Tax Data Series

Individual Income

Municipal Income Taxes
Tax Rates and Amounts collected, by Municipality, Calendar Year 2000
(revised January 22, 2002)

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

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 2000 ranged from a low of 0.50 percent in twelve municipalities 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 2000 totaled $3.3 billion. Of this amount, $3.1 billion was collected by cities and $0.2 billion by villages. There were 20 localities (16 villages and 4 cities) that did not submit data this year. Assuming these municipalities still had the income tax in effect in calendar year 2000, a total of 541 municipalities (231 cities and 311 villages) levied the tax. One municipality, the Village of Craig Beach, Mahoning County, has had the tax repealed, yet reported delinquent collections.

Two municipalities had large increases in their 2000 revenue due to intensive collection of delinquent taxes or significant economic growth:

Village of Ashville (Pickaway County)

up 66.5%

Village of Ottoville (Putnam County)

up 51.3%

One new municipality was added to this publication in the last year: the Village of Leesburg (Highland County). Due to this being the first full year of revenue, the village experienced an increase of 94.1% in collections from calendar year 1999 to 2000.In addition, 9 municipalities had significant changes in their calendar year 2000 collections as the result of a rate change in calendar year 2000.

Decreases:

Village of Evendale (Hamilton County)

1.00% to 0.90%

City of Indian Hill Village (Hamilton County)

0.25% to 0.22%

City of Willard (Huron County)

2.25% to 1.25%

Increases:

City of Bedford (Cuyahoga County)

2.00% to 2.25%

Village of Archbold (Fulton County)

1.13% to 1.50%

City of Oberlin (Lorain County)

1.70% to 1.90%

City of Riverside (Montgomery County)

1.00% to 1.50%

Village of Mogadore (Summit County)

1.50% to 2.00%

City of Van Wert (Van Wert County)

1.50% to 1.72%

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