Individual Income
Municipal Income Taxes
Tax Rates and Amounts Collected, by Municipality, Calendar
Year 1991
Municipal income taxes collected in Ohio during calendar year
1991 totalled $2,006,179,805. Of this amount, $1,885,787,563
was collected by cities and $120,392,242 by villages. A total
of 517 municipalities (228 cities and 289 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 1991 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 1991. The majority of the increases were due
to tax rate adjustments which, in turn, resulted in higher
collections. Examples of increases due to rate adjustments
are the City of Amherst, Lorain County, up 72.0%, the Village
of Westfield Center, Medina County, up 52.6%, and the City of
Beachwood, Cuyahoga County, up 44.7%. The first full year of
collections in 1991 resulted in large variances for the
Village of Jeffersonville, Fayette County up 1,010.2%, the
Village of Mount Orab, Brown County, up 681.8%, and the
Village of Milan, Erie County, up 276.0%.
Data for Table LG-11 was obtained from surveys conducted by
the Ohio Department of Taxation.