State moves for win in cities’ appeal of muni tax case

Written on Jun 18, 2019

OSCPA staff report

The State of Ohio filed a motion today asking the state’s Supreme Court to drop an appeal by a group of cities seeking to overturn pro-taxpayer municipal income tax reforms.

“This case does not possess any characteristics that justify this Court’s review,” wrote Tax Commissioner Jeff McClain. “The decision… does not involve any novel or unsettled legal question, but rather a routine application of long-settled rule… The Court should decline the plaintiffs’ invitation to reconsider principles it settled long ago.”

Cities on May 20 filed an appeal that seeks to overturn an April 4 ruling by Ohio’s 10th District Court of Appeals 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 Ohio Supreme Court has discretionary jurisdiction, so it can either grant review and schedule oral arguments or decline to hear the case and let the 10th District decision stand – which would finalize the reforms and end a lengthy intergovernmental spat that has consumed tens of thousands of taxpayer dollars.

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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