Tax Data Series

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 totaled $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 Mt 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.