Ohioans have the distinct privilege of paying a residence tax, in addition to a work place, state and federal tax.
It's why a lot of residents, particularly new ones, find themselves in hot water come tax time.
Especially when that tax bill comes to you from something named RITA, or a company called CCA.
Who are they, and why are paying them?
Consumer Investigator Danielle Serino has the story.
If you're new to Ohio, you've probably never heard of RITA or the CCA.
"RITA, The bus?" said one new resident.
"No that's RTA," answered Danielle.
But you're gonna learn about them in no time.
"I've been paying my whole life," said someone from Macedonia.
"Do you know why?" Danielle asked.
"No," he answered.
"You just pay?" she asked again?
"Yes," he said.
From what we found, most people don't know much about them.
"Why I pay RITA and others don't, I'm not quite sure why," said another resident.
Which is why we went to the experts and started from the beginning.
"The cities rely on the municipal income tax as their most important source of revenue," said Zach Schiller of Policy Matters Ohio.
We learned that Ohio is one of only a handful of states in the country which imposes a municipal income tax.
And we're the only state which allows those municipalities to set their own rates.
Some of them use a company called the Regional Income Tax Agency or RITA to collect those taxes. Others turn to CCA, The Central Collection Agency,
"The first one percent is something the city administration itself can levy. After it gets over 1% it must be approved by the voters," said Schiller.
And those taxes pay for everything from emergency services, to garbage collection, and believe it or not, roads.
"Your state tax can pay for a lot of that, your real estate tax can pay for a lot of that, your sales tax can pay for a lot of that," said Tax Attorney Robert Fedor.
And Fedor adds, filing can be a quote nightmare if you do business in multiple municipalities with those different rates.
"The taxpayers don't get it. The practitioners don't get it, and the people that work there don't get it,” he said.
"Ideally yes, it would be great if the states picked up more of the freight. But we've been seeing just the opposite in Ohio. In fact cities, villages, townships have lost something like a billion dollars in revenue a year because of all the various cuts in State Aid, Schiller said.
He points out that cities like Solon now rely on a municipal tax for 83% of its General Fund, Parma, nearly 70% and Euclid, 66%.
But even with the municipal taxes, Ohio ranks 45th in the country for total tax burden per capita when you factor in cost of living.
And the good news is, many municipalities will give you a tax credit if you also pay taxes in the city where you work.
Schiller says, "I think that one of the reasons, in fact ,there have been fewer financial problems in Ohio cities than in some other places, is because we have a system of municipal taxation in which workers and residents are both appropriately contributing."
Still, whether you buy into the tax or not, CCA and RITA will always be a sore subject...for a variety of reasons.
"Do you know what RITA is?" Danielle asked a local.
"What? What?" he asked.
"Rita?" she said again.
"Old girlfriend?".
Now if you're wondering why you pay these taxes in advance, it's because unlike federal and state taxes, municipal taxes aren't taken out of your paycheck. So the cities want to make sure they get their money.
Danielle recommends always checking in with your municipality to see what kind of tax they impose. And ALWAYS check your bills to make sure they are correct.
For more Information visit Regional Income Tax Agency or Central Collection Agency.