City Income Tax

Overview

Because of the City income tax, Ionia has one of the lowest property tax rates in West Michigan. Our operating property tax rate for the City of Ionia is just three mills and is levied on the summer property tax bill.

Residents pay 1% of their taxable income and non-residents who work inside the city limits of Ionia pay 1/2% of their taxable income. City Income Taxes are due April 30th of each year.

Every resident or part-year resident of Ionia who has taxable income in a tax year must file a return. Every non-resident who has taxable income derived from working or from sources inside the City limits must file a return. The City of Ionia Street Guide provides a complete list of addresses that are within the City limits and surrounding areas of businesses.

City Income Tax Forms are available to view and download from the file cabinets on this page. After filling out any of the form(s) you can postal mail or drop off the completed form(s) at City Hall.

Online Payments

The City of Ionia has a professional staff ready to answer questions, help you find necessary forms, or provide other information. Please call the City of Ionia Income Tax Department at 616-523-0142, Monday through Friday, 8 am to 4 pm.

Individuals can make City income tax payments online. Visit our Online Bill Payment page.

Overview

This ordinance is Chapter 2 of the City Income Tax Act, being Act 284 of the Public Acts of the State of Michigan of 1964, as amended through January 1, 1997, being the effective date of Act 478 of the Public Acts of the State of Michigan of 1996, and is known as the Michigan Uniform City Income Tax Ordinance.

Who Must File a Return

For each taxable year, a return must be filed by any individual having Ionia taxable income even if no tax is due. A request for a refund of overpaid tax must be made on a return. If a Declaration of Estimated Tax has been filed, the taxpayer must still file an annual return even if there is no change in the declared liability.

Each partner in a partnership is required to file an individual return unless the tax is paid by the partnership. The partnership must file a partnership return. All corporations including subchapter S corporations must file a corporate return.

Married Persons-Separate or Joint Return

A husband and wife may file a joint or separate return. The total Ionia Taxable Income of both spouses must be included on a joint return, each spouse must be included in the heading, and both must sign the return. A spouse cannot be claimed as a dependent on a separate return and dependents can be claimed only by the spouse who would be entitled to claim such dependents under the Federal Internal Revenue Code.

Exemptions

$700 is allowed for each exemption. Additional exemptions are allowed for paraplegic, quadriplegic, hemiplegics, totally disabled, blind, deaf, and 65 years of age or older. Disabled status is verified with the State of Michigan.

Deceased Tax Payer

A final return must be filed for any person who dies during the year and who is required to file. The executor, administrator, or survivor must file the final return and any other return due for the decedent. Please mark at the top of the return "FINAL RETURN". A joint return may be filed by the surviving spouse and the executor or administrator. The return must be signed by the surviving spouse and the executor or administrator. If an executor or administrator has not been appointed the surviving spouse may file a joint return. The spouse must sign the return and add the notation "Surviving Spouse". If a refund is due, and the claimant is not a surviving spouse, Federal Form 1310 must be filed with the return.

Due Dates & Instructions

Returns are due on or before April 30 or within four months after the end of the fiscal year accepted by the Internal Revenue Service. Seventy % (70%) of the tax due for the current or previous year must be paid by the due dates.  (see Declaration of Estimated income tax for specific due dates). When an extension for filing a tax return is required, a City of Ionia Extension Request Form must be filed by the due date of the return (attach a copy of your federal extension). This is an automatic extension for no longer than six months. If tax will be due, payment of the tax due must be submitted with the extension request.

Mailing a Return

Returns must be mailed to City of Ionia, P.O. Box 512, Ionia, MI 48846. E-filed returns are not accepted.

Every resident or nonresident who expects taxable income from which the City income tax will not be withheld must make estimated income tax payments. Payments are not required if the estimated tax is one hundred dollars ($100) or less.

The estimated tax may be paid in full with the first quarter payment or paid in four equal quarterly installments. Calendar year quarterly payments are due on or before April 30th, June 30th, and September 30th of the tax year and January 31st of the next year.

The annual return for the previous year may be used as the basis for computing your declaration of estimated tax for the current year. If you fail to make the required quarterly estimated tax payments, underpay, or pay late, interest and penalty will be charged. The interest rate is 1% above the prime rate. The interest rate is adjusted on January 1 and July 1 each year. The penalty rate is 1% per month. If the total amount of tax withheld, tax credits and estimated tax paid is less than 70% of the tax due for the current or previous year, interest and penalty will be charged. Payment of estimated tax does not excuse the taxpayer from filing an annual income tax return even though the total tax liability has been paid. Please call 616-523-0142 for more specific information.

The Declaration of Estimated Tax Form (I-1040ES) is available at the City Income Tax Office at 114 N Kidd Street, Ionia, MI 48846, or you may download it from the City Income Tax Forms and Links section.

A donation can be made to any of the following City of Ionia programs by checking the box on your return next to the program you wish to donate to and indicating an amount.

• Youth Recreation Program - A donation to this program will help our Youth Recreation Program continue to provide a healthy and positive environment for the kids in our Community. All of the equipment and supplies purchased with these funds will be greatly appreciated for many years.
• Historic Ionia Theatre - A donation to the Ionia Theatre is used to support the ongoing operation and improvements of the facility.
• Ionia Community Library - A donation to the library goes to help fund programming for the children and teens of our Community.