City tax considerations!

City tax considerations!

ohio-finderStarting in 2016 the tax code regarding cities had quite an overhaul.   City taxes can be challenging!  Did you know that Ohio is one of few states where cities impose an income tax?   Well, it’s true. RITA (Regional Income Tax Agency) and CCA (Central Collection Agency) are two organizations that handle the city tax filings of numerous cities.  Some cities, such as Lorain and Parma, handle their own city taxes.  Townships do not impose a city tax so addresses must be considered carefully because some cities, such as Medina, have both a city portion which imposes a tax, and Township portion, which does not.   You can look up an address to find out the municipal tax rate using the Ohio Finder.  You can actually look up various info using this tool such as if there is School District Income Tax, and if so, the rate, the amount of Sales Tax in a county and a Tax District Summary.

With the overhaul for municipal taxes most tax code is now the same for all cities in Ohio.  For instance:

  • Gambling Winnings, are now taxable, regardless of the amount, in all cities.
  • Quarterly Estimated Taxes are only required if you will owe $200 or more when filing your return.
  • Individuals under the age of 18 do not pay city income tax.  If there was any amount withheld, for any time before their 18th birthday, they can apply for a refund.

If you are exempt from filing an income tax return you should file an Exemption Form to let the city know this.   Here are some reasons you may be exempt:

  • Being under 18 all year
  • After retirement.  You should indicate the date you are permanently retired.
  • Being in the Armed Forces and having no other taxable income.
  • Having no tax income in a particular year.
  • Moving during the year to a different city and having no income subject to tax before the move date.
  • Being deceased.
  • Filed jointly for the first time, in order to let the city know you are now on a joint return.

Here is RITA’s exemption Form.  There is also a separate RITA Form to request a refund, Form 10A.

Colleen Minnich

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