About Municipal Income Tax

In 1946, the City of Toledo became the first municipality in the State of Ohio to levy an income tax and only the second in the country.  The tax was modeled after the City of Philadelphia’s, and it later withstood a Supreme Court challenge.  Soon after, municipalities across the State began establishing their own income tax to assure financial independence from the State for funding the needs of a burgeoning populace.  

Revenue from municipal income tax is the lifeblood of a municipality, generally providing at least 70% of the municipality’s total revenue.  These revenues fund local police and fire protection, refuse collection, and are used to build and maintain roads, thoroughfares, and other infrastructure, while also providing many other vital services within the community.  Today’s competitive economic climate also necessitates municipalities to prudently invest income tax revenues to develop their local economies, thus ensuring employment and entrepreneurial opportunities in communities throughout Ohio.

About the Northwest Ohio Tax Commissioner Association (NWOTCA)

The NWOTCA is comprised of 50 taxing jurisdictions in Northwest Ohio whose purpose is to continuously promote understanding, cooperation, and uniformity of municipal income tax operations while also meeting educational needs of local tax professionals.  Although tax administrators and commissioners have been meeting informally for approximately 30 years in Northwest Ohio, the NWOTCA officially organized in June of 2000, as a registered 501(c)(3) organization.  The group meets monthly to share information and to discuss various tax topics and legislative happenings.  It is also committed to education, hosting conferences that not only encourage compliance with local tax ordinances and regulations, but also offer continuing professional educational credits for area tax preparers.  The NWOTCA is registered with the Accountancy Board of Ohio and the Internal Revenue Service’s Director of Practice.