Hillsboro council, administration oppose centralized collection of local income taxes
Lead Summary
By
Brandy Chandler-brandychandler@gmail.com
The Hillsboro City Council has passed legislation stating their opposition of an initiative by Ohio Gov. John Kasich that would centralize municipal income tax collections at the state level. Local officials say that they feel the move would not be efficient, would would further cut the funding available to local municipalities.
During council's monthly meeting Monday, Hillsboro Mayor Dick Zink and Hillsboro Auditor Gary Lewis both spoke out against the state centralization of tax collections and their support of a city resolution opposing the measure.
"The proposal will have the taxes sent to the state, and then the state will charge the city an administrative fee to process them," Zink said. "I don't see how folks in Columbus will be able to track citizens moving in and out of the city, or contractors doing business in the city, and how the state will follow up on citizens refusing to file as our city ordinance requires.
Zink said that he has already sent letters to Ohio 17th District Sen. David Daniels (R-Greenfield) and Ohio 86th District Representative Cliff Rosenberger (R-Centerville). Rosenberger had been in attendance at the start of Monday's council meeting, and Zink began to inquire about the letter, but the representative had left shortly after the meeting began.
The centralization would cut deeper into the revenue of the cities and villages, according to Zink.
Zink said that he had received an email regarding a letter that had been circulated from Ohio Auditor of State David Yost to State Tax Commissioner Joe Testa.
"Mr. Yost explained how centralized local income tax collection would put hardships on local governments," Zink said. "I think the auditor should be applauded for his understanding of this issue."
Zink requested council's permission to draft a letter to Yost thanking him for his stand on the matter, which council approved.
During his report to council, Hillsboro Auditor Gary Lewis said that he agreed with Zink regarding income tax collection.
"I'd also like to go on record as strongly supporting the income tax legislation the mayor spoke about previously," Lewis said. "I think that it is a bad idea for the state to take that function over. I am in full agreement with the mayor that is something that should be handled locally. "
According to the resolution read to council Monday, "It has been proposed that the state department of taxation take over collection of municipal income taxes. Whereas income tax is the largest source of revenue for most municipalities, including Hillsboro, and any disruption or interference with the current collection process will be harmful to our financial operations - especially in the wake of the state of Ohio's sweeping reductions of the local government fund and elimination of the estate tax and the Commercial Activities Tax."
The legislation further stated that because Hillsboro is one of Highland County's most densely population municipalities and contains a "significant number of rental units" it "demands an extraordinary localized effort to collect taxes due to significant turnover of residential households."
In the resolution, council said that it was strongly against the centralization and asked that the state legislature not pass any initiative that would put in place such a plan.
"A centralized tax collection system runs afoul of the spirit of the Ohio Constitution by aggregating the will of the people to govern themselves by adopting their own local charters and ordinances," according to the city's resolution.
Hillsboro Law Director Fred Beery said that the measure could be passed by a vote of council, and did not require three readings. Council member Mary Brown Turner said that she would like more information before voting. Zink said that it was written as an emergency resolution and that there may not be time to wait.
"I'll tell you what, the way they like to move things through your state government, if we put this thing off and they pass it and we have to send our money up there for them to keep a part of it before they send it back to us, it's going to be a big problem," Zink said. "You really need to pass this thing tonight."
Lewis said that he was, "In full agreement," with Zink.
Council member Dave Shoemaker, who was acting council president Monday in the absence of president Lee Koogler, said, "I highly encourage council to consider this passage tonight."
A motion to pass the resolution was made by council member Peter Pence and was seconded by Bonnie Parr. The motion passed 6-0.
Council member Rod Daniels was not in attendance at the meeting as he is currently serving overseas with the U.S. Army Reserve.
The Hillsboro City Council has passed legislation stating their opposition of an initiative by Ohio Gov. John Kasich that would centralize municipal income tax collections at the state level. Local officials say that they feel the move would not be efficient and would further cut the funding available to local municipalities.
During council's monthly meeting Monday, Hillsboro Mayor Dick Zink and Hillsboro Auditor Gary Lewis both spoke out against the state centralization of tax collections and their support of a city resolution opposing the measure.
"The proposal will have the taxes sent to the state, and then the state will charge the city an administrative fee to process them," Zink said. "I don't see how folks in Columbus will be able to track citizens moving in and out of the city, or contractors doing business in the city, and how the state will follow up on citizens refusing to file as our city ordinance requires.
Zink said that he has already sent letters to Ohio 17th District Sen. David Daniels (R-Greenfield) and Ohio 86th District Representative Cliff Rosenberger (R-Centerville). Rosenberger had been in attendance at the start of Monday's council meeting, and Zink began to inquire about the letter, but the representative had left shortly after the meeting began.
The centralization would cut deeper into the revenue of the cities and villages, according to Zink.
Zink said that he had received an email regarding a letter that had been circulated from Ohio Auditor of State David Yost to State Tax Commissioner Joe Testa.
"Mr. Yost explained how centralized local income tax collection would put hardships on local governments," Zink said. "I think the auditor should be applauded for his understanding of this issue."
Zink requested council's permission to draft a letter to Yost thanking him for his stand on the matter, which council approved.
During his report to council, Hillsboro Auditor Gary Lewis said that he agreed with Zink regarding income tax collection.
"I'd also like to go on record as strongly supporting the income tax legislation the mayor spoke about previously," Lewis said. "I think that it is a bad idea for the state to take that function over. I am in full agreement with the mayor that is something that should be handled locally. "
According to the resolution read to council Monday, "It has been proposed that the state department of taxation take over collection of municipal income taxes. Whereas income tax is the largest source of revenue for most municipalities, including Hillsboro, and any disruption or interference with the current collection process will be harmful to our financial operations - especially in the wake of the state of Ohio's sweeping reductions of the local government fund and elimination of the estate tax and the Commercial Activities Tax."
The legislation further stated that because Hillsboro is one of Highland County's most densely population municipalities and contains a "significant number of rental units" it "demands an extraordinary localized effort to collect taxes due to significant turnover of residential households."
In the resolution, council said that it was strongly against the centralization and asked that the state legislature not pass any initiative that would put in place such a plan.
"A centralized tax collection system runs afoul of the spirit of the Ohio Constitution by aggregating the will of the people to govern themselves by adopting their own local charters and ordinances," according to the city's resolution.
Hillsboro Law Director Fred Beery said that the measure could be passed by a vote of council and did not require three readings. Council member Mary Brown Turner said that she would like more information before voting. Zink said that it was written as an emergency resolution and that there may not be time to wait.
"I'll tell you what, the way they like to move things through your state government, if we put this thing off and they pass it and we have to send our money up there for them to keep a part of it before they send it back to us, it's going to be a big problem," Zink said. "You really need to pass this thing tonight."
Lewis said that he was "in full agreement" with Zink.
Council member Dave Shoemaker, who was acting council president Monday in the absence of president Lee Koogler, said, "I highly encourage council to consider this passage tonight."
A motion to pass the resolution was made by council member Peter Pence and was seconded by Bonnie Parr. The motion passed 6-0.
Council member Rod Daniels was not in attendance at the meeting as he is currently serving overseas with the U.S. Army Reserve.
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