Label
Councilman Sarantou
Finance, Debt & Budget Oversight Committee
6/20/2024
Income Tax Payments
Title
From: Councilman Sarantou Response Requested: ASAP
Please provide an analysis of certain employer types having a reduction in income tax payments.
Body
Referral Response:
TO: President Carrie Hartman and Members of Toledo City Council
FROM: Melanie Campbell, Interim Finance Director
John Zawisza, Commissioner of Taxation
Referral Response:
The business net profit income tax category historically shows the largest changes in collections and employer types when comparing data from year to year. When analyzing the 10 largest employers in the first half of 2023 and comparing them to the 10 largest employers in the first half of 2024, there are only 4 companies that are in the top 10 largest employer category in both years. In contrast, the top 10 employers in the withholding income tax category did not change from the first half of 2023 compared to the first half of 2024. These variations in the business net profit category are often due the fact that the Ohio Revised Code allows businesses to make quarterly estimate payments based on paying 100% of their prior-year tax obligations (as long as that number was not zero) or 90% of their estimated tax obligations for the current year. For the 16 businesses in this analysis, business net profit taxes were down $947,097 in 2024 compared to 2023. Of these 16 businesses, 7 were in the manufacturing industry, 5 were in the service industry, 2 were in the transportation industry, 1 was in grocery and 1 was in the retail industry. The examples below demonstrate how business net profit payments can vary from year to year.