OhioDistrict tax ceilings may reflect rates in qualifying nearby cities
District contracts could use the income tax rate of a nearby municipality with a separate, unexpired district contract when setting the district’s tax ceiling.
What it does
A district tax rate could match the highest rate charged by a qualifying municipality, including one that is nearby and has a separate, unexpired district contract with a contracting party.
Argument forDistricts could have more room to fund planned services and improvements when a qualifying nearby municipality charges a higher tax rate.
Argument againstWorkers, residents, and businesses in taxed areas could face a higher district tax ceiling when a qualifying nearby municipality charges a higher rate.
More detail
A district board may set an income tax rate up to the highest rate charged by a qualifying municipality. This applies to income taxes levied within a joint economic development district or a portion of one. The district contract must authorize the board to levy the tax. The benchmark municipality must either be a contracting party or meet both the location and separate-contract requirements. This proposal applies to district contracts entered into on or after the section’s effective date.
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Where it stands
- Introduced
- Passed House
- Passed Senate
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Jul 22IntroducedIntroduced
Taxes & BudgetEconomy & Jobs