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Ohio bill could change how you pay local income taxes

Ohio bill could change how you pay local income taxes
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CLEVELAND — A bill moving through the Ohio Statehouse could change how local income taxes work for people who live in one city and work in another.

Ohio House Bill 503 would require cities to get voter approval before reducing or eliminating tax credits that help prevent residents from being taxed twice.

In Ohio, many cities collect their own income tax.

If you live in one city but work in another, both cities can tax your income. Some cities offer a full or partial tax credit to offset that. Others do not.

Supporters say the bill protects taxpayers and ensures residents have a voice before local leaders make changes that could increase what they owe.

The legislation is sponsored by State Representatives Heidi Workman and Bill Roemer, who argue voters should weigh in on decisions that affect their tax bills.

Opponents say requiring voter approval could make it harder for cities to manage budgets, including funding for police and fire services.

The bill has passed the Ohio House and now heads to the Senate for review. There is no timeline yet for a vote.

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