The City of Hilliard levies an income tax on the net profits of a business' local operations and on the wages of persons employed within the city. The rate for both is 2.0%. Residents of the city who are employed outside of the city are also subject to the 2% income tax however the city gives full credit for income taxes paid to the municipality in which they are employed. Most municipalities in Central Ohio also levy a 2% income tax except Columbus, 2.5%. Hilliard contracts with Regional Income Tax Agency (RITA) for the collection of income taxes.
Real Estate Taxes
Property taxes are also levied on parcels of real property owned by individuals and businesses in Ohio. Commercial property is taxed at 35% of its appraised value. The Franklin County Auditor is responsible for assessing property value and administration of property taxes. Taxes are billed semi-annually at an effective tax rate. The 2010 effective real property tax rate in Hilliard is $ 87.8015 per $ 1,000 taxable valuation.
Property taxes on personal property and equipment has been phased out as a result of tax reform enacted by the Ohio Legislature.
Ohio Tax Reform
The Ohio Legislature enacted a series of reforms to the State's tax structure resulting in the replacement of personal property taxes, corporate franchise taxes and others with a Commercial Activities Tax on a business' gross receipts of transactions which terminate in Ohio.
The Ohio Department of Taxation administers the State's taxes.
“Not only has Star Dynamics taken advantage of city incentives ... the [city] has gone out of it's way to find other means of support for the company...”
“We were able to put in a machine shop with Ohio Third Frontier grant money, a $100,000 win the company would not have known to pursue without [the city's] connections to state development officials...”