COLUMBUS (WCMH) — At the statehouse this week, Ohio’s tax commissioner is testifying on a controversial change in the way businesses file taxes.

The move would change the process from the local level to the state level. It’s part of Governor John Kasich’s budget proposal.

Right now, businesses file net profit taxes through the municipality they work in. This makes the process demanding for businesses that work across multiple cities.

“What we are proposing is to really simplify things for businesses,” Said John Testa, Ohio’s Tax Commissioner.

The change would have businesses filing using the Dept. of Taxation’s Ohio Business Gateway. The state would retain a one percent service fee which would then be dispersed to municipalities.

“This is a costly burden to business that we want to remove,” Testa said of his move.

He believes it will make Ohio more attractive to new business.

But the change not come without controversy. The Ohio Municipal League, which represents Ohio’s some 600 cities and villages, has come out against the proposal.

“They are not taking into account what the consequences are for the municipalities,” Kent Scarrett with the OML said.

Scarrett said this revenue, which totals some $600 million for Ohio towns, is 14% of their total revenue to pay for things like roads and emergency services. He says taxpayers would have to cover the difference.

“If we lose revenue, either services will go down or tax rates will go up,” Scarret said.

Scarrett adds that the one percent service fee is more than what some communities are paying now, and that their cash flow could be stalled as they wait for the states quarterly checks.

The budget is currently being debated in House committees. It must be approved by June 30.