House Bill 5 – Why you should care
House Bill 5, signed into law on December 19, 2014, will dramatically improve Ohio’s municipal income tax system.
Why is HB 5 critical for Ohio?
- Ohio has the most complicated local income tax system in the U.S. We’re one of only 10 states that tax both individuals and businesses and the only state where each city/village makes its own rules and regulations.
- Businesses must keep track of and comply with as many as 600 different sets of tax ordinances. It’s particularly burdensome for businesses whose employees work/travel in multiple cities.
- Compliance often costs businesses more than they owe in tax. The high cost of complying hinders economic growth.
How will HB5 benefit Ohio?
- Ohio’s municipal income tax system will be simpler, fairer and more predictable. Taxpayers and businesses will better understand municipal tax laws and it will be easier for them to comply with the rules and support the economies of their local communities.
- Businesses will pay less to comply with municipal tax rules. This frees up capital and time to reinvest and grow their companies.
- Ohio will be more attractive for out of state employers. Ohio will no longer stand out as the worst state in the nation in terms of municipal tax requirements.
Thank you legislators and supporters for making House Bill 5 a reality.
Read a Summary of Key Provisions.
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