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On August 6, 2019, the Supreme Court of Ohio agreed to hear two related cases regarding the constitutionality of Ohio’s Municipal Net Profit Tax Centralized Collection system. Specifically, the Supreme Court agreed to hear the cases to determine if the state-administered centralized collection system for municipal net profit taxes violates the Home Rule Amendment of the Ohio Constitution.
The trial court and court of appeals both rendered decisions in favor of the state administered centralized collection system where taxpayers may elect to have the Ohio Tax Commissioner be the tax administrator for municipal net profit tax purposes. If the Supreme Court determines that the centralized collection system violates the Ohio Constitution, over 3,500 businesses who have already registered to have the Tax Commissioner be its sole Tax Administrator for municipal net profit tax purposes could see the benefits of having a sole tax administrator vanish overnight.
Oral arguments will likely be scheduled in the next few months.
If you have any questions regarding municipal taxes or the net profit tax centralized collection system, please contact Adam Garn, Steve Hall, Tom Zaino, or any ZHF professional.