As Remote Work Persists, Ohio Cities Brace for Tax Revenue Losses

Officials in Dayton, Ohio and nearby cities remain concerned about a potential loss of income tax revenue from remote workers, even though projections that work-from-home could cost the city up to $20 million in revenue have not materialized this year. 

In fact, as Cornelius Frolik writes in the Dayton Daily News, “Dayton’s income tax collections were up 7.5% through the third quarter of this year, compared to the same period in 2021, according to city budget documents.”

Dayton workers who live in other jurisdictions are eligible for tax refunds, while employers are required to track remote work and withhold taxes accordingly. “Many employers have never needed to track where their employees live for tax purposes, and it can take time to figure out a good system to do that,” Frolik points out.