2012-11

RESOLUTION OPPOSING THE STATE OF OHIO FROM SEEKING TO TAKE CONTROL OF MUNICIPAL TAX COLLECTION, AND DECLARING AN EMERGENCY

WHEREAS: The City of Marion is aware of the Common Sense Initiative Office (CSIO), led by Lt. Governor Mary Taylor, which has identified centralized collection of municipal income tax as an early-stage project; and

WHEREAS: Income tax is the largest source of revenue for Marion as well as most municipalities and any disruption or interference with the current collection process will be harmful to the financial operations of the city; and

WHEREAS: The prospect of state control of municipal income tax collection presents numerous administrative difficulties including, but not limited to; how the state will administer local tax ordinances; how retention of and access to tax records will be handled; the timing and frequency of distributions of collected revenues to municipalities; the reporting of tax collections to municipalities; the impact of planned budget and staffing cuts on the Ohio Department of Taxation’s ability to undertake and properly perform such significant new responsibilities; whether the city will receive a credit for the investment revenue earned from its tax collections before they are distributed; the accessibility of detailed reports on collections, refunds and past due accounts; whether the State will not only collect and distribute tax revenues, but will they also provide compliance staff to assure that residents are following the tax code of the city; and

WHEREAS: Following already approved cuts in the Local Government Fund, the phase out of the CAT tax distributions, and planned elimination of the estate tax distributions, municipalities cannot afford another potential loss in revenue.

NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF MARION, COUNTY OF MARION AND STATE OF OHIO, THAT:

Section 1. The Council and Mayor of the City of Marion do hereby declare its strong opposition to any effort by the State of Ohio to take over the collection of municipal income taxes in Ohio and urges its state legislators to reject and oppose any amendment to pending bills or introduction of new legislation that proposes transfer of collection and/or control of municipal income taxes to the State of Ohio Department of Taxation.

Section 2. The Clerk of Council for the City of Marion, Ohio is hereby authorized and directed to send a certified copy of this Resolution to State Senator Dave Burke, State Representative Jeff McClain, State Representative Dorothy Pelanda, Lt. Governor Mary Taylor and Governor John Kasich.

Section 3. It is found and determined that all formal actions of this Council concerning and relating to the adoption of this Resolution were adopted in an open meeting of this Council and that all deliberations of this Council and any of its committees that resulted in such formal action were in meetings open to the public in compliance with all legal requirements.

Section 4. This Resolution is hereby declared to be an emergency measure immediately necessary for the preservation of the public peace, health, safety and welfare of the city, and for the further reason that it is immediately necessary to strongly oppose any effort by the State of Ohio to take over the collection of municipal income taxes in Ohio and to urge its state legislators to reject and oppose any amendment to pending bills or introduction of new legislation that proposes transfer of collection and/or control of municipal income taxes to the State of Ohio Department of Taxation; and such Resolution receives the affirmative vote of two-thirds of all members elected to Council, it shall take effect and be in force immediately upon its passage and approval by the Mayor; otherwise, from and after the earliest period allowed by law.


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Dave Edwards
Approved: President of Council

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Mayor Scott Schertzer

Attest;

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Clerk of Council