ThisWeek Marysville (March 31, 2014)
To the Editor:
I read with interest Mayor Gore's letter that appeared March 16 in ThisWeek Marysville News.
Substitute House Bill 5 is a long-overdue approach to helping small businesses by making meaningful changes in Ohio's burdensome municipal tax code. With nearly 600 different municipalities assessing and collecting their own income taxes, Ohio has one of the most complex tax systems in the country.
In fact, a case could be made that Ohio is the most complex, considering that only nine other states even have a municipal tax at all. In six of those states, only three cities or fewer collect. The current system of collecting municipal taxes is a tall barrier that discourages job-creators from setting up shop in Ohio's municipalities.
That is why House Bill 5 is strongly supported by a number of business organizations, which include the Ohio Chamber of Commerce, NFIB/Ohio and the Ohio Society of CPAs. In fact, the CPAs state that "Ohio's local tax system is often cited by national tax experts as literally the worst in the country."
In response to concerns of some Ohio municipalities, several substantial changes were made to the bill in committee, including a five-year phase-in of the net operating loss carry-forward (NOL). Additionally, a legislative committee will be established to study the impacts of the NOL on our cities, giving the General Assembly ample time to act before enacting the next two-year budget if conditions warrant. I can only assume that the statistics cited by Mr. Gore did not take this phase-in, or the establishment of the study committee, into account.
Mr. Gore's assertion that I do not know the constituency of the 86th House District, and instead only "following directions from state leadership," is offensive and absurd. I represent all of the 86th District, and there are diverse interests within the district. Inevitably, I will cast votes that please some and disappoint others. In this case, I voted for jobs.
86th House District Representative