Ohio sees big job gain in November

by Policy Matters Ohio on December 19th, 2014

Even with November boost, the state still has much ground to make up


Cuyahoga County Community Benefit and Opportunity Initiative

by Policy Matters Ohio on December 16th, 2014

A policy designed to get the most out of county taxpayer dollars and strengthen the local economy


Policy Matters names Amelia Hayes outreach coordinator

by Policy Matters Ohio on December 15th, 2014

Community organizer will help policy research organization reach new audiences


A system in debt; a bad tax bill; a painful jobs recovery

by Policy Matters Ohio on December 12th, 2014

In this e-news: Ohio’s unemployment compensation system is in peril; job gains in October were meager; Ohio municipal income tax bill is bad for cities.


China trade has cost 106,000 Ohio jobs since 2001

by Policy Matters Ohio on December 11th, 2014

3.2 million jobs have been lost nationwide, study shows


Senate approves House Bill 5, retaining loopholes

by Policy Matters Ohio on December 4th, 2014

Legislation to overhaul municipal income tax now goes back to the House


For immediate release
Contact: Zach Schiller, 216.361.9801
Download press release
Download testimony  


Bill preserves tax breaks and creates new ones


The Ohio Senate yesterday approved House Bill 5, an overhaul of the state’s law on municipal income tax, despite opposition from cities and villages already affected by previous cuts in state aid.  

“A major effort to overhaul Ohio’s municipal income tax should reduce tax avoidance, guarantee a broad tax base, and ensure that those most able to pay are in fact doing so,” said Policy Matters Ohio Research Director Zach Schiller in testimony on the bill earlier this week (see link). “Unfortunately, House Bill 5 does not accomplish those things.”

Policy Matters noted in written testimony that the bill ignored existing loopholes, including one that allows companies to avoid tens of millions of dollars in taxes annually by shifting income to passive investment companies.

Though House Bill 5 is framed as an effort to make municipal income taxes more uniform, Schiller said, “it forgoes an opportunity to do so by preserving the carve-outs affluent residents of Cincinnati and Findlay enjoy on income from stock options.” An amendment was rejected that would have eliminated that provision. Thus, the bill also allows additional cities to adopt the carve-out over the next year.

Another provision that many cities and Policy Matters criticized, which would have created a new loophole, was taken out of the bill. It would have reduced municipal revenue by prohibiting cities from taxing the profit a company makes when it ships a product or service outside the city where it is located to another place where it does not regularly solicit sales. 

 ”This is a welcome change,” said Schiller.

However, the bill leaves some other loopholes untouched, while creating new ones. It also calls for the establishment of a committee to study the feasibility of requiring cities to report the amount of revenue received from residents and non-residents.

“Anyone who believes in regional cooperation will see that such a requirement is not productive,” Schiller said, reacting to the new provision. “The House should reject this provision, in particular. While all of the implications of the newest version of the bill are not yet clear, the General Assembly should not approve the bill in its current form.”




Policy Matters Ohio is a nonprofit, nonpartisan state policy research institute

with offices in Cleveland and Columbus.

Policy Matters research supports need for higher minimum wage

by Policy Matters Ohio on December 4th, 2014

Workers call attention to low wages in protests across the country 


Proposed Ohio sales tax holiday is poor policy

by Policy Matters Ohio on December 2nd, 2014

 Policy Matters offers testimony in opposition of Senate Bill 243


Fix Ohio’s unemployment compensation fund with adequate resources

by Policy Matters Ohio on November 24th, 2014

 Zach Schiller in The Toledo Blade: Underfunding puts system in peril


How Ohio Has Underfunded Unemployment Compensation

by Policy Matters Ohio on November 24th, 2014

Ohio’s unemployment compensation system is more than $1 billion in debt to the federal government, mainly because the state has failed to increase employer taxes.