CITY OF READING, OHIO
INCOME TAX BUREAU
1000 MARKET STREET
READING, OHIO 45215
(513) 733-0300 (513) 842-1016 – Fax
MELVIN T. GERTZ, TREASURER
WHO MUST FILE
The City of Reading has a mandatory filing requirement. The Earnings Tax of 2.0% applies to all who live, work, operate a business within or do business within the City of Reading. This tax must be paid to the City of Reading regardless of age or level of income. The tax rate was increased from 1.5% to 2.0% on May 2, 2006 and became retroactive to January 1, 2006, in a vote by the residents of Reading.
All City of Reading residents are required to register with the Tax Office and to
file an annual Reading income tax return even if no tax is due. Any student with earned income is also required to file.
All non-residents with income earned within Reading or with income taxable to the City of Reading that is not fully withheld by an employer are required to file a Reading income tax return.
All non-residents engaged in a business within the City of Reading who have sales, services performed or rental property must file a tax return whether or not tax is due.
All entities operating a business within or doing business within the City of Reading must file an annual Reading income tax return on net profits/losses.
The State of Ohio made significant changes to the Ohio Municipal Income Tax Laws (Chapter 718 of the ORC), effecting tax years beginning on or after January 1, 2016, including changes to Interest Rates and Due Dates of Individual Estimated Payments. The 2016 Annual Income Tax Return is due April 18, 2017 (due to Emancipation Day).
INTEREST RATE– The 2016 interest rate is 5% per annum on all unpaid income tax and withholding tax balances for the tax years beginning on or after January 1, 2016. Effective January 1, 2017, the interest rate will be 6% per annum. This rate is being published in accordance with
Ohio Revised Code 718.27(F).
FILING and/or PAYING LATE– Penalties and interest are imposed on taxes remaining unpaid when due. A late filing fee for all tax returns and forms is $25.00 per month or portion thereof, not to exceed $150.00. A late payment penalty is imposed in the amount of 15% of the amount not timely paid. Interest is imposed at the rate in effect on all tax not timely paid.
WHEN TO FILE
|Individual Returns:||On or before April 15*|
|Business Returns:||On or before April 15* or the 15th* day of the 4th month following the end of the fiscal year|
|Withholding Reconciliations:||On or before February 28*|
* If the due date falls on a weekend, the due date will be the following business day.
READING TAX FORMS
An extension for filing the annual Reading income tax return may be requested by any business or individual by providing a copy of the Federal extension to the Tax Office on or before the due date for filing the return. The extension, if granted, only extends the filing date of the return. The extension does not extend the due date for payment of the tax. Payments are due on or before April 15* each year or the 15th* day of the 4th month following the end of the fiscal year.
Qualifying wages (see below), tips, commissions and other compensation including sick pay, vacation pay, employer paid premiums for group term life insurance, supplemental unemployment benefits paid by the employer (SUB PAY), severance pay, settlements, income from wage continuation plans (includes retirement incentive plans and buyouts), contributions made by or on behalf of employees to non-qualified or qualified deferred compensation plans (e.g. 401K plans), bonuses, directors fees, jury duty income, precinct election official income (if over $1,000), fringe benefits (e.g. car allowance), disability pay if received as a benefit from employment (includes third party plans), stock options as indicated by amount on Form W-2
Gambling winnings as reported on Form W-2G and/or Form 5754 as well as Federal Form 1040, Line 21.
Net profits from profession and/or business operations, rental property, partnerships, enterprise or other business activity.
Qualifying wages: Usually the amounts in the Medicare wage box of the W-2s are the qualifying wages. Qualifying wages for the municipality includes wages defined in Section 3121(a) of the IRS code plus any amounts not included in the Medicare wage due to some Medicare exemptions (e.g. government employees employed by an entity prior to April 1, 1986).
Note: Income taxable by the city may differ from income taxed by the IRS.
Credit for taxes withheld/paid to other municipalities is available to residents of the City of Reading and is limited to 2.0% of the amount of taxable income on which tax was withheld / paid. No credit is given for county taxes paid.
DECLARATION OF ESTIMATED TAXES
A declaration of estimated tax must be filed by all individuals and business entities who may reasonably expect to have taxable income, if the tax on this income is not or will not be withheld by an employer or employers.
A taxpayer’s final return for the preceding year may be used as the basis for computing the declaration of estimated tax for the current year.
The declaration and first quarterly payment are due by April 15* or the 15th* day of the 4th month following the end of the fiscal year.
The remaining quarterly payments are due by June 15*, September 15* and December 15 for calendar year taxpayers or the 15th day of the 6th, 9th, and 12th months after the beginning of the taxable year for fiscal year end taxpayers.
Estimated tax payments are required and penalties are assessed for insufficient declaration payments.
Note: If at least 90% of a taxpayer’s tax liability is not paid by the 4th quarter due date, the difference between 90% of the tax liability and the amount of estimated tax paid on or before the 4th quarter due date shall be subject to the interest and penalty provisions of Section 880.10 of the City of Reading Income Tax Ordinance.
OBTAINING READING INCOME TAX RETURNS
Postcards are mailed by mid January of each year to all residents on file as of mid-December. Postcards are mailed to businesses in lieu of forms and as a reminder of the filing requirement. If a return is not received, click here to download an Individual or Business form. You may also contact the Reading Tax Office by e-mail or call (513) 733-0300.
During the tax season (January through April), returns are also available upon request in the Tax Office at the Reading municipal building at 1000 Market Street and the Reading Public Library 9001 Reading Road.
ITEMS TO BE INCLUDED WITH THE RETURN (IF APPLICABLE)
Page 1 of the applicable federal form 1040.
Applicable schedule(s) and/or form(s) for income on Federal Form 1040 lines 7, 12, 17, 18 and 21, other federal form(s)/schedule(s) and supporting documentation as appropriate.
Payment of tax due (checks/money orders are to be made payable to City of Reading Tax). We also accept Visa – MasterCard – Discover. Payments can be made online at www.readingohio.org. City Departments, Tax Department.
All employers within or doing business within the City of Reading are responsible for withholding the tax of 2.0% on the qualifying wages of their employees and remitting the withheld tax on a monthly basis to the City of Reading on or before the 15th day of the month following such withholding. In addition, employers are required to withhold the tax of 2.0% on 100% of the wage amount for all employees who are Reading residents.
All employers who do business both inside and outside the jurisdiction of the City of Reading are required to withhold the tax of 2.0% on all compensation earned by their employees who work within the City of Reading. Generic withholding forms are available on the website or by contacting the Reading Tax Office.
Employers who conduct no business activity within the City of Reading may choose to voluntarily withhold the Reading tax for those employees who reside within the City of Reading. Withholding for Reading residents should be an amount sufficient to bring their total local withholding to 2.0% (credit is given to Reading residents for local taxes paid to other municipalities up to 2.0%). Contact the Tax Office for additional information and to obtain a registration form for courtesy withholding.
The collections of property taxes (whether it is for residential property or business property) are the responsibility of Hamilton County. The City of Reading does not collect property tax dollars from city residents or businesses.
For further information on the collection and payment of property taxes, please contact the Hamilton County Auditor’s office at (513) 946-4000.
The City of Reading is within the Reading School District. The code for the Reading School District for state income tax form purposes is 3117.