HB 503 — Regards voter approval of municipal income tax reciprocity credit

As ReportedPassed by the House Ways and Means Committee 136th General Assembly Regular Session Sub.

Representatives Daniels, King, Newman, Thomas, D., Williams, ClickClick, Abrams, Craig, Fischer, Fowler Arthur, Gross, Lear, Mathews, A., Peterson, Plummer, Robb Blasdel, Swearingen, Young To amend section 718.04 and to enact section 1 718.041 of the Revised Code to require voter 2 approval to reduce or repeal a municipal income 3 tax reciprocity credit, to allow a voter 4 initiative to enact or increase such a credit, 5 and to require the Department of Taxation to 6 conduct a study of municipal income taxation.

17 (1) A statement that the tax is an annual tax levied on 18 the income of every person residing in or earning or receiving 19 Sub.

503 Page 2 As ReportedPassed by the House Waysthe andincome Meansof Committeeevery person residing in or earning or receiving 19 income in the municipal corporation and that the tax shall be 20 measured by municipal taxable income;

41 (2) Except as provided in division (B) of this section, no 42 municipal corporation shall levy a tax on income at a rate in 43 excess of one per cent without having obtained the approval of 44 the excess by a majority of the electors of the municipality 45 voting on the question at a general, primary, or special 46 election.Sub.

The legislative authority of the municipal corporation 47 Sub.

503 Page 3 As ReportedPassed by the House Ways and Means Committee shall file with the board of elections at least ninety days 48 before the day of the election a copy of the ordinance together 49 with a resolution specifying the date the election is to be held 50 and directing the board of elections to conduct the election.

The legislative authority of the municipal corporation 47 shall file with the board of elections at least ninety days 48 before the day of the election a copy of the ordinance together 49 with a resolution specifying the date the election is to be held 50 and directing the board of elections to conduct the election.

The legislative authority of the municipal corporation 72 shall file with the board of elections at least ninety days 73 before the day of the election a copy of the ordinance together 74 Sub.

503 Page 4 As ReportedPassed by the House Waysbefore andthe Meansday Committeeof the election a copy of the ordinance together 74 with a resolution specifying the date the election is to be held 75 and directing the board of elections to conduct the election.

"Shall the Ordinance providing 84 for ______ (a repeal or reduction) of a tax credit to residents 85 of ____ (the applicable municipal corporation) for ____ (all or 86 a portion of, as applicable) the taxes paid to any other 87 municipal corporation be passed? (If a modification, language 88 shall be added here stating the amount, percentage, or rate 89 limit of the modified credit compared to the amount, percentage, 90 or rate limit of the current credit.) 91 93 Yes For the (repeal or reduction) " No Against the (repeal or reduction) (E) Except as otherwise provided in this chapter, a 94 municipal corporation that levies an income tax in effect for 95 taxable years beginning before January 1, 2016, may continue to 96 administer and enforce the provisions of such tax for all 97 taxable years beginning before January 1, 2016, provided that 98 the provisions of such tax are consistent with this chapter as 99 Sub.

503 Page 5 As ReportedPassed by the House Waysthe andprovisions Meansof Committeesuch tax are consistent with this chapter as 99 it existed prior to March 23, 2015.

the percentage or amount of tax revenue 126 to be paid to the school district or the method of establishing 127 or determining that percentage or amount, which may be subject 128 toSub. change periodically;

the purpose for which the school 129 Sub.

503 Page 6 As ReportedPassed by the House Waysto andchange Meansperiodically; Committee district will use the money;

the purpose for which the school 129 district will use the money;

154 (3) If the board determines that the petition is 155 sufficient and valid, the question shall be submitted to the 156 electors of the municipal corporation for their approval at the 157 next general election held at least ninety days after the 158 petitionSub. is filed with the board.

159 Sub.

503 Page 7 As ReportedPassed by the House Wayspetition andis Meansfiled Committeewith (B) The board of elections shall publish notice of the 160board. election in a newspaper of general circulation in the municipal 161 corporation once a week for two consecutive weeks before the 162 election, or as provided in section 7.16 of the Revised Code.

159 (B) The board of elections shall publish notice of the 160 election in a newspaper of general circulation in the municipal 161 corporation once a week for two consecutive weeks before the 162 election, or as provided in section 7.16 of the Revised Code.

The Department of Taxation shall conduct a 178 study on municipal income tax uniformity, convening relevant 179 stakeholders including, but not limited to, the Ohio Mayors 180 Alliance, the Ohio Municipal League, the Ohio Chamber of 181 Commerce, the Ohio Business Roundtable, the National Federation 182 of Independent Business Ohio, the Ohio Council of Retail 183 Merchants, the Regional Income Tax Authority, the Central 184 Collections Agency, and the Ohio Society of Certified Public 185 Accountants, and issue a report to the General Assembly not 186 later than December 31, 2026, in accordance with division (D) of 187 sectionSub. 101.68 of the Revised Code.

The report shall cover the 188 amount of municipal income tax collected annually statewide, the 189 Sub.

503 Page 8 As ReportedPassed by the House Wayssection and101.68 Means Committee impact of current law on taxpayers and tax preparers, as well as 190 the financialRevised impactCode. of potential changes to current law on 191 statutorily required municipal services.

The report shall cover the 188 amount of municipal income tax collected annually statewide, the 189 impact of current law on taxpayers and tax preparers, as well as 190 the financial impact of potential changes to current law on 191 statutorily required municipal services.