COLUMBUS (AP) — A judge has upheld an Ohio law that allows the state to collect municipal business-profit taxes from cities, counties and villages.
At issue is a move last year by Republican Gov. John Kasich (KAY’-sik) to streamline a system that required businesses to file taxes in every municipality where they earn income, requiring extensive tax planning and preparation.
The Ohio Department of Taxation estimated business taxpayers would save $800 million in compliance costs under the plan.
Cities sued last year, calling it a power grab by Kasich for one of the largest revenue sources that Ohio municipalities continue to control.
Franklin County Judge David Cain ruled Wednesday the collection is constitutional. A message was left with the lawyer representing local governments.