Senate Sends HB5 to Ohio House for Approval – OML Legislative Bulletin

Posted on: December 5th, 2014

From the December 5, 2014 edition of the OML Legislative Bulletin:

“On Wednesday, through a bi-partisan vote of 23-8, the Ohio Senate formally passed amended substitute HB5, the municipal tax reform bill. The league extends a debt of gratitude to the members of the Ohio Senate who voted against the bill and for those members who made impassioned speeches on the Senate floor, expressing their opposition for the measure. The Senators who voted NO on the bill included Republican Senator Peggy Lehner and Democratic Senators Leader Schiavoni, Cafaro, Gentile, Sawyer, Skindell, Tavares, and Turner. The league would like to very much thank these Senators for standing up for Ohio municipalities, the Ohio Constitution and Ohio taxpayers who live and work in the over 600 cities and villages that will be adversely affected by this legislative action. All other Republican Senators voted YES on the reform bill including Democratic Senators Brown (D-Toledo) and Kearney (D-Cincinnati), who joined those majority members in supporting the bill.

With the passage of the bill by the Ohio Senate, it has been returned to the Ohio House of Representatives for their consideration of the changes made by the upper chamber. We anticipate the members of the House will concur on the Senate changes next week before the Lame Duck session concludes. Once the House acts on the bill, Am.Sub.HB5 will then be sent to the Governor for his signature.

As we reported in the Legislative Bulletin released Wednesday, there are a large amount of changes made by the Senate, some positive and some negative. In that bulletin, we highlighted some of the bigger ticket items that will have the greatest impact to local revenues. Members of our municipal coalition who have served as our technical experts continue to pour through the bill and provide us with greater insight on how substantial the changes are that have been made. In our efforts to be as accurate as possible in conveying to our members what is in the final version of the bill, in legislative bulletins next week, we will be providing greater analysis of the treatment changes and how municipalities can expect the reforms to impact their budgets.

The league would like to thank Chairman Peterson for all his time and efforts while working and meeting with not only league staff but representatives of municipalities from across the state, to address concerns in the bill. The league and our officials look forward to continuing this working relationship as we address treatments in the bill that may need to be technically cleaned up and to address future issues that may arise from the changes included in what we expect to become Ohio law.

Below is the legislative calendar for next week. There are many municipal issues that remain in play and are being considered by legislators for action. We will be following these issues closely and will report to our members at the conclusion of the Lame Duck session next week how each of the items we have been following are resolved.

Have a great weekend.”