Ohio Supreme Court rules against WFH refunds

Cities such as Columbus don't owe money to people who worked from home outside city limits in 2020, but paid city income taxes, the Ohio Supreme Court ruled yesterday .

Why it matters: An opposite ruling could have resulted in refunds for many Ohioans — and city governments would have forfeited millions of dollars.

Catch up quick: During the state's stay-at-home order, a law temporarily allowed cities to collect income taxes from employees of businesses within city limits, even if they worked remotely elsewhere.

• A man from Blue Ash alleged this was unconstitutional, after his request for a refund from nearby Cincinnati was denied.
• The Supreme Court majority disagreed in a 5-2 decision , noting "Ohio had a legitimate interest in ensuring that municipal revenues remained stable."
• The issue particularly affects large municipalities where, pre-COVID, workers traditionally commuted downtown but lived in surrounding cities and townships.

The intrigue: Early projections suggested one-third of Ohioans would permanently work remotely, potentially devastating city budgets. But as of January 2022, about 13% did, per census data .

The latest: The temporary law no longer applies and if you work from home in a different city than where your employer is located, you can request a refund.

Yes, but: It requires lots of paperwork and may not be worth the time — unless you live in a township, where income taxes are not collected, the Dispatch explains .

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