Dayton, Kettering fight state tax plan
Several other local municipalities also oppose Kasich’s effort.
Municipalities from Troy to Lebanon are opposing a state plan to centralize collection of net profit tax returns.
Cities from Troy to Lebanon are opposed to a state proposal to centralize collections of net profit tax returns, saying it will likely cost municipalities money, result in further revenue losses and hurt businesses getting a range of local free help.
The plan, part of Gov. John Kasich’s proposed state budget, is an effort to simplify tax issues on businesses, state officials said. But area municipalities – Centerville, Dayton, Kettering, Miamisburg, Springboro and West Carrollton, among them – are fighting the plan, saying the proposal amounts to a continuation of the state infringing on municipal revenue streams.
These actions have cost cities millions of dollars in recent years, local officials contend. They include cutting the Local Government Fund, eliminating the estate and tangible property taxes, and altering the structure of the municipal income tax.
The Kasich tax collection plan “will again strain municipalities by further reducing revenue and by forcing an unnecessary separation of service to our citizens,” according to a letter by Kettering Mayor Don Patterson.
The move “could result in severe damage and pose a significant risk to the ability of cities and villages to meet their typical and unforeseen financial obligations,” he stated.
Earlier revenue sharing cuts cost Ohio cities $453 million in 2015 alone, according to the Ohio Municipal League.
The proposal calls for the state to impose a 1 percent collection fee, which would translate into $63,000 based on last year’s figures, said Kettering City Manager Mark Schwieterman. The state change would bar cities from auditing local businesses, a move which would have cost the city $87,000 last year, he said.
Local audits in Troy have accounted for more than $900,000 for the city the past three years, according to John Frigge, Troy auditor.