The Ohio Senate is currently working on its version of the biennial budget bill, House Bill 59, which will likely include some alternative tax reforms different from the executive and House budgets. House leaders are also continuing to develop their own additional tax reform ideas with input from a number of interested parties, including the Kasich administration. This is being done to broaden the range of tax reform options on the table in anticipation of a conference committee on HB 59 that will forge a compromise between the executive, House and Senate versions of the bill.
Gov. John Kasich made lowering Ohio’s marginal personal income tax (PIT) rates a central goal of his executive budget. He proposed both a 20 percent (over three years), across-the-board PIT rate reduction and a 50 percent PIT exclusion up to a $375,000 cap for owners or partners of a pass-through entity (PTE), such as a partnership or S corporation. House and Senate leaders agree that Ohio’s PIT rates must come down to make Ohio more competitive with those of our neighboring states.
Representatives from all over Ohio told the House Ways and Means Committee Tuesday that, while they support uniformity of Ohio's municipal income tax codes, they believe HB5 (Grossman-Henne) is really tax reform and tax reduction disguised as a uniformity bill.
Those testifying in opposition all had similar messages about the bill, saying that adding HB5 on top of Local Government Fund cuts and the loss of the estate tax would be unfair and would interfere with local control. They said HB5 would lead to loss of revenue.
Among those testifying were Eric Hanson, city manager of Mason; Lakewood Mayor Michal Summers; Jack Jensen, executive director of Dayton First Suburbs Consortium; Susan Cave of the Ohio Municipal League; Thomas Moeller, city manager of Madeira; Melinda Frank, city of Columbus income tax administrator; Lynette Ozanich, chief tax clerk of the city of Brunswick; Bratenahl Mayor John Licastro, who also serves as president of the Northeast Ohio Mayors and City Managers Association; and Bay Village Mayor Deborah Sutherland.