By Wayne Gates –
The Georgetown Council made a major change to the village tax code at its Feb. 22 meeting.
Following a change in state law, the village put a new tax ordinance into effect that allows businesses to pay village income tax directly to the state instead of the village. The change only applies to businesses that choose to do so.
That option is not open to individuals, according to the new law.
The new tax ordinance allows state tax code to supercede the municipal code.
Village Solicitor Joe Braun explained the new state law to council prior to the vote.
“It allows businesses to file their Village of Georgetown income taxes with the state,” Braun said
“The state has generously offered to keep our money for us. And when they decide they are done processing it, they will return our money to us. There is no provision in there as to whether they can or cannot charge a fee, but it is assumed they will charge us a fee to get our own money back.”
Braun said he expected the situation to become a continuing frustration for the village.
“The reason that this is problematic is that they are taking home rule away from us and our ability to levy income taxes. Second of all, the next step is obviously that they will allow individuals to do the same. Eventually, that puts the state of Ohio into collecting our income tax for us,” Braun said.