Ohio House Passes Legislation by Reps. Roemer and Workman to Protect Voters' Say on Municipal Income Tax Reciprocity Credits

COLUMBUS, OH —State Representatives Bill Roemer (R-Richfield) and Heidi Workman (R-Rootstown) today announced the Ohio House of Representatives passed House Bill 503, legislation to strengthen taxpayer protections by requiring voter approval before a municipality can modify or repeal an existing municipal income tax reciprocity credit.

Under the bill, municipalities that currently offer a reciprocity credit must obtain voter approval at a general before modifying the amount or percentage of the credit or repealing it altogether. 

“Taxpayers deserve a clear and direct voice when long-standing protections against double taxation are reduced or eliminated,” said Rep. Roemer. “This bill puts that decision with the voters where it belongs.”

Municipal income taxes may apply both where an individual lives and where income is earned, creating the potential for double taxation. Many Ohio municipalities address this through reciprocity credits that offset taxes paid to another jurisdiction; however, state law has not previously required voter approval to change or eliminate those credits.

“Municipal income tax reciprocity credits have real consequences for working Ohioans,” said Rep. Workman. “This bill puts genuine control back in the hands of the people for tax decisions that directly impact their paychecks.”

The legislation also clarifies the process for voters to initiate a ballot measure to authorize or increase a reciprocity credit through a petition process. If approved, any change would take effect on January 1 following the election.

The bill now advances to the Ohio Senate for further consideration.