Ohio Chamber president: Ohio municipal tax burden needs new look

Nov. 17—Ohio has a lot going for it, but if the state is to be the best place in the nation to do business, it has work to do, said Steve Stivers, the president of the Ohio Chamber of Commerce.

Among the tasks Stivers suggested to Dayton Area Chamber of Commerce board members on Thursday: Simplifying Ohio's municipal tax burden, which adds to administrative and compliance costs for businesses.

Stivers presented a new state chamber report, titled "The Blueprint for Ohio's Economic Future," with an analysis of economic rankings comparing Ohio to other states across the country.

That ranking, conducted with Accenture, found that Ohio ranks 37th among the 50 states in tax burden and a dismal 47th in business friendliness.

More than three million Ohioans pay a municipal tax of 2% in addition to state and federal taxes, Stivers said. In fact, he said Ohio has more taxing jurisdictions than any state other than Pennsylvania.

"Work from home is a real threat to a lot of our cities, including Dayton, and we want to make sure that our cities do have the revenue they need to provide the important services, the safety services," Stivers said.

Reform of municipal taxation can take various shapes, he said.

"You could replace that from state revenue," he said in an interview after his presentation at NCR Country Club. "Most states fund their cities from state revenue. Ohio, especially under (former Gov.) John Kasich, really cut the state local government fund. That is one opportunity or we could look at other opportunities."

Stivers said Ohio Gov. Mike DeWine read the chamber's report and admitted that he found it "negative." But Stivers took pains to note that Ohio has a lot going for it, in his view — overall affordability compared to much of the country, a high quality of life, plentiful water (a factor that drew Intel and its planned semi-conductor production sites) and more.

"If we can focus on workforce, focus on our taxation, recruit people into the state ... just those three things are a game-changer," Stivers said. "They can move us into the top 10 quickly."

The report examined several issues; its executive summary alone is 13 pages. Child care access and affordability may be contributing to a lingering problem of worker participation. Ohio is 62,000 employees shy of where it stood before the pandemic, according to the state chamber's findings. And Ohio population growth is slow compared to the fastest growing states

Addressing all of the issues the chamber raises could take a decade, he acknowledged. "Some of these things may take much longer."

The blueprint can be read at: https://ohiochamber.com/wp-content/uploads/2022/10/FINAL_Blueprint-for-Ohios-Economic-FutureV2.pdf