We would like to alert our members that this morning, the Senate Ways and Means committee followed the advice of our municipal officials from around the state and did not include an amendment to HB69 exempting Supplemental Executive Retirement Plans (SERPs), along with other non-qualified defined benefit plans including non-statutory stock options and restricted stocks, from municipal income tax.
The League is grateful to our members who mobilized, reaching out to legislators and apprising them of the damage this amendment would have on already depleted municipal revenues. We also greatly appreciate those who wrote testimony and drove to the Statehouse early this morning to testify.
The League would also like to thank the members of the Ohio Senate and House of Representatives who appreciated the significant negative impact the proposal would have to already fragile municipal budgets and "activated" on behalf of their cities and villages. We appreciate their help in exposing problems with the language and encouraging their fellow legislators to support rescinding the language, at this time.
As you will recall from our previous "Call to Action" and legislative bulletin, the Senate Ways and Means committee was considering a proposed amendment to HB 69 that would have exempted all non-qualified defined benefit plans including SERPs, non-statutory stock options and restricted stocks, from municipal income tax. The language was also retroactive to Jan. 1, 2016, meaning municipalities would have had to pay two years' worth of refunds out of 2018 municipal budgets with funding that does not exist.
The issue will continue to be a source of conversation at the Ohio Statehouse by those special interests that seek this change to the municipal income tax. We anticipate more attempts will be made next year to address the issue so we ask that our members remain vigilant on the subject with their legislative delegation.
The activity today and the direct involvement of league members should serve as a reminder of the importance of making our voices heard on issues before the legislature that impact municipalities and the acknowledgement that the legislature is listening.
Thank you!
