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1 Joseph Henchman & Jason Sapia, Local Income Taxes: City- and County-Level Income and Wage Taxes Continue to Wane 1 (2011)

handle is hein.taxfoundation/ffciaxz0001 and id is 1 raw text is: August31, 2011 No. 280 Local Income Taxes: City- and County-Level Income and Wage Taxes Continue to Wane By Joseph Henchman and Jason Sapia Introduction Most U.S. cities and counties do not impose a local income tax, but they are imposed by 4,943 jurisdictions in 17 states, encompassing over 23 million Americans. Varying from minute amounts in several states to an average 1.55 percent in Maryland (see Table 1), these taxes provide a long-standing and significant source of revenue to many cities in Rust Belt states in the northeastern United States. All counties in Indiana and Maryland impose a local income tax (see Table 2). In Ohio, 593 municipalities and 181 school districts have such a tax. 2,469 municipalities and 469 school districts in Pennsylvania impose local income or wage taxes. Many cities and school districts in Iowa and Michigan also have these taxes. Table 1: Local Income Tax Collections as a Percent of State Personal Income, 2008 State Alabama .................................................................. .................................................................. .................................................................. .................................................................. .... ....................... ...... ........................ ....... ........................ ... ....................... ... ...................... .................. ................... .................. ................ . .. . ..... ...... .................................................................. .................................................................. .................................................................. .................................................................. .................................................................. .................................................................. .................................................................. Colorado .................................................................. .................................................................. .................................................................. .................................................................. ........................... ... ............................ .... .................................. ................................... .................................. ................................... ...................... ...................... ...................... ...................... ....... ...... ..... . .. .. .. .................................................................. .................................................................. .................................................................. .................................................................. .................................................................. .................................................................. .................................................................. Indiana .................................................................. .................................................................. .................................................................. . . ........................ . . . . . . ....... .... ......................................... ... ......................................... .................................................................. .................................................................. .................................................................. .................................................................. .................................................................. .................................................................. .................................................................. Kansas .................................................................. .................................................................. .................................................................. .................................................................. ............ *.*.*.*.*.*.*.***....* *** :*******************, .... . ......... ......... .. ................... ..... ... .................... .... ......................... ..................... .. ......................... .................... .......... ...................... *******'****.*.*.*.*.*.*.*.*.*.* ............ ... .................... ...................... . ..... ... . .. .......... ........................................ ..................... . .......... .................... ......................................... .................... ........................................ ..................... ......................................... .................... .................................................................. ................................ Maryland .................................................................. .................................................................. .................................................................. .................................................................. ............................... ..................... .... . . ....... .... . . . ...................... .... . . . . ..................... .... ... . ...................... . ....................... .... ..................... ... ................................. ............................... .... ................................ ..... . ................................. .................................................................. Missouri .................................................................. .................................................................. .................................................................. .................................................................. .................................................................. .... .............. .................................... .............. ................................... .............. ............ .............. ................ .............. .............. ................ .............. ............. .... .............. ............. .... .............. .......................... ................ .............. .................................................................. .................................................................. New York .................................................................. .................................................................. .................................................................. .................................................................. ........................................... .......................... ....................................... .... . ....................................... .... . ........................................ ....................................... ..... 0 . . ........................................ .................................................................. .................................................................. .................................................................. .................................................................. .................................................................. .................................................................. .................................................................. Oregon .................................................................. .................................................................. .................................................................. .............................. .............................. ... ..... . .... .................... ...................................... .......................... ................................ ..... ................... ............................... .......................... ................................ .......................... ............................... .......................... ................................ .................................................................. West Virginia Average Local Income Taxes as a Percent of Total Income 0.070% ................................................................................................................................................ ................................................................................................................................................ ................................................................................................................................................ ................................................................................................................................................ .............................................................................................................................. .............................................................................................................................. .............................................................................................................................. ...... .............................................................................................................................. .............................................................................................................................. .............................................................................................................................. ............................................................................................................................... . . . ...... ............................... . - : ..... ................................................................................................................................ .. . ...... .............................................................................................................. . ..... ............................................................................................................................... . . ...... ................................................................................................................................ . . ...... ................................................................................................................................ I . . ...... ................................................................ ...... ................................................................. ... ...... ................................................................................................................................................ ................................................................................................................................................ ................................................................................................................................................ ................................................................................................................................................ (a) ................................................................................................................................................ ................................................................................................................................................ ................................................................................................................................................ ................................................................................................................................................ ............................................................................................... * .......................... .............................................................................................. ................................................................................................. .... .. . .... .......................................................................................... ................................................................................................... ......................................................................................................... .. ......................................................................................................... .. ..... ......................................................................................................... .. ..... ........................................................................................................................................ .. ...... .. ... . .............................................................. .............................................................................................................................. ............... ................................................................................................................................................ ................................................................................................................................................ ................................................................................................................................................ ................................................................................................................................................ ................................................................................................................................................ ................................................................................................................................................ 0.245% ................................................................................................................................................ ................................................................................................................................................ ................................................................................................................................................ ................................................................................................................................................ ................................................................................................................................................ .............................................................................................. .......................................................................................... ............................................................... .............................................................................. ... ..... .............. .... . ....... . . .. / .................................................................................. ..... ................................................................................................................................................ ................................................................................................................................................ ................................................................................................................................................ ................................................................................................................................................ ................................................................................................................................................ ................................................................................................................................................ (a) ................................................................................................................................................ ................................................................................................................................................ ................................................................................................................................................ ................................................................................................................................................ ................................................................................................................................................ ............................................................................................... .............................................................................................. ...... ............................................................................................... ..... .............................................................................................. ............................................................................................... .............................................................................................. ...... ................................................................................................ .... ............................................................... ........................... .......... .. .. ...... . ................................ . ................ ...... ............................................. ........................................... ..... ................................ .......................................................................................................... 0 .; .. .... . . . . ............... ................................................................................................................................................ ................................................................................................................................................ ................................................................................................................................................ ................................................................................................................................................ ................................................................................................................................................ ................................................................................................................................................ 1.547% ................................................................................................................................................ ................................................................................................................................................ ................................................................................................................................................ ................................................................................................................................................ ................................................................................................................................................ ............................................................................................... .............................................................................................. ............................................................................................... ... .................................................................................................... ..................................................................................................... .................................................................................................. ............................................................... ....... .. .......................................... . ..... ......................................................................................................... .. ..... ...... ................................ ......................................................... ..... ............................................. ..... ................................ ....... ................................................................................................................................................ ................................................................................................................................................ ................................................................................................................................................ ................................................................................................................................................ ................................................................................................................................................ ................................................................................................................................................ 0.161% ................................................................................................................................................ ................................................................................................................................................ ................................................................................................................................................ ................................................................................................................................................ .............................................................................................................................. .............................................................................................................................. .............................................................................................................................. ...... .............................................................................................................................. .............................................................................................................................. .............................................................................................................................. ............................................................................................................................... . . . ...... ............................... . - : ..... ................................................................................................................................ .. . ...... .............................................................................................................. . ..... ............................................................................................................................... . . ...... ................................................................................................................................ . . ...... ................................................................................................................................ I . . ...... ................................................................ ...... ................................................................. ... ...... ................................................................................................................................................ ................................................................................................................................................ ................................................................................................................................................ ................................................................................................................................................ 1.005% ................................................................................................................................................ ................................................................................................................................................ ................................................................................................................................................ ................................................................................................................................................ ................................................................................................................................ .............. ............................................................... .................................................................................. ............................................................................................. ............................................................................................. ...... ................................................................................................ ............................................................................................. .............................. 0 i ....... ....... ...... .. . .. . ..... ............................................................... ...... ............................................................................................. ................................. .............................. :0 6 ............................................................... ............................................................................................... .......................................................................................................... ................. ** ................ ................................................................................................................................................ ................................................................................................................................................ ................................................................................................................................................ ................................................................................................................................................ ................................................................................................................................................ Joseph Henchman is Vice President of State & Legal Projects at the Tax Foundation and Jason Sapia is an adjunct scholar at the Tax Foundation.