The Council of the city of Oakwood, State of Ohio, met in a regular session at 5:00 p.m. in the council chambers of the city of Oakwood, 30 Park Avenue, Oakwood, Ohio, 45419. Council then met in a work session and an executive session immediately following, in the conference room of the city of Oakwood.

The Mayor, Mr. William Duncan, presided, and the Clerk of Council, Ms. Lori Stacel, recorded. Mayor Duncan opened the meeting by asking all present to participate in the Pledge of Allegiance.

Upon call of the roll, the following members of Council responded to their names:

Officers of the city present were the following:

The following visitors registered:

A copy of the ordinance, having been placed on the desks of each member of Council prior to introduction, was read by title.

Vice Mayor Byington explained that this is an ordinance to update the Oakwood income tax code. It will allow businesses who file net profits tax returns to file directly through the State of Ohio’s Department of Taxation instead of filing with the Oakwood Income Tax Division, which was done for countless years. This change has been mandated by the State of Ohio through House Bill 49, which the City believes is an unconstitutional act that usurps Home Rule and local control of municipal income taxation.

When House Bill 49 was adopted, it included language requiring Ohio municipalities to adopt certain provisions of state law as part of their local income tax ordinances. Those provisions allow businesses that file net profit tax returns to file directly with the State. They also authorize the State to take over local collection and administration of those taxes, and impose reporting requirements on the city to assist this assault on local Home Rule. Municipalities were required to adopt these provisions by January 31, 2018, or risk losing all local taxing authority. Basically, it is governance through retribution.

In November, the city of Oakwood joined a coalition of approximately 160 other Ohio municipalities to file a lawsuit in Franklin County Common Pleas Court challenging House Bill 49. The State agreed to extend the January 31^st deadline until February 24^th, pending a ruling on a motion for a preliminary injunction. That ruling was issued last week, and unfortunately the court decided in favor of the State. The City believes that decision was wrong and are planning an appeal, but for now Council must adopt the H.B. 49 provisions or risk losing the taxing authority. In doing so, the City does not concede its right to continue challenging this unconstitutional state law.