Tax Data Series

Individual Income

Municipal Income Taxes
Tax Rates and Amounts Collected, by Municipality, Calendar Year 1996

Municipal income taxes collected in Ohio during calendar year 1996 totaled $2,680,436,635. Of this amount $2,504,548,415 was collected by cities and $175,888,220 by villages. A total of 532 municipalities (233 cities and 299 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 1996 ranged from a low of 0.50 percent in 14 municipalities, to a high of 2.85 percent in the City of Euclid, Cuyahoga County. The City of Euclid is the only municipality to levy and collect municipal income taxes for its corresponding school district. The city's income tax is 2.38% while the Euclid City School District has a 0.47% tax.

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 1996. An example of an increase due to a rate adjustment is the Village of Canal Fulton, Stark County, up 53.9%. The first full year of collections in 1996 resulted in a large variance for the Village of North Lewisburg, Champaign County, up 1029.9% and for the Village of Wintersville, Jefferson County, up 401.0%. Lastly, the City of Trotwood, Montgomery County, merged with Madison Township in 1996 resulting in an increase of 71.2% in collections.

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