03/28/2026
Per the Ohio Constitution, municipalities can levy income tax (townships and counties cannot). This is the way it should be: you pay the municipal income tax, you get home rule powers a municipality entails. Simple!
The Ohio Constitution (Article XVIII, Section 3) grants municipalities "home rule" powers, including the authority to exercise all powers of local self-government, which allows cities to levy income taxes. While this enables independent taxation, Article XVIII, Section 13 grants the General Assembly authority to pass laws limiting this power to prevent abuse.
Municipal "income taxes are visible. They show up in every paycheck, every pay stub, every time someone checks their withholdings. Even if paired with a reduction in property taxes, they feel immediate and personal in a way property taxes often do not with escrow mortgage payments," notes Republican Rob Scott of Kettering.
Key Aspects of Ohio Home Rule and Income Tax:
Source of Authority: The 1912 Home Rule Amendment allows municipalities to manage local affairs without relying on the state legislature, provided local ordinances do not conflict with general state laws.
Limitation Power: The Ohio Supreme Court has ruled that while municipalities have the power to tax, the General Assembly has the constitutional duty to limit or restrict that power to prevent abuse.
State Regulations: The General Assembly has enacted Chapter 718 of the Ohio Revised Code, which standardizes municipal income tax codes, such as net operating loss (NOL) carry-forward rules and income tax definitions.
Remote Work Taxation: The Ohio Supreme Court recently upheld the ability of municipalities to tax income from remote workers during the COVID-19 pandemic, emphasizing the broad scope of local self-government.
Non-Resident Income: Municipalities may impose income tax on residents and non-residents working within their municipality, subject to state law guidelines.
MUNICIPAL INCOME TAXES ARE A MORE ETHICAL WAY OF FINANCING LOCALITIES AND REPRESENT AN OPPORTUNITY TO EMBED LOCALISM INTO PUBLIC LIFE.
MOVE FORWARD WITH MUNICIPALIZATION!