14.12 Sources of Revenue

Counties in Ohio get their money from several main sources. The biggest source is property taxes, which are taxes paid by people who own homes, land, or businesses. Counties also collect sales taxes, which are added to the price of things we buy. Another important source of money comes from the state and federal government in the form of grants and shared revenues.

Cities, villages, and townships in Ohio share several common revenue sources. One of the main sources is property taxes, which are collected from property owners. They also receive funds from the state and federal government through grants and shared revenues. Fees for services, like water, sewer, and waste management, provide another important source of money.

Additionally, these local governments collect fees for various licenses and permits, such as building permits and business licenses. Fines from traffic violations and other infractions add to their revenue. Special assessments, which are charges for local improvements like sidewalk repairs, are another shared source. Lastly, they earn interest from investing their funds.

Some local governments have the authority to levy income and sales taxes, while others do not. Cities often have the power to impose an income tax on individuals who live or work within the city limits, as well as on businesses operating there. This income tax can be a significant source of revenue for cities. Some villages also have the authority to levy an income tax, though it is less common. However, townships do not have the power to impose an income tax and rely more heavily on property taxes and other sources of revenue. Regarding sales taxes, cities, villages, and townships typically do not levy their own sales taxes but may receive a share of sales tax revenues collected by the county or state. Counties, on the other hand, can impose a local sales tax in addition to the state sales tax, providing them with an additional revenue stream. This distinction in taxing authority creates differences in how local governments generate and manage their revenue.

Public utilities, such as water, sewer, and electricity services, are sources of revenue for some local governments. In Ohio, cities and some villages often own and operate these utilities, allowing them to charge user fees to residents and businesses. These fees generate substantial income that helps fund the maintenance and operation of the utility systems.

Municipal courts are important sources of revenue for certain local governments. Cities in Ohio that have their own municipal courts can collect fines, fees, and court costs from cases involving local ordinance violations, traffic tickets, misdemeanors, and small civil disputes. This revenue helps fund the operations of the courts and other city services. Villages and townships usually rely on county or shared municipal courts for these functions, so they do not directly benefit from the revenue generated by court-related fees and fines. If municipal court revenue is inadequate to fund the court’s operations, it is the responsibility of the home city where the court is located to make up the deficit even though other communities may share the court.