City of Fairfield, Ohio
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City of Fairfield, Ohio
City of Fairfield offices will be closed for Thanksgiving Holiday on Thursday, November 27 and Friday, November 28

FAQ - Finance and Income Tax

Answers to common questions concerning bills, taxes and other Finance Department issues:

How is my utility bill calculated?
Water and sewer charges are based on the amount of water consumed each month. The sewer rate is a flat rate of $4.35 per 1,000 gallons of water used. The water rate is based on a combination of a minimum charge (which is assessed according to meter size) plus a charge for additional water used. Click here for a more detailed explanation.

How can I get a copy of the city's comprehensive annual financial report?
You may download the comprehensive annual financial report here. Copies of the report are also available at no charge to interested parties. To obtain a copy, contact the Finance Department by calling 513-867-5315 or via e-mail at finance@fairfield-city.org.

Does the city collect the personal property taxes paid by businesses located in Fairfield?
The Butler County Auditor, as an agent for the Ohio Department of Taxation, is responsible for administering the tangible personal property tax laws. Anyone in business in Ohio is subject to tangible personal property tax on equipment, furniture, fixtures and inventory used in business. The tangible personal property tax is distributed back to the local taxing districts in the same manner as real estate taxes.

Does the city's Finance Department play a role in collecting estate taxes?
The Butler County Auditor acts as an agent for the tax commissioner of Ohio and is responsible for auditing the lock boxes of decedents who resided in their county. The monies collected from this source are distributed by laws: 36 percent to the State of Ohio and 64 percent to the taxing district in which the decedent has resided or owned property.

Where are you located?
The City of Fairfield Income Tax Division is located at 701 Wessel Drive in the Municipal Building Annex, which is located behind the Fairfield Municipal Building. You may park in the lot adjacent to Veteran's Park.

When are you open?
The Income Tax Division is open from 8 a.m. to 5 p.m. Monday through Friday, except on holidays.

What is your tax rate?
The City of Fairfield's tax rate is one and one-half percent (1.5%).

How soon can I expect my refund?
Refunds have to be issued within 90 days of receipt of completed return with all the necessary documents attached. A refund request is not considered complete and will not be processed unless it has all the supporting documents attached.

My company will not withhold Fairfield taxes. What can I do?
If your company is located in a township or even a lower taxing district, you can ask your employer to withhold the difference; however, they are not required to by law. If they do not withhold for Fairfield, you will need to make estimated tax payments to Fairfield. Estimated payments are based on 100% of last year's tax liability or 90% of current year's tax liability. Either the 100% of last year's or 90% of current year's tax liability must be paid by January 31 to avoid a penalty of $50. Quarterly payments are due on April 30, July 31, October 31 and January 31. Quarterly statements are available at our Tax Form Center or you can contact the income tax office.

If I have W-2 income and a schedule, can I use a schedule loss against my W-2?
Schedule losses cannot offset W-2 income. Losses can be used to offset profits for up to three years. The losses expire after three years if they are fully or partially unused.

Does Fairfield have a school district tax?
The City of Fairfield does NOT have a school district tax. Our district number is 0902. There is a Fairfield Union School District in Fairfield County, district number 2304, which has a tax of .75%. If you see 2304 in your local city box, contact your employer to have them stop withholding. You will need to contact the State of Ohio Tax Department at 1-800-282-1782 to request a refund form.

I have rental property, do I need to file on the property with Fairfield?
You would need to file with the City of Fairfield if the property is located in Fairfield or in a non-taxing district such as a township. It would be 1.5% of the profits, or if there were a loss, the loss can be carried forward for up to three years.

Do I have to file under the same status as I do my federal and state returns?
You do not have to file under the same filing status as the federal and state. If you are married, we ask you file jointly with Fairfield, regardless if you filed married filing separately for the federal and state returns. Persons living together but not married cannot legally file a joint return.

I have business expenses, can I claim them?
You can claim 2106 expenses against your W-2 income. However, if the wages were earned in another city, and taxes were withheld for that city, you would need to go back to that city and get a refund. If the other city's rate is less than our rate, you would be able to get a proportionate share of the expenses against the W-2 income. Please note, if you do get a refund from the other city, the credit claimed on your return for those taxes will be reduced and you will end up owing the balance to the City of Fairfield.

I have moved out of Fairfield, but keep getting letters and/or returns from you, what do I need to do?
This means your account with us is still active. We could be missing something as simple as a move out date, supporting documents, returns or your account has a balance due. You should contact the City of Fairfield income tax office and inquire why your account is still active.
The City of Fairfield Income Tax Division is located at 701 Wessel Drive in the Municipal Building Annex, which is located behind the Fairfield Municipal Building. You may park in the lot adjacent to Veteran's Park.

Do I need to file a return?
Consider these questions:

  1. Are you a resident of Fairfield?
  2. Are you over the age of 18?
  3. Are you retired or disabled and without any earned income?
  4. Are you over the age of 16 and working?
  5. Are you self-employed?
  6. Are you a business working in Fairfield?
  7. Are you a business located in Fairfield?

If you answered yes to question one and any of two through five, you need to file an individual return with the City of Fairfield. If you answered yes to question six or seven, you need to file a Fairfield business return. If you are not sure if you are a Fairfield resident, use the State of Ohio's Tax Finder to look up your address and find municipalities and income tax rates.

How do I get a return?
Forms are mailed out in January of each year to all residents and businesses on file as of the preceding December. If you do not receive one, you can contact our office or download business or individual tax forms. During tax season (January through April) forms are also available at the Fairfield Lane Library.

What needs to be included with my return?
All W-2s or supporting schedules, such as Schedule C, E, K-1 from a partnership, or Form 2106 need to be attached. If something is missing, the Income Tax Division will send out a letter requesting the information to complete the return. The return will not be considered filed until the missing information is received.

What if I have a question on my property taxes?
Property taxes are handled by the Butler County Auditor's office. The auditor's office can be reached at 513-887-3181.

How do I handle credit for taxes paid to other cities?
The City of Fairfield allows credit for taxes paid up to its rate of 1.5%. If you paid taxes to another city were the rate is lower, you can claim full credit. However, if you paid taxes to another city and the rate is higher than 1.5%, the credit needs to be capped at Fairfield's rate. Take the taxes paid to the other city and divide it by their tax rate of to get to the wages that were taxed, and then multiply those wages by Fairfield's 1.5% rate. Each W-2 must be figured separately as credits for taxes paid to other cities on one W-2 cannot offset each other.

For example: You worked in Hamilton and Blue Ash. In Hamilton, your wages were $20,000 and taxes paid to Hamilton $400. In Blue Ash, your wages were $15,000 and taxes paid to Blue Ash were $180.

The calculation would be as follows:
Hamilton W-2: $400/2.0% = $20,000 x 1.5% = $300
Blue Ash W-2: $180
Total credit for taxes paid: $480
Total taxes owed to Fairfield: $35,000 x 1.5% = $525
Balance owed: $525 - $480 = $45

This balance is due to Blue Ash's rate (1.2%) being lower than Fairfield's rate (1.5%). You cannot offset the credits by using all of Hamilton's credit with all of Blue Ash's credit. The money remains in the community in which you paid it; therefore, the City of Fairfield cannot allow credit above its rate.

My company will not withhold Fairfield taxes. What can I do?
If your company is located in a township or even a lower taxing district, you can ask your employer to withhold the difference; however, they are not required to by law. If they do not withhold for Fairfield, you will need to make estimated tax payments to Fairfield. Estimated payments are based on 100% of last year's tax liability or 90% of current year's tax liability. Either the 100% of last year's or 90% of current year's tax liability must be paid by January 31 to avoid a penalty of $50. Quarterly payments are due on April 30, July 31, October 31 and January 31. Quarterly statements are available at our Tax Form Center or you can contact the income tax office.

If I have W-2 income and a schedule, can I use a schedule loss against my W-2? Schedule losses cannot offset W-2 income. Losses can be used to offset profits for up to three years. The losses expire after three years if they are fully or partially unused.

Do I have to file under the same status as I do my federal and state returns?
You do not have to file under the same filing status as the federal and state. If you are married, we ask you file jointly with Fairfield, regardless if you filed married filing separately for the federal and state returns. Persons living together but not married cannot legally file a joint return.

 I have business expenses, can I claim them?
You can claim 2106 expenses against your W-2 income. However, if the wages were earned in another city, and taxes were withheld for that city, you would need to go back to that city and get a refund. If the other city's rate is less than our rate, you would be able to get a proportionate share of the expenses against the W-2 income. Please note, if you do get a refund from the other city, the credit claimed on your return for those taxes will be reduced and you will end up owing the balance to the City of Fairfield.

Finance
City of Fairfield
5350 Pleasant Ave.
Fairfield, OH 45014
(513) 867-5315 (phone)
(513) 867-5329 (fax)
finance@fairfield-city.org