Senator Supports State Move Municipalities Call Unconstitutional

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Michaela Madison Reporting

(Tuesday, November 14th) New Philadelphia, Ohio – A State Senator is expressing support for a change to business tax collection, while municipalities argue the move by the state is unconstitutional.

Senator Jay Hottinger explained the single portal will help alleviate the burden to businesses while causing little harm to the revenue stream for municipalities.

Hottinger noted the current system requires businesses to file taxes in every jurisdiction it operates out of, which he says creates unnecessary work and costs.

“It’s optional,” explained Hottinger. “Business can decide if they want to continue to file on the local level or they can file with a single portal with the state. So, there are some businesses one of their biggest costs is the compliance on the local tax side.”

Senator Hottinger explained municipalities would be reimbursed most of the money collected through the state portal.

“The state then will turn around on a monthly basis and distribute the money that’s due back to each individual local government, the exact amount minus a .5 percent cost of implementing the program.”

Senator Hottinger added the tax foundation has said Ohio has the worse local tax system in the country and this is an attempt to improve it.

The City of New Philadelphia recently approved an ordinance to pay $4,000 to enter a coalition of around 160 municipalities that argue the move by the state is unconstitutional.

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