Finance

No. According to Ohio law, townships cannot enact an income tax. If you live in a township and work in a township, you are not subject to a local income tax. Cities, however, may impose an income tax. So, if you either work or live in a City that has a local income tax, you would pay income tax to that city.

If you work in a city you must pay income tax to that city if they have a local income tax. The Township does not receive any of the money. Your employer usually withholds tax for you. Under Ohio law, local income tax is paid: first where you work, and second, where you live.

The principal source of revenue is from property taxes (collected by Montgomery County). The Township also receives a share of inter-governmental income and other taxes, such as the motor vehicle license tax and gasoline tax. The Township collects fees for programs and services, as well as earns interest on money invested. See the revenue schedule for details. NOTE: When you renew your vehicle registration be sure to mention that you live in Washington Township so that the Township receives its share of the motor vehicle license tax.

For the 2020 tax year (taxes paid in 2021), inside millage is 3.05 and outside millage is 16.10 for Washington Township. This is a total of 19.15 gross mills. The 2020 effective residential rate for Washington Township is 16.32941.

Literally, a mill means one thousandth. For tax purposes, each mill generates $1 of taxes for every $1,000 of assessed value.

If you own the property where your business is located, you are subject to township property tax for real property (land and buildings). Property tax on tangible property (inventory and fixed assets) has been eliminated by the State of Ohio. Businesses and employees are not subject to any local income tax for income earned in the township.

Inside millage is not voted on by citizens but enacted by State legislature and outside millage must be voted on by citizens. Inside millage, by law, cannot exceed ten mills and is not reduced by a reduction factor. The Township has 3.05 inside mills and the City of Centerville has 2.35 inside mills.

The reduction factor maintains the existing level of taxes paid on voted millage. The taxing district collects the same amount of revenue that was voted for, regardless of increased property values, except for added value from new construction for the first year. This is known as the fixed income status as a result of House Bill 920, which was passed in 1976 to protect property owners from unvoted tax increases. Under the law, when voters approve a tax levy, they agree to pay a specific amount of money for a specific purpose over a specified time period. A property owner's share of that amount depends on how much their property is worth.

The Township monitors over 3,000 fixed assets in 7 departments at 40 locations (including the incorporated part of the Township). A bar code tag is affixed to each taggable item and can be scanned for a yearly inventory using a portable scanning device. Items that cannot be tagged are assigned a ten digit tracking number based on location of the item and when it is put into service. The portable scanning device uploads to a computer which keeps a database of current assets.