Dayton Daily News

Dayton, Kettering fight state tax plan

Several other local municipali­ties also oppose Kasich’s effort.

- By Nick Blizzard Staff Writer

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.

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