Payroll Tax News

Looking to learn a new aspect of payroll or wanting details on Symmetry Software product updates? Whatever you're looking for, you can find the answer here. 



JEDDs vs. JEDZ

by User Not Found | Feb 22, 2018
Both districts exist only in Ohio.

Ohio is one of the most complicated states when it comes to taxes. There are state taxes, municipality taxes, school district taxes, and more. Local governments in Ohio reduce costs and increase efficiencies through shared services - which create a unique income tax. Two such examples are Joint Economic Development Districts (JEDDs) and Joint Economic Development Zones (JEDZs). 

JEDDs

JEDDs create a partnership between municipalities and townships to develop township land for commercial and industrial revenue. Legislation passed in 1993 created the first JEDD. Close to 100 exist today. In this relationships, municipalities benefit from these taxes from that portion of land without having to annex any. Townships acquire prime development areas and collect property taxes and partial income taxes. 

JEDZ

Similar to a JEDD, this Zone is an alliance between local government and a township. A major recent example is Springfield Township’s Zone. In 2011, Springfield faced financial devastation after the Ohio State Legislature eliminated a majority of the township’s state funding. The legislation eliminated its estate tax, tangible personal property tax, and public utility tax. 

The Zone imposes a tax on the payroll and net profits of all businesses located in the zone. This includes the employer and employees working in the Zone. The residents who do not work in a Zone are not taxed in accordance to the JEDZ. Revenue generated in the Zone continues current services and implements new initiatives for the improvement of the township. 

JEDDs and JEDZ have a board of directors that work with a corresponding tax commissioner to create a map and contract. Maps include the areas included in each JEDD or JEDZ with specific boundaries and parcel numbers of any parcel located in the JEDD or JEDZ. The board also notifies tax commissioners which municipal corporation is charged with administering, collecting, and enforcing the taxes. Confused? Our local tax identifier returns JEDD and JEDZ taxes.