Policy Documents

Fact Sheet: Municipal Tax Reform Legislation

Municipal Tax Reform Coalition –
April 29, 2013

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.