Friday Financial Fact:  Income Tax FAQ

School District Income Tax – What does that mean for me?

As of January 1, 2021, the Van Buren School District 1% Income Tax took effect. Over the last few
months, there have been several questions regarding the income tax that may need some clarification.

  • If I pay escrow for taxes through my mortgage, why am I paying any additional tax?The income tax is separate from any Real Estate Tax collected and paid through your mortgage. This tax is paid directly to the State of Ohio and does not run through the County. This tax is also calculated on your direct income and not attached in any way to the valuation of your real estate.
  • Can I pay my Income Tax through payroll deduction?  Yes, according to the State Department of Taxation, if you request a deduction from your paycheck, the employer must grant your request.
  • Can I pay my Income Tax electronically? Yes, the State Department of Taxation allows residents of Ohio to satisfy any anticipated expense through their website.
  • How does the Income Tax effect Farmers?  Payments for the income tax may be spread throughout the year by making estimated payments or possibly through withholding from farm income.
  • What income is subject to the Income Tax?  Always check with your tax professional, but this is a good way to remember what income is affected – If you are required to pay State of Ohio tax on the income you have received, that same income is subject to the School District Income Tax.

While this list of questions is not all inclusive, some of these questions seem common in residents' information gathering. The State Department of Taxation also has a great booklet answering many questions regarding this tax. This booklet can be found here.

If you have a question, feel free to contact me anytime.
By phone: 419.299.3863 x103 By email: djacobs@vbschools.net
Dawn Jacobs, Treasurer/CFO/SFO