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Bill Sponsored by Edwards and Jordan to Create Clarity on Municipal Income Taxation Passes House

June 1, 2021
Kris Jordan News

COLUMBUS – State Representatives Jay Edwards (R-Nelsonville) and Kris Jordan (R-Ostrander) spoke on the House floor last week in support of House Bill 157, legislation that passed the Ohio House of Representatives that would repeal the temporary municipal tax provision from House Bill 197 of the 133rd General Assembly. House Bill 197 passed out of the Ohio House last year to aid Ohioans meet the many challenges of the COVID-19 pandemic.

One of the issues addressed in House Bill 197 was how municipal income taxation would be handled during the pandemic, a time when many Ohioans would be working from home, in a taxing jurisdiction different from the location of their employers. Further, it created a temporary rule regarding the municipal income taxation of employees working at home or another temporary worksite due to COVID-19, a provision that was to end 30 days after the end of the governor’s COVID-19 emergency declaration.

“No one knew at the time that a year later, the executive order would still be in effect,” said Edwards. “House Bill 157 would provide Ohio taxpayers with clarity when it comes to their municipal income taxation and provides employers and employees alike with certainty and predictability on this important issue.”

House Bill 197 would further repeal Section 29 of House Bill 197 of the 133rd General Assembly at the end of the current taxable year of 2021 and temporarily shield employers from certain penalties associated with withholding municipal income tax, as long as the employer withholds such tax for an employee’s principal place of work.”

“14 days to flatten the curve turned into 14 months of oppressive government mandates, shutdowns and orders,” said Jordan. “All the while, employees have been taxed by municipalities they have neither lived in, nor performed any work in for over a year. This is simply not fair to the Ohio taxpayers we represent. Ohioans deserve to know when our approach to municipal income taxation will return to the pre-pandemic days. That’s what House Bill 157 is about.”

The bill passed by a vote of 63-31 and heads to the Senate for consideration.