Trying to understand how ohio jurisdictions/taxes work. (Columbus, Dayton: best city, sales)

[TomTrilobite]

Townships, cities, school districts, counties, etc... wow. Please help me understand this stuff.

I grew up in Massachusetts where things are much, much simpler. The state charges income tax and sales tax. No other entity charges tax or sales taxes. County governments do not exist and thus do not levy any sort of taxes. Counties are just lines on a map and a way of organizing the court system (which is funded directly be the state). Counties are divided up into municipalities. Some are called towns, others are called cities, but they are legally identical. Every speck of land is in a city/town. Municipalities handle pretty much everything: police/fire/school/roads/utilities/zoning/etc... and they get their money through property taxes. So that's it: you pay your sales tax at the store, you pay your state income tax, you pay your property tax to your city/town. Your town is your school district so there is no need to think about that. Everything is simple.

So now we're planning to move to the Dayton area. I have been reading these forums and wikipedia and so on and I am befuddled. You have local income taxes?!!?? School districts that are independent and collect their own taxes? A zoo tax for the zoo district???????? Weird overlapping cities, counties, and townships? Other random taxing authorities? I know that different parts of California have different sales taxes, does Ohio also do this? How does it all work?

Also, cities can conquer land from neighboring townships? Why? How? What if people don't want to be part of that city? I heard that Dayton is planning to conquer the county that it is in. Can the locals resist? How does it all work?

I think that I am going to really like Ohio but this sounds like madness to me.

[SWOH]

It's a decent amount to understand, and I'm not the best to answer, but I will say taxes overall aren't going to be a massive worry.

They are relatively low, and they are directly tied to what you get out of a municipality.

For instance, by far the best city services and community amenities are in Oakwood, and higher taxes support those amenities. Lower tax places like, say, ~30 miles to the west in rural Indiana will mean you can have more $$ from your paycheck but you'll just be paying it back from car repairs (their rural roads are atrociously horrible). Or another example would be Morrow, which has voted against numerous school levies causing the quality of their schools to decline drastically in comparison to better funded districts like Mason or Kings (all of these examples are in southern Warren Co.).


To put it simply, you get what you pay for with taxes in OH. There are vast differences in service levels between communities.

[TomTrilobite]

I'm not complaining about the rates (yet) because I don't even know what they are or how to find out. I am asking about how it all works. As an Ohioan you simply don't realize how confusing the Ohio system is and so you missed my question entirely. My question is: how does the system work?

Let's say that I see a house that I like. How would I find out what kinds and amounts of taxes I will have to pay and who to pay them to?

What about voting? What kind of elections are there to vote in?

What about local laws? For example how would I find out what I can do with my house/yard/etc? Some places let you have farm animals, other places won't even let you paint your house; how do I find out which set(s) of laws will apply to me?

[Fletchman]

Ohio's tax situation is not ideal, especially for attracting new residents. Here's my understanding:

You will pay:

1: State income tax
2: City income tax (if you live in a city. If you live in a township, you will not). It may be collected by RITA, a statewide collection body, or it may be collected locally.
3: You MAY pay school district income tax. This is only levied in school districts that have an election to collect an income tax only for the schools. Not every district does this, but mine near Columbus does.

As far as property taxes, check the County Auditor's website. It will tell you all the info you need. Property taxes generally follow the school district you live in as they collect the most taxes. School districts DO NOT follow municipal boundaries.

Basically, if you live in a township in a school district without an income tax, you will generally pay the lowest taxes. as far as income taxes go. Property taxes may differ.

[Fletchman]

As far as local laws, check the municipal or township website. Townships will generally be more lax in terms of what you can do with your yard etc.

Obviously, HOAs will be the most restrictive.

[PerryMason614]

Originally Posted by TomTrilobite

I'm not complaining about the rates (yet) because I don't even know what they are or how to find out. I am asking about how it all works. As an Ohioan you simply don't realize how confusing the Ohio system is and so you missed my question entirely. My question is: how does the system work?

Let's say that I see a house that I like. How would I find out what kinds and amounts of taxes I will have to pay and who to pay them to?

What about voting? What kind of elections are there to vote in?

What about local laws? For example how would I find out what I can do with my house/yard/etc? Some places let you have farm animals, other places won't even let you paint your house; how do I find out which set(s) of laws will apply to me?

You can't go wrong living in places like Oakwood and this applies all over Ohio. They are high tax areas, but the areas are very desirable and you make your money back and then some in increased property values.

It all depends on your budget, but Ohio taxes shouldn't scare you.

1. Everybody is subject to state income taxes, sales taxes and real estate taxes. You have to file a state income tax return.

2. You pay local income taxes in the city you work via payroll deductions but you don't have to file a return.

3. If you live within the city limits of a second city in most cities you will get a credit for the city income taxes withheld in the city you work in an amount which is the lesser of the amount withheld or the amount that would have been withheld at the same tax rate in the city you live in. You may have to file a return.

4. If you live in a township but not within the city limits, there is generally no income tax but that is changing.

5. Some school districts have an income tax but they are in the minority.

[TomTrilobite]

Originally Posted by Fletchman

Ohio's tax situation is not ideal, especially for attracting new residents.
As far as property taxes, check the County Auditor's website. It will tell you all the info you need. Property taxes generally follow the school district you live in as they collect the most taxes. School districts DO NOT follow municipal boundaries.

Ok, so I went to the site for Greene County and I found this helpful pdf

http://www.co.greene.oh.us/DocumentCenter/View/5188

The way that I understand this table is that Greene County is broken into 45 regions, each with their own property tax rate. These regions aren't 45 separate cities, but are unique combinations (sort of like a venn diagram) of cities, school districts, and townships. So if I live in A01 that means that I live "Bath Township-Fairborn CSD" which is to say that I live in Bath Township and Fairborn CSD and that I don't live in a city. At least that's what it seems like. Now what if I live in A02. That means that I live in Fairborn City. So does that mean that I don't live in a township or a school district? Does that mean that Fairborn City has no schools? However they are charging the same taxes for schools that A01 is, so presumably they are part of the same school district, even though it isn't listed.

Also these codes (A01, A02) seem to exist in other counties too. Are they an Ohio-wide thing? What are they called? Can I use these codes to also look up local income taxes?

Thank you for your help!

[TomTrilobite]

Originally Posted by PerryMason614

2. You pay local income taxes in the city you work via payroll deductions but you don't have to file a return.

So this must be a flat tax with no deductions, right?

Originally Posted by PerryMason614

3. If you live within the city limits of a second city in most cities you will get a credit for the city income taxes withheld in the city you work in an amount which is the lesser of the amount withheld or the amount that would have been withheld at the same tax rate in the city you live in. You may have to file a return.

Does this mean that I always end up paying the higher of the two rates?

Thank you for your help!

[TomTrilobite]

Also, how do annexations work? In Massachusetts (where I grew up) the last annexation happened in 1836 so I have no experience with it. If I am living somewhere with laws that I like, can that place be conquered by a more powerful city? Is there anyway that I can stop it? How are new cities formed? Can I go to a remote part of a township and start a new city and then start annexing my neighbors?

What about Dayton swallowing up Montgomery County? How likely is that? What would the process be?

[hensleya1]

Originally Posted by TomTrilobite

Also, how do annexations work? In Massachusetts (where I grew up) the last annexation happened in 1836 so I have no experience with it. If I am living somewhere with laws that I like, can that place be conquered by a more powerful city? Is there anyway that I can stop it? How are new cities formed? Can I go to a remote part of a township and start a new city and then start annexing my neighbors?

What about Dayton swallowing up Montgomery County? How likely is that? What would the process be?

I can answer you in more detail tomorrow but the answer to your question is "hell no, and never within a thousand years."

Most of today's existing suburbs - Huber Heights, Riverside, Kettering, Moraine, and to an extent Trotwood - were all created because the residents were trying to prevent annexation into the city of Dayton. That's because incorporating as a discrete entity is the most effective way to prevent annexation.

In order for a plot of land to be annexed from a township to a city (or to detach it), a majority of the property owners have to vote in favor of annexation (there are other provisos as well).

The chances of Dayton annexing any more land is slim to none.