How do Ohio municipalities define income? Let me count the ways ... Ohio is one of only a handful of states that assess income tax on businesses and individuals, and the only state in which each municipality creates its own definition of income.  So while Pennsylvania may have 2,000 municipalities that assess income tax, what they tax is largely uniform (Pittsburgh and Philadelphia have their own rules - all other municipalities share one set of rules).  But in Ohio, each city may define "income" differently.  That means potentially hundreds of municipal laws and regulations for you and your accountant to track.  Bad for taxpayers.  Bad for Ohio. 

How do Ohio municipalities define income? Let me count the ways ...
Ohio is one of only a handful of states that assess income tax on businesses and individuals, and the only state in which each municipality creates its own definition of income.  So while Pennsylvania may have 2,000 municipalities that assess income tax, what they tax is largely uniform (Pittsburgh and Philadelphia have their own rules - all other municipalities share one set of rules).  But in Ohio, each city may define "income" differently.  That means potentially hundreds of municipal laws and regulations for you and your accountant to track.  Bad for taxpayers.  Bad for Ohio. 

MYTH:  The coalition is not willing to compromise with municipalities.

FACT: The coalition has held several meetings with interested stakeholders including city and village representatives. House Bill 5 specifically addresses many of the concerns voiced by cities and villages across Ohio.

MYTH: House Bill 5 is an attempt to impose centralized collection of municipal income tax.

FACT: Statewide, centralized collection is not part of House Bill 5, nor has it been a part of previous legislation to create a simpler, more uniform municipal tax system. 

MYTH:  The Coalition is seeking changes in municipal tax rates or attempting to dictate certain rates.

FACT: The current authority to set the local rate stays with the local government entity. The Municipal Tax Reform Coalition supports municipalities to continue setting their own tax rates.

 MYTH :  The Coalition wants to change the credit percentage (a.k.a. reciprocity) a resident city gives its residents for the municipal income tax paid by those residents to the city where they work

FACT: The Coalition made it clear the issue of reciprocity was a matter between a city and its residents and therefore is not a part of its municipal tax reform agenda.