Resolution 016-17RECORD OF RESOLUTIONS
Dayton Legal Blank, Inc., Form No. 30045
Resolution No. 16 -17 Passed
A RESOLUTION IN OPPOSITION TO CENTRALIZED
COLLECTION OF MUNICIPAL TAXES
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WHEREAS, The City of Dublin has been advised of a proposal in the 2017 -2018
State of Ohio Budget to institute a state - operated program for the centralized
collection of municipal income tax net profits; and
WHEREAS, the proposal for a state takeover of collection of the municipal income
taxes of municipal corporations such as The City of Dublin is in opposition to the
home -rule powers granted to municipal corporations by the Ohio Constitution; and
WHEREAS, municipalities can and do provide the needed personal service and
assistance to its taxpayers in the preparation and filing of their tax reports and
returns; and
WHEREAS, the City of Dublin possesses a vested interest in the local business
community and its success by being intimately familiar with municipal tax accounts in
order to maximize revenue due to the City; and
WHEREAS, the proposal includes a 1.0 percent fee to the state for collection of net
profit taxes, creating a negative impact on the City of Dublin, which currently collects
all income taxes at a rate of 0.8 percent; and
WHEREAS, provisions in this proposal will eliminate municipalities' ability to audit
and correct municipal income tax business returns and equitably enforce the
municipal income tax laws.
NOW, TH EFORE, BE IT RESOLVED by the Council of the City of Dublin, State of
Ohio, of its elected members concurring, that:
Section 1. 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. It is Dublin's opinion that municipalities must
remain as self - sufficient components of the State of Ohio to assure current level and
quality of services and infrastructure for our residential citizens, corporate citizens,
and visitors. Any effort to impact the source of those local services will harm not only
Dublin residential and corporate citizens, but ultimately the State of Ohio.
Section 2. The Clerk of Council is hereby directed to forward a copy of this
resolution to appropriate State of Ohio officials.
Section 3. This resolution shall take effect upon passage in accordance with
Section 4.04(a) of the Revised Charter.
TTEST:
Clerk of Council
12017.
Office of the City Manager
5200 Emerald Parkway * Dublin, OH 43017-109*
U' ity of 1" )ublio n Phone: 614.410.4400 * Fax: 614.410.4490
Cit
To.* Members of Dublin City Council
From.* Dana L. McDaniel, City Manager
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Initi'ated By: Angel Mumma, Finance Director
Faye Gibson, Director of Taxation
Nancy Richison, Senior Project Manager
Mir
Xe: Resolution 16-17 -Opposition to Centralized Collection of Municipal Taxes
The Governor's proposed 2017-18 Budget, introduced January 30, 2017,. includes a provision
allowing businesses to file one form for municipal taxes and make one payment through the Ohio
Business Gateway (OBG). The Ohio Department of Taxation would then process payment and
remit quarterly payments to the appropriate municipality while retaining a 1.0 percent fee for
administrative services.
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This proposal removes the net profit tax from a local tax to a state tax with the state
setting the rules and procedures.
The cost of collection of 1.0 percent is more than the City's cost of administering all local
taxes. In 2016, the City received nearly $90 million in income tax revenue. Our total cost
for collection, excluding refunds, was $720,,000 or 0.8 percent of gross revenue. In 2016,
Dublin collected $9.7 million in net profit taxes, which would equal a $100,000 payment tt
the state for collection of those net profit taxes.
The collection by the state would impact interest earnings and cash flow. The City collects
its own 'income tax revenue and makes daily bank deposits providing sufficient resources to
meet its day-to-day expenditures. The state's plan would remit returns on a quarterly basis,
which will interrupt and impede the ability of cities and villages to meet their daily financial
obligations.
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Cities wouic no longer be able to audit these returns. Municipal tax professionals spend a
significant amount of time auditing returns and assisting taxpayers. The state will simply
not be able to ensure the level of scrutiny, review and overall accuracy of returns filed
through the OBG inherent in self-collection. In addition, appeals would be handled by the
Ohio Department of Taxation rather than the Municipal Board of Review.
Memo re: Resolution in Opposition to Centralized Collection of Municipal Taxes
March 15, 2017
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