MUNICIPAL INCOME TAX

In addition to property tax levies, the Village of Rutland implements an annual 1% Village income tax on the net profits of Village businesses, the qualifying wages of those who work in the Village and the qualifying income of Village residents. Chapter 177 of the Rutland Municipal Code provides for and regulates the administration of the 1% Village income tax. The 1% Village income tax is administered and collected by the Regional Income Tax Agency (RITA). Once 1% Village income tax payments are received, RITA applies payments to taxpayer accounts and submits payments made to the Village of Rutland Clerk-Fiscal Officer's Office.

• If you own and operate a business in the Village of Rutland, you are required to file a quarterly, or sometimes monthly, Employer's Municipal Income Tax Withholding Statement; an annual Reconciliation of Income Tax Withheld and W-2 Transmittal; and an annual Net Profit Tax Return. Links to online resources are available via this webpage.

• If you are an individual who works in the Village of Rutland, your employer is required to routinely withhold 1% of your regular earnings (paycheck) and pay that withholding to the Village of Rutland, or RITA.

• If you reside in the Village of Rutland, but work outside of the Village of Rutland, you are required to file an annual Individual Municipal Income Tax Return. In addition to filing an annual Individual Municipal Income Tax Return, you are required to pay 25% of your estimated qualifying, taxable income each quarter, or one percent of your estimated gross income. For example, if your estimated gross income for the year is $30,000, your qualifying, taxable income is 1% of that number, or $300, 25% of which is $75, the amount paid each quarter. Links to online resources are available via this webpage.

• If you reside in the Village of Rutland, but pay a 1% or higher city or village income tax elsewhere, you are still required to file an annual Individual Municipal Income Tax Return, however, you qualify for a 0.75% credit. In other words, you are paying a 0.25% Village income tax, instead of a 1% Village income tax. In addition to filing annual Individual Municipal Income Tax Return, you are required to pay 25% of your estimated qualifying, taxable income owed to the Village of Rutland each quarter, or 0.25% of your estimated gross income. For example, if your estimated gross income for the year is $30,000, your qualifying, taxable income is 0.25% of that number, or $75, 25% of which is $18.75, the amount paid each quarter.