City officials who oppose Ohio House Bill 601 have started issuing public statements or passing resolutions against legislation they say would cost their jurisdictions hundreds of thousands of dollars in tax revenue.

Sponsored by Cheryl Grossman (R-Grove City), a former mayor who is assistant House majority whip, and Mike Henne (R-Clayton), first-term District 36 representative, the legislation was planned as a pro-business measure that would make local income tax procedures across the state simpler and more uniform.

The Grossman-Henne bill has been endorsed by many of the 19 organizations that belong to the Ohio Income Tax Uniformity Coalition, including the Ohio Society of Certified Public Accountants and the Ohio Chamber of Commerce. The Greater Dayton Chamber of Commerce, is reviewing the legislation and hasn’t taken a stand on it, according to vice president of public policy and economic development Chris Kershner.

But officials in cities including Englewood, which passed a city council resolution against the bill last week, say the legislation has evolved into one designed to reduce taxes without taking into account the impact on local government.

The Dayton City Commission, which estimates the city would lose $2.5 million a year, drafted a resolution Nov. 20 urging legislators to reject the bill.

The City of Kettering, where $900,000 or more might be lost if the legislation is approved as written, has prepared a similar resolution for a vote on Tuesday, Nov. 27.

David Rowlands, city manager in Henne’s town of Clayton, is among representatives of 32 southwest Ohio cities that developed earlier sample legislation they said would achieve tax uniformity without reducing revenues.

HB 601, as written, will top the agenda when the Greater Dayton Mayors and Managers Association meets Wednesday, Nov. 21, in Dayton. One of the speakers will be Peter Beck (R-Mason), who chairs the Ohio House Ways and Means Committee.

City leaders hope Beck will lead efforts to amend 601 or propose alternative legislation making it revenue neutral for them while also simplifying tax filing for businesses.

Rep. Jim Butler (R-Oakwood), 37th District, said he is confident the tax uniformity legislation that eventually wins approval will meet most concerns of area municipalities.

“This needs to be a tax-uniformity bill, not a tax-reform bill,” Butler said. “Tax reform is a worthy issue, but that should be taken up separately. I am looking into ways to make this bill revenue neutral. There is broad support for that.”

City officials are most concerned about a provision in the bill that would allow businesses to carry forward a loss from one year to reduce taxes on profits by the same amount in any of the next several years.

City manager Greg Horn said that would cost Centerville $500,000 a year. “We really need to stop the bleeding. This turns tax uniformity into tax avoidance.”

Oakwood Mayor William Duncan spoke against the bill during the Nov. 5 city council meeting.

Kettering currently allows three years for a loss to be carried forward. Dayton and many others allow none. The Ohio Society of CPAs has reported that five years is the average across the state.

Butler predicted carry forward will end up being “optional,” meaning it would be recorded similarly to the local jurisdiction’s income tax rate — in a drop-down box on the tax form.

The uniformity proposal drafted by Dayton area communities that was presented to House leaders offered a tax form with options of zero, three and five years.

Butler said it’s “very unlikely” the House will rush the bill through before the end of the year.