Judge Clears Path for Centralized Municipal Tax Filings

COLUMBUS, Ohio – Judge David E. Cain of the Franklin County Court of Common Pleas cleared the path for Ohio businesses to continue using a new, streamlined municipal tax filing system recommended by The Ohio Society of CPAs on Feb. 21.

The decision means Ohio employers can continue registering to centrally file and pay municipal net profits taxes through the Ohio Business Gateway instead of continuing to file individually in potentially hundreds of cities where they operate. Cain also upheld all other disputed municipal tax provisions of House Bill 5 and House Bill 49 as constitutional.

The “ruling is a victory for the entire state economy, because it will allow job-producing employers to operate more efficiently in a competitive national and international environment,” said Scott Wiley, president and CEO of The Ohio Society of CPAs.

The new system allows employers to file one single return and make one payment quarterly for all cities where they owe municipal net profit taxes. The Ohio Department of Taxation will then remit payments due to cities and villages monthly for businesses opting in to centralized filing, and handle all related administrative tasks for municipal net profit taxes.

Administrative fees for the state-operated process also average 70% less than those charged by regional tax administration entities sdoing similar work for Ohio municipalities.

Since 2012, The Ohio Society of CPAs has partnered with legislators and the Municipal Tax Reform Coalition, representing hundreds of thousands of Ohio businesses, to pass reforms aimed at fixing Ohio’s burdensome municipal tax system.

Published by The Business Journal, Youngstown, Ohio.