Individual Income
Municipal Income Taxes
Tax Rates
and Amounts Collected, by Municipality, Calendar Year
1989
Municipal income taxes collected in Ohio during calendar year
1989 totalled $1,868,389,081. Of this amount, $1,761,892,039
was collected by cities and $106,497,043 by villages. A total
of 510 municipalities (232 cities and 278 villages) levied a
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.
Rates of taxation in 1989 ranged from a low of 0.25 percent
in the Village of Powhatan Point to a high of 2.50 percent in
the Cities of Campbell and Oakwood and the Village of New
Boston. State law requires that the rate must be uniform
within a municipality and cannot exceed one percent without a
vote of the people. Administration of the municipal income
tax is strictly local, either by the cities and villages
themselves or by central collection agencies representing
several municipalities.
Several municipalities had high percentage increases in
collections in 1989. Broadview Heights increased 34.5 percent
because of lower resident tax credits. Reading increased 31.0
percent because of large expansions and increased employment
at the area Merrill Dow plant. Steubenville increased 35.0
percent in collections on local mill's employee bonus' as
well as several new restaurant openings in the city. Several
villages showed significant increases in collections. Some
highlights include Springboro with an 85.1 percent increase,
Amberly with a 74.2 percent increase, and Carey up 66.8
percent.
Data for Table LG-11 was obtained from surveys conducted by
the Ohio Department of Taxation.