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Muni tax case heads to Supreme Court as cities file appeal

Written on May 23, 2019

OSCPA staff report

A group of Ohio cities filed an appeal this week continuing their efforts to overturn pro-taxpayer municipal income tax reforms.

The appeal, filed May 20, 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 deny to hear the case and let the 10th District decision stand, or grant review and schedule oral arguments.

OSCPA Tax Policy Director Greg Saul, Esq, CAE, said the move by the cities was expected.

“We are confident that the Ohio Supreme Court, if it chooses to take up the case, will do what’s been done at every juncture of this case to date, and that’s to uphold the constitutionality of these very important reforms for Ohio taxpayers,” Saul 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. Saul pledged that support will continue.

“Challenges with municipal tax filings have long been one of the biggest complaints raised by our members and the business community,” Saul said. “So, for that reason we’ll do whatever is necessary to protect these needed reforms.”

For more information on this important issue, contact the OSCPA government relations team.

Reminder: Next muni tax deadline is June 1

Ohio businesses with a taxable year that begins on April 1 that want to file their 2019 municipal net profit tax return with the Ohio Department of Taxation must register by midnight, June 1.

Click here to opt in now with the Ohio Department of Taxation. More details about this new filing and payment option are spelled out in ODT’s Taxpayer Information Guide.

Also by May 1, businesses that intend to file centrally must notify each municipal corporation in which the taxpayer conducted business during the previous taxable year, on Form MNP-MN. The tax commissioner has prescribed two versions of the form: one for tax preparers and the other for taxpayers.

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