Am. H.B. No. 121 Summary

• Allows businesses with remote workers to elect a modified municipal income tax apportionment formula that situs wages, property, and service receipts to the employee's "qualifying reporting location" rather than the actual remote work location.

• Defines "qualifying remote employee or owner" as individuals assigned to a qualifying reporting location who perform services at qualifying remote work locations (including home offices), which may be located outside Ohio municipalities with income tax.

• Permits taxpayers making this election to avoid filing tax returns with municipalities where remote employees work, unless the business has other unrelated operations in that municipality.

• Applies to businesses that make written election with tax administrator on or with their net profit return, with election remaining effective for all subsequent years until revoked.

• Effective for taxable years ending on or after January 1, 2022, with amendments to sections 718.02, 718.021, 718.82, and new section 718.821 of the Revised Code.