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# <br />CITY OF NORTH OLMSTED <br />RESOLUTION NO. 2008 - 52 <br />By: Mayor O'Grady and Councilman Kearney <br />A RESOL UTION OPPOSING FEDERAL HO USE BILL 3359, THE MOBILE <br />WORKFORCE SIMPLIFICATION ACT, AND DECLARING AN <br />EMERGENCY <br />WHEREAS, House Bill 3359, the Mobile Workforce Simplification Act, introduced in <br />Congress last year, would preempt state and local governments' taxing authority by prohibiting <br />them from taxing the income of non-resident workers perfonming duties within their borders for <br />less than sixty (60) days annually; and <br />WHEREAS, further, H.R. 3359 sets out to qualify a"work day" with the following <br />definition: "An employee will be considered physically present and performing duties in a State <br />or locality for a day if the employee performs more than fifty (50) percent of the employee's <br />employment duties in such State or locality for such day"; and <br />WHEREAS, R.I.T.A. is opposed to this bill for it erodes a municipality's ability to <br />provide essential governmental services, by limiting their authority to tax certain income. This <br />infringes on the rights of self-governance and reduces tax revenue at a time when many <br />communities are struggling with a sluggish economy; and <br />WHEREAS, the lion's share of municipal revenue is derived from income tax. On <br />average, over 68% of income tax revenue is from employee withholding, and the percentage of <br />that revenue from non-resident workers ranges from 63% ta 89%. A reduction to this revenue <br />would be devastating to many communities; and <br />WHEREAS, R.I.T.A. also opposes this bill due to the heavy administrative burden <br />associated with verifying the accuracy of an employee's definition of a"work day"; and <br />WHEREAS, R.I.T.A. has encouraged every municipality in Cuyahoga County to send <br />letters of opposition to its U.S. House Representative, both Ohio Senators and to all members of <br />the House Judiciary Committee. <br />NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF <br />NORTH OLMSTED, COUNTY OF CUYAHOGA, AND STATE OF OHIO: <br />SECTION 1: That this Council, on behalf of itself and the Mayor, opposes H.R. 3359, <br />the Mobile Workforce Simplification Act, and urges the Congress to not pass this bill, which will <br />be injurious to the nation's state and local governments.