• Tax Rate: 2.25% • Due Dates: Calendar Year end returns are due on April 15
• The interest rate is calculated based on the federal short-term rate plus 5%. The rates are as follows:
Calendar Year 2023: 7% per year or 0.58% per month
Calendar Year 2024: 10% per year or 0.83% per month
Calendar Year 2025: 10% per year or 0.83% per month
• Fiscal Year end returns are due on the 15th day of the 4th month after the fiscal year end
Entity Filing Requirements
Corporations
C-Corporations: C-Corporations are required to file as entities on the net profit or loss derived from sales made, work done, services performed or rendered and business or other activities conducted in Kettering, whether or not such corporation has a place of business in Kettering.
S-Corporations: S-Corporations are required to file as entities on the net profit or loss derived from sales made, work done, services performed or rendered and business or other activities conducted in Kettering, whether or not such corporation has a place of business in Kettering. If the S-Corporation has net income, the corporation must pay the tax due rather than the individual shareholders. The individual shareholders of an S-Corporation may not include any gain or loss on their individual returns.
Net Operating Loss Carryforward: The City of Kettering currently allows a five (5) year net operating loss carryforward. No portion of a net operating loss may be carried back against the net profits of any prior taxable year.
Partnerships
Partnerships are required to file as entities on the net profit or loss derived from sales made, work done, services performed or rendered and business or other activities conducted in Kettering, whether or not such partnership has a place of business in Kettering.
For loss carryforward purposes, a partnership loss shall remain at the partnership level for taxable years beginning on or after January 1, 2016.
Limited Liability Companies (LLCs)
A limited liability company is required to file consistent with its federal filing. For example, if the LLC is recognized as a partnership at the federal level, it should file as a partnership at the local level. Single member LLC’s that report net profit or loss on Federal Form 1040, Schedule C should file as an individual taxpayer at the local level (on Form KR-1040).
Miscellaneous Entities
Any undertaking, not specifically defined above, conducting activities or producing income, including but not limited to, rental of real estate and personal property, and a business conducted by a trust or guardianship of an estate that produces a net profit shall be subject to city income tax and is required to file a return as an entity.
This information is intended to provide a brief summary of filing requirements and does not cover all possible circumstances.
If you have any questions or need additional information, you may contact the Tax Division at (937) 296-2502 weekdays from 8:00 a.m. to 5:00 p.m.
