Business 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.
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 - Springboro SD Portion = $53.77
- Clearcreek Township - Franklin SD Portion = $48.54
- Miami Township Portion - Miamisburg SD Portion = $58.90
Assuming you erect a new building in Springboro within the City that resides in the Franklin SD at a cost of $1,000,000 you will save $16,989 per year for the next 15 years which equates to $254,835.
Cost of Building = $1,000,000
35% of assessed value = $350,000 times $48.54 per $1,000 = $16,989 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 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 & County Retail Sales Tax
The State and County retail sales tax is 6.75% in the Warren County portion of the City of Springboro and 7.0% in the Montgomery County portion of the City.