Newark, OH Local Taxes & Fees: Business Tax Classification (2026)
Key Facts
- Tax rate
- One and three-fourths percent per year from 2002
- Rate structure
- Uniform rate on municipal taxable income
- Business base
- Net profit, apportioned to Newark
- Carve-out
- Utilities filing under R.C. Chapter 5745
- Annual return
- Required whether or not tax is due
- Interest rate
- Federal short-term rate plus five percent
Summary
In the City of Newark, Ohio, income is taxed at a uniform rate of one and three-fourths percent per year, with no rate tiers by industry. Taxpayers that are not individuals owe tax on net profit apportioned to Newark, and electric, combined and telephone companies under R.C. Chapter 5745 are carved out.
(b) The tax is an annual tax levied on the income of every person residing in or earning or receiving income in the municipal corporation, and shall be measured by municipal taxable income. The municipality shall tax income at a uniform rate. ... Municipal taxable income for a taxpayer who is not an individual for the municipality is calculated as follows: (a) Income reduced by exempt income to the extent otherwise included in income, multiplied by apportionment, further reduced by any pre-2017 net operating loss carry forward equals municipal taxable income. (1) "Income" for a taxpayer that is not an individual means the net profit of the taxpayer. ... This section applies to any taxpayer engaged in a business or profession in the municipality unless the taxpayer is an individual who resides in the municipality or the taxpayer is an electric company, combined company, or telephone company that is subject to and required to file reports under R.C. Chapter 5745.
Full Breakdown
Chapter 890 of the Newark Code of Ordinances, re-enacted as Ord. 23-60 on 1-2-24, levies the City's tax on income under Article XVIII, Section 3 of the Ohio Constitution and deems itself consistent with R.C. Chapter 718. Section 890.011(b) calls it an annual tax levied on the income of every person residing in or earning or receiving income in the municipal corporation, measured by municipal taxable income, with the municipality taxing income at a uniform rate.
That uniform rate is set in Section 890.012(b)(1): one percent per year from July 1, 1967, one and one-fourth percent from April 1, 1975, and one and three-fourths percent on and after January 1, 2002. Section 890.012(b)(2) applies one and three-fourths percent from January 1, 2006 to the separate tax for a JEDD or JEDZ. Newark does not set one rate for retail, another for manufacturing and another for services.
The classification that matters in Chapter 890 is the taxpayer's type. Individuals have municipal taxable income worked out under Section 890.041. For a taxpayer that is not an individual, Section 890.061 starts with the net profit of the taxpayer, reduces it by exempt income, multiplies by apportionment and then subtracts any pre-2017 net operating loss carry forward. Section 890.062 applies to any taxpayer engaged in a business or profession in Newark except a resident individual and electric, combined or telephone companies required to file reports under R.C. Chapter 5745. Net profit from a business or profession conducted both inside and outside Newark is taxed in the same proportion as the average ratio of the factors listed in that section, starting with the average original cost of real and tangible personal property owned or used in Newark.
Under Section 890.091(a)(1), every taxpayer subject to the tax files an annual return whether or not income tax is due. The Tax Administrator holds the powers in Section 890.13, and appeals go to the Local Board of Tax Review under Section 890.18.
Violations & Fines
Section 890.10 governs penalty, interest, fees and charges for unpaid income tax, unpaid estimated tax and unpaid withholding tax. It defines the interest rate as the federal short-term rate, rounded to the nearest whole number percent, plus five percent, applied for the calendar year after the July the rate is determined. Section 890.15 addresses fraud, and Section 890.11 provides for audit by the Tax Administrator.
Frequently Asked Questions
What is the business income tax rate in Newark, Ohio?
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Sources & Official References
Other rules in Newark
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