Explanation
Am. Sub. HB 33, 135th General Assembly, the State’s Biennial Budget Bill, includes various amendments to Ohio Revised Code Chapter 718 which covers Ohio’s municipal income tax system.
Under continuing law, Ohio municipalities are required to follow the dictates of state law as to municipal income tax matters as set forth in Revised Code Chapter 718. Revised Code 718.04(F) specifically states (in part) that “[n]othing in this chapter authorizes a municipal corporation to levy a tax on income, or to administer or collect such a tax *** contrary to the provisions and limitations specified in this chapter. The Ohio Supreme Court recognized the propriety of the General Assembly’s limiting authority in Athens v. McClain, 163 Ohio St.3d 61, 2020-Ohio-5146 holding that “the General Assembly’s authority to limit the power of municipalities to tax allows it *** to require that such taxes be imposed in strict accordance with the terms dictated by legislation passed by the General Assembly.”
Am. Sub. HB 33, 135th General Assembly, amended and enacted new codified statutes within Revised Code Chapter 718-the purpose of this Ordinance is to amend existing sections 362.062, 362.067, 362.091, 362.094, 362.10 of Chapter 362 and to enact new section 362.068 of Chapter 362 to reflect those state law changes.
FISCAL IMPACT: No funding is required for this legislation.
Emergency Justification: Emergency action is requested because some of the amendments and enactments to Chapter 718 are effective for municipal taxable year ending on December 31, 2023 for purposes of calculating taxable income for taxable year 2023. Failure to update the city codes to include the new state law requirements may jeopardize the City’s ability to levy its income tax pursuant to R.C. 718.04(F).
Title
To amend existing sections 362.062, 362.067, 362.091, 362.094, 362.10; and to enact new section 362.068 of Chapter 362 of the Columbus City Codes to include amendments and enactments required by Am. Sub. HB 33, 135th General Assembly, concerning municipal income tax, and to declare an emergency.
Body
WHEREAS, Am. Sub. HB 33, 135th General Assembly, has amended and enacted new codified statutes within Ohio Revised Code Chapter 718 concerning municipal income tax; and
WHEREAS, the Act requires that certain of the amendments and enactment are effective for municipal taxable years ending on and after December 31, 2023; and
WHEREAS, an emergency exists in the usual daily operation of the City Auditor’s Office, Tax Division in that it is immediately necessary to amend existing sections 362.062, 362.067, 362.091, 362.094, 362.10; and to enact Section 362.068 of Chapter 362 of the Columbus City Codes to ensure that the amendments and enactment are effective for municipal taxable year ending December 31, 2023 in accordance with Am. Sub. H.B. 33, 135th General Assembly to avoid jeopardizing the City’s ability to levy its income tax pursuant to R.C. 718.04(F); and NOW THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That sections 362.062, 362.067, 362.091, 362.094, 362.10 are hereby amended as follows; and that Section 362.068 is hereby enacted as follows:
SEE ATTACHMENT
SECTION 2. That existing sections 362.062, 362.067, 362.091, 362.094, 362.10 of Chapter 362 of the Columbus City Codes are hereby repealed.
SECTION 3. That, for the reasons stated in the preamble hereto, which is hereby made a part hereof, this Ordinance is hereby declared to be an emergency measure and shall take effect and be in force from and after its passage and approval by the Mayor or ten days after its passage if the Mayor neither approves nor vetoes the same.