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

Cities like Dayton expect to see a reduction in income tax revenue as more remote workers begin paying taxes to their home jurisdictions.

1 minute read

November 29, 2022, 9:00 AM PST

By Diana Ionescu @aworkoffiction


Dayton, Ohio

Ami Parikh / Shutterstock

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.

“The city believed the work-from-home impact would be more significant and would occur more swiftly, but it is taking time for businesses to create processes and procedures to track and account for remote employees, said Joe Parlette, Dayton’s deputy city manager.” As employers settle on new remote work patterns and set up new processes, Ohio cities are still bracing for potential revenue losses of 3 to 5 percent.

Sunday, November 27, 2022 in Dayton Daily News

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Cover CM Credits, Earn Certificates, Push Your Career Forward

Aerial view of town of Wailuku in Maui, Hawaii with mountains in background against cloudy sunset sky.

Maui's Vacation Rental Debate Turns Ugly

Verbal attacks, misinformation campaigns and fistfights plague a high-stakes debate to convert thousands of vacation rentals into long-term housing.

July 1, 2025 - Honolulu Civil Beat

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

July 9, 2025 - Diana Ionescu

Map of Haussmann's redesign of Paris in the 1850s through 1870s under Napoleon III.

In Urban Planning, AI Prompting Could be the New Design Thinking

Creativity has long been key to great urban design. What if we see AI as our new creative partner?

June 30, 2025 - Tom Sanchez

Red and white "Wildfire Evacuation Route" sign on signpost.

Cal Fire Chatbot Fails to Answer Basic Questions

An AI chatbot designed to provide information about wildfires can’t answer questions about evacuation orders, among other problems.

5 hours ago - The Markup

Protester at Echo Park Lake, Los Angeles holding sign that says "Housing is a human right"

What Happens if Trump Kills Section 8?

The Trump admin aims to slash federal rental aid by nearly half and shift distribution to states. Experts warn this could spike homelessness and destabilize communities nationwide.

6 hours ago - Shelterforce Magazine

Aerial of rainbow painted crosswalks at large intersection in Castro District, Sna Francisco, California.

Sean Duffy Targets Rainbow Crosswalks in Road Safety Efforts

Despite evidence that colorful crosswalks actually improve intersection safety — and the lack of almost any crosswalks at all on the nation’s most dangerous arterial roads — U.S. Transportation Secretary Duffy is calling on states to remove them.

7 hours ago - Streetsblog USA

Urban Design for Planners 1: Software Tools

This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.

Planning for Universal Design

Learn the tools for implementing Universal Design in planning regulations.

Home and Land Services Coordinator

Appalachian Highlands Housing Partners

Associate/Senior Planner

Gallatin County Department of Planning & Community Development

Senior Planner

Heyer Gruel & Associates PA