Cleveland Complies With New State Tax Rule For Now, While Suing To Overturn It

[Nick Castele / ideastream]

The city of Cleveland is moving ahead to comply with changes to Ohio’s tax code while also challenging them in court. 

The rules, passed last year as part of the state budget, allow businesses to file municipal taxes with the state rather than cities. State officials would then send the money back to municipalities. 

Cleveland finance director Sharon Dumas told city council’s finance committee that state law requires the city to go along with the rules for now.

“So we’re adopting it with caveats that say, basically we’re challenging it in court, and if we’re successful with the other cities, that this is null and void,” Dumas said.

Cleveland and more than 100 other municipalities, including Columbus and Cincinnati, sued the state last year arguing the new state tax code violates home rule.

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