AN ORDINANCE REPEALING CHAPTER 881 “EARNED INCOME TAX REGULATIONS EFFECTIVE BEGINNING JANUARY 1, 2016” AND ENACTING A NEW CHAPTER 881 AND DECLARING AN EMERGENCY
- Published: January 18, 2018
AN ORDINANCE REPEALING CHAPTER 881 “EARNED INCOME TAX REGULATIONS EFFECTIVE BEGINNING JANUARY 1, 2016” AND ENACTING A NEW CHAPTER 881 AND
DECLARING AN EMERGENCY
ORDINANCE 2018-03, VILLAGE OF YELLOW SPRINGS, OHIO
Interested persons will take note that the Village Council of Yellow Springs on
Tuesday, Januar y 16, 2018, gave first reading to an ordinance, text to follow.
WHEREAS, in H.B. 49 of the 132nd General Assembly, the State’s general
appropriations bill for the biennium, includes Section 803.100 purporting to require
that municipalities, on or before Januar y 31, 2018, adopt certain municipal income
tax provisions that are also adopted within H.B. 49 to authorize State officials to
collect and administer municipal net profits taxes; and
WHEREAS, Section 803.100 of H.B. 49 references and relies upon Section
718.04(A) of the Ohio Revised Code, which purports to make municipal income
taxing authority conditional upon a municipality’s adoption of code sections as
dictated by the State; and
WHEREAS, although the municipal income tax provisions of H.B. 49, and
Section 718.04(A) of the Ohio Revised Code, violate the Home Rule Amendment,
the Village nevertheless is compelled to adopt H.B. 49’s municipal income tax
provisions to avoid any doubt or taxpayer challenge as to its ability to impose a
municipal income tax under the terms of Section 803.100 of H.B. 49 and Section
718.04(A) of the Ohio Revised Code; and
WHEREAS, the Village is a party to ongoing litigation seeking a declaration
that the H.B. 49 municipal income tax provisions, Section 718.04(A) of the Ohio
Revised Code, and other provisions of Ohio law that usurp the powers of local self-
government are unconstitutional, and to enjoin all actions by state officials to imple-
ment the H.B. 49 municipal income tax provisions, and a stay has been put in place
that extends the deadline to make certain changes until Februar y 24, 2018; and
WHEREAS, the Village, by enacting this Ordinance, does not concede the
legality of H.B. 49’s municipal income tax provisions, Section 718.04(A) of the Ohio
Revised Code, or any other law that is subject to the suit in which the Village is
participating, and reser ves its right to continue prosecution of that lawsuit.
NOW, THEREFORE, COUNCIL FOR THE VILLAGE OF YELLOW
SPRINGS, OHIO HEREBY ORDAINS THAT:
Section 1. Chapter 881 entitled “Earned Income Tax Regulations Effective
Beginning Januar y 1, 2016” of the Codified Ordinances of the Village of Yellow
Springs, Ohio be repealed.
Section 2. A new Chapter 881 entitled “Earned Income Tax Regulations Effec-
tive Beginning Januar y 1, 2016” of the Codified Ordinances of the Village of Yellow
Springs, Ohio be enacted to read as set forth on Exhibit A* with new language
underlined and bolded, which is attached hereto and incorporated herein.
Section 3. Village Council hereby expressly finds and determines that it
does not concede the legality of H.B. 49’s municipal income tax provisions; Sec-
tion 803.100 of H.B. 49; Section 718.04(A) of the Ohio Revised Code; or any other
law that is the subject of the action pending in Case Number 17 CV 194026 in
the Lorain County Court of Common Pleas or any other legal challenges filed in
the State , and that the Village reser ves its rights to continue its participation in
and prosecution of said litigation, and any other litigation challenging the State’s
authority to dictate municipal tax collection and administration, and that adoption
of this Ordinance shall not prejudice the claims of the Village therein.
Section 4. This Ordinance shall take effect and be in full force at the earliest
date permitted by law.
Brian Housh, Council President
* Full text of Exhibit A is available online at http://www.yso.com, at the Clerk of Council’s
office, Y.S. Library or in the Bryan Center lobby.
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