Ohio Republicans think the state's municipalities have cumbersome tax codes that need to be fixed for businesses to bring jobs here, but many officials from cities throughout Ohio — including Athens — say they can’t accept the tax reform being offered up.
Athens officials went to the Statehouse last week to take a stand against Ohio House Bill 5, which is meant to simplify Ohio’s complex tax code to be more attractive to businesses. It would create a unified tax code for all municipalities.
But the bill in its current form could cost the city of Athens about $200,000 in revenue, city tax officials have estimated.
Athens is already projected to lose about $800,000 in revenue from reductions in estate taxes, property taxes, and local government funds because of reductions not pertaining to HB 5, according to a testimony given to the legislature by Tina Timberman, Athens’ tax administrator.
But the bill’s sponsor, Rep. Cheryl Grossman (R-23), said the municipal tax code is too unattractive in the eyes of businesses.
“We’re trying to make it very simple to work in the state of Ohio,” Grossman said. “I respect the right for cities to collect income tax. I’m just trying to come up with an easier way to come up with tax with commonality and uniformity.”
Still, Mayor Paul Wiehl, a Democrat, said he would prefer to see no changes to Ohio’s current tax code.
“I think it’s probably going to help big business, but won’t help the city’s bottom line,” Wiehl said.
Other municipalities such as Bexley, North Royalton and Mayfield have made similar claims that HB 5, in its current form, would cost them revenue.
Though the goal of HB 5 is to simplify Ohio’s tax code, Timberman said the bill is doing just the opposite.
“I know municipalities are for uniformity. We are all striving to get there,” Timberman said. “I just don’t feel at this point they need to hit municipalities with revenue cuts.”
Grossman counters that 90 percent of municipalities that supplied the state legislature with their tax revenue would either not be affected by HB 5 or would see revenue increases.
“The only opponent is the Ohio Municipal League,” Grossman said. “It’s time for them to do what they need to keep jobs in Ohio and grow more jobs.”
The Municipal Tax Reform Coalition is supporting HB 5. Members of the coalition include: The Ohio Chamber of Commerce, the Ohio State Bar Association, Ohio Trucking Association, Ohio Oil and Gas Association, Ohio Restaurant Association and The Ohio Society of CPAs.
Now, as the bill continues to make its way through committee before hitting the House floor, is the time for the two opposing sides to be vocal so lawmakers can hammer out the differences, said Rep. Peter Beck, (R-54), chair of the House Ways and Means Committee.
“As we continue to have these hearings I believe we can have a bill that would be beneficial to both the individual as well as the city,” Beck said. “(They’re) both looking for uniformity and simplicity in the bill; the real question is how to get there.”
Rep. Debbie Phillips, (D-94), could not be reached for comment.
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