Bussiness Tax Information
CITY
INCOME TAX
The City has a 1.5% Income Tax applicable to the net profit
earned by your Springboro operation. The tax is also applicable to all
earnings of your employees, and is paid by the employees, not the Company.
REAL ESTATE TAX
In the industrial sections of Springboro, the City grants
tax abatement for 15 years. This abatement is applicable only to the
assessed value of the improvements placed on the land. When tax abatement
is granted, it is applicable only to the improvements placed on the
land. This tax is applicable only to the assessed value of the land.
The improvements, such as your building, are not assessed. In Ohio,
land is assessed at 35% of actual value.
Example: A $100,000 parcel of land is assessed at $35,000, to which the tax rate is applicable.
The current rate per $1,000 of assessed value of real estate in the City of Springboro is:
Clearcreek Township Portion = $49.28
Franklin Township Portion = $40.80
Miami Township Portion = $58.90
Example:
Assuming you erect a new building at a cost of $1,000,000 you will save
$14,700.00 per year for the next 15 years which equates to $220,500.
Cost of Building = $1,000,000
35% of assessed value = $ 350,000 x $42.00 per $1,000 = $ 14,700 PER
YEAR SAVINGS
In other words, for the next 15 years you will pay real estate taxes on the assessed value of the land only, and will not be charged tax for the assessed value of the building or buildings you place on the land.
PERSONAL PROPERTY OR TANGIBLE TAX
This is assessed at 25% of the true value (similar to net book
value). Example: If you have $100,000 of inventory and equipment, it
is assessed at $25,000 x the applicable rate of $69.62 per $1,000 =
$1,740.50 per year. The rate in the Franklin School District is $67.98.
The rate in the Springboro School District is $69.62. The rate in the
Miamisburg School District is $66.67.
CORPORATE FRANCHISE TAX
The tax is the greater of .596% of net worth, or 5.21 % of
the first $50,000 of the net profit, plus 9.12% on the excess over $50,000.
Section 5733.09(B) of the Ohio Revised Code exempts "S" corporations
from the franchise tax. However, the shareholders will pay personal
state income tax on their share of the company's profits.
PERSONAL STATE INCOME TAX
Applicable to earnings of employees. The tax is based on the
amount reported as Federal Adjusted Gross Income to the U.S. Internal
Revenue Service.
(This tax is not applicable to "C" corporations.)
STATE AND COUNTY RETAIL SALES TAX
The State and County retail sales tax is 6.0% in the Warren
County portion of the City of Springboro and 6.5% in the Montgomery
County portion of the City.
