Muni Tax Collection System Found to be Constitutional

A Franklin County Common Pleas Court judge has Muni tax class action dismissed>, brought by about 160 Ohio municipalities, challenging a new law that allows the State of Ohio to collect local business taxes.

House Bill 49, which is Gov. John Kasich’s two-year budget bill, allows business owners the option to file municipal net profit tax returns directly with the Ohio Department of Taxation, instead of with the municipality in which the business operates.

OMA backed this law change because it streamlines the filing process for businesses, which often operate in multiple municipalities.

Joe Testa, state tax commissioner, said that businesses that want to take advantage of the state’s new streamlined system for 2018 taxes have a deadline of March 1 to register through the Business Gateway. 2/22/2018