Mandatory changes to tax code to be heard

Modifications required by state law

By Sam Wildow -

PIQUA — The Piqua City Commission will be hearing two different readings of ordinances that relate to modifying the city’s municipal income tax as a result of the passing of Substitute House Bill 5 in December 2014. The amount of the city’s income tax is not changing, but the state is requiring more uniformity among municipalities’ income tax codes, as well as the requirement of a net operating loss (NOL) carryforward.

According to the staff report, the major changes for Piqua will be the requirement of a NOL carryforward, which will be phased in effective with taxable years after Jan. 1, 2017. A business experiences a loss when they spend more than they make, such as by making a big equipment purchase or spending more money to operate.

The tax reform within Substitute House Bill 5 means that a corporate or an LLC business that experiences a loss one year could spread the amount of that loss over five years so as to reduce or eliminate their taxes during that time span.

According to the Ohio Legislative Service Commission’s Final Analysis of Substitute House Bill 5, the new law “[requires] all municipal corporations to allow businesses to deduct new net operating losses and to allow a five-year carryforward of such losses, reducing the requirement for five years for certain municipal corporations.”

Other changes to the income tax include “the casual entrant rule will go from 12 to 20 days, penalty and interest charges are uniform, and the minimum collection/refund amount goes from $5.00 to $10.00,” according to the staff report, which also states “[other] minor changes were already incorporating into our current ordinance.”

The majority of the rest of commission meeting will cover the second readings of ordinances that were introduced at their last November meeting.

The first two ordinances discuss adopting new pay schedules. The first ordinance was in regard to non-union employees. Cynthia Holtzapple, director of finance, explained at the last meeting that this ordinance will allow for a 2 percent increase for non-union employees. The city’s union employees are also going to receive a 2 percent increase for 2016.

The second ordinance discussed the wages of the city’s part-time workers, including lifeguards at the Piqua pool and employees at Echo Hills Golf Course. According to Holtzapple, the changes to their wages are to make the Piqua pool a more competitive employer for part-time workers, allowing the city to recruit and retain more lifeguards in particular.

The next ordinance on the agenda will update the city’s employees’ health insurance to reflect the new insurance benefit year. Following that ordinance, the commission will hear the second reading about the 2016 Annual Budget. The commission will then hear the second reading of an ordinance declaring the city’s intent to vacate a public right-of-way at an alley located between Main and Wayne streets as it is not being used for public purposes.

Modifications required by state law

By Sam Wildow

Reach reporter Sam Wildow at (937) 451-3336 or on Twitter @TheDailyCall

Reach reporter Sam Wildow at (937) 451-3336 or on Twitter @TheDailyCall