Tax Data Series

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 totaled $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 The City of Wellsville, Columbiana County, and the Village of Bettsville, Seneca County, repealed their tax resulting in no collections in 1990.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.