State Tax Reform

Reduce operating costs with the lowest taxes in the Midwest.

Making a commitment to eliminate a burdensome tax system, in 2005 Ohio implemented full-scale, sweeping tax reform. Ohio's new business tax model means a reduction in tax burden of up to 63% by 2010, the first year the reforms are fully implemented.

Ohio's new taxation system means businesses can:

Reduce operating costs - No tax on inventory or corporate income
Enhance productivity - No tax on investments in machinery and equipment
Attract talent - Shrink labor costs through a 21% reduction in personal income tax
Enjoy a level playing field - All companies taxed at the same low rate
Boost return on investment - No tax on product sold to customers outside Ohio
Reward entrepreneurship - First $1 million in gross receipts are tax-free

With these reforms, Ohio and communities like Wapakoneta will become even more competitive. Ohio's favorable business climate and high quality of living, combined with low business and personal costs, make us an increasingly viable location for business growth.

Chart regarding effective rates on new capital investment (include that as graphic)

Learn more about Ohio's aggressive tax reforms

Learn more about how to reduce operating cost with the lowest taxes in the Midwest

An Ernst & Young analysis of key manufacturing and service industries in these Midwestern states -- Illinois, Indiana, Michigan, Minnesota, and Wisconsin -- found that:

Ohio's effective tax rate on new capital investment by manufacturing industries will be 40% lower than the five-state average.
Ohio's effective tax rate on selected service industries will be 29% lower than the five-state average.
For all industries studied, Ohio's effective state and local tax rate is 37% lower than the five-state average.

Compare Ohio with other US states regarding your potential operating costs

State Tax Rates

Ohio is executing tax reform that is substantially lowering the cost of doing business - with the lowest taxes in the Midwest by 2010.

STATE TAXES

Corporate Income Tax - None

Corporate Franchise Tax - Currently 5.1% on the first $150,000 of net income and 8.5% on net income exceeding $150,000. This tax will be completely phased out by 2010 and replaced with the Commercial Activities Tax

Gross Receipts Tax - The Commercial Activities Tax (CAT) is 0.26% on sales within the State of Ohio. Sales outside of Ohio are exempt. The first $1 million in eligible sales are exempt from the CAT. This tax is being phased in through 2010 to replace the Corporate Franchise Tax.

Personal Income Tax - Nine bracket system with a bottom bracket of .0587% for income under $5,000 and a top bracket of 5.925% for income over $250,000. This reflects a 21% reduction through 2009.

Sales and Use Tax - 5.50% on taxable purchases

Sales and Use Tax on Production Machinery & Equipment - Exempt

Learn more about Ohio tax rates

Local Taxes

Wapakoneta and Auglaize County, Ohio have some of the lowest tax rates in the U.S. They help our local businesses reduce their operating cost and increase profitability.

Total tax rates for business operations in the City of Wapakoneta, Ohio

Sales and Use Tax - 7.0% (state and county)
Income Tax - 1.75% (city and school district)
Real Estate Tax - $39.44 per $1000 of tax value with 35% assessment (city, county, school & township)
Personal Property Tax - $46.40 per $1000 of tax value with 12.5% assessment (city, county, school & township) [The personal property tax assessment will reduce to 6.25% in 2008. Tax will be completely phased out in 2009]

Auglaize County Taxes

Sales and Use Tax - 1.5% on taxable purchases

Personal Income Tax - None

Real Estate Tax - $10.23 per $1000 of tax value with assessment at 35%

Personal Property Tax - Currently $11.25 per $1000 of tax value on existing machinery and equipment. Assessment rate reduces to 6.25% in 2008. Tax will be phased out completely in 2009.

Learn more about Auglaize County tax rates

City of Wapakoneta Taxes

Sales and Use Tax - None

Personal Income Tax - 1.0% for residents and individuals working in Wapakoneta

Real Estate Tax - $3.25 per $1000 of tax value with assessment at 35%

Personal Property Tax - $3.75 per $1000 of tax value with assessment at 12.5%. Assessment rate reduces to 6.25% in 2008. Tax will be phased out completely in 2009

Learn more about City of Wapakoneta tax rates

Wapakoneta City School District Taxes

Personal Income Tax - 0.75%, applies to school district residents only

Real Estate Tax - $25.39 per $1000 of tax value with assessment at 35%

Personal Property Tax - $31.20 per $1000 of tax value with assessment at 12.5%. Assessment rate reduces to 6.25% in 2008. Tax will be phased out completely in 2009.

Township Tax Rates