191.01 Purpose.
191.02 Definitions.
191.03 Imposition
of tax.
191.04 Effective
date.
191.05 Return
and payment of tax.
191.06 Collection
at source.
191.07 Declarations.
191.08 Administration;
duties of Director of Finance.
191.09 Investigative
powers of the Commissioner of Taxation;
penalty for
divulging confidential information.
191.10 Interest
and penalties.
191.11 Collection
of unpaid taxes.
191.12 Violations;
penalty.
191.13 Board
of Review.
191.14 Allocation
of funds.
191.15 Reciprocity;
credit for tax paid to other municipalities.
191.16 Saving
clause.
191.17 Collection
of tax after termination of chapter.
191.18 No
loss carryforward or carryback.
191.19 No
business loss deduction from income earned as employee.
Power
to levy - see Ohio Const., Art.
XVIII, Sec. 3
Collection
by Finance Director - see CHTR. Sec. 6.01
General
provisions - see CHTR. Sec. 8.01
Payroll
deductions - see Ohio R.C. 9.42
Municipal
income taxes - see Ohio R.C. Ch. 718
To
provide funds for the purpose of general municipal operations, maintenance,
new equipment, extension and enlargement of municipal services and facilities
and capital improvements of the City, including the payment of debt service
charges on note and bond issues for such purposes, there shall be, and
is hereby levied a tax on salaries, wages, commissions and other compensation,
and on net profits as hereinafter provided. (Ord.
90-91. Passed
As
used in this Chapter, the following words shall have the meanings ascribed
to them in this Section, except as and if the context clearly indicates
or requires a different meaning.
(a)
“Board of Review” means the Board created by and constituted as provided
in Section 191.13.
(b)
“Business” means an enterprise, activity, profession or undertaking of
any nature conducted for profit or ordinarily conducted for profit, whether
by an individual, pass-through entity, corporation or any other entity. “Business”
conducted within the City includes the direct or indirect ownership of
an interest in a pass-through entity that conducts business within the
City.
(c)
“City” means the City of Tiffin, Ohio.
(d)
“Commissioner of Taxation” means the person so designated and appointed
by the Director of Finance and approved by Council or the person executing
the duties of the aforesaid Commissioner.
(e)
“Compensation” means all salaries, wages, commissions and other remuneration
for work done or services performed. For
taxable years beginning on or after
(f)
“Corporation” means a corporation or joint stock association organized
under the laws of the
(g)
“Employer” means an individual, pass-through entity, corporation, governmental
body, unit or agency, or any other entity, whether or not organized for
profit, who or that employs one or more persons on a salary, wage, commission,
or other compensation basis.
(h)
“Fiscal year” means an accounting period of twelve months, ending on any
day other than December 31.
(i)
“Net profits” means the net gain from the operation of a business, profession
or enterprise after provision for all ordinary and necessary expenses either
paid or accrued in accordance with the accounting system used by the taxpayer
for federal income tax purposes and, in the case of a pass-through entity,
without deduction of salaries paid to owners, or of taxes imposed by this
Chapter and federal, state, municipal and other taxes based on income. For
taxable years beginning on or after January 1, 2004, “net profits” means: (i)
the case of a corporation, “adjusted federal taxable income,” as that term
is defined in Ohio Revised Code Section 718.01(A)(1)(a)-(f); (ii) in the
case of a pass-through entity, “adjusted federal taxable income,” as that
term is defined in Ohio Revised Code Section 718.01(A)(1)(g); and (iii)
in the case of a sole proprietorship, the profit shown by the individual
on Internal Revenue Service Schedule C, Schedule E, and Schedule F.
(j)
“Nonresident” means an individual domiciled outside the City.
(k)
“Nonresident owner” means an individual domiciled outside the City who
has a direct or indirect ownership interest in a pass-through entity that
conducts business in the City and a corporation that has a direct or indirect
ownership interest in a pass-through entity that conducts business in the
City.
(l)
“Owner” means an individual, partner, shareholder, member, or any other
person having an ownership interest in a pass-through entity.
(m)
“Pass-through entity” has the same meaning as provided in Ohio Revised
Code Section 718.14(A)(2).
(n)
"Person" means every natural person, pass-through entity, fiduciary, or
corporation. Whenever used in any clause prescribing and imposing a penalty,
the term "person" as applied to a pass-through entity, shall mean the owners
thereof, and as applied to corporation, the officers thereof.
(o)
"Resident" means an individual domiciled in the City.
(p)
"Taxable year" means the calendar year, or the fiscal year ending during
such calendar year, upon the basis of which the net profits are to be computed
under this Chapter and, in the case of a return for a fractional part of
a year, the period for which such return is made. Unless approved by the
Commissioner of Taxation, the taxable year of an individual shall be a
calendar year.
(q)
"Taxpayer" means a person, whether an individual, pass-through entity,
or any corporation or other entity, the net profits or compensation of
which are subject to the tax imposed by this Chapter, whether that tax
is imposed on the entity itself or the owners of the entity. The singular
shall include the plural, and the masculine shall include the feminine
and neuter. (Ord. 03-46. Passed
(a)
Subject to the provisions of Section 191.16, an annual tax for the purposes
specified in Section 191.01 shall be imposed on and after
(1)
On all compensation and on net profits from the operation of a business
earned during the effective period of this Chapter by a resident.
(2)
On all compensation and on net profits from the operation of a business
earned during the effective period of this Chapter by a nonresident for
work done or services performed or rendered or the conduct of a business,
profession or other enterprise or activity in the City, subject to the
limitations provided in Ohio Revised Code Section 718.011.
(3)
On a resident owner’s distributive share of the net profits of a pass-through
entity earned during the effective period of this Chapter from business
conducted by the pass-through entity regardless of where such business
is conducted, except as modified by Ohio Revised Code Sections 718.01(F)(9)
and 718.01(H).
(4)
On a nonresident owner’s distributive share of the net profits of a pass-through
entity attributable to the City and earned during the effective period
of this Chapter from business conducted in the City, whether or not such
pass-through entity has an office or place of business in the City.
(5) On the portion attributable to the City of the net profits earned during the effective period of this Chapter of a corporation derived from business conducted in the City, whether or not such corporation has an office or place of business in the City. The tax imposed by this Section 191.03(a)(5) on the net profits of an electric company, combined company, or telephone company shall be subject to, and be in accordance with, Ohio Revised Code Chapter 5745.
(6) On all prizes, awards and income derived from gaming, wagering lotteries or schemes of chance by residents, regardless of the source and on all prizes, awards and income derived from gaming, wagering, lotteries or schemes or chance by nonresidents from sources within the City.
(c)
The portion of the net profits attributable to the City of a taxpayer conducting
a business both within and without the boundaries of the City shall be
determined as provided in Ohio Revised Code Section 718.02 and in accordance
with rules and regulations adopted by the Commissioner of Taxation pursuant
to this Chapter.
(d)
Filing of Consolidated Returns.
(1) Filing of consolidated returns may be permitted or required in accordance with rules and regulations prescribed by the Commissioner of Taxation. On and after January 1, 2004, the Commissioner of Taxation shall accept for filing a consolidated return from an affiliated group of corporations subject to the tax imposed by this Chapter if the affiliated group filed for the same taxable year a consolidated return for federal income tax purposes pursuant to Section 1501 of the Internal Revenue Code of 1986, as amended. Only corporations subject to the tax imposed by this Chapter may be included in such consolidated return filed for the City. If an affiliated group of corporations subject to the tax imposed by this Chapter properly files a consolidated return in accordance with this Section 191.03(d)(1) for any taxable year beginning on or after January 1, 2004, the affiliated group must file a consolidated return for each succeeding taxable year in which it files a consolidated return for federal income tax purposes unless, on or before the due date (taking into account extensions of time properly granted) of the return for a taxable year, the affiliated group obtains the permission of the Commissioner of Taxation to cease filing a consolidated return for that year.
(2) 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, or in case any person operates a division, branch, factory, office, laboratory or activity within the City constituting only a portion of its total business, the Commissioner of Taxation shall require such additional information as the Commissioner of Taxation deems necessary to ascertain whether net profits are properly allocated to the City. If the Commissioner of Taxation finds the net profits are not properly allocated to the City by reason of transactions with stockholders or with other corporations related by stock ownership, interlocking directorates or transactions with a division, branch, factory, office, laboratory or activity, or by some other method, the Commissioner of Taxation shall make such adjustments to, and allocation of, net profits to fairly and reasonably reflect the proper allocation of net profits to the City.
(e)
Exemptions. The tax
provided for herein shall not be levied on the following:
(1)
Pay or allowance of active members of the Armed Forces of the
religious,
fraternal, charitable, scientific, literary or educational institutions
to the extent that such income is derived from tax exempt real estate,
tax exempt tangible or intangible property or tax exempt activities.
(2)
Poor relief, unemployment insurance benefits, old age pensions or similar
payments, including
disability
benefits received from local, State or Federal governments or charitable,
religious or educational organizations.
(3)
Proceeds of insurance paid by reason of the death of the insured, pensions,
including industrial
pensions,
disability benefits, annuities or gratuities not in the nature of compensation
for services rendered from whatever source derived.
(4)
Receipts from seasonal or casual entertainment, amusements, sports events
and health and welfare activities when conducted by a bona fide charitable,
religious or educational organizations and associations, recognized as
such under Section 501(c)(3) of the Internal Revenue Code of 1986, as amended.
(5)
Alimony received.
(6)
Personal earnings of any natural person under eighteen years of age.
(7)
Compensation for personal injuries or for damages to property by way of
insurance or otherwise.
(8)
Interest, dividends and other revenue from intangible property.
(9)
Gains from involuntary conversion, cancellation of indebtedness, interest
on federal obligations, items of income already taxed by the State from
which the City is specifically prohibited from taxing, and income of a
decedent’s estate during the period of administration, except income from
the operation of a business or other activities conducted in the City.
(10)
Compensation and net profits, the taxation of which is prohibited by the
United States Constitution or any act of Congress limiting the power of
the states or their political subdivisions to impose taxes on income derived
from interstate commerce.
(11)
Compensation and net profits, the taxation of which is prohibited by the
Constitution of the State of Ohio or any other act of the Ohio General
Assembly limiting the power of a municipality to impose net income taxes.
(f)
Deductions of Employee Business Expenses. The
only expenses that can be deducted against salary and wage income are those
employee business expenses deductible for federal income tax purposes in
determining adjusted gross income, unless otherwise allowed on a uniform
and consistent basis by the Commissioner of Taxation. The total of such
expenses cannot exceed the employee's related W-2 wage income from the
same employer. Notwithstanding anything to the contrary in subsection (t)
hereof, if a taxpayer's taxable income for a taxable year includes income
against which the taxpayer has taken a deduction for federal income tax
purposes reported on Form 2106 attached to the taxpayer's federal income
tax return filed for that taxable year, the taxpayer shall determine taxable
income to the City by deducting the same amount deducted for federal income
tax purposes and reported on the taxpayer's Form 2106 for that taxable
year and shall attach a copy of Form 2106 filed with the taxpayer's federal
income tax return to the taxpayer's City income tax return for that taxable
year. (Ord. 04-24. Passed 5-3-04.)
The
tax imposed by this chapter shall be levied, collected and paid with respect
to the salaries, wages, commissions and other compensation, and with respect
to the net profits of businesses, professions or other activities, earned
on and after (Ord.
90-91. Passed 191.05
RETURN AND PAYMENT OF TAX. (a)
Each taxpayer who engages in business, or whose compensation is subject
to the tax imposed by this Chapter shall, whether or not a tax be due thereon,
make and file a return no later than the fifteenth day of the fourth month
following the end of the taxpayer’s taxable year with the Commissioner
of Taxation on a form or forms furnished by the Commissioner or on a generic
form as prescribed by Section 718.05 of Ohio Revised Code setting forth: (1)
The aggregate amount of compensation earned by the taxpayer, and/or gross
income from such business less allowable expenses incurred in the acquisition
of such gross income earned during the taxable year and subject to the
tax; (2)
The amount of the tax imposed by this Chapter on such compensation and
net profits; and (3)
Such other pertinent statements, information returns, or other information
as the Commissioner of Taxation may require, including, when required by
the Commissioner of Taxation, a statement that the figures used in the
return are the figures used in the taxpayer’s federal income tax return
for that taxable year, adjusted to set forth only such income as is taxable
under the provisions of this Chapter. For
taxable years beginning on or after (b)
The Commissioner of Taxation may extend the time for filing the annual
City income tax return upon the request of the taxpayer for a period of
not to exceed six months, or three months beyond any extension requested
of or granted by the Internal Revenue Service for the filing of the taxpayer’s
federal income tax return for the same taxable year, provided the taxpayer
files a copy of such request for extension of time to file the federal
income tax return, accompanied by payment of the amount of City income
tax owed by the taxpayer, by the date the City income tax return is due,
without regard to any extension. For
taxable years beginning on or after January 1, 2004, the extended due date
of the City income tax return shall be the last day of the month following
the month to which the due date of the taxpayer’s federal income tax return
for the same taxable year has been extended. For
taxable years beginning on or after January 1, 2005, a taxpayer who receives
an extension for filing the federal income tax return will receive an extension
for filing the City income tax return for the same taxable year by complying
with Ohio Revised Code Section 718.051(B), but such taxpayer must pay any
City income tax owed by the unextended
due date for filing the City income tax return. No
penalty or interest shall be assessed in those cases in which the return
is filed and the final tax paid within the period as extended. (c)
The taxpayer making the City income tax return shall, at the time of the
filing thereof, pay to the Tax Commissioner the amount of taxes shown as
due thereon. However, where
any portion of the tax so due shall have been deducted at the source pursuant
to the provisions of Section 191.06, or where any portion of such tax has
been paid by the taxpayer pursuant to the provisions of Sections 191.05
and 191.07, credit for the amount so paid shall be deducted from the amount
shown to be due and only the balance, if any, shall be due and payable
at the time of filing the return. Subject
to the limitation on the period for assessment of City income tax and claims
for refund thereof prescribed by Ohio Revised Code Section 718.12, within
three months from the final determination of any federal tax liability
affecting the taxpayer’s City income tax liability for the same taxable
year(s), such taxpayer shall make and file an amended City income tax return
for such year(s) showing income subject to City income tax based upon such
final determination of federal tax liability and pay any additional tax
shown due thereon or make claim for refund of any overpayment. (1)
The claiming of credit on a City income tax return or declaration for amounts
paid to any other municipality under the provisions of Section 191.07 shall
constitute an assignment and transfer to the City of
all right, title and interest of the taxpayer claiming such credit in and
to any claim for refund of such amounts so paid to such other municipality.
In the event the taxpayer does not remit any such refund to the City in
an amount equal to the credit claimed by reason of tax payments made to
another municipality and subject to reciprocity, then the taxpayer shall
be treated as having a deficiency in City income tax for the taxable year
for which such credit was claimed. The
amount of this deficiency shall equal the difference between the credit
claimed for taxes paid to the other municipality and the amount of the
refund of such taxes that the taxpayer remitted to the City. (2)
Assignment of any claim for refund to which a resident may be entitled
from any other municipality shall be tentatively accepted as payment of
that portion of City income tax represented by such assignment. However,
if satisfactory evidence is offered that the taxpayer is entitled to the
claim covered by the assignment, such taxpayer shall not be deprived of
credit therefor because of fault or neglect on the part of either municipality. (d)
All taxpayers who owe income tax to the City must file the return required
by Section 191.05(a) regardless of whether their entire tax obligation
has been withheld and paid by their respective employers or by a pass-through
entity. (e)
A taxpayer who has overpaid the amount of tax to which the City is entitled
under the provisions of this Chapter may have such overpayment applied
against any subsequent liability hereunder or, at the taxpayer’s election
indicated on the return, such overpayment, or part thereof, shall be refunded,
provided that no additional taxes or refunds of less than one dollar ($1.00)
shall be collected or refunded. (Ord.
03-46. Passed (a) Each
employer within or doing business in the City who or that employs one or
more persons shall, at the
time of payment of compensation, deduct that City income tax at the applicable
rate then in effect from the gross compensation earned or received by residents,
regardless of where such compensation was earned or received, and shall
deduct that City income tax from the compensation earned or received from
work done or services performed or rendered
in the City by nonresidents. Such
employer shall, on or before the last day of the month following the
close of each calendar quarter make a return and pay to the Commissioner
of Taxation the amounts so deducted during that calendar quarter. If, however,
the amount of money so withheld by an employer exceeds five hundred dollars
($500.00) in any single month, then the return and payment for that month
shall be made on or before the last day of the following month. Each
employer shall be subject to the rules and regulations prescribed therefor
by the Commissioner of Taxation. (b) Notwithstanding
the provisions of subSection (a) hereof,
if a resident employer employs a resident who
performs services in another taxing municipality that requires such employer
to deduct its tax on the full amount of compensation paid to all employees
engaged therein, such employer shall be required to withhold for and remit
to the City only the difference, if any, between City income tax and the
tax imposed by such other taxing municipality on such compensation. (c)
For taxable years beginning on or after (d)
Such employer in collecting the City income tax shall be deemed to hold
the same, until payment is made by such employer to the City, as trustee
for the benefit of the City, and any such tax collected by such employer
from its employees shall, until the same is paid to the City, be deemed
a trust fund in the hands of such employer. (e)
However, no person shall be required to withhold the tax on qualifying wages
or compensation paid domestic servants employed exclusively in or about
such person’s residence. (f)
Except as otherwise provided in this Section 191.06(f), a pass-through
entity that conducts business within the City and that has a nonresident
owner must: (i) withhold City income tax at
the rate specified in Section 191.03(a) on the nonresident owner’s distributive
share of the pass-through entity’s net profits attributable to the City;
and (ii) remit such tax to the City by the applicable dates provided in
Section 191.07. A pass-through-entity
subject to this Section 191.06(f) that fails to collect or remit City income
tax as provided in this Section 191.06(f) shall be liable for the tax that
it should have withheld or remitted and shall be subject to the interest
and penalty provisions of Section 191.10. The
nonresident owner shall receive a credit against its City income tax liability
in the amount of City income tax so withheld by the pass-through entity. All
claims for refund of City income tax withheld by a pass-through entity
pursuant to this Section 191.06(f) must be made by the nonresident owner
within the period set forth in Section 191.11(b). A
pass-through entity is not required to withhold and remit City income tax
to the extent that its nonresident owners both: (i)
file City income tax returns and declarations as provided in Sections 191.05
and 191.07, respectively, that report their distributive shares of the
pass-through entity’s net profits attributable to the City; and (ii) pay
City income tax thereon. (Ord.
03-46. Passed (a)
Every taxpayer who anticipates earning any compensation or qualifying wages
not subject to Section 191.06, or who engages in any business within the
City, shall file with the Commissioner of Taxation a declaration setting
forth such estimated income or the estimated net profits from such business
activity together with the estimated tax due thereon, if any. For
taxable years beginning on or after (b)
Such declaration of estimated City income tax for a taxable year that is
a calendar year shall be filed on or before April 15 of each year during
the life of this Chapter, or within four months of the date the taxpayer
becomes subject to City income tax for the first time. (c) Such
declaration of estimated tax shall be filed on a form or forms furnished
by or obtainable from the
Commissioner of Taxation or on a generic form prescribed by Ohio Revised
Code Section 718.05, which form or forms may require a statement that the
taxpayer’s declaration of estimated City taxable income equals the taxpayer’s
estimated federal taxable income as adjusted so that City taxable income
includes only those items that are taxable under this Chapter. (d)
(1) Such declaration of estimated tax for a taxable year that is a calendar
year shall be accompanied by payment of at least twenty-two and one-half
percent of the estimated annual tax and, in the case of individuals, at
least a similar amount must be paid on or before July 31 and October 31
of that taxable year and January 31 of the subsequent taxable year. A
calendar year taxpayer having net profits subject to City income tax must
file the declaration of estimated tax by April 15 and pay at least twenty-two
and one-half percent of the estimated annual tax by that date, and at least
a similar amount must be paid by June 15, September 15, and December 15
of such taxpayer’s taxable year. The
estimate may be amended at any time prior to the due date of the taxpayer’s
annual City income tax return for the taxable year for which the estimated
payments are made. The annual
City income tax return must be filed and any balance of City income tax
that may be due must be paid on or before the due date set forth in Section
191.05. If the taxpayer has
paid more than the amount of tax to which the City is entitled, a refund
of the amount so overpaid shall be made or the same may be applied toward
the declaration of tax due for the ensuing taxable year. Claims
for refunds shall be made on forms prescribed or approved by the Commissioner
of Taxation and within the time provided in Section 191.11. (2)
An amended declaration must be filed on or before January 31 of any year,
or in the case of a taxpayer on a fiscal year accounting basis, on or before
the date fixed by regulation of the Commissioner of Taxation, if it appears
that the original declaration made for the preceding taxable year underestimated
the taxpayer’s income by twenty percent (20%) or more. At such time a payment
that, together with prior payment is sufficient to pay taxpayer’s entire
estimated liability, shall be made. If upon the filing of the annual City
income tax return required by Section 191.05 hereof, it appears that the
taxpayer did not pay at least eighty percent (80%) of his City income tax
liability shown on such return on or before January 31 or the date fixed
by regulation, whichever is applicable, the difference between eighty percent
(80%) of the taxpayer’s City income tax liability and the amount of estimated
tax actually paid on or before January 31 or the date fixed by regulation,
whichever is applicable, shall be subject to the interest and penalty provisions
of Section 191.10. However, the interest and penalty provision of Section
191.10 shall not apply where either: (i) the
taxpayer is a resident but was not domiciled in the City on January 1 of
the calendar year; or (ii) the taxpayer has remitted on a timely basis
an amount of estimated City income tax at least equal to one hundred percent
(100%) of the taxpayer’s City income tax liability for the preceding taxable
year, provided that the return for the preceding taxable year reflected
a 12-month period and the taxpayer filed a City income tax return for the
preceding taxable year. (3)
Such declaration shall indicate that the estimated tax is being withheld
under the provisions of Section 191.06 or is being paid to another municipality. (e)
Those taxpayers having a taxable year other than the calendar year shall
file a declaration on or before the fifteenth day of the fourth month after
the start of each fiscal year or period, accompanied by a payment of at
least twenty-two and one-half percent of the estimated annual tax shown
due thereon, and shall make quarterly payments of at least a similar amount
each on the fifteenth day of the sixth month, ninth month and twelfth month
of the taxpayer’s taxable year. (f)
An annual City income tax return shall be filed by the date prescribed
by Section 191.05(a) and any balance that may be due the City shall be
paid therewith in accordance with the provisions of Section 191.05. (Ord.
03-46. Passed 191.08
ADMINISTRATION; DUTIES OF DIRECTOR OF FINANCE. (a)
It shall be the duty of the Director of Finance to receive the tax imposed
by this chapter in the manner prescribed herein from the taxpayers; to
keep an accurate record thereof; and to report all moneys so received.
All cashiers handling tax moneys shall be subject directly to the Director
of Finance and shall give daily accountings to the Director of Finance. (b)
It shall be the duty of the Director of Finance to enforce payment of all
taxes owing the City, to keep accurate records for a minimum of five years
showing the amount due from each taxpayer required to file a declaration
and/or make any return, including taxes withheld, and to show the dates
and amounts of payments thereof. (c)
The Director of Finance is hereby charged with the enforcement of the provisions
of this chapter and to enforce the rules and regulations adopted by the
Commissioner of Taxation, subject to the approval of the Board of Review,
relating to any matter or thing pertaining to the collection of City income
taxes and the administration and enforcement of the provisions of this
chapter, including provisions for the examination and correction of returns
and payments. (d)
In any case where a taxpayer has failed to file a return or has filed a
return which does not show the proper account of tax due, the Director
of Finance may determine the amount of tax appearing to be due the City
from the taxpayer and shall send to such taxpayer a written statement showing
the amount of tax so determined, together with interest and penalties thereon,
if any. (e)
Subject to the consent of the Board of Review or pursuant to regulations
approved by the Board, the Director of Finance shall have the power to
compromise any interest or penalty, or both, imposed by this chapter. (f)
A Department of Taxation is hereby created within the office of the Director
of Finance of the City. Such Department of Taxation shall have such deputies,
clerks and other employees as may be from time to time determined by Council.
The Director of Finance shall make all appointments of personnel and purchase
all equipment, supplies and material for the Department of Taxation. The
Department of Taxation shall be charged with the administration and operation
of this chapter, under the direction of the Director of Finance. The Director
of Finance shall prescribe the form and method of accounts and reports
for the Department, as well as the forms for taxpayers’ returns and declarations,
and shall be charged with the internal examination and audit of all such
accounts, and shall exhibit accurate records showing the amount received
from each taxpayer, and the date of such receipt. The Director of Finance
shall also make a written report to Council annually of all moneys collected
hereunder during the preceding year. (Ord.
68-24. Passed 191.09
INVESTIGATIVE POWERS OF THE COMMISSIONER OF TAXATION; PENALTY FOR DIVULGING
CONFIDENTIAL INFORMATION. (a)
The Commissioner of Taxation, or any authorized employee, is hereby authorized
to examine the books, papers, records and federal income tax returns of
any employer or of any taxpayer or person subject to the City income tax
for the purpose of verifying the accuracy of any return made, or if no
return was made, to ascertain the tax due under this Chapter. Every such
employer, supposed employer, taxpayer or supposed taxpayer and pass-through
entity is hereby directed and required to furnish, upon written request
by the Commissioner of Taxation or the Commissioner’s duly authorized agent
or employee, the means, facilities and opportunity for making such examinations
and investigations as are hereby authorized. (b)
The Commissioner of Taxation is hereby authorized to order any person to
appear at the office of the Commissioner of Taxation and examine any person,
under oath, concerning any income which was or should have been returned
for taxation or any transaction tending to affect such income, and for
this purpose may compel the production of books, papers, records and federal
income tax returns and the attendance of all persons before the Commissioner,
whether as parties or witnesses, whenever he believes such persons have
knowledge of such income or information pertinent to such inquiry. (c)
The refusal to produce books, papers, records and federal income tax returns,
or the refusal of such examination by any employer, pass-through entity
or person subject or presumed to be subject to the tax or by any officer,
agent or employee of a person subject to a tax or required to withhold
tax or the failure of any person to comply with the provisions of this
Section or with an order of subpoena of the Commissioner of Taxation authorized
hereby shall be deemed a violation of this Chapter, punishable as provided
in Section 191.12. (d)
Any information gained as the result of any returns, investigations, hearings
or verifications required or authorized by this Chapter shall be confidential,
except for official purposes, or except in accordance with proper judicial
order. Any person divulging such information in violation of this Chapter
is guilty of a misdemeanor of the first degree. (Ord.
03-46. Passed 191.10
INTEREST AND PENALTIES. (a)
A penalty of twenty-five dollars ($25.00) shall be imposed on each taxpayer,
pass-through entity or employer who fails to timely and properly file any
return or remit any tax required by this Chapter. (b) (c)
Upon recommendation of the Commissioner of Taxation, the Board of Review
may abate penalty or interest, or both, or upon an appeal from the refusal
of the Commissioner of Taxation to recommend abatement of penalty and interest,
the Board of Review may nevertheless abate penalty or interest, or both. (Ord.
03-46. Passed 191.11
COLLECTION OF UNPAID TAXES. (a) All
taxes imposed by this Chapter shall be collectible, together with any interest
and penalties thereon, by
suit, as other debts of like amount are recoverable. Such suit shall be
brought within three years after the City income tax was due or the return
was filed, whichever is later. (b) Prosecutions
for an offense made punishable under this Chapter shall be commenced within
three years
after the commission of the offense, provided that in the case of fraud,
failure to file a return, or the omission of twenty-five percent (25%)
or more of the compensation or net profits required to be reported, prosecutions
may be commenced within six years after the commission of the offense. Taxes
erroneously paid or withheld shall not be refunded unless a claim for refund
is made within the time specified in Ohio Revised Code Section 718.12(C). Interest
on such refunded amounts shall be allowed to the extent provided in Ohio
Revised Code Section 718.12(D). ( Ord.
03-46. Passed (a)
Any taxpayer or person who: (1)
Fails, neglects or refuses to make any return or declaration required by
this Chapter; or (2)
Makes any incomplete, false or fraudulent return; or (3)
Fails, neglects or refuses to pay the tax, penalties or interest imposed
by this Chapter; or (4)
Fails, neglects or refuses to withhold the tax from his employees or owners
or remit such withholding to the Commissioner of Taxation; or (5)
Refuses to permit the Commissioner of Taxation or any duly authorized agent
or employee to examine his books, records, papers and federal income tax
returns relating to the income or net profits of a taxpayer; or (6)
Fails to appear before the Commissioner of Taxation and to produce the
books, records, papers or federal income tax returns relating to the income,
compensation or net profits of a taxpayer or employer upon order or subpoena
of the Commissioner of Taxation; or (7)
Refuses to disclose to the Commissioner of Taxation any information with
respect to the income or net profits of a taxpayer; or (8)
Fails to comply with the provisions of this Chapter or any order or subpoena
of the Commissioner of Taxation authorized hereby; or (9)
Attempts to do anything whatever to avoid the payment of the whole or any
part of the tax, penalties or interest imposed by this Chapter is
guilty of a misdemeanor of the first degree. (b)
The failure of any employer or taxpayer to receive or procure a return
declaration or other required form shall not excuse such employer or taxpayer
from making any information return, return or declaration, from filing
such form, or from paying the tax. (Ord.
03-46. Passed (a)
A Board of Review consisting of three residents of the City shall be appointed
by the Mayor with the approval of Council to serve for a term of three
years. The Board of Review
shall follow all rules and regulations and amendments or changes thereto,
which are adopted by the Commissioner of Taxation under the authority conferred
by this Chapter. All rules
and regulations must be approved by the Board of Review before the same
become effective. After such approval, such rules, regulations, amendments
and changes shall be filed with the Clerk of Council and shall be open
to public inspection. (b)
(1) Preference in appointment shall whenever possible be given to individuals
whose background in business, finance or similar areas qualifies them for
such duties. (2)
No more than two members of such Board of Review shall be members of the
same political party. (3)
The Board shall for a term of one year elect one member as president and
one member as secretary. A majority of the members of the Board of Review
shall constitute a quorum. The Board of Review shall adopt its own procedural
rules and shall keep a record of its transactions. (4)
If any member shall for reasons of conflict of interest disqualify himself
from the Board’s proceedings, the other members shall select a third member
for the purpose of considering a particular matter. (c)
All hearings by the Board may be conducted privately and the provision
of Section 191.09 with reference to the confidential character of information
required to be disclosed by this Chapter shall apply to such matters as
may be heard before the Board of Review on appeal. (d) Any
person dissatisfied with any ruling or decision of the Commissioner of
Taxation which is made under
the authority conferred by this Chapter may appeal therefrom to the Board
of Review within thirty days from the announcement of such ruling or decision
by the Commissioner of Taxation, and the Board of Review shall, on hearing,
have jurisdiction to affirm, reverse or modify any such ruling or decision,
or any part thereof. An appeal
of a ruling or decision of the Commissioner of Taxation must be in writing
and must state why such ruling or decision is deemed incorrect or unlawful. (e) The
Board of Review shall schedule any hearings and issue its decisions in
the manner and within the periods
prescribed by Ohio Revised Code Section 718.11. If
the taxpayer does not waive a hearing before the Board of Review, the taxpayer
may be represented before the Board as provided by law. All
appeals of decisions of the Board of Review shall be made in accordance
with Ohio Revised Code Sections 718.11 and 5717.011. (Ord.
03-46. Passed The
funds collected under the provisions of this Chapter shall be deposited
in the General Fund and such funds shall be disbursed in the following
order: EDITOR’S
NOTE: Council can by ordinance adjust the percentage figures involved in
the disbursement and allocation of income tax funds collected. The current
legislation involving such disbursement and allocation is on file with
the Council Clerk and the Department of Finance. 191.15
RECIPROCITY; CREDIT FOR TAX PAID TO OTHER MUNICIPALITIES. (a) Residents. When
a resident is subject to and has paid, or has acknowledged liability for,
a municipal income
tax in another taxing municipality on the same income taxable under this
Chapter, regardless of whether such other taxing municipality allows credit
to its nonresidents, such resident may claim a credit in an amount equal
to the lesser of (i) the amount of such tax paid
to such other taxing municipality or (ii) the City income tax on such income
taxable under this Chapter. In
no case shall the credit authorized by this subsection (a) exceed the City
income tax assessed under this Chapter. (b) For
taxable years beginning on or after does
not conduct business in the City and that has paid, or has acknowledged
liability for, an income tax in another taxing municipality may claim a
credit equal to the lesser of the following amounts: (1) the
resident owner’s proportionate share of the amount, if any, of income tax
paid by the pass-through entity to another taxing municipality in the State;
or (2) the
resident owner’s proportionate share of the amount of City income tax that
would be imposed on the pass-through entity if the pass-through entity
conducted business in the City. In
no case shall the credit authorized by this subsection (b) exceed the City
income tax assessed under this Chapter. (c)
Where applicable, the credits provided by Ohio Revised Code Sections 718.021
and 718.121 shall be available to residents. (Ord.
03-46. Passed If
any sentence, clause, section or part of this chapter, or any tax against
any individual or any of the several groups specified herein, is found
to be unconstitutional, illegal or invalid, such unconstitutionality, illegality
or invalidity shall affect only such clause, sentence, section or part
of this chapter and shall not affect or impair any of the remaining provisions,
sentences, clauses, sections or other parts of this chapter. It is hereby
declared to be the intention of Council that this Chapter would have been
adopted had such unconstitutional, illegal or invalid sentence, clause,
section or part thereof not been included herein. (Ord.
68-241 Passed 191.17
COLLECTION OF TAX AFTER TERMINATION OF CHAPTER. (a)
This chapter shall continue effective insofar as the levy of taxes is concerned,
and insofar as the collection of taxes levied and actions or proceedings
for collecting any tax so levied or enforcing any provisions of this chapter
are concerned, it shall continue effective until all of such taxes levied
in the aforesaid period are fully paid and any and all suits and prosecutions
for the collection of such taxes or for the punishment of violations of
this chapter shall have been fully terminated, subject to the limitations
contained in Sections 191.11 and 191.12. (b)
Annual returns for the last year in which this Chapter shall be effective
shall be filed on or before four months from any termination date of this
Chapter and any tax shown due thereon for such year which is not paid and
collectable under the provisions of Sections 191.06 and/or 141.07 shall
be paid within such four month period, except in those cases in which the
time for filing returns and/or payment of the tax due has been extended
in accordance with Section 191.05, and except for claims for reciprocity
refunds properly assigned and collectable from another municipality. (Ord.
68-24. Passed 191.18
NO LOSS CARRYFORWARD OR CARRYBACK. No
taxpayer may carry a net operating loss for one taxable year forward or
backward to another taxable year. (Ord.
87-33. Passed 191.19
NO BUSINESS LOSS DEDUCTION FROM INCOME EARNED AS EMPLOYEE. No
taxpayer may deduct a net loss from the operation of a business from compensation
earned by the same taxpayer as an employee of a business. (Ord.
87-33. Passed