Articles

The Proposed Ohio Budget Bill (HB 49)

A benefit of NAWBO membership is a stronger voice in legislative issues. The Public Policy Committee of NAWBO Columbus is seeking your input.  When issues impacting women business owners are being discussed by policy makers, we strive to educate our members and speak up in a way that reflects our members’ views. 

We would like your opinion on proposed legislation which would allow all municipal taxes to be centrally collected (HB 49).  Please read the following description and tell us if you are in favor of this legislation.

The Issue:

The proposed Ohio budget bill (HB 49) contains language that would allow all municipal taxes to be centrally collected by the Ohio Department of Taxation (ODT) through the Ohio Business Gateway (OBG).  (Taxes would be paid to ODT with quarterly distribution to the municipalities along with pro rata share of interest earnings).   

 

Proponents - Benefits to Business:

  • Greater uniformity and lower compliance costs.
  • Business taxpayers would file one return through the OBG, as opposed to filing a return with each municipality in which the business operates.
  • ODT would propose one set of rules to govern net profits tax collection, not rules that may differ from one municipality to the next.
  • Tax appeals would be made to one central independent body, like other state administered taxes, not to each municipality.
  • Filing and payment will be required electronically through OBG and the capabilities of OBG will be enhanced to handle the volume of net profits returns and payments.

 

Opponents Concerns (municipalities):

  • Local Control
  • 1% administrative fee (most city collection departments are revenue neutral)
  • Bond rating relies on reliable revenue sources
  • Local jobs

 


Current Status of Legislation (HB 49):

The central collection of municipal taxes is a proposal that is contained in the Governor’s introduced version of the budget (HB 49).  The House is expected to reveal their version of the budget after their Easter break in late April. Business groups are advocating that the House leave this provision intact when they pass their version and send it to the Senate.

Are you in favor of this legislation?  Please click here to participate in our poll.