Individual Income
Municipal Income Taxes
Tax Rates and Amounts Collected, by Municipality, Calendar
Year 1990
Municipal income taxes collected in Ohio during calendar year
1990 totalled $1,948,887,944. Of this amount, $1,835,425,264
was collected by cities and $113,462,680 by villages. A total
of 517 municipalities (231 cities and 286 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 1990 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 1990. The majority of the increases were due
to tax rate adjustments which, in turn, resulted in higher
collections. Most of these large increases occurred in
villages such as Arcanum, Darke County up 158.8 percent,
Brady Lake, Portage County, up 330.9 percent and Lithopolis,
Fairfield County, up 480.2 percent. This was the result of
1990 being the first full year of collections. The City of
Wellsville, Columbiana County, and the Village of Bettsville,
Seneca County, repealed their tax resulting in no collections
in 1990. Collections for the Village of Elmore, Ottawa
County, declined 59.1 percent due to a loss of work force
when a large school addition was completed.
Data for Table LG-11 was obtained from surveys conducted by
the Ohio Department of Taxation.