How would I file this new School District Earned Income Tax?

Form SD100 is available and can easily be included in your filing.

http://www.tax.ohio.gov/portals/0/forms/ohio_individual/individual/2016/SDIT_SD100_Bundle.pdf

Your employer is obligated to deduct this throughout the year, so the amount withheld should be included on your W-2.

Detailed Question

How would I file this new School District Earned Income Tax?

How is the School District Earned Income Tax collected?

The earned income tax is collected in the same way as your state tax through employer withholding, estimated quarterly payments and annual returns. Your employer is required to withhold the tax and the money is collevted by the Ohio Dept. of Taxation. The taxpayer files a school district income tax form with the state of Ohio each year on April 15.

Detailed Question

How is the earned income tax collected?

What is an "Earned Income" tax?

"Earned income" is defined by the State of Ohio as wages, salaries, tips, other employee compensation, and self-employment income from sole proprietorships and partnerships to the extent included in Ohio adjusted gross income. Under this alternative tax base, each taxpayer in the earned income tax base school district does not pay school district  income tax on any other types of income such as retirement income, unemployment compensation, Worker's Compensation, lottery winnings, interest, dividends, capital gains, profit from rental activities, distributive shares of profit from S corporations, alimony received, distributions from trusts and estates and all other types of income that are not earned income, but that are part of Ohio adjusted gross income.

Detailed Question

What is an "Earned Income" tax?

Why is the school board using a School District Earned Income Tax?

The School Board chose to use a 0.25% School District Earned Income Tax to cover part of the project costs. The rest will be funded by a traditional property tax. A large portion of Rootstown’s demographic includes senior citizens and farmers. The School Board still feels that configuring the request in this way would help better distribute the burden; it will help to lessen the burden for retirees and those who own large amounts of property. And while the 0.25% earned income tax will be paid by those earning an income, the bond issue (the millage/property tax) portion is not nearly as high as it would have been for them (as well as the retirees and large property owners) had this 0.25% earned income tax not been included.

Detailed Question

Why is the school board using a School District Earned Income Tax?

How much will the 0.25% School District Earned Income Tax cost a resident currently earning an income

The cost for a resident who is currently earning income of $61,000 per year (median income in Rootstown) would be $12.71 per month, or $152.50 per year.

Detailed Question

How much will the 0.25% School District Earned Income Tax cost a resident currently earning an income?

How is the Rootstown Board of Eduction asking the community to fund the 2018 initiative?

The Board of Education has chosen to reduce the School District Earned Income Tax to the lowest rate possible, 0.25% and cover the remainder with a 7.32 millage property tax levy.

This option attempts to strike a better balance between resident groups. It asks wager-earners to pay less addional costs via the School District Earned Income Tax, half as much as the 2017 plan. It also keeps the burden on seniors and fixed-income residents lower than an all-property tax levy.

Detailed Question

How is the Rootstown Board of Eduction asking the community to fund the 2018 initiative?

What happened in the November 2017 election with Issue 33?

In 2017, the levy ballot issue was a combination 3.95 mil property tax levy and 0.5% earned income tax levy. This ballot issue failed 43% to 57%, or by ~400 votes. After the November election, a community survey was run to better understand the factors that influenced the overall "NO" vote.

Two major factors emerged: First, seniors/retirees overall voted YES for the levy. They recognized the need for a new building and appreciated that the property tax burden was offset by the earned income tax. Second, income earners who did NOT have students in the school tended to vote against the levy beacuse of the earned income tax.

The full results of this survey can be found by searching this site.

Detailed Question

What happened in the November 2017 election with Issue 33?