Franklin County Common Pleas Court Upholds H.B. 49

A February 21, 2018 court decision ensures that centralized filing of municipal net profits taxes will continue in the coming months and also upheld all of the other municipal tax provisions recently promulgated in House Bills 5 (2014) and 49 (2017).

Franklin County Common Pleas Court Judge David Cain ruled the Ohio Constitution “makes it clear that the general assembly has the power to pass laws that limit the power of municipalities to levy taxes.” Further, the cities “can argue the definition of the word ‘levy’ until they’re blue in the face, but using common sense, the Court can only find that the Collections deal with the levying of taxes.”

Cain also ruled there was no need to continue hearings and terminated the case. The move also preserves not only the bill’s throwback provision in House Bill 49, but also reforms contained in HB 5 of 2014. More immediately, it means that businesses may continue to register for centralized collection of municipal net profits taxes, a reform the Ohio Department of Taxation has said could save up to $1.6 billion per year.

Key Takeaway

Businesses with a calendar year end must both opt in by March 1 and notify the cities they operate in no later than that date to centrally file for the 2018 tax year (make quarterly payments in 2018 and file the tax return in 2019).  Please contact a Barnes Dennig representative if you have any questions about the court’s decision or any of the related legislation.

Contact Us

The Barnes Dennig tax team is here to help!  If you have questions on this ruling, or wish to know more about how this may impact you, please contact us here or call 513-241-8313 to learn more.