Tax Data Series

Individual Income

Municipal Income Taxes
Tax Rates and Amounts Collected, by Municipality, Calendar Year 1994

Municipal income taxes collected in Ohio during calendar year 1994 totaled $2,366,187,139. Of this amount $2,216,129,177 was collected by cities and $150,057,962 by villages. A total of 524 municipalities (234 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.

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 1994 ranged from a low of 0.50 percent to a high of 2.85 percent in the City of Euclid, Cuyahoga County. The City of Euclid is the only municipality to share revenue with their corresponding school district. The recent tax increase of 0.85% (effective December 1994) is split between the city and the Euclid Board of Education. Of the 0.85%, 0.38% is allocated to the city while 0.47% is allocated to the Board.

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 1994. A few 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 Monroe, Butler County, up 372.9%, and the City of Worthington, Franklin County, up 151.6%. The first full year of collections in 1994 resulted in large variances for the Village of Metamora, Fulton County up 77.64%, and the Village of Plain City, Madison County, up 73.8%. Lastly, a few municipalities reduced the credit which resulted in net increases of collections. The Village of South Amherst, Lorain County, reduced the credit from 100% to 50%; it experienced a 244.7% increase in collections. Similarly, the Village of Bloomdale, Wood County, changed the credit in the same manner and increased collections by 50.5%.

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