Tax Data Series

Individual Income

Municipal Income Taxes - Tax Rates and Amounts collected, by Municipality, Calendar Year 2002

Municipal income taxes are generally imposed on wages, salaries, and other compensation earned by residents and nonresidents who work in the municipality. The income tax is also applied to business net profits that are attributable to activities in the municipality. Most municipalities allow a partial or full credit to residents for municipal income taxes paid to another municipality where they are employed.

Administration of the municipal income tax is strictly local, either by the cities and villages themselves or by central collection agencies representing several municipalities.

State law requires that the rate must be uniform within a municipality and cannot exceed one percent without a vote of the people. Rates of taxation in 2002 ranged from a low of 0.50 percent in eighteen municipalities to a high of 2.85 percent in the City of Euclid, Cuyahoga County. The City of Euclid is the only municipality to levy and collect municipal income taxes for its corresponding school district. The city’s income tax is 2.38% while the Euclid City School District has a 0.47% tax. The Ohio legislature has since revoked this authority for all other communities effective December 21, 2000.

Total municipal income tax revenue was $3.4 billion. Of this amount, $3.1 billion was collected by cities and $0.2 billion by villages. There are fifteen villages that did not submit calendar year 2002 data so their prior year’s collections are shown. Assuming these municipalities still had the income tax in effect in calendar year 2002, a total of 548 municipalities (234 cities and 314 villages) levied the tax. One municipality, the Village of Hunting Valley, Cuyahoga County, reported the tax repealed January 01, 2003.

There were five new municipalities added to this publication this year:

  • Village of West Union, Adams County
  • City of Martins Ferry, Belmont County
  • Village of Wakeman, Huron County
  • Village of New Bloomington, Marion County
  • Village of Fort Jennings, Putnam County

Finally, there were fifteen municipalities that adjusted tax rates during calendar year 2002, two of which were decreases.

Data for Table LG-11 were obtained from surveys conducted by the Ohio Department of Taxation.