The state is already urging business to begin Ohio application for their Tax ID but there is trouble in paradise as 100 cities including villages are fighting because of the changes in how the taxes are collected from local businesses. These cities and villages are threatening to sue Ohio because of its new plan which will take effect in January in time for the two-year budget of the state.
With the new rules, business can file their net profit and income tax returns through the website managed by the Ohio Department of Taxation. The tax revenue is to be distributedto local governments and this is going to be handled by the state. With the previous method, the one in charge in managing and distribution of the funds is the local offices for tax collection.
This measure was put in place in order for the process of tax collection from businesses to be efficient considering that fact that they have to file and submit their information to various local jurisdictions annually. With this change, a service free will be collected from the taxes amounting to half the percentage point.
The biennial budget made by Gov. John Kasich received the approval of Bill Beagle, a state senator. The only thing he was not in favor of is the centralized collection proposal which is also stated in the legislation.
Beagle said that he understands both sides because he used to be Tipp City’ council member but he is also businessman being the owner of Hampton Group. He has business in three jurisdictions including Tipp City, Piqua and Troy. He understands that the goal of the law is to help business owners in an efficient filing system but he also understands the businesses as they want their transactions to be handled by the local tax departments. This is advantageous to them as they only have to deal locally in case of any problems or issues.
Around 112 municipalities joined the resolutions in order to prepare for the lawsuit. As new businesses begin Ohio application for their Tax ID, they might be able to understand what these businesses are fighting for.