Tax Data Series

Individual Income

Municipal Income Taxes
Tax Rates and Amounts Collected, by Municipality, Calendar Year 1995

Municipal income taxes collected in Ohio during calendar year 1995 totaled $2,515,317,037. Of this amount $2,351,836,437 was collected by cities and $163,480,599 by villages. A total of 524 municipalities (233 cities and 292 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 1995 ranged from a low of 0.40 percent in Indian Hill Village, Hamilton County, 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 1995. An example of an increase due to a rate adjustment is the Village of Galena, Delaware County, up 58.1%. The first full year of collections in 1995 resulted in a large variance for the Village of Carroll, Fairfield County up 552.6%. Lastly, the City of Riverside, Montgomery County, merged with Riverside Township in 1994 resulting in an increase of 90.5% in collections.

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