Industries & Practices

Taxation

    Back

    Compton shares Ohio’s short-term municipal tax plan, cities fear long-term budget impact

    In its article, “Brook Park budget will suffer if companies’ non-resident employees work permanently from home,” Cleveland.com explores financial concerns of a local suburb, caused by prolonged work from home arrangements. Using the information shared in a recent Bricker publication authored by attorney Ty Compton, the article states that although Ohio temporarily changed its law requiring local employment taxes to be directed to the principal location in which work was being done, municipalities are concerned about the long-term effects of employees working permanently from home. In that case, local taxes would be deferred to the location of an employee’s home, rather than the location of the employer. Reallocation of local taxes could “have ‘a crippling effect’ on the municipal” budgets.