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 Increase Information

Our voters approved an income tax increase on the May ballot.  The City of Springfield income tax rate will increase from 2% to 2.4% effective July 1, 2017.  This is a temporary increase and will expire December 31, 2022.

EMPLOYERS

Employers located in or doing business within the City of Springfield must start withholding Springfield City tax at a rate of 2.4% from the compensation of their employees beginning July 1, 2017.  Please make the necessary changes to your payroll software and/or notify your payroll service provider.  For courtesy withholders, your employees’ credit for tax paid to other cities will remain the same, (see below) but Springfield withholding should be adjusted to cover their 2.4% liability.

INDIVIDUALS

The city income tax rate will increase to 2.4% on any taxable income earned July 1, 2017 and after.  This includes all wages, salaries, commissions, and other compensation, lottery, gaming, and gambling winnings received by residents of the City or income received by non-residents for work done or services performed in the City.  When filing a 2017 tax return, a blended rate of 2.2% may be used to calculate tax liability on the total income.

BUSINESS NET PROFIT

The city income tax rate will increase to 2.4% on any taxable income earned July 1, 2017 and after.  When filing a 2017 calendar year tax return, a blended rate of 2.2% may be used to calculate tax liability.  When filing a fiscal year return ending or beginning in 2017, the tax rate will be the average of the rates for each month of the fiscal year.  For example, a FYE 10/2017 return, would be taxed at 2.13% (8 months of 2% and 4 months of 2.4%).

DECLARATION OF ESTIMATED TAX AND OTHER CITY CREDIT

For those taxpayers who make quarterly, estimated payments, an adjustment to your declaration and payments must be made.  For individuals, the credit for tax paid to other cities will not change.  You will still receive credit for one half of the tax correctly paid to the other city, with a maximum of one half of the Springfield rate.   So, for income earned July 1, 2017 and after, if you work in a city with a tax rate of less than 2.4%, you will receive credit for one half of what you paid that city.  If the other city has a tax rate of 2.4% or more, you will receive a credit of 1.2%.  For income earned through June 30, 2017, you will owe the difference up to 2% to Springfield.  For income earned July 1, 2017 and after, you will owe the difference up to 2.4% to Springfield.

 

Income Tax Information

Individuals

The city income tax 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 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 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.

Forms for Individuals
Forms for Businesses
Taxable & Non-Taxable Items
Central Collection Agency

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:

CCA Sample IRS Audit Letter

CCA Supplemental Information Request Form

CCA Frequently Asked Questions

CCA Website

Did you receive a postcard?
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.

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

2016 JEDD Business Income Tax Return

2015 JEDD Business Income Tax Return

2014 JEDD Business Income Tax Return

2013 JEDD Business Income Tax Return

2012 JEDD Business Income Tax Return

2011 JEDD Business Income Tax Return

2010 and Prior JEDD Business Income Tax Return

JEDD Individual Forms

Springfield JEDD Income Tax: 1%

Area Map

Estimated Payment Voucher

2016 Return

2015 Return

2014 Return

2013 Return

2012 Return

2011 Return

2010 Return

2009 Return

HB 5 Information & Changes - New for 2016 and Forward
Income Tax Interest Rates

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.

Rights & Responsibilities
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.
Tax Ordinances

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

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

Frequently Asked
What if I work in another city? Will my credit change? - No, the credit for tax paid to other cities remains the same. You will still receive credit for one half of the tax correctly paid to the other city, with a maximum of 1%. So, if you work in a city with a tax rate of less than 2%, you will receive credit for one half of what you paid to that city. If the other city has a tax rate of 2% or more, you will receive a credit of 1%. For income earned through June 30, 2017, you will owe the difference up to 2% to Springfield, For income earned July 1, 2017, you will owe the difference up to 2.4% to Springfield.
How will this affect my estimated payments? - You will need to amend your 2017 declaration of estimated tax and increase the tax due on Quarters 3 and 4 to 2.4%. Overall, your estimated payments should be 2.2% of your estimated income.
How will I calculate my 2017 tax on my tax return? - You will file your 2017 Springfield Income Tax Return using a blended rate of 2.2% for your total taxable income. This is half the year at 2% and half the year at 2.4%.
What is the new tax rate and when does it start? - The new tax rate is an increase from 2% to 2.4%. The effective date is July 1, 2017. The new rate of 2.4% will affect all income earned from July 1, 2017 and forward. It is a temporary increase which expires December 31, 2022.
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.
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Mrs. Nancy Belcher

Taxation Administrator

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