Income Tax FAQ

Effective January 1, 2007, the Milford City Council approved the contract with the Regional Income Tax Agency (also known as R.I.T.A.) to administer and collect the municipal income tax for Milford and income taxes for the Joint Economic Development Districts.

 R.I.T.A. is a nonprofit government agency established in 1971 under Chapter 167 of the Ohio Revised Code. Their goal is to enhance cooperation between municipalities through the sharing of facilities. Currently, R.I.T.A. serves approximately 317 municipalities, 31 Joint Economic Development Districts (J.E.D.D.s), 4 Joint Economic Development Zones (J.E.D.Z.s), and 1 Enterprise Zone (ENTZ) in 75 counties throughout the State of Ohio.  R.I.T.A.'s Board of Trustees is authorized to administer and enforce the local income tax ordinances of each of the participating municipalities.  However, each municipal corporation retains its right to administer and enforce its income tax ordinances concurrently with the Board.

Furthermore, R.I.T.A. receives tax information from the I.R.S. to ensure compliance.  R.I.T.A. provides enhanced services such as the ability to file your tax returns electronically. R.I.T.A. also provides residents with the ability to calculate their tax liability, pay electronically using major credit or debit cards, paperless returns, and faster refunds along with a self-service 24-hour automated telephone line.  For more information or assistance, R.I.T.A. can be contacted by mail at P.O. Box 477900, Broadview Heights, OH 44147-7900, by phone at 1-800-860-7482, or online at www.ritaohio.com .  R.I.T.A. forms are available at http://ritaohio.com/Businesses/Home/FormDownloads

The Income Tax Ordinance is found on the R.I.T.A. website www.ritaohio.com by clicking the tab "R.I.T.A. Municipalities," and then scrolling to the "Milford" tab or follow the links below.

Milford Income Tax Ordinance Chapter 182 (effective for tax years 2016 and after)

Milford Income Tax Ordinance Chapter 181 (for tax effective for tax years 2015 and before)

Milford Income Tax Ordinance Chapter 182.01, 182.04, 182.06, 182.24  

The City of Milford levies annual earnings or income tax at a uniform rate of one percent (.01)  on the income, salaries, qualified wages, tips, commissions and other compensation of all individual residents and of all individual nonresidents who work, or the services performed or rendered in the City. This amount appears as income reported on the Wage Earnings Statement Form W-2 or Form 1042-S, Other Compensation reported on Form 1099-MISC, Federal Schedule C Self Employment net profit income (or Loss), Federal Schedule E net profit income (or loss), or Federal Schedule F Farm net profit income (or loss).

Tax is also levied on the net profits of all resident businesses, of all nonresident businesses and professions who work, or the services performed or rendered in the City, and on rental income. Losses from business activities are required to be reported in the manner specified in the Milford Income Tax Ordinance or Form instructions. 

Any winnings income reported on a Form W-2G or Form 5754  is subject to the income tax and is to be filed on a return.  Examples of winnings income would include winnings from gambling, prizes, gaming, wagering, sweepstakes, raffles, lotteries, bingo, slot machines, casino games, horse racing, dog racing, jai alai, wagering pools, games of chance, awards or any other activities related to winnings.

Any business, profession, or other enterprise located in the City of Milford, which sponsors, creates, operates or allows play, gaming, wagering, sweepstakes, or games of chance or activities which results in winnings are required to and withhold municipal income tax from the winnings at a rate of 1% and file a withholding report with remittance.  Only nonprofit, religious, charitable, or educational organizations that operate a fundraising raffle, game of chance, or sweepstakes are excluded from this requirement.

Unearned income, including alimony, active military pay, interest, dividends, poll worker pay, social security income, pensions, and retirement income, unemployment IS NOT TAXABLE to the City.  

Regardless of age or the amount of tax due, all individual resident taxpayers, who have earned taxable income, are required to file an annual municipal income tax return with the Municipality. 182.091 (A)(3) pg. 49

A nonresident, who work in the City and whose employer is entirely withholding the Milford income tax, does not need to file an annual Milford income tax return with R.I.T.A.

You can verify if your residence/domicile or business is within the city limits of Milford by visiting the Milford Tax Office located in the Municipal Building at 745 Center Street Suite 220, Milford, Ohio 45150-1300 or by calling (513) 248-5082.

You can visit the City of Milford street listing:
City Streets

Clermont County Auditor's website:
https://www.clermontauditor.org/_web/search/commonsearch.aspx?mode=address

Hamilton County Auditor's website:
https://wedge3.hcauditor.org/.

MANDATORY REGISTRATION REQUIREMENTS (Chapter 182.22 pgs. 77 - 78, 182.23 pgs. 78- 80, and 182.30 pgs. 81-84)

The City of Milford has mandatory registration. All residents, businesses, employers, contractors, subcontractors, postal employees, owners of rental properties, barbers, beauticians, manicurists, pedicurists, and other professions are required to complete the mandatory registration form within 30 days of residence or operation within the City. You may register in person, by mail, by email or by fax with the Milford tax office located in the Municipal Building at 745 Center Street Suite 220, Milford, Ohio 45150-1300. You may also register online with the Regional Income Tax Agency (R.I.T.A.) at http://www.ritaohio.com/.   A failure to register within the prescribed time results in a fine of $100.00.

ANNUAL INDIVIDUAL AND BUSINESS INCOME TAX FILING REQUIREMENTS (Chapter 182.09 pgs. 49 – 59)

The City of Milford uses the Regional Income Tax Agency (R.I.T.A.) to collect local income taxes. Residents and businesses can file their local income tax returns with R.I.T.A. using the following methods:

R.I.T.A. eFile: Click here and click "My Account" to securely file your return through R.I.T.A.'s website of www.ritaohio.com.

Individual and Business Income Tax Forms are available on the Regional Income Tax website at www.ritaohio.com or at the Milford Income Tax Office located at 745 Center Street Suite 220, Milford Ohio 45150.

Individual registration, declaration of estimated tax, income tax return, extension, declaration of exemption, and refund application forms are available at the Regional Income Tax Agency's website of www.ritaohio.com.  

Business registration, declaration of estimated tax, net profit tax return, employer's withholding remittance, employer's withholding reconciliation, and extension forms are available at the Regional Income Tax Agency's website of www.ritaohio.com.  

All forms are available at the Milford Income Tax office including landlord registration, tenant report, change of domicile address, appeal requests, payment plan requests, Joint Economic Development District registration,  Transient Occupancy registration, Transient Occupancy Tax Report.

Employer's Withholding & Occasional Withholding Tax (Chapter 182.05 pgs. 25-32)

 Each employer, agent of an employer, or other payer located or doing business in the City of Milford is required to withhold the Milford income tax at a uniform rate of one percent (1%) from the qualified wages earned and/or received by each employee who works within the Milford city limits. The withholding tax is reported on the Employer's Withholding return (R.I.T.A. Form 11) and is sent to the address shown on the form. Withholding tax deducted from an employee's wages is to be remitted quarterly if that amount is less than $ 2,399.00 a year or $ 200.00 a month.  Any withholding in excess of these amounts is to be remitted monthly; payment is due fifteen (15) days after the close of the calendar month  Each year, a R.I.T.A. Withholding Reconciliation Form 17 with the copies of the Forms W-2 and 1099-MISC are to be filed by the last day of February with the Regional Income Tax Agency. Companies, who are doing business in a Milford J.E.D.D. area, will show the local wages in Box 18, the local withholding tax in box 19, and the appropriate Milford J.E.D.D. locality name. 

Credit for Taxes Paid (Chapter 182.081 pg. 46)

 No Credit is given for taxes paid to another city, Joint Economic Development District (J.E.D.D.), Joint Economic Development Zone (J.E.D.Z.), or Enterprise Zone (ENTZ).

Every City in the state of Ohio has its own ordinance on how it collects its revenues and what amount of credit it will allow.  Some cities allow a full credit or a portion of a credit for taxes paid to Municipality.  The Milford Income Tax Ordinance does not allow credit for taxes paid to another municipality, Joint Economic Development District (J.E.D.D.), or Joint Economic Development Zone (J.E.D.Z.).

Extension Requests (Chapter 182.094 pgs. 56-57)

For taxpayers on a federal extension, a separate request for a municipal extension is not required. Submit a copy of the federal extension with the filing of the extended municipal return.

For taxpayers not on a federal extension, an extension request must be submitted on or before the date of the municipal income tax return is due. Visit the R.I.T.A. website for the extension request form.

Please remember that an extension only extends the time allowed to file an annual return, not the time allowed for payment.  If your employer doesn't withhold the Milford tax for you, you will need to make a Declaration of Estimated Tax and pay the quarterly estimated tax installments for the current year.

A taxpayer may elect for an overpayment to be either refunded or applied to the next year's Declaration of Estimated Tax. A partial refund is not allowed.

REFUNDS  (Chapter 182.096 pgs. 59-60)

 As mandated by State law, no refunds will be issued for amounts under $ 10.00.

 If an employer withheld Milford taxes in error in excess of $ 10.01, an Application for Refund (R.I.T.A. Form 10A) may be filed. Section 1 must be completed by the individual and attach a copy of the Form W-2, Section 2 must be completed and signed by the employer, and the individual must sign the form and mail it to the Regional Income Tax Agency. The refund must be requested within three years after the tax was due or paid.

 The Regional Income Tax Agency has 45 days to process a refund after they receive the Application.

DECLARATIONS OF ESTIMATED TAX (Chapter 182.07 pgs. 43-46)

 Generally, all taxes (Federal, State, and Local) are paid quarterly.  Employers are mandated by the Federal and State governments to withhold taxes from your earnings and remit those withholding taxes on a monthly or quarterly basis for you.  Additionally, employers are required to withhold the local tax in the City in which you work (if the place of employment is within a municipal taxing jurisdiction) and remit those withholding taxes on a monthly or quarterly basis to the City for you.  Sometimes, the employer will extend courtesy and withhold the tax for a city in which you live in addition to the City in which you work.  At the end of the year, the employer sends you a Form W-2 wage earnings statement, which usually will indicate the amount of Federal, State, and Local tax withheld that you could claim on your returns.  

 Estimated tax payments can be made on a quarterly basis. The payments are due on April 15, July 31, October 31, and January 31.  Normally, the Regional Income Tax Agency (R.I.T.A.) will send quarterly estimated tax bills to you if you completed an Estimated Tax Declaration when you filed your Milford tax return in April or if you completed a R.I.T.A. Form 32 Declaration of Estimated Tax when you move in.

 Since Milford doesn't allow credit for income taxes paid elsewhere, a Declaration of Estimated Income Tax is required when an employer doesn't withhold the Milford Income Tax.

Starting in Tax Year 2016, quarterly estimated tax payments are required if the total tax liability is $200 or more. The new due dates for estimated payments are April 15, June 15, September 15, and January 15. Noncompliance results in a penalty equal to 15% of the tax remaining due after the estimated payment deadline of December 15.

An underpayment penalty of estimated taxes may be charged at rates specified in the Milford Income Tax Ordinance. There are three exceptions, which are if you have paid at least 100% of your previous year's tax liability, paid at least 90% of the current year's tax liability or you became domiciled within the City after the first day of January.

Payments can be remitted by check, Cashier's check, or money order. Payments should be made payable to the Regional Income Tax Agency (R.I.T.A.)  and mailed directly to R.I.T.A., P O Box 94951, Cleveland, Ohio 44101-4951.  Payments can be made with a Credit Card (Visa, Mastercard, or Discover) by calling R.I.T.A. at 1-800-860-7482 Extension 5005 or online through the MyAccount feature at the R.I.T.A website www.ritaohio.com. A credit card processing fee 2.75 %  of the balance paid is charged.

Late Filing Penalty  (Chapter 182.10 pgs. 61 – 63)

 Regardless of the liability shown, a late filing penalty of $ 25.00 per month is imposed on any untimely filed return (except estimate income tax returns). The penalty shall not exceed  $ 150.00 per annum. 

Late Payment Penalty  (Chapter 182.10 pgs. 61 – 63)

A late payment penalty is imposed equal to 15% of the amount not timely paid on any unpaid income tax or unpaid estimated income tax.

A late payment penalty is imposed on any unpaid withholding tax at a rate not to exceed 50% of the amount not timely paid.

Interest Rates  (Chapter 182.10 pgs. 61 – 63)

Interest is imposed at a rate defined as interest rate described in Section 182.10 on all unpaid taxes, unpaid estimated taxes, and unpaid withholding taxes. Interest is assessed per month or fraction of a month.

Ohio House Bill 5 (ORC 718.27) requires municipalities to publish the interest rate for tax underpayments by October 31, for the next calendar year. The Regional Income Tax Agency has addressed this requirement on the City of Milford's behalf by posting this information to the R.I.T.A. website. Based on the calculations required by House Bill 5, the annual interest rate will be as follows:

• 2016: 5%
• 2017: 6%
• 2018: 6%
• 2019: 7%
• 2020: 7%

RETURN CHECK FEE  (Chapter 182.96 pg. 88)

 Any check returned for insufficient funds or any other reason will be charged an amount equal to the amount imposed by the City of Milford's Financial Institution. The check amount and the amount imposed by the City of Milford's Financial Institution will need to be paid by cash.

Landlord Requirements (Chapter 182.30 pgs. 81-84)

 All owners of any type of rental property are required to complete the mandatory registration form and return in to the Milford Income Tax Office within the prescribed time period.  A failure to register within the prescribed time results in a fine of $ 100.00.

 All rental property owners are responsible to inform their tenants about the Milford Income Tax and mandatory registration.

 All rental property owners are required to file a complete written tenant report of all tenants. Within 30 days of any tenant moving in or moving out,  a complete tenant report must be filed with the Milford Income Tax office. The tenant report shall disclose the name(s) of the tenant, address, the date moved in, and the telephone number of each tenant occupying or vacating such apartment, room, residential dwelling or business location. Additionally, rental property owners are required to provide the forwarding address of the each tenant vacating such apartment, room, residential dwelling or business location.

 A failure to file a tenant report showing the moving in of any tenant within the prescribed time results in a fine of $ 100.00 per tenant not reported. A failure to file a tenant report showing the moving out of any tenant within the prescribed time results in a fine of $ 100.00 per tenant not reported.

 All rental property owners are required to report any purchase, sale, or change of rental property ownership to the Milford Income Tax office. Additionally, All rental property owners are required to report any change of contact person, entity, corporation, property management company, resident manager, association representative, employee, or designee within 30 days of the change.

 All rental property owners are required to the applicable annual municipal tax return and employer withholding returns.

Contractor / Subcontractor Requirements  (Chapter 182.23)

 Contractors and subcontractors, who are working within the city limits of Milford, are required to comply with the Milford Income Tax Ordinance. The Milford Income Tax Ordinance requires that the contractor and subcontractor are required to complete the mandatory registration (R.I.T.A. Form 48) and submit it to the Milford Tax Department or R.I.T.A. Additionally, a contractor or subcontractor must submit a list of all subcontractors or others who they hire to do work for them within the city limits of Milford.  Contractors and subcontractors are required to withhold the Milford one percent (.01) earnings tax on the gross wages of those employees who are working within the city limits of Milford and remit the withholding tax to the Regional Income Tax Agency on the Employer's Withholding Tax Return (R.I.T.A. Form 11). Contractors and subcontractors are required to file an annual Net Profit Income Tax Return (R.I.T.A. Form 27) for any met profits (or losses) associated with all business or work performed within the city limits of Milford.

In 1993, the State of Ohio created the concept of a Joint Economic Development District (J.E.D.D.).  In accordance with the Ohio Revised Code, a J.E.D.D. can be created when a township reaches a contractual agreement with one (or more) neighboring municipal corporation(s) to work together to develop township land for commercial or industrial purposes.  The J.E.D.D, gives townships a source of funding for a continual investment in the development, improvement and maintenance of the business area. The township wouldn't lose land to a neighboring municipality through annexation and could continue to collect revenue from property tax. The J.E.D.D. enables the township to purchase or transfer land in order to further economic development within a specific area.

 Per the J.E.D.D. agreements, the township is required to partner with the neighboring municipal corporation with an established earnings tax in order to implement, collect, and administer the township's J.E.D.D. earnings tax on a specific area.  By contracts, Union Township has designated the City of Milford to collect and administer the one percent (1%) earnings tax in accordance to the Milford Income Tax Ordinance Chapter 182 for Union Township's J.E.D.D areas. The Milford Income Tax Ordinance can be found at http://ritaohio.com/Municipalities/Home/MemberPage?id=513 .  Since the State of Ohio legislature has the authority and can impose changes to municipal tax ordinances, please check for potential changes each year.    

 Union Township has created and has signed contracts with the City of Milford for six Joint Economic Development Districts. The Ivypointe J.E.D.D. I began August 1, 2007.  Next, the Jungle Jim / Carepointe J.E.D.D. II began effective May, 1, 2012.  Then, the 516 Old State Route 74 J.E.D.D. III began effective as of June 2, 2013.  The Mt. Carmel Brewing Company J.E.D.D. IV began effective October 1, 2013.  The West Clermont Educational Complex J.E.D.D. V began effective July 2, 2018. The Glen Este Campus JEDD VI began effective August 1, 2019.

All businesses or employers, operating at the designated parcels within the boundaries of a Milford J.E.D.D. are required to complete a mandatory business registration form (R.I.T.A. Form 48) within thirty (30) days after they move into or begin work in the J.E.D.D. in accordance to the Milford Income Tax Ordinance 182.22. The location should be indicated which particular Milford J.E.D.D. A business uses its Federal Identification Number to file the registration, declaration of net profits, the annual net profits return, and the employer's withholdings with the Regional Income Tax Agency (R.I.T.A.). The R.I.T.A. Registration Form 48 is available at the Milford Income Tax office at 745 Center Street Suite 220, Milford, Ohio 45150, or at the R.I.T.A. website of http://ritaohio.com/Businesses/Home/FormDownloads. The business registration form can be completed online at www.ritaohio.com by opening the business tab, selecting online services, and creating an account. Failure to register shall be subject to a fine of one hundred ($ 100.00) dollars.

 Any individual (a sole proprietor, contractor, or subcontractor), who is working, performing, or rendering services within the designated parcels within the boundaries of a Milford J.E.D.D. is required to complete the mandatory registration form (R.I.T.A. Form 72).  The location should be indicated which particular Milford J.E.D.D. The individual uses the taxpayer's Social Security Number to file the registration, declaration of net profits earned within the Milford J.E.D.D., the annual return for net profits earned within the Milford J.E.D.D. with the Regional Income Tax Agency (R.I.T.A.). The R.I.T.A. Registration Form 72 is available at http://ritaohio.com/Individuals/Home/FormDownloads. The individual registration form can be completed online at www.ritaohio.com by opening the individual tab, selecting online services, and creating an account

 Owners of rental property are required to complete the mandatory registration form. In accordance with the Milford Income Tax Ordinance 182.30, all property owners of rental property are required to file a report with the Milford Income Tax Office within thirty days of a tenant occupying or vacating a rental property within the limits of a Milford J.E.D.D.  The report is the responsibility of the property owner and should show the tenant's name, address, telephone number, the date moved in and the date moved out for each tenant who occupies a rental property with the limits of a Milford J.E.D.D.  Furthermore, whoever violates section 182.30 will be fined one hundred ($ 100.00) dollars for each instance whereby the required tenant report wasn't filed.

The Milford Income Tax Ordinance Chapter 182 levies a local Joint Economic Development District income tax at the rate of one percent (.01) tax on the total gross compensation (including deferred compensation / retirement) of all employees of businesses located at the designated parcels within A Milford J.E.D.D. boundary, all individuals who work at the designated parcels within the Milford J.E.D.D. boundary, or all services performed or all activities rendered, on rental income at the designated parcels within the Milford J.E.D.D. boundary as specified in the Milford Income Tax Ordinance 182.06. Gross gaming winnings are taxable.  Unearned income, including interest, dividends, pensions and/or retirement income, IS NOT TAXABLE.  

 Under the Milford Income Tax Ordinance 182.07, every person who anticipates any taxable income from which the full amount of Milford J.E.D.D. tax will not be withheld is required to complete the R.I.T.A. Business Estimated Net Profits Form 20 or the R.I.T.A. Individual Form 32 Declaration of Estimated Tax. Estimated tax liability is paid on a quarterly basis. Once a Declaration of Net Profits or Estimated Tax is filed, quarterly estimated tax bills are sent.  The quarterly installments are due on April 15, June 15, September 15, and January 15 of the following year.

 The Milford Income Tax Ordinance Section 182.09 requires the filing of an annual tax return or by April 15, or if a Federal extension was granted, by October 15. When a return is made for a fiscal year for a different period from a calendar year, the return is to within 105 days from the end of the fiscal year. The R.I.T.A. Business Net Profit Form 27 is used to report the net profits tax and is mailed to the address shown on the form.  In accordance with the Milford Income Tax Ordinance 182.081, no credit is allowed for taxes paid to another municipality, joint economic development district (J.E.D.D.) or joint economic development zone (J.E.D.Z.).

The employer is required to withhold the tax of one percent (1%) from the qualified wages paid to any employee who works within the Milford J.E.D.D. limits. The withholding tax is reported on the R.I.T.A. Form 11 and is sent to the address shown on the form. Withholding tax deducted from an employee's wages is to be remitted quarterly if that amount is less than $ 2,399.00 a year or $ 200.00 a month.  Any withholding in excess of these amounts is to be remitted monthly; payment is due fifteen (15) days after the close of the calendar month  Each year, a R.I.T.A. Withholding Reconciliation Form 17 with the copies of the Forms W-2 and 1099-MISC is to be filed by the last day of February with the Regional Income Tax Agency. Companies, who are doing business in a Milford J.E.D.D. area, will show the local wages in Box 18, the local withholding tax in box 19, and the appropriate Milford J.E.D.D. locality name. 

 For more information concerning the Regional Income Tax Agency (R.I.T.A.), or the Milford Income Tax Ordinance Chapter 182, see R.I.T.A.'s website at http://ritaohio.com/Municipalities/Home/MemberPage?id=513 .

The Milford J.E.D.D.s are located entirely within Union Township within Clermont County, Ohio. Although the Milford J.E.D.D. boundaries should remain constant, parcels identification numbers may be subject to change without notice. 

Under the Milford Ordinance Chapter 185, each operator of an establishment, who keeps, uses, maintains, advertises or holds out to the public where sleeping accommodations are offered, must complete a mandatory Transient Occupancy registration and return it to the City of Milford Income Tax Department. Upon the receipt of the mandatory Transient Occupancy registration, the City will issue a Transient Occupancy Certificate.  The City of Milford collects a Transient Occupancy Tax at a rate of 3% of the total revenue from all room rentals per month.  If the tax is filed late, there is a delinquent penalty of 10 percent of the amount of tax and interest of one percent per month (or part thereof) in which the tax is paid late. If it is determined that the tax is paid late due to fraud, a penalty equal to 25 percent of the amount of tax due is added to the delinquent tax penalty and interest.  

Under the Milford Ordinance Chapter 187, the City of Milford collects an Admissions Tax. Each operator of an establishment must complete a mandatory registration form and return it to the City of Milford Income Tax Department. The City of Milford collects an Admissions Tax at a rate of 3% of the total gross receipts If the tax is filed late, there is an delinquent penalty of 10 percent of the amount of tax. A failure to remit the delinquency penalty within a 30 day time period will be charged a second delinquency penalty  equal to 10 percent of the amount of and the previous penalty in addition to the tax and 10 percent of the first penalty imposed. An additional penalty equal to 10 percent of the tax and penalty of the previous 30 day period shall be added for each successive 30 day period that the account is delinquent. Interest of one percent per month (or part thereof) on the amount of tax from the date on which the remittance was due to the date the tax was paid. If it is determined that the tax is paid late due to fraud, a penalty equal to 25 percent of the amount of tax due is added to the penalties previously stated. Furthermore, anyone violating any of the provisions of this chapter will be guilty of a minor misdemeanor om the first offense, and on any subsequent offense, shall be guilty of a misdemeanor of the second degree which will be punishable by a fine of $ 750.00 or by imprisonment for a period of not more than 90 days or both for each offense.

RITA Refund Request