New Income Tax Filing May Not Last

Date: October 17, 2017

Related Content: News State Ohio Taxes

Several cities are preparing for a legal battle over the state’s new system for business owners filing income taxes.

Ohio cities are preparing to sue the state over the new process to collect income taxes which begins on January 1, according to the Columbus Dispatch. Gov. John Kasich’s two-year budget includes a provision that permits business owners to file net-profit returns on their income taxes with the state Department of Taxation. Business owners previously had to file with the municipality of their business. Now, the state will handle income tax returns and will request a fee of half a percentage point to allocate the money to local governments.

Under the new process, business owners will file their income tax returns through the Ohio Business Gateway online portal. The Ohio Business Gateway has been criticized as not being user-friendly, but is undergoing changes to prepare for the new filing system.

Many cities see the change as unconstitutional and reckless, as it will interfere with accountability holding and customer service for businesses. Cities are arguing that the new process is beyond the state’s authority. “This is the state looking for a problem, not a business-friendly solution,” said mayor of Whitehall, Kim Maggard.

Related Content: News | State | Ohio | Taxes

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