The bill amends section 718.04 of the Revised Code and enacts section 718.041, establishing new requirements for municipal income tax reciprocity credits. It mandates that any modifications to these credits, including their repeal, must receive voter approval through a majority vote in a general, primary, or special election. The legislative authority of the municipal corporation is required to file the necessary documentation with the board of elections at least ninety days prior to the election, ensuring that the question of modifying the credit is presented separately from any tax rate questions on the ballot.

Additionally, the bill allows electors of a municipal corporation to initiate the adoption, repeal, or modification of a tax credit by filing a petition with the county board of elections. The petition must meet specific criteria, including being signed by a number of qualified electors equal to at least ten percent of the votes cast for governor in the most recent general election. If the petition is deemed valid, the question will be placed on the ballot for the next general election. The existing section 718.04 is repealed, and the new provisions will apply to modifications enacted by ordinances or resolutions adopted on or after August 1, 2025.

Statutes affected:
As Introduced: 718.04