Republicans in the Ohio House have approved a bill that requires a city to ask voters to approve lowering a tax credit for residents who pay income taxes in another city where they work.
Joint sponsor Rep. Heidi Workman (R-Rootstown) said House Bill 503 ensures that in the future, if a city wants to lower the reciprocity rate it offers residents paying income taxes elsewhere, voters need to agree.
“It requires voter approval before any municipality can reduce or repeal a reciprocity credit," Workman said on the House floor. "And it empowers citizens through voter initiatives to establish or strengthen these credits where they're needed."
The bill's other joint sponsor Bill Roemer (R-Richfield) noted a lowering of a municipal reciprocity credit amounts to a tax increase for residents.
“We've always said that our voters need to be informed. Our voters need to vote on tax increases," Roemer said. "This does exactly that.”
Rep. Elgin Rogers Jr. (D-Toledo) is among the 27 Democrats who voted against the bill. He warned of revenue losses from these votes, which could mean reductions in services or raising other taxes. And he said the bill is a solution in search of a problem.
“There is no evidence of widespread reductions or elimination of reciprocity credits. There is no evidence of sneaky combined ballot measures that confuse voters," Rogers said. "If there were, I guarantee you there'd be a lot of local elected officials out of a job.”
Rogers said opposition has come from mayors and officials from Lancaster, Mt. Vernon, South Lebanon, Louisville and Crestline, as well as the Ohio Municipal League and the Ohio Mayors Alliance.
"The bill remains, in my eyes, an attack on local control," Rogers added.
Three Democrats joined all Republicans in voting for HB 503. The bill, which won’t affect current taxes, now goes on to the Senate.
