Vandalia City Council balks at Governor Kasich’s business tax collection proposal


VANDALIA — The Vandalia City Council took a strong and unanimous stand against a proposal by Ohio Governor John Kasich that would require businesses to file their net profit tax returns through the state’s Ohio Business Gateway instead of filing them locally as they currently do.

That proposal is included in the Governor’s 2018-19 budget proposal and is seen by many as the second phase of what will eventually become a state take over of the collection of all municipal income tax.

“This proposal would further erode our home rule powers and implement phase II of a centralized collection system for municipal income taxes,” said City Manager Jon Crusey.

Full video of the meeting can be found here:

Crusey said that state collection would result in a reduction in revenue due to the state’s lack of oversight, enforcement, and collection efforts while charging the city a one percent fee, or about $20,000 annually, to collect the taxes.

“The state will not enforce this effectively,” said Crusey. “Ask any school district that has an income tax how well the state enforces it. They aren’t going to be here in Vandalia Municipal Court to file against people not paying their taxes.”

He also noted that the city will not realize any savings because it will still be required to maintain its current tax department as is.

Mayor Arlene Setzer said during the study session that leaders in Columbus “think we can make up lost revenue by raising taxes on our own people.”

She also said that local businesses like having local people they can call for help with tax concerns.

“I don’t think local businesses care where they send their taxes, but they like having local help,” she said. “We have relationships with our businesses that the state doesn’t have.”

In other action, the council:

  • Approved services from DH Productions for production of its Focus Vandalia and By the Way videos at a cost of $1,100 per episode or $13,200 annually;
  • Approved a Community Development Block Grant Agreement with Montgomery County for $50,000 in funds for concrete repairs, street resurfacing, and addition of handicap accessible ramps at intersections. The streets include Marcellus Drive, Buttercup Avenue (Helke – Bright), Kirkwood Drive (Helke – Delsing), and Helke Road (Pool – W. Alkaline Springs).
  • Approved a PUD Final Development Plan for lot 2 at the former Morton Middle School site for an office building to be called 40 West Development. The building will be approximately 7,600 square feet with a 5,000 square foot planned addition and will house medical offices.
  • Approved a Conditional Use Permit that will allow the American Legion Post 668 to move from its current location to the former Church of Christ building at 626 W. National Road.

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By Darrell Wacker

dwacker@civitasmedia.com

 

 

Reach Darrell Wacker at 937-684-8983 or on Twitter @VandaliaDrummer.