The 130th Ohio General Assembly passed Substitute House Bill 5 which changed the laws governing municipal income taxes. The changes are effective January 1, 2016 forward. For calendar year 2016, the changes will effect payments for estimated taxes and withholding remittance. Individuals who owe more than $200 per year, must pay quarterly. Businesses and withholding taxes owing more than $2,399 per year must pay monthly due by the 15th of the next month.
The City of Cambridge has a mandatory tax-filing requirement for all residents and businesses of the City. The tax rate is 2% effective January 1, 2010.
Mandatory Filing and Registration
The Cambridge Tax Ordinance has a Mandatory Registration Section that requires age 18 or older to register with the Cambridge Income Tax Office. Registration is easy.
To access our Registration Forms:
Individual registration questionnaire (here).
Business registration questionnaire (here).
Who must file an income tax return?
Mandatory filing for all Cambridge residents over 18, living in the city at any time during the year, (Individuals and businesses). Residents who are permanently disabled and whose sole income is derived from nontaxable income do not have to file a return but must register one time. All new residents must fill out a registration questionnaire form to determine your tax status. Failure to file will result in our considering your account delinquent.
When to file: Declarations of estimated income for the current year, plus the annual return for the preceding taxable year are due by April 15th of each year. Due dates for fiscal year taxpayers will be 120 days from the date of the year-end. Late payments will be assessed a 15% of the amount not paid timely. Returns filed or postmarked after April 15th, or 120 days after year-end, with no tax due will have a $ 25.00 per month up to $150 late filing fee assessed.
Residents of the City of Cambridge, who receive taxable income for work done or services performed or rendered from all sources of income received inside and outside the city.
Residents having rental property located in or outside of the City of Cambridge. The tax is figured on the net income as reported on the Federal tax return.
Non-residents of the City of Cambridge who receive salaries, wages, commissions and other income received for work done or services performed or rendered within the City of Cambridge whose employer did not withhold the Cambridge tax.
Non-residents owning rental property situated within the City of Cambridge. The tax is figured on the net income as reported on the Federal tax return.
W-2 wage cannot be permitted to offset losses derived from business or rentals. However, business or rental losses can offset one another.
Credit is allowed to Cambridge residents for the income tax paid to another municipality, limited to the amount of tax up to 2%. (Credit cannot to exceed current Cambridge tax rate)
Non-resident employers (contractors, etc.) doing business within the City of Cambridge are required to withhold from all salaries, wages, commissions or other compensation the tax of 2% on the gross amount earned in the City of Cambridge.
Employers, resident or non-resident, required to deduct and withhold the tax at the source are liable directly to the municipality for payment of such tax, whether actually collected from its employees or not.
According to State of Ohio House Bill 5 payment of tax withheld from employees to the City are due according to the schedule of deadlines. Please see (Schedule of deadlines).
The annual reconciliation and W2's and 1099's are due by February 28th.
Extensions of time – Federal extensions of time to file annual returns are allowed. Please send copy to Cambridge Office by April 15.
Where to file –
City of Cambridge
Income Tax Department
828 Wheeling Avenue
Cambridge, Ohio 43725
Online -- www.cambridgeoh.org
City Government/Treasurer/Income tax
Online filers must send in supporting
documents- ex. W-2's, 1099.
Make checks payable to: The City of Cambridge
All (tax forms) are available.