Municipal tax codes and the sale of burritos both fell under the scrutiny of Athens City Council Tuesday night.
State lawmakers proposed a bill that seeks to unify the tax codes of municipalities throughout Ohio, but city officials say that although beneficial to the state, the bill could hurt Athens and other cities.
Ohio House Bill 601 would redefine municipal tax administration — including changing tax filing dates and revising the audit process — which would be detrimental to all Ohio cities, said Tina Timberman, Athens’ city income tax administrator.
If the bill is passed, Athens could lose up to $200,000 per year, Timberman said, adding that much of the cost would come from changing the city’s current tax assessment policy, which is enforced with help from Athens city prosecutors.
“We would go from having a criminal process to a process that I believe will reduce the amount of tax collections we have with no repercussions (for offenders),” Timberman said.
The bill was a source of frustration for many council members including Jeff Risner, D-2nd, who said the bill was “ludicrous.”
“I don’t see the point of this,” Risner said. “The whole thing looks like a joke.”
The bill would also extend the time period employers can withhold city income tax, from the current 12-day grace period to 20 days, said Councilwoman Chris Knisely, D-at large, who also said the code could be “extremely detrimental.”
The bill would be burdensome to city officials if passed into law, and it overcomplicates a process that is simple, said City Auditor Kathy Hecht.
“They took a less than 40-page tax law and made it 130 (pages),” she said. “It’s pretty complicated.”
Council members said they plan to pass a resolution that would formally express their concerns about the bill.
Council also discussed an ordinance introduced by Councilman Steve Patterson, D-at large, which would redefine the city’s vending code — directly impacting vending carts such as the Burrito Buggy on East Union Street.
If passed, there would be no vending carts on the north side of East Union Street. The number of type “B” permits, which forces vendors to pay for their locations by putting change in parking meters, would be reduced, Patterson said, adding that this process doesn’t encourage economic commitment.
“This is all in the spirit of economic development,” he said, adding that the proposed ordinance creates an “incentive system” for vendors to have a constant presence and increase profits.
“It currently is a $1,500 per year rate for license ‘A’ holders,” Patterson said. “Those with license ‘B’ will pay 50 percent of that the first year, then 75 percent of that the second year. Then they have the option to get an ‘A’ license.”
If the license-holder refuses to get an “A” license, he or she forfeits their “B” license for the next five years, he said.
Council President Jim Sands echoed Patterson’s request for vendors to make a more permanent commitment to selling goods in Athens.
“They need to make a commitment,” Sands said. “There will not be anybody just feeding the meter for three days a week.”
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