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Utilizing existing state law, Springfield Township residents voted on May 6, 2014 to establish a Joint Economic Development Zone (JEDZ). The creation of the JEDZ enables the implementation of an earnings tax on individuals working in the Zone and on the net profits of businesses located in the Zone. The designated Zone includes properties in Springfield Township where businesses are located and/or individuals work, excluding home-based businesses. The revenue generated through the JEDZ earnings tax will be used to continue current services and implement economic development initiatives for the improvement of existing commercial districts and the neighborhoods that support local businesses.
State law requires a partnering jurisdiction to implement any earnings tax for townships. Springfield Township's partnering jurisdiction is Mt. Healthy. The collection of the tax will be conducted by the Regional Income Tax Agency (RITA), as it is the contracted agent for tax collection with Mt. Healthy. All businesses and/or employers located within the JEDZ is responsible for withholding a one and one-half percent (1.5%) earnings tax on the wages of all employees working in the Zone effective August 1, 2014. Additionally, businesses are responsible for the payment of a one and one-half percent (1.5%) earnings tax on the net profits attributable to the business located in the Zone effective August 1, 2014.
Residents of Springfield Township, who work in Springfield Township may apply to the Springfield Township CIC for a grant at the end of the year in the full amount paid to the JEDZ.
Residents who do not work in Springfield Township are not affected by the JEDZ tax.