Tax Data Series

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.