Ohio Department of Taxation Tax Data Series

Individual Income

Municipal Income Taxes
Tax Rates and Amounts Collected, by Municipality, Calendar Year 1998

Municipal income taxes collected in Ohio during calendar year 1998 totaled $3.0 billion. Of this amount $2.8 billion was collected by cities and $0.2 billion by villages. A total of 541 municipalities (231 cities and 310 villages) levied the tax.

Municipal income taxes are generally imposed on wages, salaries, and other compensation earned by residents and on nonresidents who work in the municipality. The income tax is also applied to business net profits that are attributable to activities in the municipality. Many municipalities allow a partial or full credit to residents for taxes they have paid to another municipality of employment.

State law requires that the rate must be uniform within a municipality and cannot exceed one percent without a vote of the people. Rates of taxation in 1998 ranged from a low of 0.30 percent in the City of Indian Hill Village, Hamilton County, to a high of 2.85 percent in the City of Euclid, Cuyahoga County. The City of Euclid is the only municipality to levy and collect municipal income taxes for its corresponding school district. The city's income tax is 2.38% while the Euclid City School District has a 0.47% tax.

Administration of the municipal income tax is strictly local, either by the cities and villages themselves or by central collection agencies representing several municipalities.

Seven municipalities had major changes in their collections due to rate changes in 1998. The following is a list of those municipalities:

• Village of New Knoxville (Auglaize County)-increase from 1.0% to 1.5%
• City of Middleburg Heights (Cuyahoga County)-increase from 1.0% to 1.75%
• City of Indian Hill (Hamilton County)-decrease from 0.50% to 0.70%
• City of Fostoria (Seneca County)-increase from 1.5% to 2.0%
• Village of West Unity (Williams County)-increase from 1.0% to 1.25%
• City of Bowling Green (Wood County)-increase from 1.5% to 1.92%.

In addition, six municipalities had significant growth in their calendar year 1998 collections as the result of a rate increase during calendar year 1997. Such entities had full year of collections in 1998 reflecting the increased tax rate. The following is a list of these municipalities:

• Village of Linndale (Cuyahoga County)-increase from 1.5% to 2.0%
• Village of North Randall (Cuyahoga County)-increase from 2.0% to 2.5%
• Village of West Milton (Miami County)-increase from 1.0% to 1.5%
• Village of Phillipsburg (Montgomery County)-increase from 1.0% to 1.5%
• City of Macedonia (Summit County)-increase from 1.5% to 2.0%
• City of Van Wert (Van Wert County)-increase from 1.0% to 1.5%.

Two municipalities repealed their income taxes in 1998 (Village of Ashville in Pickaway County and Village of Craig Beach in Mahoning County); however, the Village of Ashville re-instated its tax in June 1999.

Data for Table LG-11 was obtained from surveys conducted by the Ohio Department of Taxation.

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