What is the purpose of the school district tax code in Ohio?


Quick Answer

The purpose of the school district tax code in Ohio is to raise money for individual school districts by the imposition of district income taxes, reports the Ohio Department of Taxation. School district residents have the option of voting to impose school district income tax. Some districts tax residents on all income, some on earned income only, and some impose no income tax.

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Full Answer

All Ohio state residents who live full- or part-time in a school district that levies income taxes are obligated to file a school district tax return, explains the Ohio Department of Taxation. Part-time residents of more than one district that imposes taxes must file a return for each district. If Ohio residents are unsure of the school district they reside in, they can go to Tax.Ohio.gov and use the search engine called The Finder to locate their school district and its tax policies. Alternatively, they can contact their county auditor or board of elections.

Employers are legally responsible for withholding school district income tax for employees in districts that impose taxes, according to the Ohio Department of Taxation. Taxpayers not subject to withholding must file estimated taxes. Estates of decedents who resided in taxed school districts are subject to school district tax. Although seniors receive tax credits, they must still file school district tax returns if they live in a taxed district, even if they don't need to file federal or state returns.

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