BROOK PARK, Ohio – Brook Park City Council has unanimously passed a resolution urging the Ohio General Assembly to oppose a substitute bill under consideration that seeks to repeal the municipal income tax withholding policy put in place during the COVID-19 pandemic.
City officials made a similar appeal to state lawmakers in December.
The law currently enables Brook Park to collect income taxes from employees working for Brook Park-based companies, even if they are working from home in other communities. Municipalities rely on tax revenues to pay for city services.
Councilman Tom Troyer introduced the Brook Park resolution at the April 20 council meeting, with all council members and Mayor Mike Gammella supporting it.
The resolution explains Substitute House Bill 157, which the Ohio House Ways and Means Committee recently approved, would remove language “that treated wages earned by employees temporarily working from home during the governor’s declaration of emergency as taxable to the principal place of work.” Thus, employees’ work-from-home locations could become their principal places of work for taxation purposes.
Additional negative impacts would result, according to the resolution.
“Businesses will suffer the additional administrative burden of having to certify each employee requesting a refund for the duration of the time they worked from home by tracking when and where every employee worked for both 2020 and 2021,” it states. “Issuing refunds could be devastating to municipalities.”
It also says taxpayers already have filed their 2020 tax returns, “and residents have already taken credits for taxes they paid to the principal place of work.”
“It would allow those same taxpayers to go back and file for refunds against municipalities where their principal place of work is located,” the resolution says.
So far, the bill has not been adopted by the Ohio House of Representatives, and the Ohio Senate has yet to consider it.
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