Miamisburg is looking to join a growing list of Ohio communities preparing to sue the state for a change in the way local business taxes are collected.
RELATED: 100 cities line up to fight tax collection plan
The city council next week will consider a measure allowing it to become part of an effort to questioning the constitutionality of a change that would start in January.
RELATED: Income tax collections boosting Miamisburg budget
More than 100 cities and villages are part of the coalition, according to the Ohio Municipal League. The change comes at a time when Miamisburg has witnessed a steady growth in income tax collections, allowing the city to spend more on city roads, bridges and sidewalks.
Miamisburg collected about $18 million in income taxes in 2016, a 7 percent jump from the previous year.
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The change to begin in January is the result of the passage of a state bill “comprehensively rewriting the entire municipal income tax law” and another allowing the state to collect “municipalities’ net-profits taxes,” according to legislation set to be considered by Miamisburg Tuesday night.
Under the new rules, businesses will have the option of filing net-profit-income-tax returns through a portal administered by the Ohio Department of Taxation. The tax revenue would then be distributed by the state to the local governments, as opposed to local tax collection offices administering and distributing the funds.
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