Whalen Poll Respondents Support Legislation to Simplify Ohio's Municipal Income Tax System

Infographic_ The Whalen Poll _ Infogram
82% of clients surveyed favor legislation that would establish a uniform definition of income along with related rules and regulations across all Ohio municipalities.

Respondents to The Whalen Poll on Ohio’s municipal income tax structure overwhelmingly favor a proposal to provide more uniformity and consistency to the tax system across all of the state’s cities and believe the change needs to take place now.

The poll, administered between May 21 and May 29 to business clients of Whalen & Company, CPAs, is the second poll the firm has conducted this year on business issues facing our clients. The first, in March, dealt with Governor Kasich’s proposed state budget for 2013-15 and tax reform measures. Results are sent to state legislators, statewide office holders and business leaders.

Eighty-two percent of those participating in the poll support proposed legislation in the Ohio House to establish a uniform definition of income along with related rules and regulations. More than two-thirds of the respondents favor immediate action.

Half of the respondents were business owners whose employees perform work in multiple locations and must pay the city income tax of their employees where the work is done. One third of these respondents indicated they file employee income tax in 14 to 19 cities with an additional 7 percent citing 20 or more cities. Nearly half file in two to three cities.

Sixty-four percent of the respondents find the complexity of the municipal income tax structure burdensome for taxpayers. Respondents were split on their views regarding the administration of the tax by cities. Thirty-eight percent felt the it was generally consistent while an equal number of respondents cited an inconsistency in the administration of the tax.

Half of the respondents felt the costs of complying with the state’s current municipal income tax structure are too high. On the other hand, 25 percent believe these costs are about right.

Furthermore, 54 percent of those taking part in the poll think the city income tax system puts Ohio at an economic disadvantage when compared to other states.

Thirty-two percent of the respondents have 50 or more employees, and 25 percent employ 20 to 49. About 25 percent have fewer than 10 employees.

For more details on the poll results, click here.