Effective January 1, 2017, (Ordinance No. 2016-078) resident taxpayers of the City of Lebanon, Ohio shall receive one half percent (1/2%) credit for income tax paid to another municipality from the current one percent (1%) income tax due the City of Lebanon. In no event shall the amount of the credit exceed one-half percent (1/2%)of the income subject to taxation as herein provided and applicable to the allocation of funds as per Section 152.013 of the Codified Ordinances of the City of Lebanon.
Example: Wages of $10,000, tax paid (see W2)$210.00 paid to the City of Cincinnati (tax rate 2.1%) = $50.00 Lebanon credit.
Declaration of Estimated Taxes
A declaration must be filed by all individual and business entities who can reasonably expect to owe Lebanon Income Tax at year end. The declaration and first quarterly payment are due April 15 (or four months after the start of the fiscal year). The remaining quarterly payments are due July 15, October 15, and January 15 for calendar-year taxpayers.
Interest & Penalties
Taxpayers failing to pay the full amount of tax due shall incur a penalty of the higher of (a) $5, or (b) 1% per month and .5% interest of the unpaid tax. Penalty and interest occur monthly to the unpaid tax balance.
Each employer within or doing business within Lebanon shall deduct, at the time of the payment of salaries, wages, commissions, or other compensation, the tax of 1% on the gross amount due by the employer. All taxes withheld are to be filed and paid to the Lebanon Tax Office.
Withholding payments are due on the 15th of the month following the close of each preceding month or quarter. Annual withholding reconciliation's are due from each employer filing withholdings on or before April 15 of each year, along with copies of the W-2's or a report listing all the information contained in the W-2.
If you have any questions or need assistance with your City taxes, please contact the Lebanon Tax Office at (513) 228-3123.