Lima to join coalition of cities suing state over business tax c - Hometownstations.com-WLIO- Lima, OH News Weather Sports

Lima to join coalition of cities suing state over business tax collection changes

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Mayor Berger says they are working to add Lima to the list of about 70 cities across the state joining the suit. Mayor Berger says they are working to add Lima to the list of about 70 cities across the state joining the suit.
The rule was folded into the state budget this summer allowing local businesses to file taxes with the Ohio Department of Taxation instead of their local municipalities. The rule was folded into the state budget this summer allowing local businesses to file taxes with the Ohio Department of Taxation instead of their local municipalities.
The returns would then be processed online through the Ohio Business Gateway and returns distributed by the state, charging the cities a 1/2-percent fee per filing. The returns would then be processed online through the Ohio Business Gateway and returns distributed by the state, charging the cities a 1/2-percent fee per filing.

The City of Lima is set to join a lawsuit against the state for an income tax collection change that could cut a more than a million dollars from the city's budget. 

The rule was folded into the state budget this summer allowing local businesses to file taxes with the Ohio Department of Taxation instead of their local municipalities. The returns would then be processed online through the Ohio Business Gateway and returns distributed by the state, charging the cities a 1/2-percent fee per filing. 

The mayor says the new state tax center would also cause cities like Lima to lose the ability to audit, leaving ample room for error. 

"We really feel that the state has over stepped itself and really infringed on the home-rule authority of cities. Home-rule is a part of the state constitution. It should not be ignored and we think that there are various aspects that infringe on that plus that have really serious detrimental financial consequences for us," said Mayor Dave Berger Tuesday.  

The change is expected to take effect January 1, 2017 and gives municipalities like Lima a deadline to comply by January 31, 2017 or lose income tax altogether - a potential hit of about a million and a half dollars. 

"The concern the communities ought to have is the continuing erosion of the revenue base with which we maintain safety services. How will we continue to provide police and fire coverage and how will we deal with streets and parks and all that kind of thing?" said Berger.

Mayor Berger says they are working to add Lima to the list of about 70 cities across the state joining the suit. 

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