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Akron, Ohio

Responsible Contractor Legislation Aims to Increase Income Tax Revenue

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Mayor Horrigan, President Keith and Councilman Fusco introduce legislation to require contractors to register with the City, consistent with Blue Ribbon Panel recommendations

City of Akron Press Release
From the desk of Ellen Lander Nischt, Press Secretary
Published: 12-12-2016

Akron, Ohio, December 12, 2016 – Mayor Dan Horrigan, President Marilyn Keith and Councilman-at-Large Jeff Fusco introduced legislation today aimed at increasing income tax collections, by requiring that all building construction contractors register with the City before doing work in Akron.  This legislation follows one of the key recommendations of the Blue Ribbon Panel to increase income tax collection from building contractors and subcontractors, which the Panel noted has the potential to be a significant revenue source for the City.

 “Unfortunately, we have construction contractors and subcontractors doing business in Akron who are flying under the radar and not withholding the required income taxes for their workers,” Mayor Horrigan said.  “This legislation will streamline enforcement by preventing contractors from obtaining building permits until they have registered with the City.  We will then be able to track when and where contractors are doing work and ensure that they are licensed by the State, remitting taxes, and maintaining workers compensation coverage and liability insurance to protect their employees and customers.  This is an efficient way to use our existing resources to increase compliance and raise revenue.” 

The City Code already requires all businesses doing work in the City to register with the Tax Administrator, but there is no automatic mechanism for enforcement. The three-part legislation will strengthen and reinforce existing Code requirements, by:

  • Requiring all building contractors to register yearly with the Director of Public Service and verify that they are also registered with the City Tax Administrator before they will be issued any building permits. (An owner-occupant applying for a permit is exempt from this requirement).   
  • Requiring anyone issued a building permit to transfer a copy of the permit to the Tax Administrator along with basic information about the employees and subcontractors expected to do work on the project.
  • Allowing the City to accept third party complaints that a contractor is doing work in Akron without a registration or without paying the required taxes.

“This legislation will level the playing field between contractors,” co-sponsor Jeff Fusco, Councilman-at-Large, said of the legislation. “From major commercial and retail projects like the Landmark redevelopment to residential construction work – this legislation will ensure that all contractors and subcontractors are complying with the law and paying their fair share of taxes.”

“This is money already owed to the City,” President Marilyn Keith said of her support of the legislation. “This is a straightforward process that will give the City the information it needs to administer the law, and it won’t affect homeowners who are doing work on their own homes.  And increasing income tax collections will help support the important work we do throughout the community—from snow and ice removal to public safety.”

The legislation will be deliberated today at the Budget and Finance committee.  If passed, the contractor registration requirement will go into effect February 1, 2017. 

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For further information, contact:
Ellen Lander Nischt
Press Secretary / Assistant Director of Law
166 South High Street, Suite 200
Akron, Ohio 44308
Phone: (330) 375-2325
E-mail: [email protected]

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