Do you know what a JEDD is? If you are an employer in Ohio, you will need a basic understanding of a Joint Economic Development District (JEDD). This arrangement could affect how you pay taxes.
What is a Joint Economic Development District?
A Joint Economic Development District (JEDD) is an agreement between two parties: a township and a city or village that share commercial and industrial development benefits and responsibilities. JEDD agreements are unique to the state of Ohio.
How a JEDD becomes law
JEDDs start with a contract that details the terms and conditions of the agreement. The contract will include city services; police, fire, and road services; zoning, land use, and planning issues; and tax agreements. Then, the contract lays out what property will be governed by the JEDD.
Before a JEDD can be established, the majority of current business owners and landowners must agree to be included in the JEDD. Then, the JEDD must be passed by both the city and township.
Almost all counties in Ohio are required to follow the standard JEDD law for creating the agreement. However, JEDD agreements are all different. A JEDD agreement in one part of the state might be completely different than another, depending on resources and economic conditions of the particular city and township.
Under a JEDD agreement, there is a five-member board. The board consists of one representative from both parties, one representative from the JEDD’s business owners, and one from the employees of the JEDD’s businesses. These four members appoint a chairperson to be the fifth member.
JEDD agreements in Ohio
There are quite a few JEDD agreements in Ohio. Depending on your business’s location, you might need to pay JEDD tax.
If your location is on the following list, contact your local taxing agency to see if you are required to pay the JEDD tax. Please note that this may not be an all-inclusive list of JEDD agreements. For more information, consult the Columbus Office of the City Auditor website.
- Ashtabula Township JEDD
- Austin Center JEDD
- Bainbridge-Solon JEDD
- Bath-Akron-Fairlawn JEDD
- Beachwood East JEDD
- Beachwood West JEDD
- Berkshire Township JEDD
- Boston Township/Peninsula JEDD
- Brimfield-Kent JEDD
- Brimfield-Tallmadge JEDD
- Butler Township JEDD
- Circleville Pickaway TWP JEDD
- Clayton Township JEDD
- Copley-Akron JEDD
- Coventry-Akron JEDD
- Eaton JEDD
- Elyria JEDD
- Hamilton Fairfield Township JEDD I
- Hamilton Fairfield Township JEDD II
- Harrison Township JEDD
- Kent Franklin JEDD
- Liberty Center JEDD
- Liberty Center JEDD (1)
- Macedonia Northfield Center Township JEDD
- Medina -Montville JEDD
- Miami Township Dayton Mall JEDD
- Milford City JEDD
- Milford City JEDD II
- Milford City JEDD III
- Milford City JEDD IV
- North Baltimore- Henry JEDD
- North Pickaway County JEDD
- Orange Chagrin Highlands JEDD
- Painesville Concord JEDD
- Pataskala JEDD
- Perry JEDD
- Prairie Township JEDD
- Reminderville Twinsburg Township JEDD
- Rush Township Uhrichsville JEDD
- Saybrook Township JEDD
- Scioto Township JEDD
- Springfield-Akron JEDD
- Springfield Beckley Muni Airpark JEDD
- Walton Hills- Sagamore Hills Township JEDD
- West Chester JEDD 1
Length of JEDD agreements
There is no set length for JEDD agreements to be in effect. The parties involved in each JEDD must decide on the contract length. However, most JEDDs are 50 years, followed by another 50-year renewal if both parties agree.
How JEDDs impact your business
There is a separate income tax for townships and cities with JEDD agreements. The tax rate is typically the same as the respective city’s income tax.
If your business is in an area with a Joint Economic Development District agreement, you will need to pay the appropriate JEDD income tax. The JEDD income tax is in addition to your federal, state, and local income taxes.
If JEDD income taxes apply to your business, you will need to fill out additional tax forms. The form you fill out depends on your JEDD agreement. For example, if your business falls under the West Chester JEDD, you would need to fill out that JEDD form.
Input your Federal Employer Identification Number (FEIN) or Social Security number and other business information on the form. Then, you will determine your estimated JEDD income tax for withholding purposes.
Consult your JEDD parties for more information on JEDD forms.