Daily Court Reporter - News Report: Ohio ranks 16th in nation for paying highest state, local taxes
Report: Ohio ranks 16th in nation for paying highest state, local taxes
BRANDON KLEIN, Daily Reporter Staff Writer
Ohio has been among the top 20 states collecting the most in state and local individual income taxes per capita from the fiscal years 2013 to 2015.
Ohio ranked No. 16 with the state collecting $1,186 per person for in the fiscal year 2015, the latest available data, according to a new report from the Tax Foundation.
"On average, state and local governments collected $1,144 per person from individual income taxes, but collections varied widely from state to state," said Katherine Loughead, a policy analyst for the policy research organization.
Ohio moved up a spot from the fiscal year 2014 when the state and local governments combined collected $1,220 per person. But the state was ranked even higher at No. 12 for the fiscal year of 2013 when tax collections were $1,268.
The individual income tax was the single largest source of revenue for states, accounting for 36.5 percent of all state and local government revenue in 2013.
While it remains a significant revenue source, collections dropped to 22.9 percent it the following year, and down to 23.5 percent in 2015.
Property taxes accounted for 31.1 percent of state and local tax collections and general sales taxes accounted at the same percentage as individual income tax collections.
Jared Walkczak, a senior policy analyst for the Tax Foundation, noted that local governments in Ohio and five other states - Indiana, Kentucky, Maryland, New York, Ohio, and Pennsylvania - generated more than 10 percent of their revenue from individual income taxation, along with the District of Columbia.
In the Midwest, Minnesota had the highest per capita collections at $1,900 per person in 2015, followed by Illinois at $1,237 per person and Wisconsin at $1,225 per person. Michigan ranked No. 30th overall at $938 per person, while North Dakota and Kansas had the lowest tax collections per capita in the region at $709 and $778, respectively, per person. South Dakota, like six other states, does not have an income tax.
New York has carried the honor of having the highest state and local government tax collections per capita from 2013 to 2015.
The state's individual income tax collections were $2,789 per person compared with $2,699 per person for the fiscal year 2014 and $2,550 per person in 2013.
Connecticut and Maryland has also been consistent for having the second and third highest state and local government tax collections per capita during the same period. Connecticut collected $2,279 per person in 2015 compared with $2,172 in 2013, while Maryland collected $2,200 per person in 2015 compared with $2,061 in 2013.
Additionally, of the states that tax wage income, Arizona has the lowest per capita collections at $551 per person, followed by Mississippi ($596) and Louisiana ($639).
Tennessee and New Hampshire tax dividend and interest income instead of wage income. They collected $46 and $72, respectively, per person.
Date Published: June 21, 2018