The Village of Marble Cliff

The income tax is the largest single source of revenue for the Village. This revenue is the foundation for providing essential safety, i.e. police and fire, and sanitation services as well as other valuable village programs, which make Marble Cliff such a special community in which to live and work. In December 2010 the Village Council adopted legislation requiring all tax payers who do not meet the requirements for exemption to file a local income tax return.

Marble Cliff contracts with the City of Columbus for income tax administration. ALL MARBLE CLIFF TAXES ARE PAID THROUGH THE CITY OF COLUMBUS UTILIZING CITY OF COLUMBUS TAX FORMS. All standard individual and business tax forms are available at Marble Cliff Village Hall at 1600 Fernwood Avenue. They may also be obtained by calling the City of Columbus Income Tax Division at 614-645-7370. Or forms can be downloaded from the Internet from the Columbus Income Tax Division website: www.columbustax.net

If you are a new business in Marble Cliff, Columbus Income Tax Division can provide you with a new business owner’s kit. Contact the City of Columbus Income Tax Division at 614-645-7477

IT IS IMPORTANT that the fees and taxes that you are paying are credited back to the Village. You should always:

Show Marble Cliff as your place of business or residence when completing payroll tax information.
Use the “Marble Cliff” line on all business and personal tax forms.
List Marble Cliff, Ohio (not Columbus Ohio) as your place of residence or business when registering a motor vehicle (e.g. car, boat, motorcycle).

GENERAL INCOME TAX INFORMATION FOR RESIDENTS OF MARBLE CLIFF

Effective for tax year 2011 all residents of Marble Cliff will be required to file a local income tax return unless they are exempted for the filing requirement (See FAQ #3 and #8- See Below). Even residents that only have income tax withheld by their employer and have no other taxable income must file a local return for Marble Cliff through the City of Columbus.

Most tax payers will use Form IR-22 – City Income Tax Return for Individuals

Declaration and payment of estimated Village Tax (Form IR-21) is required for all individuals whose tax is not fully withheld by their employer and/or have other sources of taxable income (See FAQ #8).

If you live in Marble Cliff and work in another jurisdiction with no municipal income tax or a lesser tax than Marble Cliff, the income tax rate is based on where you live (Marble Cliff). You pay the lesser municipality’s rate to that municipality and the differential up to 2% is owed to Marble Cliff. Example: If you work in Reynoldsburg (which has a 1.5 % tax) and live in Marble Cliff (which has a 2.0 % tax), 1.5% is owed to Reynoldsburg and .5% is owed to Marble Cliff. Check with your employer to determine if your full local tax liability is being withheld from your salary by your employer. If not, you are responsible for paying the difference to Marble Cliff when you file your income tax return. For additional information see FAQ #2.

GENERAL INCOME TAX INFORMATION FOR BUSINESSES IN MARBLE CLIFF

Businesses located in Marble Cliff are responsible for two categories of tax liability.

1. Businesses should withhold the 2% Village income tax on wages of employees as part of the payroll process. These withholdings are then paid by the employer to the Village of Marble Cliff through the Village’s tax administrator - the City of Columbus Income Tax Division

2. Unincorporated and incorporated businesses located in the Village of Marble Cliff are liable for corporate and/or business income tax of 2%. These taxes are also paid to the Village of Marble Cliff through the Village’s tax administrator - the City of Columbus Income Tax Division

GENERAL INCOME TAX INFORMATION FOR HOME BUSINESSES IN MARBLE CLIFF

Operators of a home business located in the Village of Marble Cliff must complete a Home Business Registration form and file it with the Village Fiscal Officer. Click here to download the Home Business Registration Form.

GENERAL INCOME TAX INFORMATION FOR OWNERS OF RESIDENTIAL AND COMMERCIAL RENTAL PROPERTY IN MARBLE CLIFF

Owners of Residential and Commercial Rental Property located within the Village of Marble Cliff must file an annual income tax return even if you show a loss on the rental property. The return should be filed using form IR-22 or IR-25 for individuals or BR-25 for businesses.

Owners of residential and commercial rental property located in the Village of Marble Cliff are required to submit a full up-to-date list of all tenants to the Village Fiscal Officer twice a year every year on March 15^th and September 15^th. When a tenant vacates a rental unit a forwarding address and the date on which the tenant vacated the unit must be listed on the next required report.

Frequently Asked Questions about the Marble Cliff Income Tax

1. What rate of income tax does Marble Cliff have? How does it compare to other neighboring communities?

Since 2000, Marble Cliff has had a 2% Village income tax. Upper Arlington also has a 2% City income tax. Grandview Heights and Columbus both have a 2.5% City income tax.

2. How do I know to what community I should pay taxes?

If you work in Marble Cliff but do not live in Marble Cliff, your employer should be withholding income tax for Marble Cliff. If you are an independent contractor or sub-contractor working in Marble Cliff for a Marble Cliff employer, you should be making quarterly estimated taxes and filing an annual Marble Cliff tax return. If you work in Marble Cliff and do not live in Marble Cliff, you will need to check with your local government to determine if you have additional local income tax due to the community where you live.

If you live in Marble Cliff and are self employed or operate a home business in Marble Cliff you should make quarterly tax payments to the Village of Marble Cliff through the City of Columbus using line 13 on Form IR-21 or part C of Form IR-22 for the first quarter and FORM IR-18 for quarters 2-4.

If you live in Marble Cliff and work in another jurisdiction with an income tax rate of 2% or more, your employer should be withholding income tax for that municipality. If you are self-employed and maintain your work place outside of Marble Cliff you should be remitting income taxes to the municipality where your work place is located. You must still file an annual Marble Cliff income tax return; however, Marble Cliff gives up to 2% credit for income taxes paid to another municipality.

If you live in Marble Cliff and work in another jurisdiction with no municipal income tax or a lesser tax than Marble Cliff, your income tax rate is based on where you live (Marble Cliff). You pay the lesser municipality’s rate to the municipality in which you work and the differential up to 2% is owed to Marble Cliff. Example: If you work in Reynoldsburg (which has a 1.5 % tax) and live in Marble Cliff (which has a 2.0 % tax), 1.5% is owed to Reynoldsburg and .5% is owed to Marble Cliff. Check with your employer to determine if your full local income tax liability is being withheld from your salary and remitted correctly by your employer. If not, you are responsible for paying the difference to Marble Cliff when you file your income tax return.

If you live in Marble Cliff and have other earned, non-payroll, taxable income the Village income tax of 2% may be due to Marble Cliff. See FAQ # 9 for a list of “What is Taxable.”

If you own rental property in Marble Cliff, you must file an income tax return in Marble Cliff even if you show a loss.

3. Who must file?

1. Effective for tax year 2011 all residents of Marble Cliff will be required to file an annual tax return unless qualified for exemptions (See FAQ #4)

2. All owners of rental property located in Marble Cliff must file an annual income tax return even if you show a loss.

3. Anyone who has business income generated from a location in Marble Cliff even if you show a loss.

4. Who is exempt from filing an income tax return?

You will not be required to file an annual Marble Cliff Income Tax return if you meet any of the following exemption requirements. However you must file a Declaration of Exemption (Form: EX-1) in order to be released from your obligation to file an annual income tax return.
Exemption requirements:
a. You were UNDER age 18 for the entire year.
b. You are retired receiving ONLY pension income or other nontaxable income for the year.
c. You did not reside in the Village during the tax year.
d. You had NO Taxable income for the entire year
e. You were a member of the ARMED FORCES (including the National Guard) of the
UNITED STATES for the entire year. This exemption does NOT include civilians employed by the military.
f. You are filing JOINTLY with your spouse.

5. Where may Marble Cliff tax forms be obtained?

Forms are available at Marble Cliff Village Hall at 1600 Fernwood Avenue. They may also be obtained by calling the City of Columbus Income Tax Division at 645-7370.
Or forms can be downloaded from the Internet from the Columbus Income Tax Division website: www.columbustax.net.

6. What forms should I use?

Below is a list of the most commonly used tax forms. All forms are available at www.columbustax.net

FOR INDIVIDUALS:
            IR-22 Annual Income Tax Return (for individuals who file in 2 cities or less)
            IR-25 Annual Income Tax Return (for individuals who file in more than 2 cities)
            IR-21 Declaration of Estimated Tax
            IR-18 Quarterly Statement of Estimated Tax
            EX-1 Declaration of Exemption

FOR BUSINESSES:
            BR-25 Annual Income Tax Return for Businesses
            BR-21 Declaration of Estimated Tax
            BR-18 Quarterly Statement of Estimated Tax
            IT-47 Application for New Tax Account

FOR EMPLOYERS:
IT-11 Employers Quarterly Return of Tax Withheld
IT-15 Employers Semi-Monthly or Monthly Deposit

7. What are the responsibilities of the owner of a business located in Marble Cliff?

You should notify Village Hall of your presence in the Village and secure a Municipal Income Tax Account with the City of Columbus using Form IT-47.

Businesses should withhold the 2% Village income tax on wages for your employees as part of the payroll process. These withholdings are then paid by the employer at least quarterly to the Village of Marble Cliff through the Village’s tax administrator – The City of Columbus Income Tax Division.

Corporations and unincorporated business located in the Village are subject to Village income taxes.

Corporations and unincorporated businesses must file estimated business taxes quarterly.

Corporations and unincorporated businesses located outside of Marble Cliff with employees working in Marble Cliff must withhold income taxes on those employees at the Village rate of 2% and remit those taxes to the Village.

8. Must quarterly estimated taxes be paid to Marble Cliff?

A declaration and payment of estimated Village Income Tax (form IT-21) is required for all business entities and individuals whose tax is not fully withheld by their employer. Contact Village Hall or Columbus Income Tax Division with questions.

9. What is Taxable?

Generally in addition to wages, income reported on Schedule C, E, F, and Y and K-1 of the Federal Income Tax return is subject to local income tax. Specific examples of taxable income are listed below:

Bonuses.
Compensation paid in property or the use thereof at fair market value to
the same extent as taxable for federal tax purposes and so indicated on the W-2 form.
Contributions made by or on behalf of employees to a qualified deferral plan (401K
and the like) - taxed at year earned, deferral not permitted. Exception: employer
matching contributions offered under a cafeteria plan are not taxable. Deferrals even
under a cafeteria plan are always taxable.
Contributions made by or on behalf of employees to a tax-deferred annuity or stock
purchase plan (includes any plan where employee has the option to defer).
Contributions made by or on behalf of employees to a non-qualified deferred
compensation plan.
Cost of group term life insurance over $50,000.00 (unless part of a cafeteria plan).
Director's fees.
Short-term disability pay if received as a benefit from employment (includes third
party plan) prior to 6/30/2007.
Adoption assistance payments (unless part of a cafeteria plan).
Excess employee discounts.
Golden parachute payments.
Income from guaranteed annual wage contracts.
Income from jury duty.
Income from wage continuation plans (includes retirement incentive plans and
buy-outs).
Income received as a result of a covenant or agreement not to compete, which
relates to employee wages.
Interest on below market loans.
Moving expense reimbursements (follow Federal rules but non-reimbursed
expenses are not deductible).
Pre-retirement distributions from retirement plans (except previously taxed
income from deferred plans).
Prizes, awards and gifts - if connected with employment.
Profit Sharing.
Royalties (unless derived from registered copyrights, patents or trademarks).
Severance pay.
Sick and/or vacation pay.
Stipends - if work required (vow of poverty not recognized).
Stock bonus incentive plans.
Stock options.
Strike benefits paid by employer.
Supplemental unemployment pay paid by employer.
Taxes paid by employer on employee's behalf.
Tips.
Union steward fees.

NOTE: This list is intended for reference purposes only. It may not be all inclusive
and is subject to revision without notice.

What Isn't Taxable?

Alimony.
Annuities - at time of distribution.
Capital gains.
Dividends.
Gambling winnings (losses not deductible).
Government allotments.
Housing for clergy.
Income earned while under 18 years of age.
Income from Foster Grandparent Program.
Income of religious, fraternal, charitable, scientific, literary or educational institutions
to the extent that such income is derived from tax-exempt real estate, tax-exempt
tangible or intangible property or tax-exempt activities.
Insurance benefits - unless your employer paid the premiums. (Pro-rating is allowed
if you paid a portion of the premiums.)
Interest.
Long-term disability payments.
Meals and lodging required on premises.
Military pay including reserve pay.
Non-resident subchapter S corporation income to a resident shareholder (effective 1/1/03) is no longer subject to the tax.
Patent and copyright income.
Pension income - includes lump sum distributions.
Prizes - unless connected with employment.
Royalties - if derived from intangible property.
Salaries of the mentally retarded or developmentally disabled while working in a
government funded workshop for less than minimum wage.
Short-term disability payments paid after 7/1/07.
Social Security benefits.
State unemployment benefits.
Welfare payments.
Worker's Compensation.

NOTE: This list is intended for reference purposes only. It may not be all inclusive
and is subject to revision without notice

The above information regarding what is and is not taxable is provided by the City of Columbus Income Tax Division. It is a summary and not intended to be a substitute for advice from a qualified tax practitioner. Please contact your accountant or attorney for advice on specific issues