04-18 Amend Municipal Net Profit Taxes 128.22 - 128.2215

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Please substitute for Ord. No. 4 -18, placed on first reading and referred to the Finance Committee 2/5/2018. ORDINANCE NO. 4 -18 BY: Anderson, Bullock, George, Litten, O'Leary, O'Malley, Rader. AN ORDINANCE to take effect on such date that the municipal income tax provisions of H.B. 49 become effective by operation of law provided it receives the affirmative vote of at least two thirds of the members of Council, or otherwise to take effect at the earliest period allowed by law, to adopt sections 128.22 through 128.2215 of the Codified Ordinances as mandated by the state legislature to authorize state officials to collect and administer municipal net profit taxes. WHEREAS, in House Bill (H.B.) 49 of the 132 °8 General Assembly, the State's general appropriations bill for the biennium, includes Section 803.100 purporting to require that municipalities, on or before January 31, 2018, adopt certain municipal income tax provisions that are also adopted within, H.B. 49 to authorize State officials to collect and administer municipal net profits taxes; and WHEREAS, Section 803.100 of H.B. 49 references and relies upon Section 718.04(A) of the Ohio Revised Code, which purports to make municipal income taxing authority conditional upon a municipality's adoption of code sections as dictated by the State; and WHEREAS, although the municipal income tax provisions of H.B. 49, and Section 718.04(A) of the Ohio Revised Code, violate the Home Rule Amendment, the City nevertheless is compelled to adopt H.B. 49's municipal income tax provisions, on or before January 31, 2018, to avoid any doubt or taxpayer challenge as to its ability to impose a municipal income tax under the terms of Section 803.100 -of H.B. 49 and Section 718.04(A) of the Ohio Revised Code; and WHEREAS, Lakewood is a party to ongoing litigation seeking a declaration that the H.B. 49 municipal income tax provisions, Section 718.04(A) of the Ohio Revised Code, and other provisions of Ohio law that usurp the powers of local self - government are unconstitutional, and to enjoin all actions by state officials to implement the H.B. 49 municipal income tax provisions; and WHEREAS, Lakewood, by enacting this Ordinance, does not concede the legality of H.B. 49's municipal income tax provisions, Section 718.04(A) of the Ohio Revised Code, or any other law that is subject to the suit in which Lakewood is participating, and reserves its right to continue prosecution of that lawsuit; and WHEREAS, H.B. 49's municipal income tax provisions are the subject of litigation, pending which they have been stayed until further court order; and WHEREAS, as set forth in Section 2.12 of the Third Amended Charter of the City of Lakewood, this Council by a vote of at least two thirds of its members determines that this ordinance is an emergency measure and that it shall take effect on such date that the municipal income tax provisions of H.B. 49 become effective by operation of law, and that it is necessary