Local and State Taxes
Municipal Income Tax
While Clermont County does not impose a local income/earnings tax, there are jurisdictions within the County that have implemented a local income tax.
- City of Milford – 1% income tax – http://www.ritaohio.com/municipalities/rita-member-list/milford/?MODE=ISN
- Village of Batavia – 1% income tax –http://www.tax.ohio.gov/municipalities/municipal_forms_batavia.aspx
- Village of New Richmond – 1% income tax – https://www.ritaohio.com/municipalities/rita-member-list/new-richmond/
- Village of Owensville – 1% income tax –https://www.ritaohio.com/municipalities/rita-member-list/owensville/
- Village of Williamsburg – 1% income tax – https://www.ritaohio.com/municipalities/rita-member-list/williamsburg/
School District Income Tax
Two Clermont County school districts impose a 1% income tax on the districts’ residents only, not on the districts’ businesses or their employees. More information can be found on the school districts’ websites.
Joint Economic Development District – Ivy Pointe Commerce Park
Union Township and the City of Milford formed a Joint Economic Development District (JEDD) for the development known as the Ivy Pointe Commerce Park. A JEDD provides a source of funding for infrastructure improvements to promote and sustain commercial development. Currently, local governments are expected to fund a much greater share of infrastructure projects due to lack of available funds at the state and federal levels. A JEDD allows for townships to partner with a municipality (or municipalities) to implement an income tax on a specific area of the township.
The JEDD area can only incorporate commercial and industrial zoned parcels. The earnings tax will be on those that work and produce business profits in the JEDD area.
The Ivy Pointe JEDD imposes a 1% payroll tax on any employees working within the boundaries of the district.
Real Property Tax
For taxation purposes, real property in the State of Ohio is taxed at 35% of the appraised value of the property. Real property is defined as land, building, and improvements to property. Clermont County has over 95,000 parcels of land that are appraised and assessed for tax purposes. The County Auditor is responsible for this process and the Ohio Revised Code mandates a general appraisal every six years with an update at the three year midpoint.
Property taxes are comprised of several components and are determined by the budgetary requests of each governmental unit (township, city/village, library, mental health, MRDD, etc.), as authorized by the vote of the citizens, and calculated in strict accordance with procedures required by the Ohio Department of Taxation. School districts make up the largest portion of millage collected by property taxes. Counties and various levies (library, safety services, developmental disabilities, senior services, etc.) compose the next largest millage, followed by municipalities or townships.
For a list of Clermont County tax rates listed by municipality/township and school district, please click here.
Tangible Personal Property Tax
Since 2009, Ohio no longer assesses taxes on most tangible personal property. Tangible personal property is defined as the physical property used in general operations of manufacturing and service-based businesses and included machinery, equipment, furniture, fixtures, and inventory.
This revamping of the way Ohio taxes businesses was initiated in 2005, effectively eliminating the State Tangible Personal Property Tax. This tax was viewed as a disincentive to capital investment, and as a result, was considered a barrier to increases in personal and business productivity, income growth, and job creation in Ohio.
Sales & Use Tax
The current sales tax rate for Clermont County is 6.75%, of which 5.75% is State of Ohio sales tax and 1% is collected by Clermont County.
The sales tax applies to the retail sale, lease, and rental of tangible personal property as well as the sale of selected services in Ohio. The use tax applies to the storage, use, or consumption of tangible personal property in Ohio or the receipt of the benefit of the selected services in Ohio – if sales tax was NOT paid to the vendor or seller.
A taxable sale includes any transaction in which title or possession of tangible personal property or the benefit of certain services is, or will be, transferred or provided for a price. All retail sales are subject to the tax unless they are specifically exempted in Ohio’s sales tax law.
For more information on the services subject to sales tax in Ohio and those sales which are exempted from the sales tax in Ohio, visit the Ohio Department of Taxation.
Commercial Activities Tax
The Commercial Activity Tax (CAT) is an annual business privilege tax measured by gross receipts from business activities in Ohio. This tax applies to all types of business: i.e., retailers, services providers (lawyers, accountants, doctors, etc.), manufacturers, and other types of businesses.
The CAT also applies whether the business is located in Ohio or is located outside Ohio if the taxpayer has enough business contacts with Ohio. The CAT applies to all entities regardless of form (i.e., sole proprietorship, partnerships, LLCs, and all types of corporations). Businesses with Ohio taxable gross receipts of $150,000 or more per calendar year must register for the CAT, file all applicable returns, and make all corresponding payments. The tax does have limited exclusions for certain types of business, such as financial institutions, dealers in intangibles, insurance companies, and some public utilities if those businesses pay specific other Ohio taxes.
Gross receipts subject to CAT are broadly defined to include most business types of receipts from the sale of goods and property or realized in the performance of a service. The following are some examples of receipts that are NOT subject to the CAT: interest (other than from installment sales), dividends, capital gains, wages reported on a W-2, or gifts. In general, for the sale of goods and property, such receipt is only considered a taxable gross receipt if the property is delivered to a location in this state. For services, the receipt is sourced to Ohio in the proportion that the purchaser’s benefit in this state bears to the purchaser’s benefit everywhere. The physical location where the purchaser ultimately uses or receives the benefit of what was purchased is paramount in making this determination.
Taxpayers having over $150,000 in taxable gross receipts sourced to Ohio for the calendar year are required to register for the CAT. Registration is available online through the Ohio Business Gateway.
Annual CAT taxpayers (taxpayers with taxable gross receipts of more than $150,000 but less than $1 million) must pay an annual minimum tax of $150 per year. Taxpayers with taxable gross receipts over $1 million are required to file and pay quarterly. Quarterly taxpayers are required to file online through the Ohio Business Gateway. Quarterly taxpayers owe the $150 annual minimum tax for receipts up to $1 million and pay a rate component equal to 0.26% for taxable gross receipts in excess of $1 million.
Tax on Ohio Gross Receipts (OGR)
- OGR < $150,000 → CAT = $0
- OGR > $150,000 < $1 million → CAT = $150
- OGR > $1 million → CAT = $150 + 0.26% of amount over $1 million
Other State of Ohio Taxes
The State of Ohio has a complete list of every tax the Department of Taxation administers, for both individuals and businesses. To view this list, click here.