If you live in GVH and you work in another jurisdiction with no municipal income tax (or a lesser tax than GVH), you pay income tax based upon where you live. You still pay the lesser city’s rate and the differential would be to GVH. You should have your employer withhold to GVH or else make quarterly tax payments. GVH will give credit for amounts paid to another municipality. Here are a few examples:

(a) Grandview Heights Resident works in Grandview Heights – The employer is responsible for withholding the 2.25% income tax and remitting the monies on behalf of its employees. As a resident you are required to file an annual return to report tax due and the amount withheld by the employer.

(b) Non-Resident works in Grandview Heights – The employer is responsible for withholding the 2.25% income tax and remitting the monies on behalf of its employees. You would need to check with your city of residence to determine if you receive credit for taxes paid to Grandview Heights. If your employer under withheld or you earned income from a non-wage base source then you would be required to file and pay directly to Grandview Heights.

(c) Grandview Heights resident works in Columbus – Since Columbus has a 2.50% income tax rate, the employer would withhold the 2.50% Columbus tax. Since GVH tax rate is 2.25%, and GVH provides a maximum credit of 2.0% for income taxes paid to another municipality, the resident would then be responsible for the 0.25% difference payable to GVH. In this case the total tax liability to the resident is 2.75%, with 2.50% going to Columbus, and 0.25% benefitting GVH. As a resident you are required to file an annual return to report tax due and the amount withheld by the employer.

Forms can also be downloaded from the Internet from the RITAR.I.T.A. website:
http://www.ritaohio.com

All residents age 18 and over are required to file unless previously exempted. Retirement and/or social security income is not taxable for city purposes, but receiving a form indicates that your account is active and requires attention. If you have received a form or postcard and do not think that you are required to file, please contact R.I.T.A. 866.721.7482 to discuss your filing requirementsIf RITA automatically sends you a tax form through the mail, that means they believe you are still an active taxpayer and are expecting a filed return by the due date. You should complete the return requesting the exemption so they may update their records. You may also call RITA directly at (866) 721-7482 to discuss your status..
RITA.

Also, both unincorporated businesses and incorporated businesses pay income tax based upon where they perform their services. Unincorporated businesses, such as those owned by sole proprietors, are subject to the where you work/where you live hierarchy discussed above in #52. Corporations are only subject to municipal taxes based on the location of their services; they do not have a residential component.

Receiving a form indicates that your account is active and requires attention. If you have received a form or postcard and do not think that you are required to file, please contact R.I.T.A. 866.721.7482 to discuss your filing requirements.
RITA