here to read the Ohio Legislative Service Commission’s HB 5 and subHB5 comparison.
Click here to read a review of subHB5 from the perspective of Ohio’s municipalities.

We will keep you updated on any developments as news becomes available.

About subHB5

The House Bill 5 substitute bill will hurt cities because:

  • It forces a five year Net Operating Loss, causing a significant revenue loss for 40% of Ohio’s municipalities
  • It changes occasional entrant withholding requirements from 12 to 20 days, with no look back to day one for the worksite city (tax “free days”)
  • It allows pass-through entity losses to offset unlike income, regardless of where or how that income was earned
  • It institutes an assessment policy rife with bureaucratic red tape and certified letters (for potentially every piece of correspondence), costing municipalities in postage and staff hours

A municipal income tax system in Ohio that’s reasonable and simple is possible and attainable with the proper legislation.  Join us in helping municipalities around Ohio oppose subHB5 and convince lawmakers to do what’s best for all of Ohio by demanding true uniformity in Ohio municipal income tax.

Click here to read subHB5 in its entirety.

Click here to submit your resolution or impact analysis to Ohio United.

Who We Are: Ohio United

We are an advocacy group for Ohio’s cities and villages, initiated by Ohio’s First Suburbs Consortiums and communities from the Cincinnati, Cleveland, Columbus, Dayton and Toledo metropolitan areas.

Mike Summers, Mayor, Lakewood
Jennifer Kuzma, Director, NEO-FSC
Jack Jenson, Executive Director, First Suburbs Dayton
Tom Moeller, City Manager, Madeira
Steve Byington, Vice Mayor, Oakwood
Bill Doering, Councilman, Amberly Village
Ben Kessler, Mayor, Bexley
Earl Leiken, Mayor, Shaker Heights

Recent News and Updates

Ohio Senate biding its time on uniform city income taxes – The Columbus DispatchPosted: 04/07/2014

"As business advocates and municipalities continue to clash, the Ohio Senate is ...Read More

Lancaster City Council moves to oppose Ohio HB 5Posted: 03/25/2014

"The idea of losing another million dollars in tax revenue per year as part of a...Read More

HB 5 – The Good, The Bad, and The UglyPosted: 03/05/2014

The following is a "Letter to the Editor" from Fred P. Hoppel, a retired IRS age...Read More

Update on Municipal Tax Legislation – Kent Scarrett, OML Director of CommunicationsPosted: 02/27/2014

The following information comes from an email sent by Kent Scarrett, OML Directo...Read More

Another Bill Introduced to Restrict Municipal Income Tax – OML Legislative BulletinPosted: 02/24/2014

"Although there has not been a great degree of legislative activity surrounding ...Read More

Council opposed bill that would alter income tax – The ReviewPosted: 01/24/2014

"EAST LIVERPOOL - City Council on Tuesday approved legislation aimed at convinci...Read More

See all of our latest news and updates