Ohio Code § 718.021

§ 718.021.

(A) As used in this section: (1) “ Qualifying remote employee or owner ” means an individual who is an employee of a taxpayer or who is a partner or member

holding an ownership interest in a taxpayer that is treated as a partnership for federal

income tax purposes, provided that the individual meets both of the following criteria: (a) The taxpayer has assigned the individual to a qualifying reporting location. (b) The individual is permitted or required to perform services for the taxpayer at a

qualifying remote work location. (2) “ Qualifying remote work location ” means a permanent or temporary location at which an employee or owner chooses or

is required to perform services for the taxpayer, other than a reporting location

of the taxpayer or any other location owned or controlled by a customer or client

of the taxpayer.  “Qualifying remote work location” may include the residence of an employee or owner

and may be located outside of a municipal corporation that imposes an income tax in

accordance with this chapter.  An employee or owner may have more than one qualifying remote work location during

a taxable year. (3) “ Reporting location ” means either of the following: (a) A permanent or temporary place of doing business, such as an office, warehouse, storefront,

construction site, or similar location, that is owned or controlled directly or indirectly

by the taxpayer; (b) Any location in this state owned or controlled by a customer or client of the taxpayer,

provided that the taxpayer is required to withhold taxes under section 718.03 of the Revised Code on qualifying wages paid to an employee for the performance of personal services

at that location. (4) “ Qualifying reporting location ” means one of the following: (a) The reporting location in this state at which an employee or owner performs services

for the taxpayer on a regular or periodic basis during the taxable year; (b) If no reporting location exists in this state for an employee or owner under division

(A)(4)(a) of this section, the reporting location in this state at which the employee's

or owner's supervisor regularly or periodically reports during the taxable year; (c) If no reporting location exists in this state for an employee or owner under division

(A)(4)(a) or (b) of this section, the location that the taxpayer otherwise assigns

as the employee's or owner's qualifying reporting location, provided the assignment

is made in good faith and is recorded and maintained in the taxpayer's business records.  A taxpayer may change the qualifying reporting location designated for an employee

or owner under this division at any time. (B) A taxpayer may elect to apply the provisions of this section to the apportionment

of its net profit from a business or profession.  For taxpayers that make this election, the provisions of section 718.02 of the Revised Code apply to such apportionment except as otherwise provided in this section. A taxpayer shall make the election allowed under this section in writing on or with

the taxpayer's net profit return or, if applicable, a timely filed amended net profit

return or a timely filed appeal of an assessment.  The election applies to the taxable year for which that return or appeal is filed

and for all subsequent taxable years, until the taxpayer revokes the election. The taxpayer shall make the initial election with the tax administrator of each municipal

corporation with which, after applying the apportionment provisions authorized in

this section, the taxpayer is required to file a net profit tax return for that taxable

year.  A taxpayer shall not be required to notify the tax administrator of a municipal

corporation in which a qualifying remote employee's or owner's qualifying remote work

location is located, unless the taxpayer is otherwise required to file a net profit

return with that municipal corporation due to business operations that are unrelated

to the employee's or owner's activity at the qualifying remote work location. After the taxpayer makes the initial election, the election applies to every municipal

corporation in which the taxpayer conducts business.  The taxpayer shall not be required to file a net profit return with a municipal

corporation solely because a qualifying remote employee's or owner's qualifying remote

work location is located in such municipal corporation. Nothing in this section prohibits a taxpayer from making a new election under this

section after properly revoking a prior election. (C) For the purpose of calculating the ratios described in division (A) of section 718.02 of the Revised Code , all of the following apply to a taxpayer that has made the election described in

division (B) of this section: (1) For the purpose of division (A)(1) of section 718.02 of the Revised Code , the average original cost of any tangible personal property used by a qualifying

remote employee or owner at that individual's qualifying remote work location shall

be sitused to that individual's qualifying reporting location. (2) For the purpose of division (A)(2) of section 718.02 of the Revised Code , any wages, salaries, and other compensation paid during the taxable period to a

qualifying remote employee or owner for services performed at that individual's qualifying

remote work location shall be sitused to that individual's qualifying reporting location. (3) For the purpose of division (A)(3) of section 718.02 of the Revised Code , and notwithstanding division (D) of that section, any gross receipts of the business

or profession from services performed during the taxable period by a qualifying remote

employee or owner for services performed at that individual's qualifying remote work

location shall be sitused to that individual's qualifying reporting location. (D) Nothing in this section prevents a taxpayer from requesting, or a tax administrator

from requiring, that the taxpayer use, with respect to all or a portion of the income

of the taxpayer, an alternative apportionment method as described in division (B) of section 718.02 of the Revised Code .  However, a tax administrator shall not require an alternative apportionment method

in such a manner that it would require a taxpayer to file a net profit return with

a municipal corporation solely because a qualifying remote employee's or owner's qualifying

remote work location is located in that municipal corporation. (E) Except as otherwise provided in this section, nothing in this section is intended

to affect the withholding of taxes on qualifying wages pursuant to sections 718.011 and 718.03 of the Revised Code .