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Income Tax

Income Tax Forms
RITA Municipality - Walton Hills - Regional Income Tax Agency

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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. Beginning with the 2015 tax year, individuals who are retired and have established themselves as "retired" with the Village will have to file with the Village. The “Retires/Disabled Tax Form” is available for all retirees and disabled individuals who have no taxable income.

All Walton Hills income tax laws (Chapters 890 and 891) can be viewed by clicking the "Codified Ordinances" tab under "Government" at this website.

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 within the JEDD and upon the net profits of businesses providing services within the JEDD.  The income tax went into effect for any payroll or service provided beginning in September 2015. 

Frequently Asked Questions
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.  For tax year 2019, 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 January 15th (previously 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. Domicile for college students is established by state in which the drivers license is issued. 

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 891.15 of the Walton Hills Municipal Code states “Any information gained as a result of returns, investigations, hearings, or verification required or authorized by Ohio R.C. Chapter 718 or by the charter or ordinances of the Village is confidential, and no person shall access or disclose such information except in accordance with a proper judicial order or in connection with the performance of that person's official duties or the official business of the Village as authorized by Ohio R.C. Chapter 718 or under this chapter. The Village Tax Administrator or a designee thereof may furnish copies of returns filed or otherwise received under this chapter and other related tax information to the Internal Revenue Service, the State Tax Commissioner, and tax administrators of other municipal corporations.”

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 - Withholding Tax Changes for Tax Year 2016
Significant and wide-ranging amendments to Ohio Law were enacted by House Bill 5 which was signed into law by Governor Kasich on December 19, 2014. House Bill 5 requires taxing municipalities such as the Village of Walton Hills to conform to the spirit of the recent law change in providing consistency and simplicity to individual and business tax filers.

Please remember that the withholding forms are on this Village's website. Forms are sent early in the year to all employers who utilize Village payroll tax forms. Please call our office if wish to receive payroll withholding tax forms.

Below are the changes that will be effective with payroll tax withholding for the 2016 tax year. 

• Changes in monthly and quarterly thresholds for employee withholding:
  • Employers must remit monthly if withholding in the preceding year exceeded $2,399, or if the amount required to be withheld during any month of the previous calendar quarter exceeded $200. Employers can remit quarterly if withholding totaled $2,399 or less in the preceding year, or $200 or less for each month in the immediately preceding quarter. 
• Changes in due dates for monthly and quarterly withholding due dates:
  • Monthly withholding must be received no later than the 15th of the month following the reporting period (January is due February 15th, February is due March 15th etc.).Quarterly withholding must be postmarked by the due date. The 1st quarter is due April 30th, 2nd quarter is due July 31st, 3rd quarter is due October 31st, and 4th quarter is due January 31st. 
• Changes in due date for annual employer withholding statement due dates:
  • Annual employer withholding statement must be received no later than the last day of February following the year. The 2019 annual reconciliation is due February 28, 2020. 
• Withholding guidelines for employers with transient workers; and “small employers”
  • House Bill 5 expands the current occasional entrant exemption from withholding from 12 days to 20 days. Tax must be withheld for the employee’s “principal place of work” (as defined in the Bill) for the first 20 days an employee works in another Ohio municipality (“non-principal place of work municipality”). Withholding is required for the “non-principal place of work municipality” beginning on the 21st day. Exceptions to the new 20-day rule exist for certain construction and other long-term worksite locations.
  • Small employers (those with less than $500,000 in annual gross receipts as defined in the Bill) are only required to withhold for the municipality in which the employer is physically located. The $500,000 gross receipts threshold is determined annually based on gross receipts reported on the immediately preceding year’s federal tax return. The “small employer withholding rule” does not apply to any government entity or agency.

House Bill 5 - Penalty and Interest for Tax Years 2018 thru 2022
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
Interest shall be imposed on all unpaid income tax, unpaid estimated income tax and unpaid withholding tax.   The interest rate is based partially on the federal short-term rate and may fluctuate year to year.  The interest rate for calendar years 2018 thru 2021 are as follows:

• 2022 - 5.00 %
• 2021 - 5.00 %
• 2020 - 7.00 %
• 2019 - 7.00%
• 2018 - 6.00%

Penalties
A penalty equal to fifteen percent (15%) may be imposed on unpaid income tax and unpaid estimated income tax not timely paid. A penalty not exceeding 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.