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Fact Sheet: Municipal Tax Reform Legislation

April 29, 2013
By Municipal Tax Reform Coalition

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.

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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. 
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Taxes Government Spending