CONGRESS IS CONSIDERING ELIMINATING CRUCIAL S.A.L.T. DEDUCTION: CALL TO ACTION
In the current tax reform bill being debated before Congress, lawmakers are considering a proposal that would eliminate all state and local income taxes (S.A.L.T.) deductions from federal taxation. This elimination would mean a substantial increase in taxation for taxpayers who currently deduct their state and local income taxes from their federal taxes.
The S.A.L.T. deduction has been an integral part of tax code since 1913. The deduction exists to avoid double taxation and removes pressure from local governments to make the difficult choice between cutting taxes and services or trying to maintain services. The elimination of the S.A.L.T. deduction will mean taxpayers will see a substantial increase in dollars removed from their paycheck, while municipalities will be pressured to accommodate by lowering local taxes while still providing local services.
Additional resources and information on the S.A.L.T. deduction is available
HERE. Included
HERE is a sample letter which can be used to help communicate your concerns to your Congressperson.
Just last night, the tax reform bill was voted out of the Senate Finance Committee. We are asking our members to contact their Congressperson immediately and ask that on behalf of taxpayers and local governments alike, they stand against the repeal of the S.A.L.T. deduction.
OML JOINS ASSOCIATIONS IN OPPOSING RESIDENTIAL PROPERTY TAX EXEMPTION BILL
The League will be joining 8 other statewide associations in opposing HB 371, sponsored by Rep. Merrin (R - Monclova Township), which would freeze the value of land in the pre-residential development stage for any subdivided, unimproved parcel on which construction of residential buildings is planned but has not started. The bill also reduces property taxes for land purchased for residential development purposes.
The coalition, which is made up of associations representing local governments across the state, have given a memo detailing their opposition to Rep Merrin.
The memo voices concern regarding the bill's drastic alteration of the uniform standards of appraisal practice, citing potential unintended and unpredictable consequences on the value of neighboring land within a local community. Local governments and schools could face a reduction in property taxes - particularly in urban and suburban areas, where an exponentially high number the of residential building permits are issued. Not only would these mean a loss in revenue for schools and local governments, but other taxpayers with property set at a fair value would be forced to bear the burden of making up the loss.
You can read a copy of the memo
HERE.
Our members are strongly encouraged to call their state legislators to voice their opposition to HB 371.
THIS WEEK IN COMMITTEE HEARINGS
Here is a brief recap of the bills that received hearings in committees this week:
- SB 118 - PTSD TREATMENT-FIRST RESPONDERS. Sponsored by Sen. LaRose (R - Hudson) and Sen. Brown (D - Toledo) and a reintroduction of SB 5 in the 131st General Assembly, the bill would make peace officers, firefighters, and emergency medical workers diagnosed with post-traumatic stress disorder arising from employment without an accompanying physical injury eligible for compensation and benefits under Ohio's Workers' Compensation Law. During sponsor testimony before the Senate Insurance and Financial Institutions Committee, Sen. Hackett raised concerns around an equal protection issue, allowing those in other professions to sue for similar coverage. He suggested the bill sponsors considered taking the issue outside of Worker's Compensation.
- HB 351 - NOAA AND PHS TAX EXEMPTION. Sponsored by Rep. Perales (R - Beavercreek), the bill would require municipal corporations to exempt from taxation the military pay of members of the commissioned corps of the National Oceanic and Atmospheric Administration and Public Health Service. Lieutenants from the PHS testified in support on the bill during its second hearing in the House Ways and Means Committee, citing that out of the 56 PHS officers living in Ohio, 28 across roughly 12 municipalities that collect income tax.
- SB 180 - FIREARM LAWS. Sponsored by Sen. Hottinger (R - Newark) and Sen. Uecker (R - Miami Township), the bill would assign the burden of disproving a self-defense claim to the prosecution; expand the locations at which a person has no duty to retreat before using force; and modify the Concealed Handgun Licensing Law. During its second hearing in the Senate Judiciary Committee, the Buckeye Firearm Association and the Office of the Ohio Public Defender testified in support of the bill.
NEW MUNICIPAL LEGISLATION INTRODUCED THIS WEEK:
Here are the bills introduced this week that impact municipalities:
- HB 410 - TRAFFIC VIOLATIONS. Sponsored by Rep. Seitz (R - Cincinnati) and Rep. Butler (R - Oakwood), the bill would grant municipal and county courts original and exclusive jurisdiction over any civil action concerning a traffic law violation; would specify that the court require an advance deposit for the filing of specified civil actions by the local authority bringing the civil action; and would modify the reporting requirements and LGF withholding that apply to subdivisions that operate traffic law photo-monitoring devices. This week, Cleveland.com ran an article detailing the legislation in which OML's Executive Director, Kent Scarrett, is quoted voicing the perspective of Ohio's municipalities. You can read the article HERE.
- HB 415 - ROAD IMPROVEMENTS. Sponsored by Rep. Greenspan (R - Westlake) and Rep. Ryan (R - Granville), the bill would allocate one-half of any surplus revenue to a new Local Government Road Improvement Fund, from which money will be distributed directly to local governments to fund road improvements.
STATE AUDITOR REPORT TO HELP LOCAL GOVERNMENTS AVOID THEFT
State Auditor Dave Yost has issued a report entitled "Pocket Payments: Preventing the Theft of Incoming Funds" in an effort to help local entities prevent payment theft. The report details a total of approximately $3.4 million stolen from local governments over the past decade.
Auditors discovered 77 local governments had experienced incoming payment theft, resulting in 53 theft convictions. The majority of the cases involved either utility transactions, villages and school districts.
The report details the types of transactions most targeted by thieves (cash payments) and suggest means local governments can take to prevent theft. You can read the report
HERE.
PUCO OFFERS STATE FUNDING FOR RAIL GRADE CROSSING UPGRADES
The Public Utilities Commission of Ohio (PUCO) is encouraging local highway authorities to apply for available state-funding for rail grade crossing upgrades in their communities through two state-funded programs that may be applicable for local communities: the state grade crossing upgrade program and the supplemental assistance program.
The state-funded Grade Crossing Upgrade Program allows local communities to share the cost of installing safety devices with the state and local railroad. A local highway authority must submit an application to the PUCO, which will then conduct a field diagnostic review. If a financial proposal is extended and agreed to, a contract will be executed and the project will be approved for construction.
The supplemental assistance program provides safety enhancements at certain eligible crossings. If PUCO approves the project, construction is then completed and is reviewed by a PUCO inspector, the local highway authority submits the costs for reimbursement up to $5,000.
For further information regarding the programs listed above, please visit the rail industry section of the PUCO website at
www.PUCO.ohio.gov.
EPA ANNOUNCES EARLY STAKEHOLDER OUTREACH SESSIONS
The Ohio EPA has announced 3 opportunities to learn about potential changes to Ohio EPA's NPDES Construction Storm Water general permit renewal. These events are being held to obtain stakeholder input prior to official public noticing of the draft general permit renewal.
Storm water runoff from new development or redevelopment where the larger common plan of development or sale disturbs 1 or more acre of land is regulated under the National Pollutant Discharge Elimination System (NPDES) permit program administered by Ohio EPA. The NPDES permit that sets the current requirements is set to expire on April 20, 2018. These sessions will allow you to learn about the potential changes. Attendees will be given a chance to ask questions of Ohio EPA's staff about the potential changes and provide input.
The first outreach session happened on November 17 of this week. The next will occur on November 29, from 10 am to noon at the Ohio Department of Transportation Auditorium at 1980 W Broad Street in Columbus.
Those who are unable to attend a session in person are encouraged to watch the November 17 session, as it was recorded and posted online at
http://epa.ohio.gov/dsw/storm/index.aspx. Stakeholders can email input to
Jason.Fyffe@epa.ohio.gov by December 6, 2017. Ohio EPA will consider all input received prior to official public notice of the draft general permit renewal.
NO BULLETIN NEXT WEEK
Next week, League staff will be celebrating Thanksgiving with their family and loved ones, so we will not be sending out a full Legislative Bulletin next Friday. We will be sending out a committee schedule for the following week, so you can keep tabs on what will be happening at the Ohio Statehouse once legislators return from the holiday.
Until then, we want to wish all our members a Happy Thanksgiving!
