After a long fought battle in the Ohio General Assembly,
House Bill 5, the bill the reform Ohio’s convoluted municipal income tax
structure finally cleared the Ohio Senate and will head to
Governor Kasich’s desk to be signed into law after concurrence in the Ohio House.
The law will take effect 90 days from him signing it.
This was a top legislative priority for not only NFIB/Ohio, but the more than 30 members of the Municipal Tax Reform Coalition. The Coalition represented a broad spectrum of
business, industry and labor groups who understand the need for municipal tax
reform to not only simplify their members’ tax compliance but also to enhance
Ohio’s economic competitiveness.
Ohio is the only state that permits its
municipalities to construct their own set of rules for municipal taxation. With nearly 600 different municipalities
levying an income tax on individuals and net profits, the cost of compliance
was truly burdensome on small-business owners.
It is long overdue for Ohio to simply and establish a system as uniform
small-business owners have one more thing to be thankful for this holiday
season as the completion of a key piece of legislation for the 130th Ohio
General Assembly took another step to
crossing the finish line as the Ohio Senate passed Amended Sub. House Bill 5,”
said Chris Ferruso, Legislative Director of NFIB/Ohio.
“Ohio’s convoluted municipal income taxing system has long
been an major headache for many small-business owners across the state. We are thankful to the NFIB members who took
time out of their busy schedules to not only write letters in support of the
bill, but actually travel to Columbus to testify on behalf of its passage.
“Simplification and standardization of the system will save
business owners and their employees both time and money in compliance
costs. The bill is one additional
element in adding to Ohio’s competitiveness in attracting businesses to the
state. We look forward to seeing the
bill on Governor Kasich’s desk in the near future.”