CITY TAX INCREASE EFFECTIVE JULY 1, 2017

CITY TAX INCREASE EFFECTIVE JULY 1, 2017

The City of Reynoldsburg’s tax rate will increase from 1.5% to 2.5% effective July 1, 2017.

Payroll Tax

What does this mean for employers located in Reynoldsburg? 

Employers located in Reynoldsburg must increase the percentage currently being withheld for employees from 1.5% to 2.5%.

What does this mean for employers located outside Reynoldsburg but with employees working in Reynoldsburg?

Employers located outside Reynoldsburg but with employees working in Reynoldsburg must increase the percentage currently being withheld from 1.5% to 2.5%.

What does this mean for employers located outside Reynoldsburg but withholding resident tax as a courtesy to their employees residing in Reynoldsburg?

You must increase the percentage of tax you are currently withholding to the appropriate rate.  Residents of Reynoldsburg will be allowed a 100% credit, up to 2.5%, for tax correctly withheld to the work place city.  Please call if you have any questions.

Individual Tax

What does this mean for residents or non-residents currently paying estimated tax?

Your current estimate will not be enough to cover your 2017 liability since the rate is 1% higher.   You should amend your estimate to cover the discrepancy.  However, as long as you filed a good faith estimate and pay it in full timely, you will not be assessed late payment penalty or interest for underpayment of estimated tax.  If you do not amend your estimate, you will have additional tax due that must be paid in full when your 2017 return is filed in April, 2018.

What does this mean for residents or non-residents who work in Reynoldsburg?

You will see an increase in the percentage of tax withheld by your employer from 1.5% to 2.5%.

What does this mean for residents who work in a city that has a 2.5% tax rate?

If you work in a city that already has a 2.5% city tax such as Columbus, you should see no change in the city tax withheld.  You will not owe any additional Reynoldsburg city tax.

 

What does this mean for residents who work in a city that has a tax rate less than 2.5%?

If you work in a city that has a tax rate less than 2.5%, you will see an increase in tax due of the difference between 2.5% and the work place tax rate.

For example:  If you work in a city that has a 2% tax rate such as Dublin or Westerville, you will owe the difference between the 2.5% Reynoldsburg rate and the 2% work place rate which would be 0.5%.

What does this mean for residents who are retired and receive only pension, social security, interest or dividend income?

Retired individuals who receive only pension, social security, interest or dividend income will see no change in their tax status.  No tax is due on these types of income.

Net Profit Tax

What does this mean for businesses located in Reynoldsburg?

Businesses located in Reynoldsburg will see an increase in the percentage of tax due from 1.5% to 2.5%.

What does this mean for businesses located outside Reynoldsburg that conducts business in Reynoldsburg?

Businesses located outside Reynoldsburg that conducts business in Reynoldsburg will see an increase in the percentage of tax due from 1.5% to 2.5%.