The City levies a 1.5 percent income tax on substantially all income earned in the City. The City does not give credit to residents for income taxes paid to other municipalities. Additional increases in the income tax rate require voter approval. Employers within the City withhold income tax on employee compensation and remit at least quarterly and file an annual declaration of estimated tax.
The income tax receipts are to be used to pay the cost of administering the tax, general fund operations, capital improvements, debt service and other governmental functions when needed, as determined by Council. All tax receipts are allocated to the general fund.
House Bill 5 Changes and Requirements for All Municipalities
Please be advised that municipal income tax withholding due dates and related thresholds have changed as noted below. These changes are the result of the enactment of House Bill 5 by the State legislature.
Employers withholding tax on employee compensation and remit as follows:
Quarterly filing and payment is required if an employer has withheld with respect to the municipality $2,399.00 or less in the immediately preceding calendar year, or $200.00 or less for each month in the immediately preceding calendar quarter. For the first two quarters of 2016, the due date for Quarterly filers was the 15th day of the month following the end of the quarter. Note: Effective 9/14/2016, Senate Bill 172 changed the due date for quarterly filings and payments to the last day of the month following the end of each calendar quarter. The changes to the due date took effect for returns and payments starting with the third quarter of 2016.
Monthly filing and payment is required if an employer has withheld with respect to the municipality more than $2,399.00 in the immediately preceding calendar year, or more than $200.00 in any one month in the immediately preceding calendar quarter. The due date for Monthly filers is the 15th day of the month following the month withheld.
Semi-monthly withholding filing and payment MAY BE REQUIRED by the municipality if an employer has withheld $12,000.00 or more in the immediately preceding calendar year with respect to the municipality, or more than $1,000.00 in any month of the immediately preceding quarter with respect to the same municipality. The due dates for Semi-monthly filers are 3 banking days after the 15th of the month, and 3 banking days after the end of each month.
For further information please consult the North College Hill Updated Tax Information Letter......
Forms Required From Residents For Filing 2016:
In Order for your tax return to be considered complete and ready for processing, you will need to provide the following documents: Federal 1040 Front Page, W-2's from all employees Schedule "C" IF YOU OWN RENTAL PROPERTY, non employee compensation for contracted work if you are self employed. Schedule "E" IF YOU OWN RENTAL PROPERTY, you need to file on profits and/or losses on the property. UC-1099-G IF YOU RECEIVED UNEMPLOYMENT in 2016. You need to bring the 1099 showing how much you collected. Unemployment is reportable but not taxable. 1099-R IF YOU ARE RETIRED. Retirement is reportable but not taxable. 1099-R IF YOU ARE RETIRING. Retirement is reportable but not taxable. SSA-1099 IF YOU ARE COLLECTING SOCIAL SECURITY BENEFITS, OR DISABILITY BENEFITS. They are reportable but not taxable. Any other Federal Schedules used to verify your income. Such as a 2106 Deduction, and 1099-G for gambling winnings. All tax returns require the signature of the taxpayer or a taxpayers "Duly authorized agent" and of the person who prepared the return for the taxpayer. We will accept the signatures of one taxpayer of a "joint account" if they bring their documents into our office for us to process their tax return.