Wednesday's tax tip Vol. 4 - School District Income taxes

Last week we went over the city income tax. Because of the way it's paid, many people can get it confused with the school district income tax.

The school district income tax has become popular in many rural districts where property taxes can be extremely high on elderly people. However, the tax is becoming more popular across the state, and, my prediction, will ultimately be how we end up funding schools in nearly all of Ohio.

The income tax is only for residents of the school district, not businesses or people working in the district. So if you are a resident of Goshen School District you are required to pay Goshen School income tax regardless of where you work, actually, even if you are retired.

Finally, many school districts mirror city incorporation limits so don't be confused if you live in my home town of Lancaster and have to pay city income tax and school district tax; two separate taxes funding two different entities.