FAQs

A. You will normally have to remit two types of city taxes: the net profit tax and (if you have employees) the employee withholding tax. The first is the tax due on profits of your business, whether your business is a sole-proprietorship, corporation or partnership. Incidentally, Ashland taxes the net profits of S-Corporations at the corporate level. As such, the individual shareholders of S-Corps are not taxed. Partnerships can file and pay the tax at the entity level or file an informational return and each individual partner then files and pays his/her share of the tax. To remit the second type of tax, the tax withheld from your employees’ wages, you will need to establish a withholding account with us. You can do this by completing a Business Questionnaire form. Your Federal Identification number plus a 2-digit number we assign is used for your account number. Employers are liable for all Ashland withholding taxes that should have been withheld from their employee’s wages even if those taxes were not, in fact, withheld.

A.

Yes, Ashland is considered your domicile (i.e., you are eligible to vote in Ashland, you file a State of Ohio tax return with an Ashland address, etc.)

A. Yes, all Ashland residents age 18 and over are required to file an Ashland Income Tax Return, whether or not they have been fully withheld and/or have paid a municipal income tax to another community. Apartment dwellers within the City of Ashland are Ashland residents and are required to file an annual Ashland Income Tax Return.

A. City withholding is based upon, and employers are required to withhold to, the employee’s work location.

A. Ashland allows a 1% credit on taxes paid to another municipality. A simple calculation would be to multiply the gross wages times 1%. This amount would be your credit.