8926-17 Oppose Governor's Proposed 2017-2018 Budget

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Gateway, whether upgraded or in its current form, which at present is utilized on a permissive basis for the filing of only 1% of the business income tax returns filed with municipalities across the State of Ohio; and WHEREAS, the City of Lakewood recognizes that a sufficiently user - friendly upgrade to the Ohio Business Gateway will result in greater numbers of businesses filing through the service voluntarily, rendering the need for a mandate at the state level superfluous; and WHEREAS, the recent reduction in the Local Government Fund, elimination of Estate Tax, and accelerated phase -out of promised reimbursement for loss of revenues due to the repeal of the Tangible Personal Property Tax have all resulted in an annual loss of revenue in the amount of approximately three million dollars; and WHEREAS, the additional 1% fee charged by the State of Ohio for the mandated privilege of assuming control of the City of Lakewood's money will result in additional loss of revenue for the City of Lakewood; and WHEREAS, the municipal income tax is the single largest municipal revenue source, which provides essential municipal services, promoting a positive quality of life that residents and businesses alike rely upon, and any forced reduction in this revenue will have a negative impact on residents and businesses, creating an environment detrimental to retaining and attracting business in Ohio; and WHEREAS, this Council by a vote of at least five members thereof determines that this resolution is an emergency measure, and that this resolution shall take effect at the earliest date possible as set forth in Article III, Sections 10 and 13 of the Second Amended Charter of the City of Lakewood, and that it is imperative that this opposition to the proposed budget be communicated immediately; now, therefore BE IT RESOLVED BY THE CITY OF LAKEWOOD, OHIO: Section 1. Council expresses strong opposition to the Governor's proposed 2017 -2018 Budget (House Bill 49), which proposes centralized collection of net profit tax returns and other provisions related to the municipal income tax which will cause a substantial loss of revenue needed to support the health, safety, welfare and economic development efforts of Ohio municipalities Section 2. The Ohio General Assembly should request the immediate removal of all language pertaining to municipal income tax collection and administration, and should promote upcoming changes to the Ohio Business Gateway as a solution for businesses to file municipal income tax returns in a more simple and efficient manner, with the Ohio Business Gateway continuing to act only as a portal to remit payments and filing information directly to municipalities, and not to the Ohio Department of Taxation for processing.