CHAPTER 94: TAXATION Effective July 1, 2004
Section
94.01 Purpose; allocation of net receipts
94.02 Definitions
94.03 Imposition of tax
94.04 Apportionment of net profits
94.05 Operating loss carried forward
94.06 Consolidated returns
94.07 Capital gains
94.08 Exception
94.09 Effective period
94.10 Return and payment of tax
94.11 Collection at source
94.12 Declarations
94.13 Duties of Tax Commissioner
94.14 Investigative powers; Divulging confidential information
94.15 Interest and penalties
94.16 Collection of unpaid taxes; Refunds or overpayments
94.17 Board of Review
94.18 Responsibility of Clerk of Council/Finance Director and Tax Commissioner
94.19 Credit for tax paid to another municipality and/or county
94.20 Violations
94.99 Penalty
§94.01 PURPOSE; ALLOCATION OF NET RECEIPTS.
(A) To provide funds for the purpose of general municipal operations,
maintenance, new
equipment, extension and enlargement of
municipal services and facilities and permanent
improvements of the City and the
discharge of principal, and the payment of interest
thereon, of obligations for permanent
improvements both before and after the date of
thisChapter, there is levied a tax on
salaries, wages, commissions and other compensation,
and on net profits as hereinafter
provided.
('68 Code §300.2; amend. Ord. 7-1975, passed 2-5-75)
(B) The allocation of the receipts from the City earnings tax shall be as follows:
(1) All receipts shall be placed first in the general fund;
(2)
All operating expenses and refunds associated with the City earnings
tax
shall be paid from the general fund.
(C) Further allocation shall be made by the City Council on an annual basis
depending
upon the needs of the City, apparent from time
to time.
(Ord. 6-1984, passed 1-4-84; Am. Ord. 65-1990, passed 10-3-90; Am. Ord. 38-1993, passed 5-19-93)
§94.02 DEFINITIONS.
For the purpose of this Chapter the following words and phrases shall have the following meanings ascribed to them respectively:
(1) "Association." A partnership, limited partnership, or any other form of unincorporated enterprise, owned by 2 or more persons.
(2) "Board of Review." The board created by and constituted as provided in §94.17 of this Chapter.
(3) "Business." An enterprise, activity, profession, or undertaking of any nature conducted for profit or ordinarily conducted for profit, whether by and individual, partnership, association, corporation, or any other entity, including but not limited to the renting or leasing of property (real, personal, or mixed).
(4) "Capital gains." The net profits from the sale of any real or personal property if (1) the property has been owned by the taxpayer for more than one year; and (2) the taxpayer is not regularly engaged in the business of selling such kind or character of property.
(5) "Capital loss." The net loss from the sale of any real or personal property if (1) the property has been owned by the taxpayer for more than one year; and (2) the taxpayer is not regularly engaged in the business of selling such kind or character of property.
(6) "City." The City of Springdale, Ohio.
(7) "Corporation." A corporation or joint stock association organized under the laws of the United States, this state, or any other state, territory, or foreign country or dependency.
(8) "Domicile." A principal residence that the taxpayer intends to use for an indefinite time and to which whenever they are absent they intend to return. A taxpayer has only one domicile even though they may have more then one residence.
(9) "Employee." One who works for wages, salary, commission, or other types of compensation in the services of an employer.
(10) "Employer." An individual, partnership, association, corporation, governmental body, unit or agency, or other entity, whether or not organized for profit, and including the officers and senior resident manager, who or that employs one or more persons on a salary, wage, commission, or other compensation basis.
(11) "Fiscal year. " An accounting period of 12 months ending on any day other than December 31.
(12) "Generic Form." A paper form designed for reporting estimated municipal income taxes and annual municipal income tax liability that is not prescribed by a particular municipal corporation for reporting of that municipal corporation's tax on income.
(13) "Gross receipts." Total income of taxpayer from whatever source derived.
(14) "Income from pass-through entity." The partnership income of partner's distributive shares of shareholders of an S corporation, membership interest of members of a limited liability company, or other distributive or proportionate ownership shares of other pass-through entities.
(15) "Intangible Income." Income of any of the following types: income yield, interest, dividends, or other income arising from the ownership, sale, exchange, or other disposition of intangible property including, but not limited to, investments, deposits, money, or credits and those terms are defined in Chapter 5701 of the Ohio Revised Code.
(16) "Internal Revenue code." As in the Internal Revenue code of 1986, 100 Stat. 2085, 26 U.S.C.1, et seq., as amended.
(17) "Internet." The international computer network of both federal and non-federal interoperable packet switched data networks, including the graphical subnetwork known as the world wide web.
(18) "Limited liability company." A limited liability company formed under Chapter 1705 of the Ohio Revised Code or under the laws of another state.
(19) "Net profits." A gain from the operation of a business, profession, enterprise or other activity after provisions for all ordinary, reasonable and necessary expenses, either paid or accrued in accordance with the accounting system used by the taxpayer for federal income tax purposed, providing such accounting method does not conflict with any provisions of this Chapter and the Rules and Regulations which the Tax Commissioner has adopted or may adopt and without deduction of taxes imposed by this chapter, federal, state and other taxes based on income, computed on the net worth basis, and in the case of an association or other unincorporated entity, without deduction of salaries or withdrawals of partners, or other owners; and other wise adjusted to the requirements of this Chapter. Net profits shall include any amount or value received, realized, or recognized in a sale or other disposition of tangible personal property, or real property used in business, in excess of book value.
(20) "Nonresident." An individual, association, corporation, or other entity, domiciled outside the city.
(21) "Other Compensation." As defined in the Springdale Tax Rules and Regulations.
(22) "Other Payer." Any person that pays an individual any item including in the taxable income of the individual, other than the individual's employer or that employer's agent.
(23) "Owner." A Sole proprietor, partner of a partnership or S corporation, a member of a limited liability company or any person with an ownership interest in a pass-through entity.
(24) "Pass-through Entity." A partnership, S corporation, limited liability company, or any other class of entity the income or profits from which are given pass-through treatment under the Internal Revenue Code.
(25) "Person." Every natural person, partnership, fiduciary, association, corporation or other entity. Wherever used in any clause prescribing or imposing a penalty, the term "person" as applied to any association shall include the partners or members thereof, and as applied to corporations, the officers thereof.
(26) "Place of business." Any bona fide offices, factory, warehouse or other space which is occupied and used by the taxpayer in carrying on any business activity, individually or through one or more of his/her employees.
(27) "Principal place of business." In the case of an employer having headquarters activities at a place of business within the City, the term means the place of business at which the headquarters is situated. In the case of an employer not having it's headquarters activities at a place of business within the City, the term means the largest place of business located in the City.
(28) "Qualified Plan." A retirement plan satisfying the requirements under §401 of the Internal Revenue Code as amended.
(29) "Qualifying Wages." Wages as defined in the Internal Revenue Code Section 3121(a), generally the Medicare wages in box 5 of the form W-2. Wages as used in this Chapter will have the same definition as Qualifying Wages.
(30) "Resident." A person, whether an individual, association, corporation, or other entity, domiciled in the City as further defined in the Rules and Regulations.
(31) "Return preparer." Any person other than a taxpayer who is authorized by a taxpayer to complete or file an income tax return, report, or other document on behalf of the taxpayer.
(32) "Rules and Regulations." The Rules and Regulations as set forth in this Chapter.
(33) "S corporation." A corporation that has made an election under subchapter S of Chapter 1 of Subtitle A of the Internal Revenue Code for it's taxable year.
(34) "Tax Commissioner." The chief administrative officer of the Springdale Tax Commission, who shall be appointed by the Clerk of Council/Finance Director, the chief fiscal officer of the City, subject to the approval and confirmation of City Council. In the absence of the Tax Commissioner, it shall be the person executing the duties of the aforesaid Commissioner.
(35) "Tax year." The calendar year, or the fiscal year upon the basis of which net profits are to be computed under this Chapter and, in case of a return for a fractional part of a year, the period for which the return is required to be filed.
(36) "Taxable Income." Gross wages, salaries, and all other compensation earned or received by reason of employment before any deductions and/or the net profits from the operation of a business, profession or other enterprise or activity adjusted in accordance with the provisions of this Chapter. Other income or compensation is defined by the Rules and Regulations as taxable.
(37) "Taxing Municipality." A municipality levying a tax on income earned by nonresidents working within such municipality or on income earned by its residents.
(38) "Taxpayer." A person, whether an individual, partnership, association, corporation, or other entity, required by this Chapter to file a return or pay a tax.
('68 Code, § 300.4; Ord. 74-1986, passed 11-5-86) (Am. Ord. 48-2003, passed 12-17-03)
§94.03 IMPOSITION OF TAX.
The tax regulations imposed by this Chapter vary from the income tax imposed by the Congress of the United States. The Rules and Regulations imposed in accordance with this Chapter by the City Tax Commissioner need not correspond with those imposed by the Internal Revenue Service.
Subject to provisions of §94.19 of this Chapter, an annual tax, for the purposes
specified in §94.01 of this Chapter, shall be levied on and after July 1, 2004, at the
rate of one and one half percent (1.5%) per annum upon the following:
(Amended Ord. 17-2004, passed 5-5-04)
(A) On all gross salaries, wages, including sick and vacation pay,
commissions, deferred and
all other compensation earned
during the effective period of this Chapter by residents of
this City.
(B) On all gross salaries, wages, including sick and vacation pay,
commissions, deferred and all
other compensation earned during the
effective period of this Chapter by non-resident
individuals for work done or services
performed or rendered in this City unless the total
amount of days worked within this City is
12 (twelve) or fewer days in a calendar year.
(Ord. 74-1986, passed 11-5-86) (Ord.
92-2000, passed 12-6-00) (Am. Ord. 48-2003,
passed 12-17-03)
(C) (1) On the portion attributable to this City of
the net profits earned during the effective
period of this Chapter, of all resident associations, unincorporated businesses,
S-corporations, pass-through entities, professions or other entities, derived from sales
made, work done or services performed or rendered, or business or other activities
conducted in this City. Tax imposed on entities owned by two or more persons is
upon the entity rather than the individual owners or members. (Ord. 92-2000,
passed 12-6-00) (Am. Ord. 48-2003, passed 12-17-03)
(2) On a resident
individual's share of the net profits of a resident association,
pass-through entity earned during the effective period of this chapter. Municipal tax
paid by the entity shall be credited to the individual's earnings tax pursuant to §94.19.
(Am. Ord. 48-2003, passed 12-17-03)
(D) (1) On the portion attributable to this City of the
net profits earned during the effective
period of this Chapter, of all nonresident associations, unincorporated businesses,
S-corporations, pass-through entities, professions, or other entities, derived from sales
made, work done or services performed or rendered, business or other activities
conducted in this City, whether or not the entity has an office or place of business in
this City. Tax imposed on entities owned by two or more persons is upon the entity
rather than the individual owners or members. (Ord. 92-2000, passed 12-6-00)
(Am. Ord. 48-2003, passed 12-17-03)
(2) On a resident
individual's share of the net profits of a nonresident association,
pass-through entity or other unincorporated entity earned during the effective period
of this Chapter. Municipal tax paid by the entities shall be credited to the individual's
earnings tax pursuant to §94.19. (Am. Ord. 48-2003, passed 12-17-03)
(E) On the net profits, earned during the effective period of this
Chapter, of all corporations
derived from sales made, work done or
service performed or rendered and business or
other activities conducted in this City,
whether or not the corporations have an office or
place of business in this City. ('68Code,
§ 300.6)
§94.04 APPORTIONMENT OF NET PROFITS.
When a taxpayer conducts a business both within and outside of this City, the portion of the entire net profits of the business to be apportioned as having been made within this City may be determined from the records of the business, if the business has bona fide records which disclose with reasonable accuracy what portion of its net profits is attributable to that part of its activities conducted within this City. The taxpayer may also have the option of determining net profits in this City by using the following formula, which shall be used if the taxpayer has no bona fide records showing net profits from City business activities, subject to the provision of this section. (Ord. 92-2000, passed 12-6-00) (Am. Ord. 48-2003, passed 12-17-03)
(A) Multiply the entire net profits of the business by a business
apportionment percentage to
be determined by:
(1) Ascertaining the
percentage with the original cost of real and tangible personal
property owned or used in the business and situated within this City during the
period covered by the return, is of the original cost of all the real and tangible
property owned or used in the business, wherever situated, during the period.
As used above, real property shall in include property rented or leased by the
taxpayer and the value of such property shall be determined by multiplying the
annual rental thereon by eight. (Ord. 92-2000, passed 12-6-00) (Am. Ord. 48-
2003, passed 12-17-03)
(2) Ascertaining the
percentage which the gross receipts of the business from sales
made and services performed in this City during the period covered by the
return. Are of the total gross receipts from all sales and services, wherever made
or performed, during the period.
(3) Ascertaining the
percentage which the total wages, salaries, commissions and
other compensation paid, during the period covered by the return, to
employees for services performed in this City, is of the total wages, salaries,
commissions,and other compensation paid, during the period, to all employees
within and outside this City.
(4) Adding together the
percentages determined in accordance with divisions (A)
(1), (2), and (3) of this section, or such of the aforesaid percentages as are
applicable to the particular taxpayer and dividing the total so obtained by the
number of percentages used in deriving the total.
(B) A factor is applicable even though it may be allocable entirely
in or outside of this
City.
(C) However, in the event a just and equitable result cannot be
obtained under the
formula provided for herein, the Board of
Review, upon application of the taxpayer,
or the Tax Commissioner, shall, under
uniform regulations adopted by the board,
have the authority to substitute other
factors or methods calculated to effect a fair
and proper apportionment. ('68 Code,
§300.6) (Am. Ord. 48-2003, passed 12-17-03)
§ 94.05 OPERATING LOSS CARRIED FORWARD.
(A) The portion of the net operating loss sustained in any taxable
year apportioned to
this City may be applied against the
portion of the profit of succeeding years
apportioned to this City, until
exhausted, but in no event for more than three (3)
taxable years immediately following the
year in which the loss occurred. No
portion of a net operating loss shall be
carried back against net profits in any
prior year. (Ord. 74-1986, passed
11-5-86) (Am. Ord. 48-2003, passed 12-17-03)
(B) The portion of a net operating loss sustained shall be
apportioned to this City in the
same manner as provided herein for
apportioning net profits to this City. (Am. Ord.
48-2003, passed 12-17-03)
(C) The net operating loss of a taxpayer that loses its legal
identity, by any means such
as merger or consolidation, shall not be
allowed as a carry forward loss deduction to
the surviving or new taxpayer. (Ord.
48-2003, passed 12-17-03)
(D) Losses from the operation of a business or profession are not
deductible from
employee earnings, but may be carried
forward as set forth herein. However, if a
taxpayer is engaged in two or more
business activities to be included in the same
return, the net loss of one entity may be
used to offset the profits of another entity
for purposes of arriving at overall net
profits, except any portion of a loss reportable
for municipal income tax purposes to
another municipality. (Ord. 92-2000, passed
12-6-00) (Am. Ord. 48-2003, passed 12-17-03)
(E) The Tax Commissioner shall provide by Rules and Regulations the
manner in which
the net operating loss carried forward
shall be determined. ('68 Code, §300.6)
(Ord. 92-2000, passed 12-6-00)
§ 94.06 CONSOLIDATED RETURNS.
(A) Filing consolidated returns, providing they clearly show the
income and expenses
attributable to this City alone, is
permitted if the taxpayer files a federal consolidated
return. (Ord. 74-1986, passed
11-5-86) (Ord. 92-2000, passed 12-6-00)
(1) A consolidated
return may be filed by a group of corporations who are affiliated
through stock ownership, if that affiliated group filed for the same tax period a
consolidated return for Federal income tax purposes pursuant to §1501 of the
Internal Revenue Code. A consolidated return must include all companies that are
so affiliated. (Ord. 48-2003, passed 12-17-03)
(B) In the case of a corporation that carried on transactions with
its stockholders or with
other corporations related by stock
ownership, interlocking directorates, or some other
method, the Tax Commissioner shall
require the information, in addition to the return
hereinafter provided for, as he may deem
necessary to ascertain whether net profits are
properly apportioned to this City. If the
Tax Commissioner finds net profits are not
properly apportioned to this City by
reason of transactions with stockholders or with other
corporations related by stock ownership,
interlocking directorates or some other method,
he may require the filing of a
consolidated return or adjust the transactions so as to
produce a fair and proper apportionment
of the net profits to this City. ('68 code, §300.6)
§ 94.07 CAPITAL GAINS.
Capital gains from the sale of depreciable property shall be taxable to the extent of
the
aggregate amount of the depreciation taken on the property for the city earnings tax
purposes.
('68 Code, §300.6)
§ 94.08 EXCEPTION.
The provisions of this Chapter shall not be construed as levying a tax upon income as described in §718.01(F) of the Ohio Revised Code and further defined in Article III.F of the Springdale Rules and Regulations. The Tax Commissioner shall require documentation verifying non-taxable status. ('68 Code, §300.6) (Ord. 92-2000, passed 12-6-00) (Am. Ord. 48-2003, passed 12-17-03)
§ 94.09 EFFECTIVE PERIOD.
The tax imposed by this Chapter shall be levied, collected and paid with respect to the gross salaries, wages, commissions, deferred, and all other compensations, and with respect to the net profits of businesses, professions or other activities, subject to the tax, earned after December 31, 1986. (Ord. 74-1986, passed 11-5-86)
§ 94.10 RETURN AND PAYMENT OF TAX.
(A) Each resident, age nineteen and older shall make and file a
return with the Tax
Commissioner by April 15 (fifteen) of
each year whether or not a tax is due. Each
person who engages in business, or whose
salary, wages, commissions or other
compensation are subject to the tax
imposed by this Chapter shall make and file, on or
before April 15 (fifteen) in each year, a
return with the Tax Commissioner whether
or not a tax is due. A taxpayer on a
fiscal year accounting basis for federal income
tax purposes shall file a return by the
15th (fifteenth) day of the fourth month
following the end of the fiscal year or
period. The Tax Commissioner is authorized
to provide by regulation that the return
of an employer showing the amount of tax
deducted by the employer from the
salaries, wages, commissions or other
compensation of an employee, and paid to
the Tax Commissioner shall be accepted
as the return required of any
non-resident employee whose sole income, subject to
the tax under this Chapter, is such
salary, wages, commissions or all other
compensation. Failure to file, even
though no tax is due, is subject to penalty as
defined in §94.15. Filing requirements
may be waived by the Tax Commissioner
for persons with special needs. (Ord.
66-1982, passed 12-15-82) (Ord. 92-2000,
passed 12-6-00) (Am. Ord. 48-2003, passed
12-17-03)
(B) The return shall be filed on a form furnished by the Tax
Commissioner or on a generic
form in a readable format, setting forth:
(Ord. 92-2000, passed 12-6-00) (Am. Ord.
48-2003, passed 12-17-03)
(1) The aggregate
amount of gross salaries, wages, commissions, deferred, and all
other compensation earned and gross income from businesses, professions or
other activities, less allowable ordinary, reasonable and necessary expenses as
approved by the Tax Commissioner, in accordance with this Chapter/Rules and
Regulations, incurred in the acquisition of such gross income earned during the
preceding year and subject to said tax. (Ord. 74-1986, passed 11-5-86)
(2) The amount of the tax imposed by this Chapter on the earnings and profits.
(3) Copies of federal tax
returns and related schedules, pertinent statements,
information returns or other information as the Tax Commissioner may require,
and as further defined in the Springdale Rules and Regulations, including a statement
that the figures used in the return are the figures used in the return for federal income
tax, adjusted to set forth only the income as is taxable under the provisions of this
chapter. ('68 Code, §300.10) (Ord. 92-2000, passed 12-6-00) (Am. Ord.
48-2003, passed 12-17-03)
(4) A return filed without
proper documentation is not considered a complete and legal
filing and will be considered delinquent and subject to the provisions of §94.15. (Am.
Ord. 48-2003, passed 12-17-03)
(C) Extensions
(1) The Tax Commissioner
may extend the time for filing the city income tax return,
upon written request of the taxpayer, up to (seven and one half) 7 1/2 months.
A copy of the federal extension shall be accepted as an extension request when
filed with this City's tax department on or before the date the return is originally
due. A tentative return should be included with the extension request,
accompanied by payment of the amount of tax shown to be due thereon.
Failure to file or request and extension on or before the original filing date of the
return, even though no tax is due, is subject to penalty as defined in §94.15.
(Ord. 66-1982, passed 12-15-82) (Ord. 92-2000, passed 12-6-00) (Am. Ord.
48-2003, passed 12-17-03)
(2) The Tax Commissioner
may deny a taxpayer's request for extension if the
taxpayer:
a.) fails to timely file a written extension request;
b.) fails to timely file a copy of the federal extension request;
c.) owes this City any delinquent income tax, penalty or interest;
d.) has failed to file any require income tax return, report or other
related
document for a prior tax period.
(Ord. 48-2003, passed 12-17-03)
(3) The granting of an
extension for filing a city income tax return does not extend
the due date for payment of tax. (Ord. 48-2003, passed 12-17-03)
(D) Payment
(1) The taxpayer
making a return shall pay to the Tax Commissioner the amount
of taxes shown as due. However, credit shall be allowed for:
a.) Any portion of the tax so due which shall have been deducted at the
source pursuant to the provisions of §94.11;
b.) Any portion of the tax which shall have been paid by the taxpayer
pursuant to the provisions of §94.12;
c.) Credit to the extent allowed by §94.19 for tax paid to another
municipality.
Credits for amounts so paid shall be
deducted from the amount shown to be due
and only the balance, if any, shall be
due and payable by the original due date of
the return. (Am. Ord. 48-2003, passed
12-17-03)
(2) A taxpayer who has
overpaid the amount of tax to which this City is entitled
under the provisions of this Chapter may have such overpayment applied against
any subsequent liability hereunder, or, at his election indicated on the return, the
overpayment, or part thereof, shall be refunded pursuant to provisions of §94.16
of this Chapter. (Am. Ord. 48-2003, passed 12-17-03)
(E) Amended returns
(1) An amended return must
be filed within 3 years of the original filing date in order
to report additional income or loss and pay any additional tax due or to claim a
refund of tax overpaid, subject to the requirements and limitations contained in
§§94.16 and 94.19. A taxpayer may not change the method of accounting or
apportionment of net profits after the due date for filing the original return. (Am. Ord.
48-2003, passed 12-17-03)
(2) Within 3 months from
the final determination of any federal tax liability affecting
the taxpayer's Springdale tax liability, the taxpayer shall make and file an
amended Springdale return showing income subject to this City, based upon the
final determination of federal tax liability, and pay any additional tax shown due
thereon or make claim for refund of any overpayment. ('68 code, §300.10)
§94.11 COLLECTION AT SOURCE.
(A) Each employer within, or doing business within this City who
employs one or more
persons on salary, wage, commission, or
all other compensation basis shall withhold
the tax at the time of payment of those
gross salaries, wages, commissions, deferred
or all other compensation due by the
employer to each employee and shall, on or
before the fifteenth (15th) of April,
July, October, and January of each year, make a return
and pay to the Tax Commissioner the
amount of taxes so withheld during the
preceding calendar quarter. The return
shall be on a form or forms prescribed by or
acceptable to the Tax Commissioner and
shall be subject to the Rules and Regulations
prescribed therefore by the Tax
Commissioner. (Ord. 74-1986, passed 11-6-86) (Am.
Ord. 48-2003, passed 12-17-03)
(B) Each employer in collecting the tax shall be deemed to hold the
same, until payment
is made by the employer to this City, as
a trustee for the benefit of this City and any
tax collect by the employer from his
employees shall, until the same is paid to this City,
be deemed a trust fund in the hands of
the employer. Each employer shall be liable
for the payment of the tax required to be
deducted and withheld, whether or not
the tax, in fact has been withheld.
(C) It shall be the responsibility, jointly and severally, of any
employee, manager, officer,
member or trustee who has control of
supervision of or is charged with the responsibility
of filing any reports or making any
payments to see that all the taxes so withheld or
any penalties or interest imposed under
§94.15 are paid to this City in accordance
with the provisions of this Chapter. In
the event taxes withheld from employees or any
interest or penalties thereon are not
paid to this City in accordance with the
provisions of this section, the
responsible employee, manager, officer, member or
trustee shall also be criminally liable
under the provisions of §§94.20 and 94.99 of
this Chapter. (Ord. 55-1998, passed
8-19-98) (Am. Ord. 48-2003, passed 12-17-03)
(1) The dissolution,
termination or bankruptcy of a business entity does not discharge
an officer's, member's, manager's, employee's or trustee's liability to file returns
or pay said taxes. (Am. Ord. 48-2003, passed 12-17-03)
(D) On or before the last day of February of each year, each employer shall
file a
withholding return, on a form
furnished by the Tax Commissioner or on a generic form
in a readable format. Such form shall
include documentation setting forth:
(1.) The name, address and
social security number of all employees who worked
during the preceding calendar year in this City, whether or not the tax was withheld.
(2.) The total sum of income earned of all employees, including all other compensation.
(3.) Amount of tax withheld from all employees.
(4.) Other information as may be required by the Rules and Regulations.
(Ord. 92-2000, passed 12-6-00) (Am. Ord. 48-2003, passed 12-17-03)
(E) In addition to the wage reporting requirements of this section,
any person and/or
business required by the Internal Revenue
Service to report on Form 1099-Misc.
payments to individuals not treated as
employees for services performed, shall also
report such payments to this City when
the services were performed in this City.
Payments made to corporations for
services performed in this City, must also be reported.
This information should be submitted as a
listing, and shall include the name, address and
social security number (or federal
identification number), and the amount of the
payment made. This information
shall be filed annually on or before the last day of
February. (Ord. 48-2003, passed 12-17-03)
(F) However, no person shall be required to withhold the tax on the
wages or other
compensation paid domestic servants
employed exclusively in or about the person's
residence. ('68 Code, §300.12) (Am. Ord.
65-1990, passed 10-3-90)
§ 94.12 DECLARATIONS.
(A) Every person who anticipates any taxable income that is not
subject to §94.11 or
who engages in any business, profession,
enterprise or activity subject to the tax
imposed by §94.03, shall make and file a
declaration setting forth the estimated income
or estimated profit or loss from the
business activity together with the estimated tax
due thereon, if any. (Am. Ord. 48-2003,
passed 12-17-03)
(B) (1) The declaration shall be filed on or before
April 15 (fifteen) of each year or
within 3 1/2 (three and one half) months of the date of the taxpayer first becomes
subject to the provisions of this section. (Am. Ord. 48-2003, passed 12-17-03)
(2) Those taxpayers
reporting on a fiscal year basis shall file a declaration by the 15th
(fifteenth) day of he fourth month following the start of each fiscal year or period.
(Am. Ord. 48-2003, passed 12-17-03)
(C) (1) The declaration shall be filed upon a form
furnished by the Tax Commissioner or
a generic form in a readable format. Credit shall be taken on the declaration for
city tax to be withheld from any portion of the earnings and for earnings tax to be
paid to any taxing municipality for which credit is allowed under §94.19 of this
Chapter. (Ord. 92-2000, passed 12-6-00) (Am. Ord. 48-2003, passed 12-17-03)
(2) The declaration of
estimated tax to be paid to this City shall be accompanied by
a payment of at least 1/4 of the estimated tax, less credit for taxes withheld or
paid to any municipality, and at least a similar amount should be paid on or before
the last day of the seventh, tenth and thirteenth months after the beginning of the
tax year. (Ord. 92-2000, passed 12-6-00)
(3) If upon the filing of
the return required by §94.10 of this Chapter, it appears that
the taxpayer did not pay 70% of his tax liability, as shown on the return, on or
before January 31 or the date fixed by regulation, whichever is applicable, the
difference between 70% of the taxpayer's tax liability and the amount of estimated
tax actually paid shall be subject to the interest and penalty provisions of §94.15
of this Chapter. (Ord. 92-2000, passed 12-6-00) (Am. Ord. 48-2003, passed
12-17-03)
(D) No penalty or interest charges shall be assessed against a
taxpayer for the late payment
of estimated tax liability when the
amount paid is equal to one hundred percent (100%)
of the taxpayer's tax liability for the
preceding year as shown on the return filed by the
taxpayer for the preceding year,
providing the return for the preceding year reflected
a twelve-month period and the taxpayer
had filed a return for the preceding year in this
City. (Ord. 48-2003, passed 12-17-03)
(E) A declaration may be amended at any time. However, when an
amended declaration
is filed, the unpaid balance shown due
thereon shall be paid in equal installments on
or before the remaining payment dates.
(Ord. 48-2003, passed 12-17-03)
(F) On or before the (fifteenth) 15th day of the fourth month of the
calendar or fiscal year
following that for which the declaration
was filed, an annual tax return shall be filed
and any balance which may be due this
City shall be paid therewith in accordance with
the provisions of §94.10 of this
Chapter. ('68 Code, §300.14) (Am. Ord. 48-2003,
passed 12-17-03)
§ 94.13 DUTIES OF TAX COMMISSIONER.
(A) (1) It shall be the duty of the Tax Commissioner
to collect and receive the tax imposed
by this Chapter in the manner prescribed herein, and to keep an accurate record
there of, and to report all monies so received.
(2) It shall be the duty
of the Tax Commissioner to enforce payment of all earnings taxes
due this City, to keep accurate records, for a minimum of six (6) years, showing
the amount due from each taxpayer required to file a declaration or make any
return, including a return of taxes withheld, and to show the dates and amounts
of payments thereof. (Am. Ord. 48-2003, passed 12-17-03)
(B) The Tax Commissioner is charged with the enforcement of the
provisions of this Chapter
and is empowered, subject to the approval
of the Board of Review, to adopt and
promulgate and to enforce Rules and
Regulations authorized or required by this Chapter
pertaining to the collection and payment
of taxes and the administration and enforcement
of this Chapter including provisions for
the re-examination and correction of returns.
(C) In any case where a taxpayer has failed to file a return or has
filed a return which does
not show the proper amount of tax due,
the Tax Commissioner will determine the
amount of tax appearing to be due this
City from the taxpayer and will, if possible,
send to the taxpayer a written statement
showing the amount of tax so determined,
together with interest and penalties
thereon, if any. (Am. Ord. 48-2003, passed 12-17-03)
(D) Subject to the consent of the Board of Review or pursuant to
regulation approved by the
Board of Review, the Tax Commissioner
shall have the power to compromise any liability
imposed by this Chapter. ('68 Code,
§300.16)
§ 94.14 INVESTIGATIVE POWERS; DIVULGING CONFIDENTIAL
INFORMATION.
(A) The Tax Commissioner, or this authorized agent, is authorized to
examine the books,
papers, records and federal income tax
returns of any employer, taxpayer, any person
subject to or whom the Tax Commissioner
believes is subject to the provisions of this
Chapter, for the purpose of verifying the
accuracy of any return made. If no return was
made, to ascertain the tax or
withholdings due under this Chapter. Every such employer,
supposed employer, taxpayer or supposed
taxpayer is required to furnish, upon written
request from the tax office, the means,
facilities and opportunity for making the
examinations and investigations as are
authorized. (Ord. 37-1981, passed 7-1-81;
Am. Ord. 65-1990, passed 10-3-90) (Am.
Ord. 48-2003, passed 12-17-03)
(B) All owners, landlords, developers, homeowner associations,
condominium association
and management companies of, including,
but not limited to, apartments, office
complexes, warehouse operations,
homeowner associations, condominium associations,
planned developments or other
rental/leased properties located within this City are
required to remit to the Tax
Commissioner:
(1) Within thirty (30)
days after a member/lessee occupies or vacates such
property, a listing of members/lessee, showing their names, addresses,
telephone numbers, dates of move in or move out and forwarding addresses.
(2) Annually, a listing of
names, addresses, employer identification number (EIN)
or social security number if there is no EIN, and income paid to the persons or
companies providing services or performing work in this City.
(Ord. 48-2003, passed 12-17-03)
(C) The Tax Commissioner is authorized to order any person presumed to have
knowledge of the facts, whether as
parties or witnesses, to appear at the office of the
Tax Commissioner and to be examined under
oath, concerning any income which was
or should have been reported for
taxation, or any transaction tending to affect the
income. The Tax Commissioner may compel
the production of books, papers, records
and federal income tax returns pertinent
to such inquiry. (Am. Ord. 48-2003, passed
12-17-03)
(D) The failure or refusal of any person to comply with the
provisions of this section or
with and order or subpoena authorized by
the Tax Commissioner, shall be deemed a
violation of this Chapter, punishable as
provided in §94.20 and §94.99 of this
Chapter. (Am. Ord. 48-2003, passed
12-17-03)
(E) Every taxpayer should retain all records necessary to compute his
tax liability for
a period of six (6) years from the date
his return is filed or the taxes required to be
withheld are paid. (Am. Ord. 48-2003,
passed 12-17-03)
(F) Any information gained as a result of any returns,
investigations, hearings or
verifications required or authorized by
this Chapter shall be confidential and no
disclosure thereof shall be made, except
to municipal, county, state or federal taxing
agencies, for official purposes or in
accordance with a proper judicial order. No
person shall divulge such information in
violation of this section. ('69 Code, §300.18)
Penalty, see §94.99(A)
(G) All persons or companies in the position of prime contractors
doing business in this
City are required to provide the names,
addresses, employer identification number
(EIN) or social security number if there
is no EIN, and income paid to other persons
or companies acting as subcontractors
doing work in this City. (Ord. 92-2000,
passed 12-6-00) (Am. Ord. 48-2003, passed
12-17-03)
§ 94.15 INTEREST AND PENALTIES.
(A) All taxes imposed and moneys withheld or required to be withheld
by employers, under
the provisions of this chapter, remaining
unpaid after they become due shall bear
interest at the rate of 1% per month or
fraction thereof.
(1) Exceptions. A taxpayer
who files timely but whose return contains a mathematical
error, shall be granted a thirty (30) day extension, starting on the date of the initial
Tax Department written notice correcting the error and informing of additional tax
due. Should the taxpayer fail to pay any additional tax due within the 30-day
period, interest shall be assessed on the balance. (Ord. 92-2000, passed 12-6-00)
(Ord. 73-2002, passed 11-20-02)
(B) In addition to interest as provided in division (A) of this
section, penalties for failure to
pay taxes, file a return or to withhold
and/or remit taxes pursuant to the provisions of
this Chapter are imposed as follows:
(1) A taxpayer who fails
to pay 70% of the total tax liability by the required due date
as described in §94.12 of this Chapter shall be assessed a penalty amount of $25.
(Ord. 92-2000, passed 12-6-00) (Ord. 73-2002, passed 11-20-02)
(2) A taxpayer who fails
to file a return or an extension on or before the filing date
shall be assessed a penalty of $25. (Ord. 66-1982, passed 12-15-82; Am. Ord.
65-1990, passed 10-3-90) (Ord. 92-2000, passed 12-6-00) (Ord.73-2002,
passed 11-20-02)
(3) Employers who fail to
withhold and/or file a withholding return as required in §94.11
of this Chapter shall be assessed a penalty amount of $25. Any employer who fails
to remit to the Tax Commissioner the taxes withheld or to be withheld from
employees by the required due date as described in §94.11 of this Chapter shall be
assessed a penalty of two and one-half percent (2.5%) per month on the outstanding
balance. (Ord. 92-2000, passed 12-6-00) (Ord. 73-2002, passed 11-20-02)
(C) In the absence of fraud, neither penalty nor interest shall be
assessed on any additional tax
assessment resulting from a federal
audit, providing an amended return is filed and the
additional tax is paid within three (3)
months after final determination of the federal
tax liability. (Ord. 92-2000, passed
12-6-00) (Ord. 73-2002, passed 11-20-02)
§ 94.16 COLLECTION OF UNPAID TAXES; REFUNDS OR OVERPAYMENTS.
(A) All taxes imposed by this Chapter shall be collectible, together
with any interest and
penalties thereon, by suit or other
lawful means, as other debts of like amount are
recoverable or collectible. No additional
assessment shall be made after three (3)
years from the time the tax was due or
the return was filed, whichever is later. However,
there shall be no period of limitation on
an additional assessment in a case of a return
that omits gross income in excess of
twenty-five percent (25%) of that required to be
reported, in the case of filing a false
or fraudulent return with intent to evade the tax
or in the case of failure to file a
return. In those cases in which the Director of Internal
Revenue and the taxpayer have executed a
waiver of the federal statute of
limitations the period within which a
additional assessment may be made by the Tax
Commissioner shall be extended one year
from the time of the final determination of
the federal tax liability. (Am. Ord.
48-2003, passed 12-17-03)
(B) Taxes erroneously paid shall not be refunded unless a claim for
refund is made within
three (3) years from the date on which
the payment was made or the return was due,
or within three (3) months after final
determination of the federal tax liability, whichever
is later. ('68 Code, §300.22; amend.
Ord. 55-1977, passed 9-7-77)
(1) Interest shall be
allowed and paid on any overpayment by a taxpayer in excess
of one dollar ($1.00) of any municipal income tax obligation from the date of the
overpayment, with the following exceptions: No interest shall be allowed on any
overpayment that is refunded within ninety (90) days after the final filing date of
the annual return or ninety (90) days after the complete return is filed, whichever
is later. For purposes of computing the payment of interest on overpayments, no
amount of tax for a taxable year shall be treated as having been paid before the
date on which the return for that year was due without regard to any extension of
time for filing that return. The interest shall be paid at the rate of interest
prescribed by the Ohio Revised Code §5703.47. (Am. Ord. 48-2003, passed
12-17-03)
§ 94.17 BOARD OF REVIEW.
(A) A Board of Review, created by the city Council, shall consist of
one Council member,
and two (2) other electors of this City,
all appointed by Council. (Am. Ord. 48-2003,
passed 12-17-03)
(B) A majority of the members of the Board shall constitute a quorum.
The board shall
adopt its own procedural rules and shall
keep a record of its transactions. All hearings
by the Board shall be conducted privately
unless the taxpayer requests a public
hearing. The provisions of §94.14 of
this chapter, with reference to the confidential
character of information required to be
disclosed by the ordinance, shall apply to the
matters as may be heard before the Board
on appeal. (Am. Ord. 48-2003, passed
12-17-03)
(C) Any person dissatisfied with any ruling or decision of the Tax
Commissioner that is
made under the authority conferred by
this Chapter may appeal in writing to the
Board of Review within thirty (30) days
from the announcement of the ruling or
decision by the Tax Commissioner. The
Board shall schedule a hearing within
forty-five (45) days after receiving the
request, unless the taxpayer waives a hearing.
The Board shall, on hearing, have
jurisdiction to affirm, reverse or modify any ruling
decision or any part thereof. The
taxpayer may appear before the board and may be
represented by an attorney-at-law,
certified public accountant or other representative.
('68 Code, §300.26; amend. Ord. 93-1975,
passed 12-30-75) (Am. Ord. 48-2003,
passed 12-17-03)
§ 94.18 RESPONSIBILITY OF CLERK OF COUNCIL/FINANCE DIRECTOR AND
TAX COMMISSIONER.
There is created one unclassified position of Tax Commissioner for this City. The Tax
Commissioner shall be appointed by the Clerk of Council/Finance Director. The appointment
is subject to the approval and confirmation of the City Council, who shall set forth
compensation as provided. The Clerk of Council/Finance Director shall also appoint other
clerical and administrative assistants as are required for he proper administration of he
tax,
subject to the rules of the Civil Service Commission, at such compensation as set by the
Council.
The final responsibility for the administration and collection of the earnings tax rests
with the
Clerk of Council/Finance Director. The Tax Commissioner shall be responsible to and
subject
to the supervision of the Clerk of the Council/Finance Director in the exercise of all
powers and
duties assigned by this Chapter. ('68 code, §300.28) (Ord. 92-2000, passed 12-6-00)
(Am.
Ord. 48-2003, passed 12-17-03)
§ 94.19 CREDIT FOR TAX PAID TO ANOTHER MUNICIPALITY AND/OR
COUNTY.
(A) Where a resident of this City is subject to a municipal income tax in
another
municipality and/or county, they shall
not pay a total municipal income tax on that
portion of income taxed by another
municipality and/or county greater than the tax
imposed at the higher rate. (Am. Ord.
8-1997, passed June 7, 1997)
(B) Income taxable under this Chapter that is subject to an earnings
tax in another
municipality and/or county shall be
allowed a credit (subject to the provisions of
paragraph (C) below) against the tax
imposed by this Chapter. The credit shall be
the amount of tax assessed by the other
municipality and/or county and paid by or on
behalf of the taxpayer to such other
municipality and/or county. The credit shall not
exceed the tax assessed by this Chapter
on that portion of income earned in such
other municipality and/or county where
such tax is paid. (Am. Ord. 8-1997, passed
June 7, 1997) (Am. Ord. 48-2003, passed
12-17-03)
(C) Credit will be given for municipal and/or county taxes only to
the extent that the tax is
used for the general operating and
capital expenditures of a municipality and/or
county and is the equivalent of the
earnings tax levied by this City. Credit will not
given for municipal and/or county taxes
specifically dedicated for mental health,
schools, etc.. (Am. Ord.
8-1997, passed June 7, 1997)
(D) No claim for credit or refund shall be allowed unless the
taxpayer provides employer
documentation identifying each
municipality and/or county for which tax was withheld
from the taxpayer's wages, salaries,
commissions and/or all other compensation for other
municipalities and/or counties. (Ord.
37-1981, passed 7-1-81) (Am. Ord. 48-2003,
passed 12-17-03)
§ 94.20 VIOLATIONS.
(A) No person shall:
(1) Fail, neglect or refuse to make any return or declaration required by this Chapter;
(2) Make an incomplete, false or fraudulent return;
(3) Fail, neglect or refuse to pay the tax, penalties or interest imposed by this Chapter;
(4) Fail, neglect or
refuse to withhold the tax from employees and remit the
withholding tax to the Tax Commissioner;
(5) Fail, neglect or
refuse to permit the Tax Commissioner or any duly authorized
agent or employee to examine the person's or the employer's books, records,
papers and federal income tax returns;
(6) Fail, neglect or
refuse to appear before the Tax Commissioner and to produce
the person's or the employer's books, records, papers or federal income tax
returns upon order or subpoena of the Tax Commissioner;
(7) Fail, neglect or
refuse to disclose to the Tax Commissioner any information with
respect to the person's or the employer's income or net profits;
(8) Fail, neglect or
refuse to comply with the provisions of this Chapter or any order
or subpoena of the Tax Commissioner;
(9) Fail, neglect or
refuse to make any payment on the estimated tax for any year as
required by §94.12 of this Chapter;
(10) Fail, neglect or refuse as
owner, president, treasurer, officer, member or trustee
of a business, to cause the tax withheld from the wages of employees of the
business pursuant to this Chapter to be paid to this City in accordance with the
provisions of §94.11 of this Chapter; or
(11) Attempt to do anything whatever
to avoid the payment of the whole or any part
of the tax, penalties or interest imposed by this Chapter.
(Am. Ord. 48-2003, passed 12-17-03)
(B) Time limitations
(1) Civil actions to
recover City income taxes, and penalties/interest shall be brought
within three (3) years after the tax was due or the return filed, whichever is later.
(2) Prosecutions for an
offense made punishable under a City ordinance imposing
an income tax shall be commenced within three (3) years after the commission of
the offense, except in the case of fraud, failure to file a return or the omission of
twenty-five percent (25%) or more of income required to be reported, prosecutions
may be commenced within six years (6) after the commission of the offense.
The failure of any employer, taxpayer or person to receive or procure a return,
declaration or other required form shall not excuse them from making any
information return, return or declaration, from filing the form or from paying the tax.
The term "Person" as used in this section shall, in addition to the meaning
prescribed in §10.04 and in §94.02 of this Chapter, include in the case of and
association or corporation not having any partner, member or officer within this
City, an employee or agent of such association or corporation who can be
found within the corporation limits of this City. ('68 Code, §300.25) Penalty,
see §94.99 (B) (Am. Ord. 48-2003, passed 12-17-03)
§ 94.99 PENALTY.
(A) Whoever violates any provision of §94.14 (F) shall be guilty of a
misdemeanor of
the third degree and shall be penalized
as provided for in §130.99. In addition to the
above penalty, any employee of the city
who violates any provision of §91.14 (F)
shall be guilty of an offense punishable
by immediate dismissal. (Am. Ord. 48-2003,
passed 12-17-03)
(B) Whoever violates any provision of §94.20 shall be guilty of a
misdemeanor of the
third degree and shall be penalized as
provided for in §130.99. (Ord. 37-1981,
passed 7-1-81)