In a survey published by Scioto Analysis this morning, 17 of 25 Ohio economists were either uncertain or disagreed that work-from-home would decrease Ohio municipal revenues.
Among the eight economists who agreed with the statement, respondents emphasized how local governments that levy income tax are likely to change their tax rules in light of this trend. Dr. Bethany Lamont of Ohio University also noted how small the impact will probably be due to the limited scope of the tax technicality. Dr. Michael Jones noted that municipal costs will decrease if less people are working in cities, though questioned if that would lead to changes in revenue policy.
Ten economists were uncertain about the changes in revenue in light of increased work-from-home. Dr. Glenn Dutcher of Ohio University mentioned that increased work-from-home may increase property tax revenues due to increases in property tax valuations for larger residences. Other economists emphasized how small a proportion of workers are likely to take advantage of the loophole, commuting patterns, and migration patterns over the next few years.
The seven economists who disagreed with the statement emphasized the small number of people who will be subject to these rules, the role of federalism in taxation, and the difficulty of skirting current tax rules.
The Ohio Economic Experts Panel is a panel of over 40 Ohio Economists from over 30 Ohio higher educational institutions conducted by Scioto Analysis. The goal of the Ohio Economic Experts Panel is to promote better policy outcomes by providing policymakers, policy influencers, and the public with the informed opinions of Ohio’s leading economists.