2013 UPPER ARLINGTON INDIVIDUAL INCOME TAX UPDATE ...

2013 UPPER ARLINGTON INDIVIDUAL INCOME TAX UPDATE
ASSISTANT FINANCE DIRECTOR – Brent Lewis, CPA (ph: 614.583.5288, email:
blewis@uaoh.net)
TAX EXAMINER – Mary Davis (ph: 614.583.5283, email: mdavis@uaoh.net)
DUE DATE – April 15 (calendar year taxpayers)
TAX RATE – 2.0%
CREDIT – 100% credit up to 2.0% (for municipal taxes paid elsewhere)
WEB SITE FOR FORMS – www.ritaohio.com
WHO MUST FILE - Every Upper Arlington resident 18 years of age or older must file an Upper
Arlington return. Every person earning income in Upper Arlington not subject to the withholding of
Upper Arlington income tax must also file an annual Upper Arlington return. If a person is under 18
and employed with Upper Arlington tax withheld, a refund form (10A) must be filed, with proof of
age, to receive a refund. Any person or unincorporated business conducting business or owning
rental property (with gross monthly rental in excess of $250.00) must file an Upper Arlington income
tax return. Every business entity (partnership, corporation, profession, fiduciary, trust, etc.) whether a
resident or non-resident that conducts a business in this municipality must file a return and pay tax on
any net profit.
WHEN TO FILE - Taxpayers who end their taxable year on December 31 must file on or before the
following April 15. Taxpayers on a fiscal year must file by the 15 th day of the fourth month following
the end of such period.
If the deadline cannot be met, a copy of the federal request for extension must be filed by the due date
of the return. An extension request is not an extension of time to pay. Payment of any estimated
tax due should accompany the extension request. If no request for extension is filed, a late charge of
1.5% per month or 10% of the unpaid balance (whichever is greater) will be applied. Also see
estimated tax payments.
PARTIAL YEAR RESIDENTS - If you lived in Upper Arlington only part of the taxable year, you
must file a tax return covering that time. Report the amount of income earned while you lived in
Upper Arlington. Pay statements with year-to-date figures or a statement from your payroll
department must be used if available. When the actual amount you earned while living in Upper
Arlington cannot be determined, you may break down your earnings by the number of months
employed at the job arriving at a monthly earnings figure. Use the monthly earnings figure multiplied
by the number of months of residency to find your taxable amount. If you pro-rate your income, you
must also pro-rate your city tax that was withheld on the same income. Attach a worksheet
explaining your calculations.
PASS-THROUGH ENTITIES - All distributive share income is taxable to residents, regardless of
where the income is earned. A corresponding credit (up to 2%) can be taken for municipal taxes paid
to any other city on the same income. Resident pass-through entities must pay the municipal tax on

ehalf of all shareholders/partners/members and provide them with an information schedule detailing
the municipal tax paid for each one. Distributive share income from S Corporations is no longer
subject to tax effective 1/01/04.
PENALTIES AND INTEREST – Penalty for late filing, failure to file, late payment or underpayment
of estimate, shall be imposed at the rate of 1.5% per month or 10% (whichever is greater). Except in
the case of fraud, the penalty shall not exceed 50% of the unpaid tax. Interest at 1.5% per month as
provided for by ordinance. Failure to file a timely tax return will result in a $50.00 penalty even if no
tax is due.
ESTIMATED PAYMENTS – Required if the taxpayer anticipates owing more than $100.00.
Estimate payments are due: April 15, July 31, October 31 and January 31 of the following year.
Bills are generated for second through fourth quarters after the initial declaration of estimate is filed.
GAMBLING/LOTTERY WINNINGS – Effective 1/1/99, all gross gambling/lottery winnings, prize
monies or value thereof are taxable.
LOSS CARRYFORWARDS – The net loss from an unincorporated business activity MAY NOT be
used to offset salaries, wages, commissions or other compensation. However, if a taxpayer is
engaged in two or more taxable business activities to be included in the same return, the net loss of
one unincorporated business activity (EXCEPT ANY PORTION OF A LOSS SEPARATELY
REPORTABE FOR MUNICIPAL TAX PURPOSES TO ANOTHER TAXING ENTITY) may
be used to offset the profits of another for purposes of arriving at overall net profits. (NOTE – For
tax years beginning after 12/31/98, all net operating loss carryforwards are eliminated).
2106 EXPENSES – Employee business expenses, as defined on Federal Form 2106, may be deducted
against income subject to Upper Arlington taxation. If income is allocated between cities, 2106
expenses should likewise be allocated.
Forms should be sent to: RITA, P.O. Box 6600, Cleveland, OH 44101.
All full year or partial year residents of Upper Arlington must file an annual RITA Form 37. The
Regional Income Tax Agency (RITA) also collects tax for the following central Ohio municipalities:
Ashville, Bexley, Centerburg, Circleville, Galena, Galion, Grandview Heights, Grove City, Hilliard, Mt.
Sterling, New Albany, Plain City, Powell, Reynoldsburg, Sunbury, Shawnee Hills, and Worthington.
Further inquiries regarding these localities should be directed to Lori Gischel, the Worthington area RITA
representative, at (866) 721-7482, TDD (440) 526-5332, or toll free in Ohio at 1-800-860-7482.