House Advances Bill to Change COVID-19 Rules for Local Income Tax Collection

Ohioans working from home in 2021 could end up paying taxes to the city where they live – not where their company has an office – if House Bill 157 becomes law. This week, the House Ways and Means Committee advanced the measure for consideration by the full House.

Before the vote, the OMA testified in support of a new substitute bill. As originally introduced, HB 157 would have immediately repealed a temporary provision that currently allows municipal income tax withholdings to be based on an employee’s principal work location, not where he/she is working remotely during COVID-19.

The sub-bill made several changes, including:

For the latest information on this bill and other tax-related legislation, join the OMA’s Tax and Finance Committee meeting on Wednesday, June 2 from 10 a.m. to noon. Register here. 5/20/2021