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Municipal Income Tax Changes



The City of Powell amended its income tax code to include all the changes made by the Ohio Legislation through House Bill 5. The 130th General Assembly passed and Governor John Kasich signed into law Amended Substituted House Bill 5 in December, 2014 which mandates municipal income tax ordinances be amended in accordance with the provisions and limitations specified in Chapter 718 of the Ohio Revised Code. These changes take effect Jan. 1, 2016.

What Changed?

  • Withholding Payments
    • Monthly withholding requirement for all businesses who remit more than $2,399 in the previous calendar year or who remit more than $200 in any month in the previous quarter of the same calendar year.
    • If you do not meet the criteria above, you shall continue to remit on a quarterly basis unless you voluntarily request a monthly remittance schedule.
  • Withholding Due Dates
    • Monthly withholding remittance is due on the 15th day after the end of the month with no grace period (e.g. January withholding is February 15)
    • Quarterly withholding remittance is due on the 15th day after the end of the quarter with no grace period (e.g. first quarter is due April 15)
    • Your payment must be postmarked on or before the due date to be considered on time and to prevent a late penalty.
  • Filing Dates
    • Filing dates of the MANDATORY annual municipal income tax return matches the due date for the state individual income tax return.
  • Pass-Through Entities (PTEs)
    • All pass-through entities (PTEs) will be taxed at the entity level. Individual owners of PTEs will report PTE gains and losses in their resident community, subject to the credit provided by the resident municipality.
  • Penalties 
    • Penalties will change to 15 percent of the tax liability for individuals and interest will change to federal short-term rate plus five percent.
  • Five-Year Net Operating Loss
    • All municipalities will be required to allow a five-year net operating loss carryforward beginning with losses incurred in tax year 2017.
  • Board of Tax Appeals 
    • The makeup of the City’s Board of Tax Appeals will be changing.

New Forms

Role of a Taxpayer During an Audit 

Role of a Tax Administrator During an Audit

Lawriter – Ohio Revised Code Chapter 718

Landlord Reporting Report 

Authorized Representative Form

Tax Code

Tax Ordinance for Tax Year 2015 and Prior Years

New Tax Ordinance Effective January 1, 2016