The Village of Ottawa may join Findlay and other municipalities in Ohio in a class-action lawsuit challenging the State of Ohio’s plans to collect net-profit taxes from businesses.
Village council voted 4-2 during Monday’s meeting to approve authorization for Mayor Dean Meyer in order to join the lawsuit, according to the Lima News.
Ohio House Bill 49, which is Gov. John Kasich’s two-year budget bill, will allow business owners to file tax returns directly with the Ohio Department of Taxation, instead of with the municipality in which the business operates.
The state says the new rule will streamline the filing process for businesses, which often operate in multiple municipalities.
However, the Ohio Municipal League calls it a “power grab.”
According to the Municipal League, the law will give the state control of over $600 million in municipal revenue, and allow the state to collect interest from the local government revenue, while denying municipalities that ability.
The Central Ohio Mayors and Managers Association, representing about 17 cities in central Ohio, decided to file the suit, with cities throughout the state joining in.
Findlay City Council voted unanimously to join the lawsuit on Oct. 17.