OSCPA prevails in latest municipal tax reform battle

Written on Apr 05, 2019

OSCPA staff report

Ohio’s 10th District Court of Appeals this week unanimously denied a motion for reconsideration collectively filed by over 160 cities seeking to overturn laws that enabled sweeping, pro-taxpayer municipal income tax changes. 

The four-page, 3-0 decision announced April 4 rejected point after point raised by the cities, which together were fighting uniformity provisions that OSCPA fought hard to enact into law in 2014 through HB 5, and 2017 law changes eliminating sales throwback and a centralized filing and payment option for the municipal net profits tax.

“OSCPA and our Municipal Tax Reform Coalition partners have won at every possible juncture of this case to date,” said OSCPA Tax Policy Director Greg Saul, Esq, CAE. “We are confident the Ohio Supreme Court, if the case is taken up, will ultimately agree with the lower court rulings about the constitutionality of these very important reforms for Ohio taxpayers.

“Challenges with municipal tax filings have long been one of the biggest complaints raised by our members and the business community,” Saul said. “For the past couple of decades, OSCPA invested significant resources to achieve the positive changes Ohio now has in place. We will continue to do so to protect the important reforms that were accomplished.”

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.  The plaintiffs are expected to appeal the decision to the Ohio Supreme Court; cities have 45 days from April 4 to do so. If and when they receive the appeal request, the Supreme Court will decide either to take up the case or to allow the lower court decisions to stand.

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