Municipal Income Taxes
Tax Rates and Amounts Collected, by Municipality, Calendar
Municipal income taxes collected in Ohio during calendar year
1993 totaled $2,218,505,368. Of this amount, $2,081,881,493
was collected by cities and $136,623,874 by villages. A total
of 523 municipalities (230 cities and 293 villages) levied a
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 1993 ranged from a low of 0.50 percent
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 1993. 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 Village of Powhatan Point, Belmont County, up 90.4%,
the Village of Addyston, Hamilton County, up 113.6%, and the
Village of Silver Lake, Summit County, up 92.5%. The first
full year of collections in 1993 resulted in large variances
for the City of Clyde, Sandusky County up 59.8%, and the City
of Green, Summit County, up 399.7%.
Data for Table LG-11 was obtained from surveys conducted by
the Ohio Department of Taxation.