The bill amends section 718.04 and enacts section 718.041 of the Revised Code, establishing new requirements for municipal income tax reciprocity credits. It mandates that any reduction or repeal of such credits must receive voter approval, and it allows voters to initiate a question to enact or increase these credits through a petition process. The bill also specifies that the municipal corporation must file the necessary documentation with the board of elections and provide a clear ballot format for voters. Additionally, it requires the Department of Taxation to conduct a study on municipal income tax uniformity, engaging various stakeholders and reporting findings to the General Assembly by December 31, 2026.

Key insertions in the bill include provisions that require voter approval for any changes to the income tax reciprocity credit and the establishment of a process for voters to initiate changes to these credits. The bill also emphasizes the need for transparency in the election process regarding tax levies and credits, ensuring that voters are adequately informed about the implications of their decisions. The existing section 718.04 is repealed, reflecting the comprehensive updates made by this legislation.

Statutes affected:
As Introduced: 718.04
As Reported By House Committee: 718.04
As Passed By House: 718.04