“Given the business interests and suburban Republicans behind it, Gov. John Kasich likely will sign Substitute House Bill 5, which aims to “revise” how Ohio cities and villages impose municipal income taxes. The bill cleared the General Assembly this week.
To be sure, varying municipal income-tax ordinances required better coordination. But HB 5 goes way beyond that. What’s more, it’s another Statehouse assault on the home rule the Ohio Constitution promises municipalities.
According to the Legislative Service Commission, potential revenue losses to the roughly 600 Ohio cities and villages that charge an income tax ‘may be significant, potentially millions of dollars annually.’
In 2012, the latest year available, Ohio cities collected about $4.2 billion in municipal income taxes, Ohio villages about $350 million. Meanwhile, though, over the last four years, the state budget – proposed by Kasich, passed by legislators – has cut revenue to local governments by an estimated $413 million annually, according to the Innovation Ohio think tank…”
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