subHB5

STATUS: Introduced on January 30, 2013 to the 130th General Assembly. Substitute bill introduced to House Ways and Means Committee on October 23, 2013. Passed to House floor by Ways and Means Committee on November 6, 2013. Passed by Ohio House of Representatives on November 13, 2013. Introduced to Ohio Senate and assigned to Senate Finance Committee on November 19, 2013. Sponsor testimony hearing held by Senate Finance Committee on May 27, 2014.  Proponent testimony hearing held by Senate Finance Committee on June 3, 2014.  Bill moved to Senate Ways and Means Committee on November 7, 2014, with first hearing (sponsor and proponent testimony) to take place November 13, 2014.


SubHB5 began life as HB 5, a municipal tax bill co-sponsored by Ohio House Majority Whip Cheryl Grossman (R-Grove City) and Rep. Mike Henne (R-Vandalia). It was introduced to the Ohio General Assembly on January 30, 2013 with the proposed purpose of promoting uniformity and simplicity within Ohio’s municipal income tax structure while maintaining a degree of revenue neutrality for all municipalities involved. After introduction, it was sent to the House Ways and Means Committee for review.

As introduced, HB 5 was flawed, and fell short of its claimed objectives of uniformity and revenue neutrality. Over the next several months, the House Ways and Means Committee heard testimony regarding HB 5 from both sides of the issue. After much compromise from municipalities, a substitute bill—subHB5—was introduced on October 23, 2013. Still horribly flawed, subHB5 was passed through the House Ways and Means Committee on November 6, 2013, and then passed by the House on November 13, 2013. It currently awaits review by the Senate Finance Committee.

If passed, subHB5 would introduce legislation detrimental to the financial stability of Ohio’s municipalities. By keeping some of the more egregious unfunded mandates of the original House Bill 5, subHB5 will choke municipalities of necessary revenue and cripple the ability of municipalities to provide basic services to both residents and resident businesses alike.

This harmful bill is opposed by communities and organizations across the state.

A municipal income tax system in Ohio that’s both reasonable and simple is possible and attainable without draining municipalities of revenue necessary to provide the basic services that Ohio’s citizens expect and deserve. Help us oppose subHB5 and convince lawmakers to do what’s best for all of Ohio by demanding true uniformity in Ohio municipal income tax.

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.

The first municipal resolution opposing subHB5 was passed by Grove City on November 18, 2013.