On May 6, 2003, voters in Elyria Township approved an agreement between Elyria Township and the City of Elyria. Under this agreement, which entered into force on 1 July 2003, employers established in the JEDD had to withhold income taxes from their employees at a rate equal to the rate of 1.75% of the city of Elyria. The city of Elyria would receive 80% of this income tax and the municipality of Elyria 20%. This tax was levied on all gross remuneration, salaries and commissions earned in the JEDD territory. This tax was also levied on the net profits of all companies established within the JEDD. In 1993, voters in Copley Township agreed to an agreement with the City of Akron that authorized the formation of Joint Economic Development Districts (JDDS) within the township. JEDD income tax applies in addition to your federal, state, and local income taxes. Effective August 1, 27, 2013, the City of Toledo and Troy Township entered into a Joint Economic Development District (JEDD) Agreement. The City of Toledo/Troy Township JEDD has a communal income tax applicable to all work performed at Troy Township JEDD. This activity is covered by the Troy Township Resolution 2013-4.
To create a JEDD, the municipality and the municipality work together to create a contract. This treaty defines details such as how taxes are collected and shared, annexation bans and water levels. Municipalities will then vote on the agreement. The problem must arise in any community for the JEDD to be approved. If jeDD income taxes apply to your business, you must complete additional tax forms. The form you fill out depends on your JEDD agreement….