Municipal Tax Reform, Optional Centralized Net Profits Collection

More than 100 cities and villages filed a civil lawsuit in the Franklin County Court of Common Pleas challenging the constitutionality of key municipal income tax reforms signed into law through H.B. 49 in June 2017 and H.B. 5 in December 2014. AGC was an active proponent of the municipal tax changes. The suit seeks an immediate preliminary and permanent injunction to halt all work by the State of Ohio to implement centralized net profits filings through the Ohio Business Gateway along with other state-administered municipal tax operations. Common pleas Judge Cain dismissed the suit, and the cities have appealed to the Franklin County Court of Appeals. AGC will file an amicus in conjunction with other employer associations in support of the municipal tax reform laws. City of Athens, et. al. v. Testa, et. al.