OH HB503

Municipal corporations would be prohibited from modifying or repealing an existing income tax reciprocity credit (which credits residents for taxes paid to other municipalities) without majority voter approval at a general, primary, or special election.

Creates a new voter initiative process allowing municipal residents to petition for adoption, modification, or repeal of a reciprocity credit, requiring signatures from at least 10% of votes cast for governor in the most recent general election.

Questions about modifying reciprocity credits must appear as separate ballot items and cannot be combined with questions about tax rate changes.

Applies to credit modifications enacted by ordinance or resolution adopted on or after August 1, 2025; any such modifications adopted after that date but before the law takes effect are declared null and void.

Election notices must be published in a newspaper of general circulation for two consecutive weeks and posted on county board of elections websites for 30 days before the election.