Policy Group: Ohio’s Largest Cities Could Lose $300M If Income Tax Law Is Changed

A group that advocates for Ohio municipalities is concerned about two legislative proposals that seek to make changes in how income taxes are collected.

According to a report by the Statehouse News Bureau, House Bill 754 and Senate Bill 352 would repeal a provision in House Bill 197 passed early in the pandemic to protect cities’ income tax revenues. That provision was spearheaded by the OMA and its allies to ensure Ohio’s businesses would not have to worry about new withholdings in addition to COVID-19 challenges. HB 754 and SB 352 would instead redirect local income taxes paid by employees working from home to where they live — not the cities in which their normal workplaces are located.

The Greater Ohio Policy Center says the bills would cost Ohio’s six largest cities, which generate more than half of the state’s GDP, more than $300 million a year. The issue remains a top concern for manufacturers with so many office workers continuing to work from home. 9/16/2020