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Ohio Mayors Say Bankruptcies Await Cities if Pandemic Income Tax Lost

Submitted by jhartgen@abi.org on

A bipartisan group of Ohio’s mayors said of the policies they’ll be watching over the next year, keeping the income tax changes implemented early in the pandemic is the most vital, Cleveland Scene reported. Members of the Ohio Mayors Alliance met on Monday to lay out their priorities, which unsurprisingly focus mainly on the end of the COVID-19 pandemic and healing their economies and communities as the state gets out of it. “When we looked at the prior recession, it took us nearly a decade to come out of the 2008-2009 recession,” said Findlay mayor Christina Muryn. “That’s unacceptable.” The city leaders said a saving grace for their local governments has been a tax change made under House Bill 197, passed in March, which taxes earnings based on an employer’s location rather than where the employees work. Because of so many people working from home, officials said this helps the municipalities as much as they can during a time of significant revenue loss. “Unlike the state budget, we haven’t had the benefit of a strong sales tax,” said Parma Mayor Tim DeGeeter. “Cities have had the dual challenge of declining revenue and increased costs as frontline communities respond to this pandemic.” Because income tax is often the largest source of economic resources for Ohio cities, this type of monetary loss would mean essentially a loss of independence for cities. “I think most of the cities would have to declare bankruptcy right away, because there is just no path forward if this revenue would be taken away and nothing would be put in place,” said Dayton Mayor Nan Whaley of Dayton and cities in surrounding areas.