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

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RESOLUTION NO. 8926 -17 BY: Andem6m, Bullock, Litten, Marx, Nowlin, O'Leary, O'Malley. A RESOLUTION to take effect immediately provided it receives the affirmative vote of at least five members of Council, or otherwise to take effect and be in force after the earliest period allowed by law, strongly opposing the State of Ohio 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. WHEREAS, the Mayor and Council have been advised of a proposal by Ohio Governor Kasich and his administration (in budget bill HB 49) to institute a state - operated program for the centralized collection of Ohio Municipal Net Profit Income Tax; and WHEREAS, the proposal for a state takeover of collection of the municipal income taxes of municipal corporations such as the City of Lakewood is a clear attack on the home rule powers granted to municipal corporations by the Ohio Constitution; and WHEREAS, this proposed language moves the collection of municipal net profit tax from Title 7 of the Ohio Revised Code, which places collections under the jurisdiction of municipal entities, to Title 57 of the Ohio Revised Code, which classifies revenue collected from municipal net profit tax as a "state asset" and thus increases the girth of an already - bloated state government; and WHEREAS, this proposed language also includes a provision that would eliminate a portion of the sales factor, known as the "throwback," substantially reducing reportable tax revenue to municipalities with warehouses, distribution centers, and any business providing online sales; and WHEREAS, municipal government is the most accessible and transparent level of government, and is thus uniquely qualified to provide personal service and assistance to its taxpayers —a citizenry of friends and neighbors —in the preparation and filing of their tax reports and returns; and WHEREAS, the outsourced collection of municipal income tax to any non - municipal institution interferes with the prompt discovery and proper auditing of local tax returns to ensure all applicable deductions and declarations are reported, thus also ensuring that all taxpayers pay their fair share without causing higher costs of compliance for all, and must be able to do so without burdensome and costly restrictions included in the Governor's budget proposal created as a vehicle to control the administrative process of municipal income tax to the benefit of specific taxpayer interests; and WHEREAS, the City of Lakewood adamantly opposes any attempt by the State of Ohio to mandate the filing of municipal business income tax returns through the Ohio Business