Frequently Asked Questions

Frequently Asked Questions

In this section, we’d like to answer some of the basic questions about municipal tax uniformity and HB 5.

  • GENERAL

1. What is true uniformity?

True uniformity is a principle that calls for uniformity legislation—free from the overwhelming influence of special interest groups—that streamlines and simplifies Ohio’s municipal income tax structure while maintaining revenue neutrality and avoiding detrimental tax reform.

2. What is home rule?

“Home rule” is the name of a set of laws passed in Ohio that grant municipalities autonomy when it comes to collecting money for water, sewer, and tax.

3. Does Ohio’s current municipal tax structure make the state unattractive to employers and businesses?

No.  Throughout 2011, 2012, and 2013, various news outlets reported Ohio as being consistently among the top five states in the country for employment creation and a business-friendly tax climate.  These reports were corroborated by Governor Kasich’s office.  Indeed, when it comes to attracting new employers and businesses to Ohio, it seems that Ohio’s municipal tax structure is inconsequential.

4. Does every municipality in Ohio that assesses an income tax force businesses to use its specific tax form?

No.  Though municipalities can and do produce their own city-specific tax forms, municipalities in Ohio that wish to impose an income tax must accept the submission of generic forms–per ORC 718.05 (C)(1).