Current Legislative Bulletin
August 11, 2017
LEGISLATIVE SERVICE COMMISSION (LSC) RELEASES PROJECTIONS FOR FY 2018/'19 LOCAL GOVERNMENT FUND (LFG) DISTRIBUTIONS
As our members are aware, the recently passed state budget, Am. Sub. HB 49, included changes to the distribution amounts of the Local Government Fund (LGF) that will reduce revenue for many municipalities in Fiscal Years 2018 & 2019. Largely, these reductions are the result of the state redirecting revenue away from the municipal supplemental distribution fund that went to those cities and villages with an income tax to instead fund new statewide opioid crisis programs and an additional $24 million in municipal LGF revenue redirected, over the biennium, to all Ohio townships and villages with a population under 1,000.
The Ohio Legislative Service Commission (LSC) has recently produced revenue projections on what political subdivisions in Ohio may receive in distributions for the next two years. We have separated Ohio municipalities from the full list of all entities and those tables can be found HERE. The information is broken down first by county followed by city and village within that county.
We cannot ensure the complete accuracy of these figures; however, these are the closest projections that we have at this time. We hope you find the attached information helpful, and we will send out additional or updated information as we receive it.
LEGISLATION INTRODUCED TO RESTRICT MUNI INCOME TAX TO RESIDENTS ONLY INTRODUCED
Sen. Kris Jordan (R-Ostrander) has re-introduced legislation last week that would prohibit municipalities from taxing nonresident income or profits. SB 176 intends to limit municipalities to taxing only their residents, while relieving non-resident workers of any withholding obligations despite the cost in services municipalities provide for those who spend their workdays in Ohio's municipalities. The legislative language can be accessed by going to LSC's webpage: https://www.legislature.ohio.gov/legislation/legislation-documents?id=GA132-SB-176.
Ohio's workforce enjoys the safe and dependable municipal infrastructure, water and sewage, fire and safety and other services provided by the municipalities where 85% of Ohio's workforce spend their working hours. Restricting municipalities to only taxing residents would result in substantial revenue losses that would disrupt that community's ability to be a place where Ohioans want to work, where businesses want to stay and where parents would want to raise a family.
The bill's previous iterations were never moved outside of the committee they were assigned to; however, we will be watching this legislation carefully and will alert our members with any additional updates should the bill receive hearings.