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Council updates municipal income-tax code to align with Ohio law
Summary
The council unanimously adopted amendments to the city's income-tax ordinance to align local code with changes in the Ohio Revised Code, including a new method for apportioning net profits, a change in filing-extension months and a lower cap on late fees.
WORCESTER — The Worcester City Council on April 7 adopted Ordinance 2025-06 to revise the city’s income-tax code so it corresponds with the Ohio Revised Code.
Councilmembers said the changes are primarily administrative and will reduce local compliance burdens for businesses. City staff described three substantive adjustments: allowing businesses to use a reporting-location method to apportion net profits (reducing the administrative burden of apportioning by payroll/sales/property in some cases), extending the filing period for business returns when an extension is filed (from six to seven months), and lowering the statutory cap on late fees (from $1.50 to $0.25 on the line mentioned during discussion).
A city official noted that no local taxpayers in Worcester had yet adopted the new reporting-location apportionment method. Councilmembers moved to suspend rules and adopt the ordinance in the same meeting; the measure passed on a unanimous roll call.
Why it matters
Aligning local tax rules with the state code simplifies compliance for businesses that operate in multiple jurisdictions and can reduce administrative recordkeeping for the city’s tax office.
What’s next
The city will implement the code changes administratively. The finance/tax office will provide guidance to local businesses and taxpayers on the new apportionment option and filing timelines.
