Kasich to Cite $800M Business Cost in Tax Fight

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COLUMBUS, Ohio (AP) – Republican Ohio Gov. John Kasich is preparing to make an $800 million argument for seizing state control of municipal business-profits tax collections from cities, counties and villages.

An Ohio Department of Taxation estimate released to The Associated Press Monday suggests that’s how much Ohio business taxpayers would save in compliance costs under the Republican governor’s municipal income-tax reform streamlining proposal.

The administration plans to use the figure to push back against strong objections raised by members of the Ohio Municipal League, which see Kasich’s plan as a power grab for one of the largest revenue sources Ohio municipalities continue to control.

The non-partisan Policy Matters Ohio estimates the business-profits tax accounts for more than $600 million of the over $4.7 billion in municipal income tax revenue collected annually.