Findlay, Arlington, Mount Cory, Vanlue, Carey, Mount Blanchard and Jenera resident individuals who are 18 years of age or older are required to file even if they had no taxable income. 

Findlay, Arlington, and Carey resident individuals who are 16 or 17 years of age and who have income that is subject to the tax are required to file, even if no additional tax is due.

Non-resident individuals whose taxable income was not fully withheld upon must file.  Non-resident individuals are not required to file if all their tax was properly withheld by their employers.

Non-resident individuals, sole proprietorships, partnerships, limited partnerships, limited liability companies, limited liability partnerships, associations, corporations, trusts, and S corporations that own rental properties, conduct business, perform services, solicit sales, operate, or maintain an office in Findlay, Arlington, Mount Cory, Vanlue, Carey, Mount Blanchard or Jenera must file, even if no tax is due.

For all seven municipalities, we still accept a “final” return for any individual who is retired or will otherwise have no taxable income.

We will be expecting a municipal income tax return from any individual or business that received a postcard filing notice.

See ORC 718.01 and ORC 718.02 for reconciling and apportioning taxable business income.

See ORC 718.06 for information regarding consolidated returns.

See this link for the Ohio House Bill 5 and Ohio House Bill 49 carry-forward loss instructions.

In Ohio, an individual’s first municipal income tax obligation is to the city or village where he or she works, earns taxable income, conducts business, or owns rental properties. The individual’s next municipal income tax obligation is to the city or village where he or she is domiciled. The community of residence, by local ordinance, may then allow a credit for some or all of the tax that is paid to the communities where the income is earned. Findlay, Mount Cory, Vanlue, Mount Blanchard and Jenera do not offer a credit. Arlington and Carey offer a credit of the amount of tax paid to the community where the income is earned, not to exceed one percent.

Municipal income tax exists in Ohio to assure financial independence for its communities. Moreover, municipalities use income tax revenues to provide personal and property protection, to build and maintain thoroughfares and infrastructure, to foster skilled workforces, and to promote high qualities of life. These resources develop and strategically locate mutually-beneficial places that attract businesses and consumers ensuring vocational, professional, entrepreneurial, educational, recreational, cultural, and medical opportunities for all Ohio residents.

Ohio municipal income tax is governed, in part, through Chapter 718 of the Ohio Revised Code, Article XVIII of the Ohio Constitution, and applicable Ohio Supreme Court Rulings.

Relevant Court Cases 

Thompson v. Cincinnati  2 Ohio St. 2d 292 (1965) 208 N.E.2d 747

Angell v. Toledo, 153 Ohio St. 179 (1950) 91 N.E.2d 250

Unless otherwise prohibited by Chapter 718 of the Ohio Revised Code, taxable income includes, but is not limited to:

• Fees earned to care for others, babysitting fees
• Difficulty-of-care payments
• W-2 box 5 Medicare wages and salaries described in IRC 3121(a) without regard to limitations or exclusions
• Bonuses
• Sick pay
• Strike pay
• Vacation pay
• Commissions
• Incentive pay
• Severance pay
• Tip income [ORC 718.03(J)]
• Employment-related debt cancellation, prizes, awards, and gifts
• Stock options even if not reported in the W-2 box 5 Medicare wages
• Supplemental unemployment compensation described in IRC 3402(o)(2)(A)
• Contributions to deferred compensation plans such as IRC 401(k), 403(b), or 457
• Cost of group term life insurance for active employees for protection in excess of the amount specified in IRC 79
• Salaries, wages, or stipends earned or received through college or university work-study programs, internships, and grant-funded programs even if not reported in the W-2 box 5 Medicare wages
• Partnership guaranteed payments not already taxed at the partnership level
• Resident partner's or member's untaxed distributive share from a partnership, LLC, LLP, or LP
• Findlay resident shareholder's untaxed distributive share from an S corporation to the extent the S corporation's income is apportioned within Ohio
• Lottery winnings
• Gambling winnings
• Net housing allowance
• Business net income
• Farm net income
• Rental net income
• Residents' covenants not to compete
• Income reported on Federal Form 1099-MISC
• Oil and gas royalties (i.e., because they are derived from land)
• Fees received by jurors, union stewards, directors, executors, executrixes
• Individuals' gains on sales of real estate and tangible personal property used in business to the extent of depreciation allowable

There is no municipal income tax exemption or exclusion for wages earned by foreign nationals who are employed within the municipality, even if their wages are not subject to the W-2 box 5 Medicare wages.

The foreign income exclusion does not necessarily apply to resident individuals who are still domiciled within the municipality.  See Ohio Revised Code 718.01(R)(2)(f).

There is no exemption or exclusion in Chapter 718 of the Ohio Revised Code for difficulty-of-care payments.

Unless otherwise delineated in Chapter 718 of the Ohio Revised Code non-taxable income includes, but is not limited to:

• Interest
• Dividends
• Social Security benefits
• Workers’ compensation benefits
• Government-paid unemployment compensation
• Government aid and CARES Act Economic Impact Payments
• Pensions and qualified retirement benefits
• Non-qualified pension income reported on a W-2
• Income reported on a 1099-R, 1099-DIV, or 1099-INT
• IRC 125 cafeteria plan contributions
• Third-party sick pay [ORC 718.01(R)(1)(b)]
• Long-term third-party sick pay described in IRC 3402(o)(2)(C), not reported in the W-2 box 5 Medicare wages
• Active and reserve military pay [ORC 718.01(C)(1)]
• Child support
• Alimony (alimony payments are not deductible)
• Patent and copyright income
• Royalties derived from intangible property
• First $1,000 of annual income for serving as a precinct election official
• Value of a home or a parsonage furnished by a church to its designated minister
• Life insurance proceeds
• Proceeds from inheritance
• Gains from sales of stocks and securities
• Intangible income (e.g., interest and dividends)
• Capital gains except see 194(14)(F) of the Income Tax Ordinance and ORC 718.01(E) for business and rental property transactions (capital losses are not deductible)
• The value of health insurance benefits for S corporation employees who own more than two percent of an S corporation.  (These benefits are not deductible at the entity level.)
• Income earned through age 15

There is no municipal income tax exemption or exclusion for wages earned by foreign nationals who are employed within the municipality, even if their wages are not subject to the W-2 box 5 Medicare wages.

The foreign income exclusion does not necessarily apply to resident individuals who are still domiciled within the municipality.  See Ohio Revised Code 718.01(R)(2)(f).

There is no exemption or exclusion in Chapter 718 of the Ohio Revised Code for difficulty-of-care payments.

• Form 1040, pages 1 and 2, or their equivalents
• Form 1040, Schedule 1, if completed or required to be completed for Federal income tax purposes
• Form W-2 Wage and Tax Statements
• Schedule C, pages 1 and 2
• Schedule E, page 1 and, if completed for Federal purposes, page 2
• Schedule K-1 from Form 1120-S
• Schedule K-1 from Form 1065
• Form 4797, page 1 and, if completed for Federal purposes, page 2
• Schedule F
• Form 4835
• Form 8582, if Schedule E rental losses are limited or suspended for Federal income tax purposes
• Schedule D, if you sold rental properties during the year
• Form 4868, or its equivalent when your Federal income tax return was also extended
• Form 2106, if you are claiming allowable 2106 expenses through 2017
• Schedule A, if you are claiming allowable 2106 expenses through 2017