Letter to New Businesses

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Forms and Publications » Tax Forms » Tax Information for Businesses » Letter to New Businesses

Dear New Mason Business:

Thank you for selecting to do business within the City of Mason. We wish to take this opportunity to welcome you.

The City of Mason provides many outstanding services to its residents and businesses, including a nationally accredited police department, a service department that keeps the streets passable in winter, curbside brush chipping, leaf collection service, six parks for a variety of recreational activities, and much more. These services are made possible by the income taxes collected from residents of the city and from businesses within the city. The tax rate is 1% of qualifying wages or profits from business. All residents and businesses operating within the city are required to file a tax return each year.

What is Taxable - Net profit of all partnerships, corporations, or any other entity that is conducting a business within the City of Mason is subject to the income tax. Net profit is the income from the operation of a business, profession, or enterprise, and rentals from the use of property, after the provision for all ordinary and necessary expenses, in accordance with the accounting system used by the taxpayer for Federal Income Tax purposes and adjusted to the requirements of the City of Mason Tax Ordinance.

Filing Tax Returns - All businesses that operate within the City of Mason are required to file a tax return, even if a loss is being reported and no tax is due.

Estimated Tax Payments - The Mason Tax Ordinance requires the filing of a Declaration of Estimated Tax and the payment of 90% of your tax liability by January 31 for the prior tax year, or by the end of the third quarter for the fiscal year.

Withholding - If you have employees, their wages, salaries, and other compensation are subject to the income tax. All businesses that have employees working in the City of Mason are required to withhold and remit the taxes from their employees' paychecks. Payment must be made monthly or quarterly, depending upon the total amount withheld, and within 15 days after the reporting period. Copies of the employees' W-2s and a withholding reconciliation are due at the end of the year.

Please complete the Business Income Tax Questionnaire so that accounts may be set up for paying withholding for your employees and filing a tax return on the net profit.

If you have any questions, please contact the Mason Tax Office at 513-229-8535, or