Income Tax FAQs
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Q. What is the Village of Loudonville Income Tax
rate and what type of income is taxable?
The income tax rate is 1.75%. Generally, gross income
(including income which is deferred) and business net
profits are taxable at the local level.
Q. What is the difference between the Loudonville Village
income tax and the School District income tax that is
being withheld from my wages? The Village of
Loudonville income tax is a municipal income tax that
is collected by the Village of Loudonville and used to
provide municipal services to residents, visitors, and
employees who work in Loudonville. The School District
income tax is collected by the State of Ohio for the school
district in which you reside. Be sure you do not use your
School District income tax as a credit on your Village
income tax return.
Q. If I work outside Loudonville, will I
still have to pay Loudonville Village income tax?
Residents working outside Loudonville pay income taxes
to the community where they work. If that rate is less
than 1.75%, then you would be required to pay Loudonville
the difference up to 1.75%. Loudonville gives credit to
residents for tax paid to another municipality up to 1.75%.
Q. Can I forward my form to the Village
Income Tax Office online? No, but forms are easily
downloaded from this website. The completed forms must
then be mailed back with any necessary payment.
Q. I am a Loudonville resident and work
in an area with no municipal tax. How often must I file
with Loudonville? You must file an annual tax
return by April 15th of each year. As part of your annual
tax return, a Declaration of Estimated Tax may be required
when your tax liability to the Village of Loudonville
exceeds one hundred dollars ($100.00). The first estimate
should be paid with the annual tax return. Subsequent
payments are due June 30th, September 30, and December
31st of the current year.
Q. Is it possible to amend my estimate during
the year? Yes. On the reminder notices sent for
the second, third and fourth quarters, you may write in
above the current declaration the amended amount. Please
clearly mark the form as to the amount to be amended.
Q. Is there an age limit for individuals
subject to Loudonville Income Tax? Yes, all individuals
under sixteen years of age are exempt from the Village
of Loudonville Income tax and are eligible for a refund
of municipal tax withheld. There is no upper age limit.
Q. If I lived in Loudonville for a portion
of the year or turned sixteen during the year, do I still
need to file? Yes, but you will only be responsible
to pay taxes on income earned during the time you either
lived in Loudonville or turned sixteen.
I am retired. My only income is from Social Security,
company pension, interest and dividends. Am I required
to file a Village of Loudonville Income Tax Return? No, but you will be asked to file an Exemption Certificate
to be placed on file.
Q. If an individual files late, is there
a penalty? Yes. The Penalty rate is 10% of the
tax due or $25, whichever is greater. Also, any person
who fails to make and/or file a return when no tax is
due will be subject to a late filing penalty of twenty-dollars
($25.00). Interest of 1% per month is charged for late
Q. Can I receive assistance in preparing
my Village of Loudonville Tax Return? Yes. The
Income Tax Office personnel can assist you either by phone,
in person, or by mail. The Income Tax office is open Monday
through Friday; 8:00 A.M. to 5:00 P.M. Please call 419-994-3282
to make an appointment for assistance in completing your
return. Please bring with you a copy of your Federal Income
Tax Return and all W-2's and 1099 for wages. These will
help us assist you in preparing your Loudonville Income
Q. When can I expect my refund?
The Village has 90 days from the later of the date your
taxes were due or the date your completed refund request
is received to review your request. If your return is
complete and approved, a refund check will be mailed to
you. A refund request is not considered received unless
it is complete and all the required information has been
Q. How do I determine where my local tax
is owed? Local tax is due first to the municipality
in which the income was actually earned and secondarily
to your city or village of residence, based on their laws.
Q. I reside in Loudonville, my wages are
my only taxable income, and my employer is withholding
my Loudonville tax liability properly. Do I need to file
a Loudonville tax return? Yes. The Village of
Loudonville has mandatory filing for all persons, age
16 and over, who are residents, or who do business within
Loudonville to file an annual income tax return. A return
is required even if no tax is due.
Q. My spouse and I file separately at the
federal/state levels. Do I have to file the same for municipal
purposes? No, a husband and wife, in any taxable
year, may elect to file separate or joint Village returns,
regardless of their federal or state filing status. However,
there is no advantage to filing separate at the local
Q. Is Village withholding tax based on employee
work location or residence? Village withholding
is based upon work location.Q.
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 of your business,
whether your business is a sole proprietorship, corporation
or partnership. Incidentally, all net profits earned
by S-corporations are taxed at the corporate level.
As such, the individual shareholders of S-corps are
not taxed. Partnerships and the limited liability companies
(LLC’s) must make an election to file at this
level on behalf of all partners, or each individual
partner must file an annual return. Once this election
is made for the partnership or LLC to file, this is
irrevocable, but partners may elect to have the partnership
begin filing on behalf of all partners.
Sole proprietorships file by reporting their Federal
Schedule C income on the proprietor’s individual
Village return, if reporting tax to more than two cities;
they must complete Schedule Y - Business allocation
formula. Additional information is available in the
instructions for the forms.
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 do this by filing
a Business Registration form, which is a simple questionnaire.
Employers are liable for all Village withholding taxes
that should have been withheld from their employee’s
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. You can call obtain a copy
of the registration form under Tax Forms at this website.
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 has generally been computed
by multiplying your hourly rate (or an overtime rate
if 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 before
any deductions or deferments (i.e., 401K deferrals).
If you earned your wages in Loudonville, multiply your
gross wage figure by 1.75%. The result of this computation
should equal the local Village 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 the tax to the Village in which your wages
were earned, the tax is being imposed upon your wages
such that you have responsibility to ensure that your
full tax obligation is being paid. DO NOT CONFUSE VILLAGE
TAX WITH SCHOOL DISTRICT TAX.
Q. I’m self-employed but my business
has not shown a profit. Am I required to file a return?
Yes, anyone conducting a business in Loudonville must
file an annual return and report the net profits or
net losses of said business. The leasing of real or
tangible property (i.e., income from rental property)
that you own is considered a taxable business activity
that must be reported.
Q. I owe 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 amount of tax that you owe to avoid
the late filing penalty. Please call 419-994-3282 to
discuss payment arrangements.
Q. I’m a partner in a partnership
and a Loudonville resident. Do I owe Loudonville tax
on my income from the partnership? A Loudonville
resident is taxed upon his/her share of all income earned
by partnerships (wherever located) in which he/she is
a partner. However, the credit allowed by the Village
of Loudonville is given for all Village income tax that
was paid to the Village or cities in which the income
was earned, whether the partnership as an entity or
you as an individual partner paid the tax.
Q. What are the top 10 mistakes people
make in filing a tax return?
Improper use of School District Income Tax as a
credit on the Village return.
9. Failure to file a return for
the year taxpayer moves in or out.
8. Failure to advise of address
7. Failure to know the difference
between school district taxes and Village taxes.
6. Failure to allocate taxes paid
when allocating income for move-in/move out
5. Failure to mail return.
4. Failure to use correct amount
of estimated tax paid during the year.
3. Failure to attach Schedules/Forms
2. Failure to attach all W-2's.
1. Failure to use gross compensation
< Return to Income Tax Department Page
of Loudonville • 156 North Water Street • P.O.
Box 150 • Loudonville, OH 44842
(419) 994-3214 • Fax (419) 994-3213 • Email: email@example.com