Individual Income
Municipal Income Taxes
Tax Rates and Amounts collected, by Municipality, Calendar
Year 2001
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 2001 ranged from a low of
0.50 percent in seventeen 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.
There are eight villages that did not submit calendar year
2001 data so their prior year's collections are shown. This
results in municipal income tax revenue of $3.4 billion. Of
this amount, $3.1 billion was collected by cities and $0.2
billion by villages. Assuming these municipalities still had
the income tax in effect in calendar year 2001, a total of
546 municipalities (233 cities and 313 villages) levied the
tax. One municipality, the Village of Marblehead, Ottawa
County, enacted the tax January 1, 2001, but it was repealed
December 31, 2001.
Three municipalities had large increases in their 2001
revenue due to intensive collection of delinquent taxes or
significant economic growth:
|
Village of Brady Lake (Portage County)
|
up 84.1%
|
|
Village of Cardington (Morrow County)
|
up 62.3%
|
|
Village of Tontogany (Wood County)
|
up 56.6%
|
There were five new municipalities added to this publication
this year:Village of Sabina, Clinton CountyCity of Wellston,
Jackson CountyVillage of Marblehead, Ottawa CountyVillage of
Paulding, Paulding CountyFinally, several municipalities
adjusted tax rates during calendar year 2001. These changes
may have contributed to significant changes in revenue
collections for the year.
Decreases:
|
Village of Plymouth (Richland County)
|
1.00% to 0.50%
|
Increases:
|
Village of Newburgh Heights (Cuyahoga County)
|
1.50% to 2.00%
|
|
Village of Marble Cliff (Franklin County)
|
1.00% to 2.00%
|
|
Village of Leipsic (Putnam County)
|
1.00% to 1.50%
|
|
City of Warren (Trumbull County)
|
1.50% to 2.00%
|
|
Village of Gnadenhutten (Tuscarawas County)
|
1.00% to 1.50%
|
Data for Table LG-11 were obtained from surveys conducted by
the Ohio Department of Taxation.