Ohio Upholds Law Preventing Municipal Taxes for Carriers

The Ohio Supreme Court has held that a state statute does not allow municipalities to tax the income of motor carriers.

The state high court’s ruling came in a challenge by the Village of Seville, which had been assessing a local income tax on Panther II Transportation.

UPS, Con-way and the Ohio Trucking Association filed briefs in support of Panther, saying that motor carriers pay state taxes, but are exempt from paying municipal taxes.

“Significant changes to the business environment could force many motor carriers into bankruptcy and send a ripple throughout the economy,” the Ohio Trucking Association said in its brief.