Ohio teenagers with jobs will pay more if provisions of a statewide local income tax uniformity bill are retained and approved by the General Assembly.

Co-sponsored by majority whip Cheryl Grossman (R-Grove City) and Michael Henne (R-Clayton), House Bill 601 expired at the end of 2012. Henne said the legislation probably will be re-introduced by the end of February.

Proponents of the bill say the wide range of regulations and variations required by almost 600 Ohio cities and villages means businesses that operate in several communities can spend more on complying and filing the forms than they owe in taxes. They say a simpler system would attract businesses and lead to job creation.

Opponents of the expired bill say that while they support making local tax provisions more uniform, the proposal would reduce their local tax revenue collections by significant amounts even though some individuals might pay more in taxes. They say the bill needs to be revenue neutral for municipalities.

The bill would affect teens with jobs in Kettering, Huber Heights, Centerville, Miamisburg, Union, Brookville, Germantown, Farmersville, Oakwood, Vandalia, West Carrollton and Phillipsburg.

Those Montgomery County communities exempt wage earners younger than 18 from local taxes — although they need to file for refunds on withholdings.

It would not affect young workers in Dayton, Trotwood, Moraine, Englewood, New Lebanon and Carlisle, who already pay taxes at the local rate.

Most cities in Greene, Warren and Miami counties also require teens to pay taxes along with adult workers.

The law also wouldn’t reduce earnings for kids working in Warren County’s largest city of Mason, where the Kings Island amusement park and Soak City are among the state’s largest employers of teens. Dozens of workers ages 15 and older pay the city’s 1 percent income tax.

The Beach water park, which is scheduled to reopen this year, also will hire many young taxpayers.

Another tax initiative will affect many. Although Mason’s income tax rate is 1 percent, a city charter amendment that took effect Jan. 1 changes the tax rate to 1.12 percent. Teen workers who live in Mason and are dependents of property tax-paying homeowners in the city will not have to pay that increase. Teens who live in other communities will pay, but if they owe taxes to a community that allows a full credit for taxes paid to Mason, the net effect will be 0.

Jennifer Heft, assistant city manager, said Mason does not keep separate figures on how many teens younger than 18 pay the local tax.

The uniformity bill wouldn’t affect individual city rates. It could standardize most other tax forms and procedures throughout the state.

Hundreds of young area workers would be affected.

City manager Mark Schwieterman said the City of Kettering refunded local taxes to 52 teens younger than 18 last year. “We don’t keep track of how many paid taxes, but did not file for refunds.”

Springfield tax administrator Nancy Belcher said the city “probably processed only about 20 to 25 refunds for kids in that age group last year, but a lot of employers don’t withhold the tax for teens under 18 because they know they aren’t required to pay.”

“A lot more of them across the state will be paying the local 1, 1.5 or 2 percent tax if this goes forward,” said Carol Topp, a Cincinnati-based CPA, author, speaker and expert on teens and taxes, who said she supports most other aspects of the uniformity bill.

“I think teens should pay less taxes, not more. I’m in favor of encouraging teens to start their own businesses. One way to do that is to lighten their tax load,” said Topp, whose ebooks include “Teens and Taxes.” She said 18 would be a better level to make local taxes mandatory.

Many part-time teen employees will continue to qualify for federal refunds because, based on 2012 regulations, they had to make more than $5,950 before they owed tax.

“It’s often not worth it for teens to file for state refunds because many of them would receive less than $10,” Topp said.

One existing tax problem for teens is that many employers who hire them “don’t categorize them as employees. They consider them independent contractors. Teens may not understand this when they take a job. They’re just happy to have one,” she said.

“It’s often a surprise to them and their parents when, instead of receiving a federal W2 form from the employer, they get a 1099 form that classifies their earnings as miscellaneous income. That subjects the teen to a 15 percent federal self-employment tax if they have made more than $400. Nothing has been withheld.”

Huber Heights tax administrator Ronni Showalter said she doesn’t see many filings by teens for refunds. “I don’t think that aspect of a uniformity bill would have much financial impact in our community, but it could mean a couple hundred kids will have to file returns.”

According to West Carrollton finance director Tom Reilly, “This wouldn’t add up to an enormous amount of revenue for the city, but it would be significant for dozens of young workers. We have quite a few fast food restaurants that employ them.”

The Ohio House Bill has been opposed by municipalities across the state because it would reduce their local income tax revenues. It has generally been a popular proposal among businesses because it would simplify tax withholding and payment for them.