The duties of Finance Director are handled by Mr. Jordan Daugherty, the Village Administrator. Mr. Daugherty, a licensed Certified Public Accountant, graduated from Bowling Green State University with a Masters of Accountancy. He worked two years in public accounting then another three years in construction accounting before joining the Village of Whitehouse in 2007.
Tiffany Bachman was appointed Tax Commissioner on September 20, 2011 after working eight years for the City of Wauseon as Assistant Tax Commissioner. Tiffany graduated from Lourdes University in 2011 with her BS in Accounting/Finance. Tiffany and her husband, Adam, live in Wauseon with their three children, Austin, Patience and Zachary. When not working, she enjoys attending sporting events, spending time with her family and cooking. Contact Tiffany at 419-877-5383 or by e-mail: firstname.lastname@example.org.
All Whitehouse residents must file an annual Village Income Tax Return whether or not taxes have been withheld or they have paid taxes to another community.
The income tax rate is 1.5%. Generally, gross income (including income which is deferred) and business net profits are taxable. This includes all salaries, wages, commissions and income derived from gaming, wagering, lotteries or games of chance.
2016 Interest Rate for Tax Years Beginning On or After January 1, 2016
2016 Interest Rate is 5% per annum
The interest rate to be applied to all unpaid income and withholding tax balances for tax years beginning on or after January 1, 2016 is 5% per annum. This rate is being published in accordance with Ohio Revised Code 718.27(F) which states that “By the thirty-first day of October of each year the municipal corporation shall publish the rate described in division (A) of this section applicable to the next succeeding calendar year”. This rate is in effect from January 1, 2016 through December 31, 2016 and does not apply to tax balances for any prior tax years, regardless of when they are filed.
Link to: Whitehouse Tax Ordinance
Effective for Tax Years Beginning On or After January 1, 2016
Taxpayers’ Rights and Responsibilities means the rights provided to taxpayers in sections 718.11, 718.12, 718.19, 718.23, 718.36, 718.37, 718.38, 5717.011, and 5717.03 of the Ohio Revised Code and any corresponding ordinances of the Municipality, and the responsibilities of taxpayers to file, report, withhold, remit, and pay municipal income tax and otherwise comply with Chapter 718 of the Ohio Revised Code and resolutions, ordinances, and rules adopted by a municipal corporation for the imposition and administration of a municipal income tax.
- ORC 718.11 – Local Board of Tax Review
- ORC 718.12 – Actions to Recover; Statute of Limitations
- ORC 718.19 – Requests for Refunds
- ORC 718.23 – Verification of Accuracy of Returns
- ORC 718.36 – Audits
- ORC 718.37 – Actions Against Tax Administrator or Municipal Corporation
- ORC 718.38 – Request for Opinion of the Tax Administrator
- ORC 5717.011 – Filing a Notice of Appeal
- ORC 5717.03 – Decision of Board of Tax Appeals – Certification – Effect
Link to: Ohio Revised Code 5717
Link to: Ohio Revised Code 718
Tax Return Fillable (for best results, open this form in Internet Explorer)
I am a Whitehouse resident and work in an area with no municipal tax or a rate less than Whitehouse’s rate of 1.5%. How often must I file with Whitehouse?
Ask your employer to withhold the additional local tax to Whitehouse. The additional tax is considered an alternate tax due as a result of working in a city that has a tax rate less than your city of residence. Your employer is not required to withhold the alternate tax; however, many employers will upon request. The forms are available on this website, or your employer may contact us at 419-877-5383 if they have any questions.
I am retired. My only income is from Social Security, company pension, interest and dividends. Am I required to file a Village of Whitehouse income tax return?
No. You are not required to file an income tax return with Whitehouse, nor do we tax you on these types of income. However, you must file a final return stating this, so we will not send you an income tax return in the future. If you do return to work, any earnings (other than retirement income) would be subject to the local income tax and you would be required to file an annual Whitehouse income tax return.
My spouse and I file separately at the federal/state level. Do I have to file the same for Whitehouse?
No, a husband and wife may elect to file separately or jointly regardless of their federal or state filing status. At the municipal tax level, there is no advantage to filing separately and we suggest filing jointly.
I live in an apartment and do not own any real estate in Whitehouse. Do I still have to file a Whitehouse income tax return?
Yes, all Whitehouse residents are required to file a local income tax return, whether or not they have been fully withheld and/or have paid a municipal tax to another community. Apartment dwellers within the Village are residents and are required to file an annual Whitehouse income tax return.
Is city withholding tax based on employee work location or residence?
It is based upon, and employers are required to withhold to, the employee’s work location (municipality).
I am a college student, living and working outside Whitehouse, do I need to file a return and pay tax on that income?
Yes, Whitehouse is considered your domicile (i.e., you are eligible to vote in Whitehouse, you file a State of Ohio tax return with a Whitehouse address, etc.).
How do I know what city I live and/or work in?
First, don’t always rely on the mailing address to determine the municipality in which you live or work. The U.S. Postal Service establishes mailing addresses based upon the Post Office that serves your area, not the city in which you may actually live or work. Similarly, you cannot rely on your school district, since they don’t always follow municipal boundaries. If you have questions, please call the Tax Division at 419-877-5383.
Can someone help me prepare my Village tax return?
Yes, we have employees available during normal business hours. Please call prior to coming in to be sure that someone can assist you in a timely manner. We can only prepare your Whitehouse return (not federal or state) and cannot help you with returns for other municipalities. Bring your federal return and all related schedules including your W-2’s and/or 1099 forms to our office.
I’m starting a business. What do I need to do about Village taxes?
You will normally have to remit two types of Village taxes: the net profits tax and the employee withholding tax (if you have employees). The first is the tax due on profits from your business, whether it is a sole proprietorship, corporation or partnership. 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 (tax withheld from your employees’ wages) you will need to establish a withholding account with the Village. You can do this by completing a Business Questionnaire Form which is available on this website. Employers are liable for all Whitehouse withholding taxes that should have been withheld from their employees’ wages EVEN if those taxes were not, in fact, withheld. Because of this obligation, you’ll want to make sure you set up your employer withholding account as soon as you hire employees.
How can I make sure my employer is withholding the correct local tax from my wages?
Look at the gross wage figure on your paycheck stub. If you are an hourly employee, your gross wage is generally computed by multiplying your hourly rate (or overtime rate applicable) by the number of hours you worked during the period. Gross wages for a salaried employee are generally determined by dividing gross annual salary by the number of pay periods in the salary year. Whether hourly or salaried, gross wages are determined by including any deductions or deferments (i.e. 401K deferrals). Multiply your gross wages by the Whitehouse tax rate (1.5%) The result of this computation should equal local tax that was withheld from your wages. If you find that the correct local tax is not being withheld, you need to contact your employer to have it corrected. Although your employer is legally responsible for withholding the correct tax and paying that tax to Whitehouse, the tax is imposed upon your wages and you have the responsibility to ensure that your full tax obligation is being met.
I‘m self-employed but my business has not shown a profit. Am I required to file a return?
Yes, all residents or non-residents conducting a business within Whitehouse must file an annual return and report the net profits or losses. The leasing of real or tangible property (i.e. income from a rental property) that you own is considered a taxable business activity that must be reported. Losses can be used or carried forward for a period of five years.
I owe Whitehouse Village taxes but I am unable to pay my full liability at the time my return is due. Should I still file my return?
Yes, you should file your return by the due date whether or not you are able to pay the entire amount that you owe. You will receive a bill for the unpaid taxes along with late payment penalty and interest charges. You may then contact us to arrange for payment for the charges shown on the bill. There will be a penalty charged for each month the return is not filed.
I’m a partner in a partnership and a Whitehouse resident. Do I owe Whitehouse tax on my income from the partnership?
Yes, a Whitehouse resident is taxed upon his/her share of all income earned by partnerships (wherever located) in which he/she is a partner. However, half credit (up to .75%) is given for all city income tax that was paid to the city or cities in which the income was earned, whether the partnership as an entity or you as an individual partner paid that tax.
I’m serving in a fiduciary capacity. What is my responsibility for filing?
Trusts and estates conducting business within the Village are required to file a Whitehouse Business Return and report, at the entity level, all net profits or losses earned or incurred as a result of activity conducted within the Village. Tax is due on the net profits reported as having been earned in the Village. Since the tax is paid at the entity level of the trust or estate, beneficiaries are not required to pay Village tax on income derived from trusts or estates.
What is the due date for the Village of Whitehouse return?
The deadline for the filing is April 15 or four months after the end of the fiscal year, or if it falls on a weekend, the first business day after.
If I file a federal extension, does that automatically extend the due date for my Village of Whitehouse return?
No, you must submit a copy of your federal extension to Whitehouse on or before the original due date of the return. Any tax liability estimated to be due on the return should be paid with the extension. Filling of an extension does not abate penalty and interest.
What are the top 10 mistakes people make in filing a tax return?
- Failure to sign return/attach check/include name on return
- Failure to file Declaration of Estimate
- Failure to advise of address changes
- Failure to file return for the year taxpayer moves in or out
- Failure to allocate taxes paid when allocating income for move-in/move out year
- Failure to pay 2nd, 3rd and 4th quarter estimated tax payments
- Failure to mail return
- Failure to attach schedules/forms and statements
- Failure to attach W-2
- Failure to use gross compensation (normally Box 5)
If you have additional questions, please call and we will be happy to assist you – 419-877-5383.
Changes to Municipal Taxation – Revised 9/24/03
Effective Dates-Assume the Effective Date is September 24, 2003, unless specifically stated in the language of the bill.
Net Profit Income Tax Returns ORC Sec. 718.05 (B) Tax Year 2004
The due date MUST be the 15th day of fourth month following end of Tax Year. For tax years ending December 31, 2004 the due date is April 15, 2005.
Withholding Reconciliations ORC Sec. 718.05 (B) Tax Year 2001
H.B. 477 stated that all Municipalities could not require a taxpayer to file an annual income tax report prior to the filing of the corresponding IRS due date. The due date for employers to file Forms W-2 with the SSA is February 28.
Extensions ORC Sec. 718.05 (D) Tax Year 2004
For taxable years beginning after 2003, the extended due date of the municipal income tax return shall be the last day of the month following the month to which the due date of the federal income tax return has been extended. The IRS Authorizes 4 months automatically and additional requests are limited to 6 months from original due date.
Individual and Partnership Returns November 30th
Corporate Returns October 31st
Note: HB 95 contains a conflict when the extension due dates are addressed in the Business Gateway section. Updates to follow.
Net Operating Loss – There was no change implemented in HB 95. Treatment of Net Operating losses left to local option.
$150 Deminimus – Overturned effective 9/24/03. Language left out of HB 95.
Telephone Companies ORC Sec. 718.01 (F)(6) Jan. 1, 2004. Telephone companies follow the same payment and filing requirements as the electric companies.
Allocation Formula ORC Sec. 718.02 ____ Tax Year 2004. Apportionment- The name of the formula is changed to match Ohio’s definition. Original Cost- Property value determined based on the original cost of property not the net book value.
Separate Books and Records- Taxpayers required to compute apportionment based on three-factor formula unless a substitute method in the regulations provides an equitable result.
Note: Effective with Tax Years beginning after 9/23/2003. There is a question on how rental income is to be apportioned. Most cities will continue to allocate rental income based on where the property is located but you should check with each municipality.
Ohio Board of Appeals ORC Sec. 718.11 Tax Year 2004. The taxpayer or Tax Commissioner may now appeal the local Board of Review’s decision to the courts or to the State Board of Tax Appeals as defined in ORC Sec. 5717.011.
Refunds and Statute
Nonrefundable Credit ORC Sec. 718.121 Tax Year 2004. If the tax is paid to a wrong municipality and the correct locality is pursuing the payment of the tax, that city must allow a nonrefundable credit for those taxes paid incorrectly, but not refundable to taxpayer because of statute. Example: In 1998 Joe Taxpayer had $200.00 withheld by his employer on his $10,000 salary for Municipality “A” (tax rate 2.0%). Joe Taxpayer lived in Municipality “A” but actually worked in Municipality “B”. Municipality “B” has a 2.0% rate also and Municipality “B” Tax Department notifies taxpayer he owes $200.00. Municipality “A” is barred from refunding the money because of the three-year statute on refunds. Municipality “B” must allow the taxpayer a credit of $200.00 for the taxes paid to Municipality “A” in error.
Medicare Wages (Box 5) ORC Sec. 718.03 Jan. 1, 2004. An employer is required to withhold only on “qualifying wages”, which are wages as defined in IRC Section 3121(a), generally the Medicare Wage in Box 5 of the Form W-2, with an exception to include exempt employees hired before April 1, 1986.
Cafeteria Plans – IRC Section 125 wages are not included in the definition of Medicare wages and do not need to be deducted from Box 5.
Stock Options – Income from the exercise of stock options is included in the definition of “qualifying wages”, but income may be excluded from taxation as a local option.
Nonqualified Deferred Compensation Plan – Income from nonqualified plans are included in the definition of “qualifying wages” at the time they are deferred, but income may be excluded from taxation as a local option. Distributions received after January 1, 2004 will no longer be subject to local taxation.
401k, 457 and Supplemental Unemployment Compensation Benefits – These items all should be included in Box 5 and subject to withholding requirements.
Disqualifying Disposition of an Incentive Stock Option – Employer is not required to withhold, but the income is considered “qualifying wages” and the recipient is liable for the tax.
Note: Require taxpayer or employer to explain why Box 5 is not the largest wage figure on the W-2.
Individuals/Sole Proprietorships ORC Sec. 718.01(A)(7) Jan. 1, 2004. The income required to be reported on Schedules C, E and F. There is no provision in ORC Sec. 718 prohibiting the taxation of non-employee compensation (1099 MISC) or gambling winnings (W-2G).
Corporations and Partnerships ORC Sec. 718.01(A)(1) Jan. 1, 2004
A C corporation’s federal taxable income before net operating losses and special
deductions with the following adjustments:
1. Deduct Intangible Income (Interest, Dividends, Royalties….) a. Intangible income (ORC Sec. 718.01(A)(5)) includes patents, copyrights, trademarks and other investments. Does not include
2. Add back 5% of Intangible Income. (exclude Capital Gains and Losses from computation)
3. Add back Capital losses and 1231 losses. (1231 are considered ordinary losses for IRS.)
4. Deduct Capital gains.
5. Add taxes on net income deducted to compute federal taxable income.
6. Add distributions to investors of REIT Real Estate Investment Trusts.
7. Add back Guaranteed Payments to partners and retired partners.
8. Add back payment to Self Employed Retirement Plans, Health Insurance and Life Insurance payments to owners or owner-employees.
Note: Partnerships and S-Corps must file their return as if they are CCorporations.
Sub Chapter S-Corporations
Taxation of Distributive Share ORC Sec. 718.01(F)(9) Jan. 1, 2004. It is the consensus of a number of municipalities that municipalities may tax the flow thru income of a shareholder in an S-Corp provided the income is allocated or apportioned as Ohio income.
Note: Those municipalities that qualify for the special provision to tax all distributive share
income must have the issue on the November 4, 2003 ballot.
Ohio Business Gateway
Net Profit Tax ORC Sec. 718.051 Jan. 1, 2005. Businesses will have the option to file and pay their net profit taxes using Ohio’s central processing system maintained by the Department of Administrative Services. The payments and required documentation will be forwarded to the municipalities in accordance with the apportioned taxable income.
Withholding Tax ORC Sec. 718.051 Jan. 1, 2007. Businesses will have the option to file and pay their withholding taxes using Ohio’s central processing system maintained by the Department of
Administrative Services. The payments and required documentation will be forwarded to the municipalities