City Council Opposes Governor’s Plan to Take Over Tax-Collection

Last month, Lakewood Mayor Michael Summers spoke out against Gov. John Kasich’s idea for the state to take over municipal income taxes.

On Monday, officially joined the mayor.

Council unanimously approved a resolution opposing a proposal that takes the income tax authority away from the city. Co-sponsored by council president Mary Louise Madigan and council vice president Brian Powers, the measure passed on first reading. 

“We feel that such a move would have potentially devastating effects on the city of Lakewood,” according to a letter introducing the legislation. 

Powers asked that the full 600-word resolution be read aloud.

“Income tax is the largest source of revenue for most municipalities including Lakewood,” according to the resolution, “and any disruption or interference with the current collection process will be harmful to our financial operations, especially in the wake of the state of Ohio’s sweeping reductions of the and and the Commercial Activity Tax.”

Summers came out swinging in Columbus.

“We’d spend far more money for far less effective collection and our citizens would have far less service,” he told Lakewood Patch last month. “I’d consider that a giant leap backwards." 

If the state consolidates and takes control over all tax-collections in the city, Summers said it would end up costing the city more. 

So far, Kasich’s plan is just an idea. Part of the proposal is that small businesses with operations in different cities would only have to file taxes once with the state.

“We’re still in the investigating stage,” Tax Commissioner Joseph Testa told the Columbus Dispatch. “But this administration wants to move Ohio in a tax-friendly, business-friendly direction, and we feel this fits into that general theme.”

Summers called the proposal a bad deal for Lakewood taxpayers, who would lose the local customer service and support.

Lakewood stopped using the Regional Income Tax Agency (RITA) in November 2005, and began its in-house tax-collection division in an effort to save money.

“We saved about $100,000 a year by doing that,” he said. “More importantly, we’ve got direct control over the collection effort.”

State Rep. Nickie Antonio attended the meeting to show her support for council’s resolution — and oppose the measure. 

“My concern over local tax dollars staying in the city of Lakewood is very high right now,” she said. “We have much to be concerned about. I will take your concerns to Columbus and support this resolution and ask my colleagues in the Statehouse to support this as well.”

“We’re counting on you, Nickie” Council President Mary Louise Madigan told the former city councilwoman as she walked from the podium.