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Income Taxes and Your City's Post-Recession Economy

Recovery Gauge: Patch towns tell a story of a post-recession rebound

Many Northeast Ohio cities, like their residents, are slowly recovering from the Great Recession.

Cities raise money primarily through income taxes, permits, fees and through state support. That money pays for services you use — fire and police departments, roads, snow removal, garbage collection — along with additional services you’ve come to expect, such as senior centers, swimming pools, community festivals and Fourth of July fireworks.
 
There are three kinds of income taxes:

  • Withholdings, which are taken out of employee paychecks
  • Net profit tax, which businesses pay on their earnings, and
  • Individual income tax, which residents who work outside a city pay. (This varies based on the towns where you live and work, what the income tax rate is and what credit is available between the two towns.)

Simply put, cities make money when their residents make money. And both cities and their residents have suffered the past few years.

Patch reviewed income tax revenue from all 18 Northeast Ohio Patch communities. We compared each city’s collections from 2008 to 2012 to get a sense of how local communities have weathered the storm.

Click on the links below to read more:

 
Editor’s Note: In this series, Patch gauges the recovery of 18 Ohio communities based on income tax receipts since the Great Recession. Find their individual stories Monday on Patch's Ohio news sites.

Beverly August 27, 2012 at 01:01 AM
Haven't you heard-Strongsville is pretty much unscathed according to our mayor & city powers that be.That must be thanks to that "temporary" RITA tax they slid by everyone a few years back that then magically turned permanent. Please Strongsville residents,no need to vote for levies of ANY kind because we have so much we're rolling in it! That's why we just spent $130K on a sign you can't see till you've almost passed it-came right out of the general fund! Guess who funded that? WE THE TAXPAYERS. The fund is supposed to be in place for services for residents among other things,but "the businesses wanted it" according to the city.Well,then let the businesses pay for it! There's alot of things that could be better served with that money that WE contribute,but don't have a say in how it's distributed.To me all the sign screams is Strongsville Snobbery/Overindulgence. Who made the decision & who voted to approve this because take note & don't vote to retain them in the next election-we don't need any more of these "wise" decisions,although I'm sure they'll claim they did their "due diligence " like they did with the Jardine crematorium debacle. Can't wait till the city sees how they are gonna get burned on that one.
Brandon Scullion August 27, 2012 at 12:15 PM
What is said sign for and where is it located?
James Thomas August 27, 2012 at 01:46 PM
So, City revenues go from completely miserable to less completely miserable, great economy huh

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