Income Tax

Village of Ottawa Hills Income Tax

The Village of Ottawa Hills has a 1.5% municipal income tax on income earned in the Village or earned by Village residents. Village residents who pay income taxes to another community receive partial credit (50% of the lower rate) for those taxes paid. Most residents work outside the Village and pay .75% income tax to the Village. Income tax is the largest source of revenue to fund Village services, such as police, fire and refuse pickup.

Other Tax Information

Ohio Revised Code 718 - Municipal Income Tax

Income Tax Ordinance - Ord 2023-9

Income Tax Increase Proposal

What is the purpose of the income tax proposal?

The Village of Ottawa Hills is seeking funding for the paving of residential streets, capital improvements, maintenance and general operations. The 2025 income tax proposal will be on the November ballot.

If passed, it will:

• A 0.5% income tax increase will take effect January 1, 2026, raising Ottawa Hill's income tax rate from 1.5% to 2%.
• The Village is not seeking any new property tax levies.

In 2014, the Village of Ottawa Hills asked voters to approve a 3.9 mill levy to generate funds for road, bridges, and sidewalks. This generates close to $595,000 per year for road improvements. Additionally, we receive $90,000 from TARTA funding. The annual average of the past 10 year capital expenditures = $1,986,846.00

Will the income tax increase be permanent?

Yes, the approved proposal is for a permanent 0.5% increase to the Village's income tax rate.

What income is taxable under Municipal Income Tax?

Municipal (i.e., city) income taxes in Ohio tax a much smaller number of income sources than Federal or State income taxes. Below are detailed list of taxable and non-taxable income sources. The following list is not all-inclusive and only includes the most common types of taxable income. For more details please visit RITA here: https://www.ritaohio.com/individuals/Faqs.

What is income tax reciprocity credit?

Ottawa Hills residents who work in another municipality that levies income taxes (e.g., the City of Toledo) are eligible for an income tax credit from Ottawa Hills for taxes paid to the municipality that they work in. This credit is often referred to as "reciprocity." If the proposal is approved, it will not change the income tax reciprocity credit cap.

When was the last income tax increase?

The Village of Ottawa Hills income tax rate has not changed since 1971.

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