Title
A RESOLUTION OPPOSING H. R. 3359 WHICH LIMITS THE AUTHORITY OF STATES AND LOCALITIES TO TAX CERTAIN INCOME.
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WHEREAS, H.R. 3359 is now pending in the U.S. House Judiciary Committee on Commercial and Administrative Law; and
WHEREAS, H.R. 3359 would have a detrimental impact on revenues of state and local governments imposing an income tax; and
WHEREAS, H.R. 3359 requires the physical presence of an employee within a municipality for more than 60 days before their wages become subject to the local income tax and this attack on a municipality's ability to raise revenues locally comes at a time when revenues are generally declining and the economy is suffering; and
WHEREAS, more than 500 Ohio cities and villages impose an income tax and would suffer a substantial loss of tax revenues if H.R. 3359 becomes law; and
WHEREAS, an impact study provided by the City of Columbus and submitted at the March 11, 2008, hearing of the Committee indicated that the make-up of cities such as Columbus, Cincinnati, Cleveland, and Toledo demonstrates that 80% to 86% of all municipal income tax collected is from employee withholding tax and that non-resident employees contribute approximately 60% to 67% of that revenue; and
WHEREAS, it was stressed during testimony by the City of Columbus that the anticipated loss of revenue would result in the inability of Columbus to adequately provide for a Department of Public Safety Services; and
WHEREAS, the City of Gahanna's anticipated loss of revenue would be a minimum of $350,000;
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF GAHANNA, STATE OF OHIO:
Section 1. That this Council and Administration of the City of Gahanna oppose H. R. 3359 which will limit the authority of states and localities to tax certain income of employees for employment duties performed in other states and localities.
Section 2. That this Council and Administration view this bill as a detriment to the funding of local public safety, emergency service, parks and all other essential daily services that make Gahanna a great place to live, work, and play.
Section 3. That this resolution shall be in full force and effect at the earliest period allowed by law.