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7 RESOLUTION NO. 2021-15 INTRODUCED BY: Mayor Bodnar A RESOLUTION OPPOSING SUB. HOUSE BILL 157 AMENDING THE LAW REGARDING WITHHOLDING MUNICIPAL EARNED INCOME TAX FOR THOSE WORKING VIRTUALLY AND/OR AT HOME WHEREAS, the Mayor and Council of Mayfield Village have been advised that on Tuesday, April 13 at 1:00 p.m., the Ohio House Ways and Means Committee adopted a substitute bill for HB 157, which would repeal the state's municipal income tax withholding policy during the COVID-19 pandemic; WHEREAS, the Mayor and Council of Mayfield Village are informed that Sub. HB 157 would remove the language in Sec. 29 of HB 197 that treated wages earned by employees temporarily working from home during the Governor's declaration emergency as taxable to the principal place of work; WHEREAS, the intent of the Sec. 29 of HB 197 was for employer withholding and liability for the employee to be taxable for the city where the principal place of work is located; WHEREAS, businesses will suffer the additional administrative burden of having to certify each employee requesting a "refund for the duration of the time they worked from home by tracking when and where every employee worked for both 2020 and 2021; WHEREAS, Sub. HB 157 could cause municipalities to issue a substantial amount of refunds to employees working from home during the emergency. Issuing refunds for a closed tax'year could be devastating to municipalities, who were protected by the language in Sec 29 of HB 197. WHEREAS, the courts should decide on the issue regarding refunds. WHEREAS, Sub. HB 157 allows the employer to determine the principal place of work for each employee during the declaration of emergency and may cause a further reduction in tax revenues. WHEREAS, municipalities would also face the added financial burden of taxpayers receiving money they have already taken as credit against their resident tax liability. Taxes for 2020 have already been filed and residents have already taken credits for taxes they paid to the principal place of work. Sub. HB 157 would allow those same taxpayers to go back and file for refunds against municipalities where their principal place of work is located. WHEREAS, Sub. HB 157 does not allow the wages earned at the employee's home from creating a filing requirement to file a municipal net profit return. WHEREAS, Sub. HB 157 would not allow the assessment of tax, penalties and interest by the resident city taxing jurisdiction for failure to properly withhold to their jurisdiction during the emergency, which would have a negative impact on cities to enforce their tax ordinances. BE IT RESOLVED BY THE COUNCIL OF MAYFIELD VILLAGE, OHIO, THAT: CW Section 1: That the government of Mayfield Village, continuously incorporated for the past 100 years, urges the Ohio General Assembly not to support nor enact Sub. House Bill 157.