Tax Data Series

Individual Income

Municipal Income Taxes
Tax Rates and Amounts Collected, by Municipality, Calendar Year 1992

Municipal income taxes collected in Ohio during calendar year 1992 totaled $2,105,569,114. Of this amount, $1,977,961,954 was collected by cities and $127,607,161 by villages. A total of 519 municipalities (229 cities and 290 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 1992 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 1992. 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 Batavia, Clermont County, up 74.5%, the Village of Mingo Junction, Jefferson County, up 56.7%, and the Village of Grafton, Lorain County, up 65.6%. The first full year of collections in 1992 resulted in large variances for the Village of Malvern, Carroll County up 94.1%, the Village of Shawnee Hills, Delaware County, up 95.9%, and the Village of Scio, Harrison County, up 68.6%.

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