The Regional Income Tax Agency provides services to collect income tax for municipalities in the State of Ohio. RITA's Board of Trustees is authorized to administer and enforce the income tax laws of each of the participating municipalities. However, each municipal corporation retains its right to administer and enforce its own income tax laws concurrently with the Board.
RITA offers comprehensive tax collection from registration through litigation.
The Regional Income Tax Agency, known as “RITA” was formed in 1971 to administer the income tax ordinance of any Ohio municipality (city or village in Ohio) that joins the Agency through the Regional Council of Governments (RCOG). Although not every Ohio municipality is a RCOG member, currently over 300 taxing jurisdictions (approximately 45% of Ohio municipalities with an income tax) utilize RITA to handle their municipal income tax collection and enforcement efforts.
RITA is not a “municipality”, and cannot levy its own income tax - there is actually no such thing as the "RITA Tax”. Rather, the municipal income taxes that RITA administers belong to each of the Ohio cities and villages that have joined with RITA. The income tax is created by the laws of each municipality, and RITA administers these taxes on their behalf.
The municipal income tax in Ohio is levied on
- businesses that earn taxable income in municipalities (this is called the “net profits tax”)
- individuals that earn taxable income in municipalities (this is called “work place tax”)
- individuals that live in municipalities (this is called “residence tax”)
Many individuals in Ohio work in a municipality that has an income tax, and live in a different municipality that also has its own income tax. Individuals always owe municipal income tax to the municipality where they work (this is called “work place tax”), but they may or may not owe income tax to the municipality where they live (this is called “residence tax”). Most individuals have the tax owed where they work automatically withheld by their employer.
The Ohio municipality where you live has the right to determine whether to grant a “credit” to its residents who pay income taxes to other municipalities. This “residence tax credit” reduces the income tax residents owe to the city or village where they live when they earn their taxable income in another municipality.
RITA provides a Tax Rates Table that indicates for every RITA member whether, and to what extent, that member provides a “residence tax credit” for its residents. Some individuals that owe “residence tax” will also have that withheld automatically by their employer (employers are usually not required to do this, but may do so as a courtesy to their employees). Other individuals may have to make estimated payments of their residence taxes each year. Of course, if an individual lives and works in the same municipality, the “residence tax credit” is not needed. Residents in these situations only owe tax to one municipality – the one in which they both live and earn their taxable income.
The links on the left provide more information about RITA and the wide array of services RITA offers to its member municipalities.