Village of Georgetown upset by Kasich proposal

The Village of Georgetown has prepared a resolution to be presented to council regarding changes in Ohio Governor Kasich’s 2017-2018 budget at its Feb. 9 council meeting.
The resolution strongly opposes the governor’s budget proposals which include a plan to centralize collection of net profit tax returns and other provisions related to the municipal income tax which will cause a substantial loss of revenue to villages like Georgetown.
According to Georgetown Mayor Dale Cahall, he anticipated that members of council would sign the resolution, declaring it an emergency.
“This state-operated program would take over collection of the municipal income taxes of municipal corporations like Georgetown,” said Mayor Cahall. “I don’t see it as a good thing when the state takes over any of our business. It would just be a matter of time before they start charging us a fee for handling these taxes. Residents would send their taxes to Columbus instead of directly to the village. We have a tax commissioner here in Georgetown who takes care of all this.”
Cahall said that he has heard that government local funding is also going to be cut, so coupled with the proposed centralized collection, it’s not going to be good for small municipalities like Georgetown and many other villages in Brown County.
The resolution opposing the governor’s budget also touched on the following issues:
• the plan to take over collection of municipal income taxes is a clear attack on the home rule powers granted to municipal corporations by the Ohio Constitution;
• moving forward on this proposal shall not take place without a vigorous legal challenge by affected municipal corporations;
• the recent reduction in local funding, elimination of estate tax and accelerated phase-out of promised reimbursement for loss of revenues have caused loss of revenue for the Village of Georgetown;
• municipalities provide personal service and assistance to its taxpayers in the preparation and filing of their tax reports and returns;
•municipalities can ensure the prompt and proper audition of local tax returns;
• the proposal will hamper municipalities ability to audit and correct municipal income tax business returns, to enforce local laws;
• the municipal income tax is the single largest revenue source, which provides essential municipal services, promoting a positive quality of life that residents and businesses alike rely on.
“This is definitely not a good outlook for our village,” Mayor Cahall said. “We don’t need the state getting this involved in our village.”