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Council set to oppose income tax plan


Council next week will likely oppose changes to Ohio municipal income tax law that New Carlisle officials say “takes a shot at” home rule.

House Bill 5, which as proposed would create uniform municipal income tax procedures across the state, probably wouldn’t have as great a financial impact on New Carlisle as larger cities with more business and industry might experience, said New Carlisle Tax Administrator Michael Voelkl.

But state control on how municipalities collect taxes has the city worried. Council is expected to vote on a resolution opposing the legislation at its meeting Monday.

The city of Springfield commission recently passed a resolution opposing the bill. Officials estimated it would cost the city about $618,000 annually in revenue.

“Our resolution is more about the fact that the state is further deteriorating the home rule,” Voelkl said.

One area of concern in the legislation is a proposed addition of days that go untaxed for workers who are conducting business only occasionally in the city.

Current law says that income of occasional workers is taxable after 12 days. The proposed legislation would extend that to 20 days, Voelkl said.

The city could also be affected by a change to the definition of where a sale is considered made, Voelkl said. As it stands now, it’s where the item or service is sold that’s taxed, but it could change to where the purchase originated from, he said.

But again, the effects wouldn’t be compounded in a small city like New Carlisle where most of its revenues come from its residents, according to Voelkl.

The city’s resolution is also being put before council in support of surrounding communities that may see more financial effects than it will, he said.

Home rule allows local entities the power of self-government.

“This is one of the things that have happened over the last number of years that have been eroding home rule,” Voelkl said. “It’s one more nail in the coffin, so to speak.”


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