Fact Sheet: Municipal Tax Reform Legislation
Why Ohio Needs Reform
- Ohio has the most complicated local income tax system in the U.S.
- Ohio is one of only 10 states that tax both individuals and businesses.
- Ohio is the only state where each city/village makes its own rules and regulations –businesses must keep track of and comply with as many as 600 different sets of tax ordinances.
- It’s particularly burdensome for businesses whose employees work/travel in multiple cities.
- The high cost of complying hinders economic growth.
- Compliance often costs businesses more than they owe in tax.
- International site selectors say Ohio’s municipal tax system is the second highest negative factor (the first being the negative labor environment) when it comes to attracting new employers.