REGIONAL INCOME TAX AGENCY (RITA)
The City of North Olmsted utilizes RITA for local income tax billing and collection
A. How to pay your local income tax:
1. Residents of North Olmsted 18 years of age or older are taxed 2% of their gross earned income.
• This tax should be deducted through the taxpayer's pay if employer is in North Olmsted.
• If employer is in another city, the taxpayer receives 100% credit for any payroll deduction taken for that work city.
The taxpayer owes North Olmsted any difference if a lower than 2% deduction is taken.
2. Estimated tax payments are due to RITA by JANUARY 15th for the preceding tax year.
• An estimate, based on prior year earnings, should be established through RITA and paid on a quarterly basis(with the 4th quarter paid by January 15th).
B. How to file your local income tax:
Option 1 – Taxpayer Completes the Filing Required
1. Form 37 is to be completed and sent to RITA by April 15th. Forms are mailed to taxpayers with established estimates and can also be obtained from RITA's website.
2. Any tax due and owing (in addition to estimates paid by January 15th) is to be paid with the filing.
Option 2 – RITA Completes Taxpayer's Filing Requirement
1. Send your W-2s and any other earnings documentation to RITA by March 31st.
2. RITA will calculate your tax.
3. RITA will then bill you for the balance due and it must be paid by the due date given.
C. Penalties will be charged when the following occurs:
1. Estimated tax is not paid by January 15th.
2. Tax balance due is not paid by April 30th if taxpayer completes filing.
3. Tax balance due is not paid by RITA billing deadline if RITA completes filing.
4. Estimated tax paid is less than 90% of total tax due.
5. Tax filing is submitted late.
Penalty amounts begin at $25 for the first offense, $50 for the second offense and $100 thereafter per City Ordinance No. 2002-181.
Interest is also incurred from date due. There is also a $25 fee for filing late.