The Ohio Supreme Court ruled a state law that temporarily permitted cities to continue to collect income tax from individuals not working in such cities during the COVID-19 pandemic was constitutional.
In Schaad v. Alder, the Ohio Supreme Court rejected Schaad’s request for a refund of Cincinnati municipal income tax that continued to be withheld from his pay while working from his home outside of Cincinnati during the pandemic.
In its 5-2 decision, the Ohio Supreme Court highlighted that stable revenues for the municipalities were a legitimate interest during the pandemic because of the Ohio Department of Health’s emergency order in March 2020 that permitted only those engaged in essential work to leave home.
Despite this result, Ohio municipal income tax challenges are reasonably expected to continue as this immediate case was somewhat limited in its scope and other cases are pending that may present different facts, circumstances, and arguments.
HBK SALT will continue to keep you apprised of these matters.
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