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Governor Proposes Centralized Tax Ordinance
< < Back toAthens City council members expressed their disapproval over a new proposed tax ordinance from the Governor's office to centralize income tax collection.
Ohio Governor John Kasich is proposing a new income tax system that would require each city to send their taxes to the state. The money would then be reallocated to individual cities.
Athens City Councilman Jim Sands is opposed to the plan. Sands’ concern is that Athens county will suffer if this proposed ordinance takes effect.
"We will lose a lot of local control over our money so we see it will cost jobs throughout the state," Sands said. "It will incur additional costs from municipalities."
Currently income tax collected from Athens residents is directly deposited into the city's account where it can collect interest. If the system was centralized, under the centralization proposal, taxes would be sent to the state first and there would be a delay before the city would see its income tax money.
According to Sands, centralized income tax collection would result in the loss of two Athens City jobs and it would make it more difficult for city residents to get help.
"What residents and small businesses will see is the lack of personal help," Sands said. "We do have two people who are assigned to the income tax office and go out of the office if necessary to help them with every problem they are having."
The proposal would likely include a standardized income tax rate across the state. Governor Kasich said this standardized rate will help bring big businesses to Ohio.
Owner of Fluff Bakery, Jessica Kopelwitz, said that if big businesses were to move in it could hurt her business.
"We don't have any doubt that a potential Panera could open," Kopelwitz said. "It would, I would think, really negatively effect us."
Councilman Jim Sands does not think the tax ordinance would have any effect on big businesses coming to the state.
"Based on what I have talked to the auditor about, I just don't see how this centralized tax collection is going to be a factor in deciding whether a business comes to Ohio or goes to Illinois," Sands said. "There are many other factors that are going to enter in much more strongly and I think this is really a non issue."
Athens City Auditor Kathy Hecht is working to draft a resolution to send to the state expressing that Athens does not support centralized income tax collection. Sands said City Council could approve the auditor's resolution as early as next week.