Muni tax case moves forward as Supreme Court grants jurisdiction

Written on Aug 08, 2019

OSCPA staff report

The Ohio Supreme Court on Aug. 6 granted jurisdiction to hear cities’ appeals to two cases challenging reforms to Ohio’s municipal income tax system.

The next step in the process – scheduling oral arguments – is probably at least 3 months away because the parties need to file their briefs, said OSCPA Tax Policy Director Greg Saul, Esq., CAE.

Cities on May 20 filed an appeal that seeks to overturn an April appeals court ruling upholding OSCPA-supported reforms in 2014 through HB 5, and in 2017 law changes eliminating sales throwback and a centralized filing and payment option for the municipal net profits tax.

The Supreme Court this week granted the appeal on the cities’ assertion that the laws violate the “Home Rule” provision of Ohio’s constitution. Saul said he remains confident that the laws are constitutional.

“This is a good development, because we’d rather have a statewide decision from the Supreme Court instead of an appellate court decision that could be subject to further challenges,” he said.

OSCPA previously filed an amicus brief in the case and has been an outspoken advocate for the State of Ohio’s efforts to defend the laws. For more information on this important issue, contact the OSCPA government relations team.

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  1. Eugene Welsh | Aug 09, 2019
    If successful, is there any hope that the State of Ohio will also attempt to modify, amend or revoke the employment and residence tax structure as it exists today? 

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