Business Tax FAQ
Section 1 – THE BASICS
1. My business is new to the city/area, what is RITA? I received correspondence from them in the mail; is this a legitimate organization asking for my personal information? How can I be sure?
Yes, RITA is an acronym for Regional Income Tax Agency, which was established in 1971 as a quasi-governmental service agency that contracts with over 300 Ohio municipalities to administer, audit and collect local income taxes, including the City of Grandview Heights (GVH) for over 20 years. They have a customer service portal at www.ritaohio.com with basic information, FAQ’s, forms, and e-filing information. RITA is the organization to which all tax payments are remitted for both individuals and business accounts, they have offices in Worthington (760 Lakeview Plaza Blvd Ste 400, Worthington, OH 43085) and northeastern Ohio. RITA distributes the money collected, back to the cities. If you wish to contact RITA, their phone number is 1-800-860-7482.
2. What income tax obligations does my business have to GVH for doing business in the city?
There are two main types of local income taxes when doing business in Ohio: withholding tax and net profit tax. Withholding tax is a tax on wages earned by an organization’s employees. Net profit tax is a tax on the net profit of the organization. See below for additional details on these taxes. Doing business in GVH does not require an annual license or permit, unless the business activity falls within the City’s building code. All businesses are also encouraged to check with the Ohio Department of Taxation to determine if they are subject to Commercial Activity Tax, Sales Tax, etc.
3. Where do I file a GVH tax return?
All city tax returns must go through RITA www.ritaohio.com, and can be submitted via U.S. Mail or electronically on the RITA website. To register as a new business, we recommend completing RITA Form 48 to get your new account set-up prior to filing your initial return. For businesses filing on a calendar year (Jan-Dec) basis, April 15 is the typical due date.
4. What is the GVH tax rate?
The tax rate is 2.5%.
5. Is there a city representative I can talk to and/or meet locally to discuss my questions?
The GVH Finance Department tax team is located on the second floor in a secured area of the municipal building at 1016 Grandview Avenue available to provide you with personalized service via a scheduled appointment in person, by phone, or email. The tax team members are the only city employees with access to the RITA system and are able to view and in many cases work directly with RITA to bring your concern to resolution. They are able to view on-line the RITA correspondence sent to you, the responses of all parties to date, and the deadlines established. Tax team members treat everyone requesting assistance in a respectful, confidential and consistent manner, and as such deserve the same treatment in return. Our Tax Team contact information is: Joe Curtin at 614-439-7778 and firstname.lastname@example.org or Scott Gill at 614-481-6207 and email@example.com.
Section 2 - JUST THE FACTS
1. When is my withholding tax return due?
For quarterly filers, the due date is the last day of the month following the last day of the calendar quarter. The due date for monthly filers is the 15th day of the month after the last day of each month, and for semi-monthly filers the due date is 3 banking days following the 15th and last day of each month. To determine which withholding filing schedule your business falls under, please contact RITA @ 1-800-860-7482.
2. When is my net profit tax return due?
The annual net profit return is due on the 15th day of the 3rd month following the fiscal year-end. For legally extended returns, the due date would be 15th day of the 9th month following the fiscal year. It’s important to note that proper extensions only extend the filing process and not the payment of tax.
3. My business address is Columbus, Ohio 43212, or 43215; how do I know which taxing jurisdiction I am in, GVH or Columbus?
Please refer to the map here to identify if your business or activity is within the GVH taxing jurisdiction. All businesses that have “nexus” to GVH must file an annual net profit return. “Nexus” is described as activity that includes any or all of the following: sales, payroll, or property.
4. Under what circumstances do I need to make estimated payments?
You are required to make estimated quarterly payments if you anticipate your tax liability for the current year to reach $200. In order to be penalty-proof, you must pay in at least 90% of your current year tax, or 100% of the prior year liability. Due dates for estimated payments are the 15th day of the 4th, 6th, 9th, and 12th months of the fiscal year.
5. What if my business accidentally filed to Columbus?
Since GVH borders the City of Columbus, we oftentimes hear that some businesses have filed accidentally with Columbus. If so, the GVH Finance Department tax team is happy to help you get your account current. Both Columbus and GVH work together to help correct such errors and help taxpayers get refunds of taxes paid to the wrong jurisdiction, and get them on the right path. We will help you get the money you paid to another community re-directed properly to GVH. As long as you work diligently with us, and provided taxes were paid to another community, we will give due consideration to waiving or reducing any penalty or interest fees assessed.
6. I worked with RITA. and successfully resolved a tax matter with them, and asked if RITA would forgive the penalty and interest assessment based on my circumstances. RITA indicated they could not and I would have to contact the City and place my request with them. Is that correct? Why?
Yes, that is correct and by design. In the spirit of providing personalized service to our businesses, the City has chosen to have our local Finance Department tax team members serve as your contact point for these requests. As a much smaller organization, we feel that we can achieve greater consistency, and provide a prompt and fair evaluation of each individual case, which will be appreciated by our taxpayers.