The City of Harrison collects a 1% earnings tax from all residents, employees, and businesses living, working and/or located within the City limits. As per Codified Ordinances Chapter 183, the 1% earnings tax applies to:
Commissions and other compensation earned by residents
Net profits from business and corporations
Payments on rental properties
The City of Harrison extends a tax credit up to 1% to those residents that pay an income tax to another municipality.
Filing is mandatory. All resident individuals and businesses are required to file a return whether or not any tax is due, regardless if one rents or owns. Annual returns are due April 15th. Payment of the prior year's balance as well as the 1st quarter's estimated tax (if applicable) is due at this time. A $25 penalty is charged for failing to file. An additional 5% penalty and 8% interest is applied monthly on any outstanding taxes due.
If an employer does not withhold the City's income tax from a resident's paycheck, he/she is required to file an annual declaration of estimated tax and make quarterly payments.
Landlords & Property Owners
Landlords and property owners with rentals in the City's limits are required to furnish a list of all tenants that have moved in or out by January 31, April 30, July 31 and October 31 every year.