By Rick Palsgrove
It’s tax season and city of Groveport residents and businesses must adjust how they file and pay their city income taxes this year.
This past summer the city of Columbus informed area municipalities that it will no longer collect income taxes for them as of Jan. 1, 2019. The city of Groveport has a 2 percent income tax.
Groveport City Council approved legislation for the city to join the Regional Income Tax Agency (RITA) to replace Columbus for income tax collection. RITA started in 1973 as a council of governments to collect the municipal income tax. The city of Groveport will pay RITA approximately 1.2 to 1.5 percent of all collections for its service.
With the change to RITA, all city residents, even if they work in another city, and businesses will all have to make a city income tax filing.
Taxpayers can obtain a Form 37 to make their filing from the RITA website at www.ritaohio.com, according to Bob Curtin, income tax administrator for the city of Groveport.
“Mandatory filing means every resident over the age of 18 must file an annual city of Groveport tax return even if no tax is due, said Curtin. “Nothing as far as what is or what is not taxable is changed as a result of mandatory filing.”
Curtin said individuals and businesses will send their city income taxes to RITA to the address noted on Form 37. Filers should either check their W-2 for proper withholding or check for unincorporated income on a federal return and multiply by 2 percent.
Curtin gave the following example: “A resident of Groveport earns $10,000 for working in Columbus and has $250 withheld from that income for city tax. Prior to mandatory filing, this person would not have needed to file a return since their Groveport tax liability of $200 has been met by the $250 withheld from their pay for working in Columbus. Now this taxpayer will have to file a city income tax return (RITA) and attach a copy of the W-2. In this example the taxpayer would owe no tax.”
Curtin said the municipality where one works receives the income tax.
He said all businesses operating in the city must pay the city’s income tax even if their corporate headquarters are elsewhere.
Curtin said city income tax filings are due by April 15 for both businesses and individuals but added, “If company is on a fiscal year then three and a half months after year end.”
“Filings are made with RITA but we can help at the (Groveport) municipal building,” said Curtin. “Individuals and businesses must file an annual return with payment, if applicable, but anyone over $200 needs to file a declaration of estimated tax. There’s no change in the tax ordinance.”
He said retirees with pension income, Social Security, dividends, and interest will have to make a city income tax filing once even though pension income and Social Security are not taxable. He said retirees should contact him for assistance.
In fact, Curtin encouraged taxpayers to call him after they receive their W-2 forms and he can help them with the completion of their Form 37 at no charge.
For information visit www.ritaohio.com or call Curtin at 614-352-8725.
The city will also hold a taxpayer assistance day on March 28 from noon to 7 p.m. in the banquet room of the Links at Groveport Golf Course on Richardson Road. RITA representatives will be there to assist with filings.