ENGLEWOOD — At the February 14 Englewood City Council meeting, the elected officials unanimously approved a Resolution in opposition of language in Ohio Governor John Kasich’s biennial budget bill which further limits local control of the collection of municipal income taxes.
The proposed 2018-2019 budget includes a provision for centralized collection of business net profit returns, including retention of 1 percent of the revenue through a service fee imposed by the Ohio Department of Taxation.
“Since 2011, the City of Englewood has not paid a third party to administer the municipal income tax code. The 1 percent service fee proposed by the Governor equates to a direct loss of income for us,” said Englewood Mayor Patricia Burnside. “Centralized collection eliminates local control over timely detection of, and enforcement action against, delinquent and non-filing taxpayers.”
Municipalities have felt the pain of revenue reductions brought on by state policy changes in recent years. The Local Government Fund was cut approximately in half in 2011, followed by the elimination of estate tax and the tangible personal property tax reimbursement.
For the City of Englewood, municipal income tax represents 80 percent of general fund revenue. Over 75 percent of income tax revenue is used to subsidize public services such as street resurfacing, snow removal and leaf pickup; parks and recreation; and public safety services like police, 9-1-1 dispatch, fire and EMS.