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Wednesday, June 19, 2013 | 5:47 p.m.

Posted: 4:40 p.m. Tuesday, March 5, 2013

Area city leaders unite to fight HB 5

33 endorse alternative 21-point plan

Area city leaders unite to fight HB 5
Dayton City Manager Tim Riordan (at podium) is joined by dozens of city government officials representing 33 area communities at Dayton City Hall on Tuesday, March 5, to voice concern over House Bill 5, the proposed income tax uniformity bill in the Ohio Legislature. The elected and administrative officials say the bill in its current form would reduce local revenues and increase administrative costs.

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Area city leaders unite to fight HB 5 photo
Dayton City Manager Tim Riordan displays a button as dozens of city government officials representing 33 area communities gather at Dayton City Hall on Tuesday to voice their displeasure over House Bill 5, the proposed income tax uniformity bill in the Ohio Legislature. The elected and administrative officials say the bill in its current form would reduce local revenues and increase administrative costs.

By Terry Morris

Staff Writer

DAYTON —

More than 70 elected officials and government administrators from 18 area communities joined at Dayton City Hall Tuesday in a show of unified opposition to a proposed Ohio House bill that would regulate local income tax procedures across the state.

Fearing millions in revenue losses if the measure is signed into law, those cities and villages are among 33 in seven counties that have formally endorsed an alternative tax uniformity proposal formulated over the past year by the Dayton Mayors and Managers Association.

“It’s easy to be against something,” said Dayton city manager Tim Riordan, who has led a regional effort that also includes the Dayton First Suburbs Consortium. “We’re also for something. We want to make our municipal income taxes a little more friendly to businesses, but we want to do it with revenue neutrality.”

The Ohio Municipal Income Tax Coalition, which strongly supports HB 5 and has helped develop it, believes that complying with the state’s current local income tax system deters economic expansion in the state.

Backers say the bill will reduce paperwork, encourage compliance and encourage businesses to add jobs.

Wearing a lapel button with a diagonal slash through the figures “HB 5” inside a red circle, he and other city leaders distributed a 21-point plan they said would achieve local income tax uniformity without further gutting city revenues.

House Bill 5, currently being discussed by the Ohio House Ways and Means Committee, was co-sponsored by Cheryl Grossman-R-Grove City and Michael Henne-R-Clayton.

“It purports to be an income tax uniformity bill, but provides tax breaks and imposes tax reform,” Riordan said.

Trotwood vice mayor Rap Hankins said state cuts the past two years have cost his city $2 million.

“Local government is where the rubber meets the road. The state has already taken the rubber off the tires of our police cruisers. We’re riding on the rims. We can’t take any more,” he said.

Patrick Titterington, director of public service and safety for the city of Troy, called HB 5 “unreasonable, unconscionable and indefensible. It’s another unilaterally invoked top-down mandate that would devastate our ability to provide services to our community.”

Oakwood Mayor Bill Duncan, a certified public accountant, said some provisions of the Grossman-Henne bill would allow certain workers to avoid paying city income tax and would discourage cities from auditing returns or enforcing collection.

“It’s a bill written by special interests for special interests,” he said. “Municipal income taxes are not a reason to avoid moving a business to Ohio.”

He’s a member of the Ohio Society of CPAs, one of more than 20 statewide associations that are lobbying for approval of the bill, but said his mayor’s hat takes precedence in this instance.

One suburban official was heard to say, “It’s been 15 years since I’ve been in this building,” as he headed up the Dayton City Hall steps to the second-floor city council chambers.

“This is a rare display of unity for our area,” Riordan said. “I’m an optimist. I think a new state bill that’s good for both businesses and local governments is possible.”

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