House Committee Hears Opponents to Annexation Bill.

The House Local Government and Townships Committee heard from the League, many municipal officials and representatives from the private sector homebuilding and development community as it held a hearing on HB 98 (SB 289) for opponents of the bill this week.

The League reiterated its concerns over the 1/2 mile boundary outside of the area to be annexed and the reimbursement schedule which provides payments to townships for annexed areas which are withdrawn by the municipality. The League characterized both provisions of the bill as "overly generous" and as the root of the League's opposition to both HB 98 and SB 289.

While other officials offered different criticisms of the bill, the most troubling for the League are municipal officials continuing to call for a change in the bill that would expand the area outside of the territory to be annexed. Under this proposal the County Commissioners would consider not the unacceptable 1/2 mile, but instead consider the territory to be annexed, the entire township and the entire municipality. This is very much like the old "community of the whole" long advocated by the Ohio Township Association.

For those unfamiliar with the history of this legislation, this position, now advocated by some municipal officials, is almost exactly the same position advocated by the Ohio Township Association when they drafted their first annexation bill and before they agreed to consider any compromises on this legislation. It is ironic that such a position, which the Township Association could only hope to accomplish in their best dreams, is now the position advocated by some municipal officials.

Senate Moves Estate Tax Bill.

On the heels of the Supreme Court declaring that Ohio schools needed more money, the Ohio Senate voted out SB 108 this week. The legislation would essentially give some Ohioans a tax cut by getting the state out of the estate tax business. SB 108 would have the state forego its share of the estate tax, while leaving the local share (approximately 64%), which goes to townships and municipalities, intact.

The bill does have a small negative impact on local revenue in that the bill also raises the amount of the exemption from estate taxes from $25,000 to $50,000. This loss of revenue is approximately $5 million for cities and villages statewide. It is important that this loss not grow when SB 108 is considered by the Ohio House this coming week. Please, talk to your local member(s) of the House about protecting this local source of revenue.

When the state made its decision to cut its share of the estate tax, it made its decision with the knowledge that the state could afford to give up that revenue. To cut this tax revenue in a wholesale manner across all municipalities and townships is to reduce revenues without knowing whether each jurisdiction can afford that cut in revenue or not.

HB 483 Passes Senate.

HB 483, which would have the state centrally collect an estimated $6-$9 million annually in municipal corporate net profits taxes from the electric utilities following the deregulation of that industry, passed the Ohio Senate this week. The bill contains a number of amendments to technically clean up HB 477 and to make sure that the Ohio Department of Taxation can effectively collect and redistribute the municipal tax money from the utility companies.

The bill now goes to the House for concurrence in Senate amendments and then onto the Governor for his signature.