Mayor Jackson Keeping An Eye On Commuter Tax

(Cleveland) - Mayor Frank Jackson is preparing for the possibility of a change in state law, one that could have a major impact on the city's financial future.

Under state law, the city where you work can charge you a wage tax. During the pandemic, the law was changed, so that the city where your office is located can still collect those taxes, even if you are working from home.

Cleveland Mayor Frank Jackson told The Plain Dealer and, if the law changes, the city could lose millions of dollars per year. The law allowing office cities to deduct the taxes, rather than a work-from-home city is being challenged in court, but it also has a sunset clause, to end 90 days after the state's emergency declaration for coronavirus is lifted.

85 percent of Cleveland's income tax revenue is paid by people who work in the city, but live elsewhere, and those taxes generate over $300 million per year for the city. The mayor says, without this tax revenue, there would have to be severe budget cuts.

(Photo by Ken Robinson, WTAM)

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