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The Village of Walton Hills will begin its ninth year of in-house income tax collections. The Village of Walton Hills continues to pride itself on customer service. The proximity of having the tax office in the Village is an added benefit where your municipal income tax return can be prepared at no cost by a member of the Finance Department.
The Village has specifically tailored its tax returns and forms for its residents and employers. Forms can be downloaded from the Village's website. The website's new feature "Individual Auto Calc Return" allows a tax preparer to enter income tax information onto an electronic form that will automatically and accurately calculate one's return. Once finished, the return can be printed out and sent to the Village. Currently, the following three "Individual Auto Calc Returns" are at this website
- The Individual Auto Calc Return (used for tax years 2003 through 2012) tax rate 2.0%
- The Individual Auto Calc Return (used for tax year 2013) blended tax rate of 2.25%
- The Individual Auto Calc Return (used for tax year 2014) tax rate 2.5%
The Village's current tax rate is 2.5% effective July 1, 2013. The Village's tax rate from September 1, 2002 through June 30, 2013 was 2.0%. The tax credit paid to other municipalities is 100% up to the Village's effective tax rate.
Due to the fact that the Village's income tax rate increased from 2.0% to 2.5% on July 1, 2013, the 2013 full year tax rate for individuals was established at 2.25% (with the exception of payroll taxes withheld for the Village of Walton Hills and for individuals that can provide income calculations before and after July 1, 2013). Businesses with fiscal year end dates other than December 31 will have to prorate for year end dates ranging from July 2013 through June 2014.
For individuals under 18 years of age, income is not taxable by the Village or for most communities. If local taxes are withheld by an employer while under 18, the local taxes (in most likelihood) should be refunded by the municipality that received the local tax.
The Village does not tax interest income, retirement income, pensions, social security, dividends and capital gains; therefore, individuals who are retired and have established themselves as "retired" with the Village do not have to file with the Village. All Walton Hills income tax laws can be viewed by clicking the "Codified Ordinances of Walton Hills, Ohio Chapter 890".
NEW: The Village also administers the collection and enforcement of the newly established Village of Walton Hills - Sagamore Hills Township Joint Economic Development District (JEDD) income tax.
The 2.5% income tax is levied on income earned by persons working in the JEDD and upon the net profits of businesses located in the JEDD. The income tax went into effect for any pay period that commenced in September 2015.
Listed below is a series of topics that present the basic facts about Walton Hills’ municipal income tax.
What is the Village of Walton Hills Income Tax rate and credit?
The current income tax rate is 2.5%. Prior to July 1, 2013 Walton Hills' tax rate was established at 2.0%. The tax rate for 2013 annual returns will be established at 2.25% (with the exception of payroll taxes withheld for the Village of Walton Hills and for individuals that can provide income calculations before and after July 1, 2013). The credit shall be equal of 100% of the amount obtained by multiplying the lower of the tax rate of such other municipality or Joint Economic Development District, or of the Village, by the taxable income earned in or attributable to the municipality of employment or business activity.
How do I know that I am a resident of the Village or some other municipality?
If you are a registered voter, it should be easy to determine your residency. Generally speaking, if you vote in a specific village or city, you live in that village or city.
I am a Walton Hills resident and work in an area with no municipal tax or where the tax withheld is lower than Walton Hills’ 2.5% rate. When do I pay Walton Hills the difference?
You must estimate the tax due with your annual tax return of each year. Beginning with tax year 2016, if the calculated estimated tax payable liability amount is at least two hundred dollars ($200.00), the estimated tax liability is required to be paid as follows:
- 22.5% by April 15th
- 45.0% by June 15th
- 67.5% by September 15th
- 90.0% by December 15th
Is there an age limit for individuals subject to Walton Hills Income Tax?
Yes. All individuals under 18 years of age are exempt from Walton Hills Income Tax and are eligible for a refund of municipal tax withheld and received by the Village. However, individuals are subject to the tax for any earnings after they become 18.
My spouse and I file separately at the federal and state levels. Do I have to do the same for municipal purposes?
No. A husband and wife may elect to file separately or jointly regardless of their federal or state filing status.
How do I know that the tax information I submit will remain confidential?
Section 890.43 of the Walton Hills Municipal Code states that “Any information gained as the result of any returns, investigations, hearings or verifications required or authorized by the income tax laws shall be confidential, except for official purposes or except in accordance with proper judicial order.”
Can I receive assistance in preparing my Village of Walton Hills Income Tax Return?
Yes. Income Tax Division personnel will assist you either by phone, mail or in person. Our office is open Monday through Friday, 8:30 a.m. to 5:00 p.m. Please feel free to call 440-232-7800 or visit us at the Village Hall (7595 Walton Rd). If visiting in person, please bring a copy of your Federal Tax Return and all of your W-2s and 1099s. These items will help us assist you in preparing your Walton Hills tax return.
House Bill 5 - Penalty and Interest for Tax Year 2016
The State of Ohio General Assembly enacted House Bill 5 in December 2014 mandating specific changes to local laws relating to municipal taxes. House Bill 5 requires that the Village of Walton Hills publish the penalty and interest rates for tax years beginning on or after January 1, 2016. Penalty and interest rates for tax years prior to January 1, 2016 can be found in the current Walton Hills Tax Ordinances.
Interest shall be imposed at a rate of five percent (5.0%) per annum on all unpaid income tax, unpaid estimated income tax and unpaid withholding tax. This rate is for tax years beginning on or after January 1, 2016 and in effect through December 31, 2016. The interest rate is based partially on the federal short-term rate and may fluctuate year to year. The interest rate for 2017 will be published on this website by October 31, 2016.
A penalty equal to fifteen percent (15%) may be imposed on unpaid income tax and unpaid estimated income tax not timely paid. A penalty equal to fifty percent (50%) may be imposed on unpaid withholding tax not timely paid.
A penalty may be imposed on each Walton Hills tax return, other than an estimated income tax return, not filed timely, of twenty five dollars ($25.00) each month or any fraction, during which the return remains unfiled regardless of the liability. The penalty shall not exceed one hundred fifty dollars ($150.00) for each return not filed timely.
In addition to the penalties above, the Ohio Revised Code Section 718.99 also provides criminal penalties for failure to comply with the income tax ordinance of up to one thousand dollars ($1,000.00) or up to six months imprisonment for each offense.
Charge for Dishonored Remittance
There will be a ten dollar ($10.00) charge to anyone who provides a remittance that is subsequently dishonored by the bank upon which it is drawn.