Income Tax Department
Income Tax Reform 2020
The City is proposing to reform its tax code in a way that could have a significant impact on the citizens. Specifically, the City is proposing to increase its income tax rate from 1.5% to 2.0%, but then giving the citizens 100% credit for income taxes paid to other municipalities (citizens currently receive 50% credit). The following are three documents that may help you better understand the proposal and your decision to vote.
1) Income Tax Presentation 11/15/18 – This is a copy of a presentation that Bill Rouse, Finance Director gave to City Council on November 15, 2018 to help explain the need for tax reform.
2) Tax Proposal Calculator The Income Tax Department has created a spreadsheet to help citizens determine the potential impact of the proposed tax reform. To use the spreadsheet, you will need to enter your gross income and taxes that were withheld for another City (for example, taxes withheld for Akron, Barberton, Green, etc). The spreadsheet will then automatically calculate your tax liability under the current system (1.5% tax rate, 50% credit for taxes paid to other cities) and the liability under the proposed tax system (2.0% tax rate, 100% credit for taxes paid to other cities). This comparison will allow voters to easily see the impact the tax proposal will have on them.
3) Income Tax Newsletter – This is a copy of an article that will appear in the next community newsletter that answers various questions regarding tax reform.
4) Ordinance #51-18 – This is a copy of the ordinance that City Council will vote on at the January 15, 2019 meeting. The wording of the ordinance specifically states “If the citizens of Canal Fulton approve a proposed 0.5% increase in the income tax rate (takes total income tax rate to 2.0%), then Chapter 182.06 of the Administrative Code will be amended as follows….Subject to division (c) of this section, if the tax rate of the other municipality is the same or lower than Canal Fulton’s tax rate, the credit shall not exceed 100 percent of the tax paid to the other municipality. If the other municipality’s tax rate is higher than Canal Fulton’s tax rate, the credit shall not exceed 100 percent of the Canal Fulton tax rate.”
5) Massillon Independent 1-18-19 – An independent article summarizing key points in the proposal.
If you have any questions regarding the tax proposal, please contact Bill Rouse at 330-854-6761 or Bill Keltner at 330-854-9448.
CITY OF CANAL FULTON, OHIO ~INCOME TAX
Income Tax eFile is available for 2018 tax returns.
If you need tax assistance and are unable to visit us during regular hours, our tax office will be open April 4th,2019 and April 11th,2019 until 7 pm.
Income tax is paid by all persons eighteen years of age or older who are residents of, or are employed within the city limits of Canal Fulton. The tax also applies to the net profits of corporations, partnerships and businesses within the City of Canal Fulton.
The tax rate for Canal Fulton is 1.5%.
These were the changes made with the passing of State of Ohio HB 5:
• Late filing penalty is $25.00 per month per return (capped at $150.00 per return) for failure to timely file a return.
• Late payment penalty is a one-time 15% penalty of the unpaid balance at the time that the payment is due.
• Interest will be calculated at the July federal short-term interest rate plus 5%. For 2016 estimates to be paid in 2016, the interest rate is 5% per annum; the monthly interest rate is 0.42%. For 2017 and for future unpaid balances, the interest rate is 6% per annum, the monthly interest rate is .50%.
EXEMPT TAXPAYERS: Those taxpayers who are permanently retired, receiving only pension, social security, interest, dividends of other non-taxable income.
Bill Keltner, Income Tax Administrator
City of Canal Fulton
Income Tax Department
155 East Market Street, Suite C
Canal Fulton, Ohio 44614
Monday – Friday
8:00 AM – 4:00 PM
PLEASE NOTE: NORTHWEST SCHOOL (7612) DISTRICT TAX IS PROCESSED THROUGH OHIO DEPARTMENT OF TAXATION. THE INCOME TAX IS 1%.
“TAXPAYERS’ RIGHTS AND RESPONSIBILITIES” means the rights provided to taxpayers in sections 718.11, 718.12, 718.19, 718.23, 718.36, 718.37, 718.38, 5717.011, and 5717.03 of the Ohio Revised Code and any corresponding ordinances of the Municipality; and the responsibilities of taxpayers to file, report, withhold, remit, and pay municipal income tax and otherwise comply with Chapter 718 of the Ohio Revised Code and resolutions, ordinances, and rules adopted by a municipal corporation for the imposition and administration of a municipal income tax.