Gov. John Kasich’s initial state budget would have required businesses to file a certain tax with the state instead of in the cities they operate. After objections from cities, the final state budget made that an option. But it’s still under debate on both sides.
Tax commissioner Joe Testa says the budget allows businesses to file their net profits taxes through the Ohio Business Gateway, with a half percent administrative fee attached. He said requiring that would have saved money for businesses and for cities, which he said are paying third parties around 3% to file those taxes now. “We saw some that were 5 and 6%. So this is cheaper for the cities, certainly much less expensive for businesses because of the cost of compliance.”
Businesses supported the idea. But cities had protested a mandate, and are said to be concerned about the constitutionality of the state administering municipal income tax revenue even through an opt-in program.