If person (or entity) has worked in Ohio, municipality income tax may be levied. Several hundred Ohio municipalities currently have an income tax on the books.
An overview of municipality tax in ohio
Ohio Revised Code Section 718 is the authority for municipal income taxes in Ohio. Municipalities (cities and villages) in Ohio may generally impose tax on wages, salaries, and other compensation earned by individuals who work in the municipality. Businesses and net profits from rental activities are also generally subject to the taxation. The income tax rate is determined locally, but an income tax rate in excess of 1% must have voter approval. By law, municipalities must only have flat tax rates. Currently, the highest tax rate is 3%.
Who enforces these income taxes
Logisitics can be tough for municipalities that are attempting to levy and income tax. Currently, nearly 400 cities and villages use the Regional Income Tax Agency (RITA) to administer the income tax ordinance for a particular municipality. RITA services approximately half of Ohio municipalities with an income tax. The Central Collection Agency (CCA) collects income taxes for Cleveland, along with approximately 50 other municipalities. A handful of large cities possess and administer their own tax forms. Finally, to make matters more confusing, the remaining municipalities administer their own taxes on a generic form.
Useful Tools
First, use this search tool to determine if the municipality in question levies an income tax. Next, if the municipality does levy a tax, there is about fifty percent chance that the RITA administers the tax. Take a look here to find out if RITA has the correct form for the municipality in question. For Cleveland and an additional chunk of municipalities, search the CCA here. Akron, Canton, Carlisle, Cincinnati, Columbus, Dayton, Middletown, and St. Marys administer their own taxes on their own forms. If you still haven’t found the correct forms, the generic forms are likely to be the answer. Good luck!
MoneyManeuvering 