With tax season underway, We want to take this opportunity to provide you with information about the City of Pataskala’s municipal income tax.
In 2010, residents of City of Pataskala approved a 1.0% income tax that is levied on all earned income of individuals and business entities residing, working, or doing business in Pataskala. At the time of the income tax being approved, Pataskala was 1 of only 2 cities that did not collect an income to fund general municipal operations, such as street maintenance and Police protection.
For purposes of the municipal income tax, earned income includes wages, tips, bonuses, rental income, profits or losses from a business or profession, and distributions from a partnership. Examples of items that would be exempt from the income tax include: interest and dividend income; retirement income from social security, pensions or other IRS-approved retirement accounts (e.g., IRA, 401(k), etc.); active military pay; unemployment compensation; alimony/child support; and income from annuities.
The City uses the collections from the income tax to provide the majority of funding for operations of our Police and Public Service departments, including routine operational costs (e.g., salaries, supplies and equipment); and capital spending, such as our annual road paving program and other infrastructure improvement projects.
In order to administer the tax and ensure compliance, the city retained the services of the Regional Income Tax Agency (RITA) to serve as the city’s agent to collect and administer the tax. RITA is a council of governments that have joined forces to provide tax collection services to over 320 municipalities throughout the state of Ohio.
Below are a few comparative income tax rates for some other central Ohio communities:
Pataskala 1.0% Johnstown 1.0%
Gahanna 1.5% Hilliard 2.0%
Reynoldsburg 2.5% Worthington 2.5%
Frequently asked questions about the income tax:
1. Why do I have to pay the 1.0% city income tax (collected by RITA)?
The income tax was approved by city voters in 2010, and the language of that ballot initiative required all residents and businesses operating in the City to prepare and file annual tax returns with RITA. Based upon those returns, residents and businesses are required to submit tax payments to satisfy their calculated tax liability.
2. I live in the City of Pataskala, but work in another city. Must I pay the 1.0% city income tax?
Yes, the city’s tax code provides for the income tax to be levied on earned income for all residents of the city, and for those non-residents who work within the city limits.
3. I work in another city which has an income tax. Do I get credit for municipal income taxes paid to that city?
No. The city’s income tax code does not provide for credit given for other municipal income taxes paid. Pataskala is considered a ‘bedroom community’, and does not currently have the business base that other communities have. That base provides for significant withholding tax income to those cities, and as a result, they are able to give their residents credit. In addition, those other communities have a tax rate that is significantly higher than Pataskala’s 1.0% tax. Prior to the income tax approval in 2010, there were several other income tax initiatives that were put on the ballot which included different percentages of credits, however, those proposals were not approved by city voters.
4. Who can I contact if I have questions about filing my Pataskala city Income Tax?
Information about filing your municipal income tax return can be found at www.ritaohio.com, or by calling The Regional Income Tax Agency (RITA) at (614) 430-8178. You can also contact the City’s Finance Department by calling (740)927-3167.