By Rick Palsgrove
Southeast Editor
Groveport city officials’ concerns regarding the state’s centralized collection of business income taxes are coming true.
“The state collection of business income tax through its Ohio Business Gateway is slow,” said Groveport Finance Director Jeff Green. “It’s running about 60 days behind.”
Under the state’s control, the centralized system collects business income taxes and then distributes tax receipts to the intended municipalities. Municipalities, seeking to maintain local control, fought the state’s plan in court, but the state prevailed.
According to the city of Groveport’s April 2018 income tax revenue report, received income tax revenues are down 16.3 percent so far this year compared to last year and down 37 percent for the month of April compared to April 2017. A big chunk of that downturn could be because received business income taxes are down 46.5 percent for the year and down 61.7 percent for April due to their apparent slow collection and disbursement by the state.
“Sorry to see we have to go through this,” commented Groveport City Councilwoman Jean Ann Hilbert about the state taking over the business income tax collections. “We had it running so smoothly before.”
A Feb. 26 resolution passed by Groveport City Council cited these reasons for the its opposition to the state’s plan: it is “a clear attack” on the home rule powers granted to municipalities by the Ohio Constitution; it would adversely affect municipalities with tax revenue from warehouses, distribution centers, and businesses providing online sales; municipalities can better ensure prompt and proper auditing of local tax returns; and that the municipal income tax is the largest revenue source for the city and helps provide for essential city services.
According to a information from the governor’s office, the benefits of the state’s centralized collection of business income taxes are: uniformity and simplicity with one return, one place to file, one set of rules, and one audit rather than various sets of rules and filing requirements from various municipalities; and reduced cost of compliance, bookkeeping, paperwork and red tape.
Commercial expansion
Hague Quality Water, a manufacturer of water treatment equipment, is expanding and plans to add 70 jobs over the next three years.
“It’s an example that companies are staying in Groveport and expanding,” said Green.
Groveport Building Official Stephen Moore said the company is investing $7 million in new equipment and creating new space within its existing facility.
“It will double their production,” said Moore.
Hague will expand its current operations at 4343 South Hamilton in Groveport and open a new facility at 2353 Global Drive in Obetz to supplement its ongoing growth. The company currently employs more than 100 people at the Groveport facility.
