Dear Ohio Employers: Here’s What to Know About the Ohio JEDD

How familiar are you with the Ohio JEDD, short for Joint Economic Development District? If you’re an employer in Ohio, read up on what JEDD is and how the arrangement could affect how you pay taxes.

What is the Ohio JEDD?

A Joint Economic Development District is an agreement between two parties: a township and a municipality (i.e., city or village) that share benefits and responsibilities of development projects. JEDDs impose a tax on the area, and profits go toward both the township and municipality. 

JEDD tax is a type of municipal tax separate from federal, state, city, and school district income taxes. The purpose of a JEDD is to cut costs, preserve jobs, increase efficiency, and promote development in the communities. JEDD agreements are unique to the state of Ohio.

The Ohio JEDD is an agreement between a township and municipality that imposes JEDD taxes on the area to promote development, cut costs, preserve jobs, and increase efficiency.

Both businesses and employees can be responsible for Joint Economic Development District tax. JEDD income tax is levied against:

  • Income of your employees who work in the area
  • Net profits of a business in the area 

What is a JEDZ?

At some point, you might come across JEDZ, which is a Joint Economic Development Zone. Whereas a JEDD is an agreement between a municipality and township, a JEDZ is a partnership between local government and a township.  

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How does a JEDD start out?

A JEDD starts with a contract that details the terms and conditions of the agreement. The contract includes city services; police, fire, and road services; zoning, land use, and planning issues; and tax agreements. Then, the contract lays out what property the JEDD governs.

Before a JEDD can be established, the majority of current business owners and landowners must agree to be included in the JEDD. 

Although there’s a standard process for creating a JEDD, all agreements are different. A JEDD agreement in one part of the state might be completely different from another, depending on resources and economic conditions of the particular city and township.

Under a JEDD agreement, there is a five-member board that must have at least one representative from:

  • The township
  • The municipality 
  • A business owner within the JEDD
  • An employee from a business within the JEDD

Ohio JEDD list

There are quite a few JEDD agreements in Ohio. Depending on your business’s location, you might need to pay JEDD/JEDZ tax.

If your location is on the following list, contact your local tax agency to see if you are required to pay the tax. Not all worksites are responsible for JEDD tax.

LocationTax Rate
Ashtabula Township1.8%
Austin Center2.25%
Bainbridge – Solon2%
Bath – Akron – Fairlawn2.5%
Beachwood East2%
Beachwood West2%
Berkshire Township1.85%
Boston Township / Peninsula2%
Brimfield – Kent1.25%
Brimfield – Tallmadge1.25%
Butler Township – Vandalia2%
Circleville Pickaway Township2%
Clay Township – City of Clayton1.5%
Copley – Akron2.5%
Coventry – Akron2.5%
Eaton NW Professional Business2.25%
Elyria Township – City of Elyria2.25%
Hamilton Indian Springs2%
Hamilton Fairfield Township2%
Harrison Township1%
Kent – Franklin2%
Liberty Township – Liberty Center1%
Liberty Township1.5%
Macedonia Northfield Center Township2.25%
Medina Montville1.25%
Dayton Mall2.25%
Union Township – Milford (1)1%
Union Township – Milford (2)1%
Union Township – Milford (3)1%
Union Township – Milford (4)1%
North Pickaway County2.5%
Orange Chagrin Highlands2%
Concord Township – Painesville1.75%
Pataskala Corporate Park1.75%
Prairie Township2.5%
Reminderville Twinsburg Township1.5%
Rush Township Uhrichsville2%
Saybrook Township – Depot RD1.8%
Scioto Township2%
Springfield Beckley Muni Airpark1%
Springfield – Akron2.5%
Walton Hills – Sagamore Hills Township2.5%
West Chester1%
Blendon Township2%
Butler Township1%
Clinton Grandview Heights2.5%
Columbia Township1%
Etna (North)1.75%
Etna (South)1.75%
Highland Hills2.5%
Holland Springfield Township1.5%
Monclova – Maumee – Toledo1.5%
Perrysburg Township Toledo1.5%
Prairie Obetz2.5%
Springfield Township1.5%
Sycamore Township Kenwood – Central0.75%
Sycamore Township Kenwood – East0.75%
Sycamore Township Kenwood – Northwest0.75%
Sycamore Township Kenwood – Southwest0.75%
Warrensville Heights2.6%
Youngstown – Girard2.75%
Lake Township – Toledo2.25%
Monclova – Swanton – Toledo Airport1.5%
Troy Township – Toledo2.25%
Rossford – Toledo2.25%
Sylvania – Toledo1.5%
Butler County Annex2%
Emerald Park2.5%
IX Center2.5%
Monclova – Whitehouse1.5%
Spencer – Whitehouse1.5%
Madison Township2.5%
Barnesville (1)1%
Barnesville (2)1%
Miami Township – Dayton1.75%
Butler Township – Dayton1.75%
Hamilton Fairfield Township2%
Harpersfield – Geneva (I)1.5%
Harpersfield – Geneva (II)1.5%
Saybrook Township – Route 201.8%
Cuyahoga Falls – Boston Township2%
Coshocton – Franklin2%
Coshocton – Tuscarawas2%
Green Township – City of Cheviot (4)1%
Green Township – City of Cheviot (5)1%
Green Township – Western Ridge (1)1%
Harpersfield – Geneva (III)1.5%
Lebanon – Turtlecreek1%
Lytle Five Points1.5%
Turtlecreek – Monroe Raceway0.7%
Xenia Township – City of Xenia (1)2.25%
Green Township – City of Cheviot (3)2%
Springfield Township (1)1.5%
Green Township – City of Cheviot (2)1%
Village of Highland Hills Muni Utility District2.5%
Colerain Township Liberty Nursing HC2%
Union Township – Milford (5)1%
Jackson Twp – Canton FP2%
Jackson Twp – Canton FP2.5%
Jackson Twp – Canton SM2%
Jackson Twp – Canton SM2.5%
Jackson Twp – Canton TWR2%
Jackson Twp – Canton TWR2.5%
Jackson Twp – Canton CD2.5%
Zanesville – Newton1.9%
Zanesville – South Zanesville – Springfield1.9%
Green Township – City of Cheviot (6)1%
Union Township – Milford (6)1%
Etna – Reynoldsburg (1)1.5%
Etna – Reynoldsburg (1)2%
Etna – Reynoldsburg (2)1.5%
Etna – Reynoldsburg (2)2%
Etna – Reynoldsburg (3)2%
Etna – Reynoldsburg (4)2%
Dorr St2%
Union Township – Milford (7)1%

For more information on JEDD or JEDZ agreements, consult the Ohio Department of Taxation Online Services

Reporting and paying JEDD 

If JEDD income taxes apply to your business, you must fill out additional tax forms. The form you fill out depends on what JEDD agreement governs your location. 

Include information about your business, such as your:

Generally, you must remit JEDD withholdings monthly or quarterly. Consult your locality for more information on your employer responsibilities. 

Are you an Ohio employer who’s stressed about JEDDs? Patriot’s online payroll accurately calculates JEDD taxes for you (if applicable)! And, we offer free USA-based support. Try it for free today!

This article has been updated from its original publication date of January 23, 2017.

This is not intended as legal advice; for more information, please click here.

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