Tax Data Series

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 One municipality, the Village of Marblehead, Ottawa County, enacted the tax January 1, 2001, but it was repealed December 31, 2001.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.