2012-020 Resolution - Laserfiche WebLink

Home Browse Search

CITY OF NORTH OLMSTED RESOLUTION NO. 2012 - 20 By: Council Members Orlowski and Barker A RESOLUTION IN OPPOSITION TO THE STATE OF OHIO PURSUING CONTROL OFMUNICIPAL INCOME TAX COLLECTION AND DECLARING AN EMERGENCY, AS AMENDED WHEREAS, during recent discussion regarding the State Biennial Budget Bill, HB 153, it was suggested that the State Department of Taxation take over the collection of municipal income taxes, and; WHEREAS, it has come to the attention of the Administration and the Council of the City of North Olmsted, Ohio that certain elected and appointed State of Ohio officials continue efforts to make municipal income tax collection a function of a state agency despite the protests of municipalities throughout the State of Ohio; and WHEREAS, the City of North Olmsted opposes any provision in current or future legislation calling for the State of Ohio to take control of municipal income tax collection; and WHEREAS, income tax is the largest source of revenue for most municipalities and any disruption or interference with the current collection process could be damaging to the financial operations of those municipalities, including the City af North Olmsted, a member of RITA since 1972. The Regional Income Tax Agency is an example of successful collaboration, collecting taxes for over 200 taxing districts in Ohio; and WHEREAS, the City of North Olmsted currently employs the Regional Income Tax Agency (RITA) to administer tax collection and has complete access to all taxpayer returns, correspondence and other documents and is able to request custom analysis and reporting, which is beneficial for budget development, cash flow analysis and forecasting, as well as complying with GASB accounting requirements, and centralizing this data at the state level could seriously impede the City's ability to review such information; and WHEREAS, in 2011, $11,893,709.00 of income taxes was collected by the City of North Olmsted through RITA, in 2010 the fee for RITA's services was 2.36% (after consideration of a retainer refund), of the collected amount and, it is believed that the State of Ohio could charge larger fees on revenues collected, thereby resulting in the loss of hundreds of thousands of dollars to the C;ty of North Olmsted; and WHEREAS, RITA distributes tax revenue to its member communities on a semi-monthly basis, an important factor in providing services, activities and efficient government operations; and WHERF,AS, the State of Ohio control of municipal income tax collection promises numerous administrative difficulties including, but not limited to: administration of local tax