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.
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.
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.
|Bainbridge – Solon||2%|
|Bath – Akron – Fairlawn||2.5%|
|Boston Township / Peninsula||2%|
|Brimfield – Kent||1.25%|
|Brimfield – Tallmadge||1.25%|
|Butler Township – Vandalia||2%|
|Circleville Pickaway Township||2%|
|Clay Township – City of Clayton||1.5%|
|Copley – Akron||2.5%|
|Coventry – Akron||2.5%|
|Eaton NW Professional Business||2.25%|
|Elyria Township – City of Elyria||2.25%|
|Hamilton Indian Springs||2%|
|Hamilton Fairfield Township||2%|
|Kent – Franklin||2%|
|Liberty Township – Liberty Center||1%|
|Macedonia Northfield Center Township||2.25%|
|Union Township – Milford (1)||1%|
|Union Township – Milford (2)||1%|
|Union Township – Milford (3)||1%|
|Union Township – Milford (4)||1%|
|North Pickaway County||2.5%|
|Orange Chagrin Highlands||2%|
|Concord Township – Painesville||1.75%|
|Pataskala Corporate Park||1.75%|
|Reminderville Twinsburg Township||1.5%|
|Rush Township Uhrichsville||2%|
|Saybrook Township – Depot RD||1.8%|
|Springfield Beckley Muni Airpark||1%|
|Springfield – Akron||2.5%|
|Walton Hills – Sagamore Hills Township||2.5%|
|Clinton Grandview Heights||2.5%|
|Holland Springfield Township||1.5%|
|Monclova – Maumee – Toledo||1.5%|
|Perrysburg Township Toledo||1.5%|
|Sycamore Township Kenwood – Central||0.75%|
|Sycamore Township Kenwood – East||0.75%|
|Sycamore Township Kenwood – Northwest||0.75%|
|Sycamore Township Kenwood – Southwest||0.75%|
|Youngstown – Girard||2.75%|
|Lake Township – Toledo||2.25%|
|Monclova – Swanton – Toledo Airport||1.5%|
|Troy Township – Toledo||2.25%|
|Rossford – Toledo||2.25%|
|Sylvania – Toledo||1.5%|
|Butler County Annex||2%|
|Monclova – Whitehouse||1.5%|
|Spencer – Whitehouse||1.5%|
|Miami Township – Dayton||1.75%|
|Butler Township – Dayton||1.75%|
|Hamilton Fairfield Township||2%|
|Harpersfield – Geneva (I)||1.5%|
|Harpersfield – Geneva (II)||1.5%|
|Saybrook Township – Route 20||1.8%|
|Cuyahoga Falls – Boston Township||2%|
|Coshocton – Franklin||2%|
|Coshocton – Tuscarawas||2%|
|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 – Turtlecreek||1%|
|Lytle Five Points||1.5%|
|Turtlecreek – Monroe Raceway||0.7%|
|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 District||2.5%|
|Colerain Township Liberty Nursing HC||2%|
|Union Township – Milford (5)||1%|
|Jackson Twp – Canton FP||2%|
|Jackson Twp – Canton FP||2.5%|
|Jackson Twp – Canton SM||2%|
|Jackson Twp – Canton SM||2.5%|
|Jackson Twp – Canton TWR||2%|
|Jackson Twp – Canton TWR||2.5%|
|Jackson Twp – Canton CD||2.5%|
|Zanesville – Newton||1.9%|
|Zanesville – South Zanesville – Springfield||1.9%|
|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%|
|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:
- Federal Employer Identification Number
- Number of employees
- Payroll subject to the tax
- JEDD tax liability
- JEDD tax withheld from wages
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.