Income Tax

Springfield Tax Division

The Income Tax Division is responsible for administering the Income Tax Ordinances: Ch.195 Tax on Earned Income and Ch.196 Municipal Income Tax on Earned Income. Tax Office employees are available to provide assistance in the filing of income tax returns, processing income tax payments, and answering tax questions.

Income Tax Information

Individuals

The city income tax rate of 2% is levied upon all wages, salaries, commissions, and other compensation, including lottery, gaming, and gambling winnings, received by residents of the City or received by non-residents for work done or services performed in the City. The City of Springfield requires mandatory filing of annual tax returns by all residents age 18 and over.

Did you receive a post card instead of a tax form packet?

Not sure if you live in the city limits? Check here…

Business

The city income tax rate of 2% is levied on the net profits of all unincorporated businesses, rental properties, partnerships, or other activities conducted in the City; and on the net profits of all corporations conducting activities in the City. Annual tax returns are required from any entity doing business within the City.

Employers

Employers located in or doing business within the City of Springfield who employ one or more persons are required to deduct city income tax at the rate of 2% from the compensation of their employees. Employee W2s must be submitted to the tax office by February 28th of each year. If using sub-contractors, copies of Federal Form 1099 Misc must be submitted to the tax office.

Declaration of Estimated Tax

An annual declaration of estimated tax must be filed by all individuals and entities that anticipate a tax liability of $200 or more after allowing withholding credits.  Estimated payments must be made in quarterly installments.  Failure to file and pay estimated taxes in timely, quarterly installments might result in an assessment of penalty and interest charges.  These charges will not be made when the total estimated tax payments, received in timely, quarterly installments, are at least 90% of the final tax liability or are at least 100% of the previous year final tax liability, and paid by the 15th day of the 12th month of the taxable year. (December 15th for all calendar filers).

In order to make current year quarterly estimated tax payments, you can find Estimated Income Tax vouchers here. You can also make quarterly, estimated payments through Tax Connect.

Extensions

Extensions are granted on an automatic basis as long as a taxpayer has received an extension of time to file their federal income tax return.  A copy of the Federal Extension Request Form must be received by the Tax Office by the extended due date of the return.  An extension of time to file is not an extension of time to pay.  Penalty and interest may be assessed on any tax balance remaining due after the original due date.

JEDD Income Tax

Springfield- Beckley Joint Economic Development District (JEDD)

The JEDD income tax rate of 1% is levied upon all wages, salaries, commissions, and other compensation of individuals working within the JEDD; and the net profits of all businesses conducting activities with the JEDD. The JEDD income tax is administered and collected by the City of Springfield Income Tax Division. JEDD Map

JEDD Business Forms

Springfield JEDD Income Tax: 1%


JEDD Agreement

JEDD Map

JEDD Business Questionnaire

2016 and Forward JEDD Employer Municipal Tax Withholding Booklet

JEDD Estimated Tax Statement

2015 JEDD Employer Municipal Tax Withholding Book

JEDD Individual Forms

Springfield JEDD Income Tax: 1%

Area Map

Estimated Payment Voucher

HB 5 Information & Changes - New for 2016 and Forward

City Income Tax Collection Notice

IMPORTANT INFORMATION REGARDING THE NOTICE YOU HAVE RECEIVED FROM THE CITY OF CLEVELAND CENTRAL COLLECTION AGENCY (“CCA”)

The City of Springfield Income Tax Division has contracted with the Central Collection Agency of Cleveland, Ohio (“CCA”) to obtain Federal income tax information to identify residents who may owe delinquent income taxes to the City of Springfield. You have received an audit notice from CCA because a check of these records indicates that you have filed a Federal Income Tax Return with the Internal Revenue Service (“IRS”) but not a City of Springfield Income Tax Return.

You must respond in writing to CCA within thirty (30) days of the date of the notice, even if you reported a loss on your Federal tax return or believe that you don’t have a tax balance due to the City of Springfield. Regardless of income type or final liability, all residents 18 years of age and older are required to file an annual City of Springfield Income Tax Return. Fill out the form located on the back of the notice and enclose a copy of all pertinent Federal tax returns and all Federal W-2 forms. Use the envelope provided with the notice to return your response to CCA.

Because Federal law prohibits the City of Springfield from having direct access to IRS information, the City of Springfield will not be able to assist you with questions related to your CCA notice. All questions and correspondence you have regarding the audit notice must be directed to the CCA auditor indicated on the notice.

To help you determine if you are responsible for delinquent income taxes, a complete listing of Taxable Items and Non-Taxable income is included on this website. If you discover you have, in fact, received taxable income for which you have not previously filed a City of Springfield Income Tax Return, contact the CCA auditor listed in the notice for information on additional documents you may need to complete to determine your City of Springfield income tax liability. All documentation should be mailed to Central Collection Agency, Division of Taxation, 205 W. Saint Clair Avenue, Cleveland, OH 44113-1503. Regardless of whether or not you might owe a tax balance, all residents 18 years of age and older are required to file an annual income tax return and report all sources of income. The filing of any missing returns is required to bring your account current and to avoid legal action.

All tax returns, documentation, Federal Schedules, copies of W-2’s, and payments must be remitted directly to CCA. For information on how payments can be made to CCA, contact CCA at 1-877-878-8587. CCA has provided a name of an Auditor in their Special Audit Department on your audit letter. Please feel free to contact this Special Auditor directly with your questions.

PLEASE DO NOT IGNORE THIS NOTICE. Failure to resolve this matter may result in legal action, including criminal charges for failure to file any missing tax filing and/or failure to pay any outstanding balance due. Thank you for your prompt attention.

Important CCA Links:

As required by the Ohio Revised Code 718, effective 1/1/16 for tax years 2016 and forward, the
City of Springfield is announcing the interest rates for tax year 2016 and forward tax liabilities.
Per ORC, 718.27 operative 1/1/16:
(C)(1) Interest shall be imposed at the rate described in division (A) of this section, per annum,
on all unpaid income tax, unpaid estimated income tax, and unpaid withholding tax.

(A)(4) “Federal short-term rate” means the rate of the average market yield on outstanding
marketable obligations of the United States with remaining periods to maturity of three years or
less, as determined under section 1274 of the Internal Revenue Code, for July of the current year.

(A)(5) “Interest rate as described in division (A) of this section” means the federal short-term
rate, rounded to the nearest whole number per cent, plus five per cent. The rate shall apply for
the calendar year next following the July of the year in which the federal short-term rate is
determined in accordance with division (A)(4) of this section.

2016 – The Federal short-term rate is 0.48%. That, rounded to the nearest whole number %, plus 5%,
results in a tax rate of 5% per annum.  (.42% per month or part thereof)
2017 – The Federal short-term rate is 0.71%. That, rounded to the nearest whole number %, plus 5%,
results in a tax rate of 6% per annum.  (.50% per month or part thereof)

For tax years 2015 and prior, the prior interest rate of 1% per month remains in effect.

TAXPAYERS’ RIGHTS AND RESPONSIBILITIES
Section 196.03(48)

“TAXPAYERS’ RIGHTS AND RESPONSIBILITIES” means the rights provided to
taxpayers in sections 718.11 , 718.12 , 718.19, 718.23, 718.36, 718.37, 718.38,
5717.011, and 5717.03 of the Ohio Revised Code and any corresponding ordinances of
the Municipality, and the responsibilities of taxpayers to file, report, withhold, remit, and
pay municipal income tax and otherwise comply with Chapter 718 of the Ohio Revised
Code and resolutions, ordinances, and rules adopted by a municipal corporation for the
imposition and administration of a municipal income tax.

These rights and responsibilities include, but are not limited to, the following:

• The municipal corporation shall maintain a Local Board of Tax Review to hear
appeals of the taxpayer on assessments issued by the Tax Administrator. The
Taxpayer or the Tax Administrator may appeal the Final Determination of the
Local Board of Tax Review.
• Civil actions to recover municipal income tax, penalties and interest have time
limits.
• Taxpayer has a prescribed manner in which to request a refund from the Tax
Administrator.
• Taxpayer has a required responsibility to timely and accurately file annual
returns, reports, documents, and to timely remit all taxes due on such annual
returns, reports, documents and filings.
• Taxpayer has a required responsibility to allow examination of their books,
papers, records, and federal and state income tax returns by the Tax
Administrator.
• At or before the commencement of an audit (where the Tax Administrator has
ordered the appearance of the Taxpayer), the Tax Administrator shall inform and
provide the Taxpayer with certain information regarding the audit.
• Taxpayer has certain recourse if aggrieved by an action or omission of the Tax
Administrator, their employee or an employee of the municipal corporation.

Did you receive a postcard instead of a tax form packet for City of Springfield Income Tax?

If you used a tax preparer and/or a generic tax form to file your 2016 Springfield return, you were sent a reminder post card instead of a tax form packet. The post card has filing information on it including instructions for online filing.

Also, attached to the post card is a removable name and address label. It includes your name, address and tax account number. This is intended for you to remove and attach it to your tax return form in the name and address box. If you use a tax preparer, please give the post card to them so they can affix the label to your return.

Please refer to “Resident and Business Changes” for new law information.

Tax Ordinances

Chapter 196 (amended) (Tax years 2016 and forward)

Chapter 195 Tax on Earned Income (Tax years 2015 and prior)

Frequently Asked
Who is required to file Springfield income tax returns? - All residents of Springfield that are 18 or older are required to file a return each year. If you became 18 years of age during the year, you must file a pay on the amount of wages you earned after your 18th birthday. All non-residents are required to file if they performed work or services within the city and had earnings which were not withheld upon. Additionally, each business located or performing services within the city is required to file. Returns are required with no regard for the amount of income received or losses incurred.
Can my spouse and I file together? - Beginning in tax year 2016, you may file a joint return with your spouse. You may combine incomes, credits and payments. For tax years 2015 and prior, you can only file individually. You can share the same form as it has space on each side for individual income, but you cannot combine your incomes.
Does the City of Springfield allow a carryover of net operating expenses? - No, carrying forward net operating losses from one year to the next is not currently allowed. Beginning with tax year 2017, you will be permitted to carry losses forward. The use of these losses will be limited to 50% through tax year 2022.
Are my 2106 expenses deductible? - They are deductible to the extent they were deducted through your Federal Schedule A, and are subject to the 2% AGI limitations. A copy of your Schedule A must be included with your return.
How are my taxes used? - Ninety (90) percent of tax money collected goes into the General Fund and the other ten (10) percent goes into the Permanent Improvement Fund. The General Fund is used to pay for the day-to-day operations of the City, the majority of which is used to provide police and fire protection. The Permanent Improvement Fund is used to buy capital assets, land, and buildings.
See More

 

 

Ms. Nancy Belcher

Taxation Administrator

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