Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Municipal Income Tax topic
No spam. Unsubscribe anytime.
Committee accepts substitute to limit voter approval to decreases in municipal reciprocity credits
Summary
The House Ways and Means Committee accepted a substitute to House Bill 503 that removes a retroactivity clause and requires voter approval only when municipalities decrease reciprocity credits (and requires votes on rate or credit limits), while sponsors said the change returns decision-making power to voters for reductions only.
Chairman Romer brought House Bill 503 (municipal income tax reciprocity credits) forward for its fourth hearing and described a substitute that removes a provision that would have made post‑August changes null and void and instead restricts voter referendum requirements to decreases in reciprocity credit and to changes to rate or credit limits. Committee members said the change responded to prior witness concerns.
Vice Chair Thomas moved to amend HB 503 with the sub-bill. The motion was put without objection and the sub-bill was accepted.
Greg Lawson of the Buckeye Institute testified in support of the bill, calling the municipal income tax system one of the most burdensome local taxes and urging simplification. "It’s essentially double taxation," Lawson said, describing reciprocity-credit changes as a contributor to complexity and arguing the bill would empower taxpayers to have a voice where credits are reduced.
Additional proponent testimony was noted as submitted in writing from NFIB (Jared Weiser) and a representative from AFP (Donovan). The fourth hearing concluded with no further in‑person testimony.
