Brook Park opposes state’s municipal income tax pre-exemption bill

BROOK PARK, Ohio — City Council at its April 5 meeting passed a resolution in opposition to Substitute House Bill 519 which, if enacted by the Ohio General Assembly, would negatively impact the finances of municipalities across the state.

According to the Brook Park resolution, “HB 519 would preempt municipal income tax by prohibiting a municipal tax administrator from sending any inquiries or notices to taxpayers with extended tax filing deadlines, and it eliminates the penalty for taxpayers who have a filing requirement but do not owe any tax.”

“Passage of HB 519 will effectively prevent municipalities from enforcing compliance on their largest revenue source and from offering taxpayers good customer service,” the resolution indicates.

Brook Park Finance Director Greg Cingle offered his opinion prior to the council vote.

“This is another assault on municipal income tax collections,” Cingle said. “(State legislators) can’t seem to help themselves.”

Councilman Jim Mencini asked how Brook Park would be impacted if the state bill becomes law.

“It will limit the penalties that can be charged for the late filing of municipal income tax, and it also prohibits late filing notices from being sent to taxpayers during the IRS extension period,” Cingle replied.

“Back in 2016 under HB 5, the penalties and interest charged by municipalities was changed, where we could charge $25 per month for late filings up to a maximum of $150,” he added.

“In this House bill, they are reducing the penalty that can be charged. The maximum is $25. So, if you file a year late, you pay $25. Two years late? It’s $25.”

Copies of the Brook Park resolution will be sent to Gov. Mike DeWine, State Rep. Bride Rose Sweeney (D-14 of Cleveland) and State Sen. Nickie J. Antonio (D-23 of Lakewood).

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