Ohio House Bill 601 could take more than $175,000 per year from local governments like the city of Tiffin, Tiffin Tax Commissioner Linda Neeley said Monday night.
Neeley presented council with a list of 15 negative effects the bill could have on small city governments.
The bill aims to establish municipal tax uniformity and would change the way income taxes are collected.
"This is not giving local (government) control," Mayor Aaron Montz said. "This is taking local control away and taking local dollars away, all in the name of supposedly creating jobs. I completely disagree with that."
Neeley highlighted points including a five-year net operating loss carry forward, which would cost the city of Tiffin more than $105,000 per year.
Based on the 2010 tax year, businesses recorded net operating losses of $15,225,824, which if all losses were carried forward and used in one year would result in revenue loss of $266,450 for Tiffin, Neeley said.
The city also would lose approximately $18,000 a year if the bill passes because the interest rate would be state certified rate for 3 percent for 2012 and 2013.
"This is going to add another level of government," Montz said. "It's going to add regulation, and it's going to make it easier for business owners, such as the former owners of the Tiffin Mall, to continue what they do operate at net losses. And it's going to cost cities like Tiffin money."
Montz said he questions Gov. John Kasich and the state legislature for backing the bill. He said he urges council to oppose it and speak out against it.
"Once again, we're starting to get our feet back, and we're being beat over the head by the State of Ohio with something," he said.
Neeley also presented two positive impacts House Bill 601 would have on city governments.
It would save the city about $3,000 per year by eliminating an expense related to fewer refunds being issued.
And the bill would allow the city to tax workers who are younger than 18 years old.
Council President Paul Elchert questioned whether taxing people younger than 18 would benefit the city.
"Why would we want to tax them people?" Elchert asked. "Why does the state want us to? What's wrong with them people? We need to get a very harsh resolution put together, and I think we need to solicit other cities, as many as we can get, to go down (to Columbus) and ask them what they're trying to do to us."
Also at the meeting, William Omlor voiced his concern over the removal of a traffic light at the intersection of Glenn and Melmore streets.
The light currently is blinking, and is to be bagged for 30 days and is to be removed on the first of the year.
Montz said he could not justify having the city pay for the light when the Ohio Department of Transportation said it is not warranted.
City Administrator Deb Reamer said she has received complaints about the light being up.
Council members, including Jim Roberts and Tyler Shuff, said they were concerned about the safety of school children crossing at the intersection without the light.
Montz also gave an update to the Sarah Street project, and said the street that runs behind Heidelberg University and next to National Machinery is to be widened to two lanes.
He also said the city has been receiving offers for fireworks donations. Montz said in order for a fireworks display to take place, donations would have to cover the costs of fireworks and the pay of city employees working the event, among other costs.
In new business, council approved the following by a vote of 6-0.
A resolution supporting the consolidation of Tiffin and Fostoria municipal courts and requesting the assistance of the Ohio Supreme Court and the Ohio General Assembly to make the necessary changes to the Ohio Revised Code to create the consolidated court, and declaring an emergency.
A resolution of support approving, as submitted, the final copy of the Local Government Innovation Fund "Roadmap To IT Solutions" study, and declaring an emergency.
A resolution of support approving and authorizing Tiffin to participate in an application for an LGIF loan through the state for information technology consolidation, and declaring an emergency.
An ordinance enacting new chapter 721 of the codified ordinances of the city of Tiffin, entitled "Sweepstake Terminal Cafes," and declaring an emergency.
An ordinance amending a previous ordinance for appropriation adjustments and re-appropriating a refund check, all within the police department budget.
An ordinance amending an ordinance, revising the 2012 budget for changes in the Fire SAFRE Grant.
