Ohio Department of Taxation Tax Data Series

Individual Income

Municipal Income Taxes
Tax Rates and Amounts Collected, by Municipality, Calendar Year 1999

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.

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

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 1999 ranged from a low of 0.25 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.

Municipal income taxes collected in Ohio during calendar year 1999 totaled $3.2 billion. Of this amount $3.0 billion was collected by cities and $0.2 billion by villages. There were 8 localities (7 villages and 1 city) that did not submit data this year. Assuming these municipalities still had the income tax in effect in calendar year 1999, a total of 541 municipalities (231 cities and 311 villages) levied the tax.

Four municipalities had large increases in their 1999 revenue due to collections of delinquent taxes or due to general economic growth, such as:

• Village of Geneva-on-the-Lake (Ashtabula County) up 66.6%
• Village of New Albany (Franklin County) up 68.4% Village of Urbancrest (Franklin County) up 78.8%
• Village of Corwin (Warren County) up 96.2%

In addition, 13 municipalities had significant changes in their calendar year 1999 collections as the result of rate adjustments from calendar year 1998.Decreases:

• Village of Bluffton (Allen County) 1.25% to 1.00%
• City of Delaware (Delaware County) 1.60% to 1.40%
• City of Indian Hill (Hamilton County) 0.30% to 0.25%
• Village of Ashville (Pickaway County) 1.00% to 0.50%

Increases:

• City of Nelsonville (Athens County) 1.50% to 1.75%
• City of New Carlisle (Clark County) 0.50% to 1.00%
• Village of Highland Hills (Cuyahoga County) 2.00% to 2.50%
• City of Westerville (Franklin County) 1.00% to 1.25%
• City of Greenfield (Highland County) 1.50% to 1.63%
• City of Oberlin (Lorain County) 1.50% to 1.70%
• City of Huber Heights (Montgomery County) 1.75% to 1.95%
• Village of Anna (Shelby County) 1.00% to 1.75%
• Village of Boston Heights (Summit County) 1.00% to 1.50%

Three municipalities experienced temporary tax rate changes:

• City of Norwalk (Huron County)-returns to a rate of 0.50% (suspended 0.50% rate during 1998).
• City of Bellefontaine (Logan County)-temporarily increased rate from 1.33% to 1.80% for tax year 1999.
• Village of West Unity (Williams County)-temporarily decreased rate from 1.25% to 1.00% for tax year 1999.

One new municipality was added to this publication this year; the Village of Leesburg (Highland County) enacted a 0.50% income tax effective April 1999.

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

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