You will to download

to open these files.  IT'S FREE

All Tax Ordinances are available for downloading

in Word and in PDF format.

You will need Adobe Acrobat to read PDF Files.

Click the logo to go directly to the Adobe website.

To provide funds for the purposes of general municipal operations, maintenance, new equipment, extension and enlargement of municipal services and facilities and capital improvements of the village there shall be, and is hereby levied, a tax on salaries, wages, commissions and other compensation, and on net profits as hereinafter provided. (Ord. 8-70, passed 10-12-70)

38.02 DEFINITIONS. For the purpose of this chapter, the following definitions shall apply unless the context clearly indicates or requires a different meaning. The singular shall include the plural and the masculine shall include the feminine and the neuter.

Administrator. The individual designated by the ordinance to administer and enforce the provisions of the ordinance.

Association. A partnership, limited partnership, or any other form of unincorporated enterprise, owned by two or more persons.

Board of Review. The board created by and constituted as provided in 38.14 of this chapter.

Business. An enterprise, activity, profession, or undertaking of any nature conducted for profit or ordinarily conducted for profit, whether by an individual, partnership, association, corporation or any other entity, including but not limited to the renting or leasing of property real, personal or mixed.

Corporation. A corporation or joint stock association organized under the laws of the United States, the State of Ohio or any other state, territory, or foreign country or dependency.

Employee. One who works for wages, salary, commission or other type of compensation in the service of an employer.

Employer. An individual, partnership, association, 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.

Fiscal Year. An accounting period of 12 months or less ending on any day other than December 31.

Gross Receipts. The total income from any source whatsoever.

Net Profits. A net gain from the operation of a business, profession, enterprise or other activity 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, without deduction of taxes imposed by this ordinance, federal, state, and other taxes based on income; and in the case of an association without deduction of salaries paid to partners, and other owners; and otherwise adjusted to the requirements of this chapter.

Non-Resident. An individual domiciled outside the village.

Non-Resident Unincorporated Business Entity. An unincorporated business entity not having an office or place of business within the village.

Person. Every natural person, partnership, fiduciary, association, or corporation. Whenever used in any clause prescribing and imposing a penalty, the term Person as applied to any unincorporated entity shall mean the partners or member thereof, and as applied to corporation, the officers thereof.

Place Of Business. Any bona fide office (other than a mere statutory office), 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 or her regular employees regularly in attendance.

Resident. An individual domiciled in the village.

Resident Unincorporated Business Entity. An unincorporated business entity having an office or place of business within the village.

Taxable Income. Wages, salaries, and other compensation paid by an employer or employers 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 the ordinance.

Taxable Year. The calendar year, or the fiscal year upon the basis of which 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 required to be made.

Taxpayer. A person, whether an individual, partnership, limited partnership, association, or any corporation or other entity, required hereunder to file a return or pay a tax.(Ord. 8-70, passed 10-12-70)

(A) Subject to the provisions of 10.07 of this Code of Ordinances, an annual tax for the purposes specified in 38.01 hereof shall be imposed on and after January 1, 1971, at the rate of 1% per annum upon the following:

(1) On all salaries, wages, commissions and other compensation earned on and after January 1, 1971, by residents of the village.

(2) On all salaries, wages, commissions and other compensations earned on and after January 1, 1971, by non-residents for work done or services performed or rendered in the village.

(3) (a) On the portion attributable to the village of the net profits earned on or after January 1, 1971, of all resident unincorporated businesses, professions, or other entities, derived from sales made, work done, services performed or rendered and business or other activities conducted in the village.

(b) On the portion of the distributive share of the new profits earned on and after January 1, 1971, of a resident partner or owner of a resident unincorporated business entity not attributable to the village and not levied against such unincorporated business entity.

(4) (a) On the portion attributable to the village of the net profits earned on and after January 1, 1971, of all non-resident unincorporated businesses, professions, or other entities, derived from sales made, work done or services performed or rendered and business or other activities conducted in the village, whether or not such unincorporated business entity has an office or place of business in the village.

(b) On the portion of the distributive share of the net profits earned on and after January 1, 1971, of a resident partner or owner of a non-resident unincorporated business entity not attributable to the village and not levied against such unincorporated business entity.

(5) On the portion attributable to the village, of the net profits earned on and after January 1, 1971, of all corporations derived from sales made, work done, services performed or rendered and business or other activities conducted in the village whether or not such corporations have an office or place of business in the village.

(B) The portion of the net profits attributable to the village of a taxpayer conducting a business, profession, or other activity both within and without the boundaries of the village shall be determined as provided in R.C. 718.02 and in accordance with the rules and regulations adopted by the Village Council pursuant to this chapter.

(C) Operating loss carry forward.

(1) The portion of a net operating loss sustained in any taxable year subsequent to January 1, 1971, allocable to the village may be applied against the portion of the profit of succeeding year(s) allocable to the village, until exhausted but in no event for more than five taxable years. No portion of a net operating loss shall be carried back against net profits of any prior year.

(2) The portion of a net operating loss sustained shall be allocated to the village in the same manner as provided herein for allocating net profits to the village.

(3) The Administrator shall provide by rules and regulations the manner in which such net operating loss carry-forward shall be determined.

(D) Consolidated returns.

(1) Filing of consolidated returns may be permitted or required in accordance with rules and regulations prescribed by the Administrator.

(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 village constituting a portion only of its total business, the Administrator shall require such additional information as he or she may deem necessary to ascertain whether net profits are properly allocated to the village. If the Administrator finds net profits are not properly allocated to the village by reason of transactions with stockholders or with other corporations related by stock ownership, interlocking directorates, or transactions with such division, branch, factory, office, laboratory, or activity or by some other method, he or she shall make such allocation as he or she deems appropriate to produce a fair and proper allocation of net profits to the village.

(E) The tax provided for herein shall not be levied upon the military pay or allowances of members of the armed forces of the United States, or upon the net profits of any civic, charitable, religious, fraternal or other organization specified in R.C. 718.01 to the extent that such net profits are exempted from municipal income taxes under said section. Additionally, the tax provided for herein shall not be levied on any income if such levy would otherwise be prohibited by law, including but not limited to the prohibitions established in R.C. 718.01.

(F) Said tax shall be levied, collected, and paid with respect to the salaries, wages, commissions and other compensations, and with respect to the net profits of businesses, professions or other activities earned on and after January 1, 1971, and until repealed. (Ord. 8-70, passed 10-12-70)

(A) Each taxpayer, except as herein provided, shall, whether or not a tax be due thereon, make and file a return on or before April 30 of each year. When the return is made for a fiscal year or other period different from the calendar year, the return shall be filed within four months from the end of such fiscal year or period. The Administrator is hereby authorized to provide by regulation that the return of an employer or employers, showing the amount of tax deducted by said employer or employers from the salaries, wages, commissions or other compensation of an employee, and paid by him, her, or them to the Administrator shall be accepted as the return required of any employee whose sole income, subject to tax under this chapter, is such salary, wages, commissions, or other compensation.

(B) The return shall be filed with the Administrator on a form or forms furnished by or obtainable upon request from such Administrator setting forth:

(1) The aggregate amounts of salaries, wages, commissions and other compensation earned and gross income from business, profession or other activity, less allowable expenses incurred in the acquisition of such gross income earned during the preceding year and subject to said tax;

(2) The amount of the tax imposed by this chapter on such earnings and profits;

(3) Such other pertinent statements, information, returns, or other information as the Administrator may require.

(C) The Administrator may extend the time for filing of the annual return upon the request of the taxpayer for a period of not to exceed six months, or one month beyond any extension requested of or granted by the Internal Revenue Service for the filing of the Federal Income Tax Return. The Administrator may require a tentative return, accompanied by payment of the amount of tax shown to be due thereon by the date the return is normally due. 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.

(D) (1) The taxpayer making a return shall, at the time of the filing thereof, pay to the Administrator the amount of taxes shown as due thereon, provided, however, that where any portion of the tax so due shall have been deducted at the source pursuant to the provisions of 38.05 of this chapter, or where any portion of said tax shall have been paid by the taxpayer pursuant to the provisions of 38.06 of this chapter, or where an income tax has been paid to another municipality, credit for the amount so paid in accordance with 38.10 of this chapter, 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 said return.

(2) A taxpayer who has overpaid the amount of tax which the village is entitled under the provisions of this chapter may have such overpayment applied against any subsequent liability hereunder or, at his or her election indicated on the return, such overpayment (or part thereof) shall be refunded, provided that no additional taxes or refunds of less than $1 shall be collected or refunded.

(E) (1) Where necessary an amended return must be filed in order to report additional income and pay any additional tax due, or claim a refund of tax overpaid, subject to the requirements and/or limitations contained in 38.08 and 38.10. Such amended returns shall be on a form obtainable on request from the Administrator. A taxpayer may not change the method of accounting or apportionment of net profits after the due date for filing the original return.

(2) Within three months from the final determination of any federal tax liability affecting the taxpayers' village tax liability, such taxpayer shall make and file an amended village return showing income subject to village 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. (Ord. 8-70, passed 10-12-70)

(A) In accordance with rules and regulations prescribed by the Administrator, each employer within or doing business within the village shall deduct at the time of the payment of such salary, wage, commission, or other compensation, the tax of 1% of the gross salaries, wages, commissions or other compensation due by the employer to the employee and shall, on or before the last day of the month following the close of each calendar quarter make a return and pay to the Administrator the amount of taxes so deducted. Said returns shall be on a form or forms prescribed by or acceptable to the Administrator and shall be subject to the rules and regulations prescribed therefor by the Administrator. Such employer shall be liable for the payment of the tax required to be deducted and withheld, whether or not such taxes have in fact been withheld.

(B) Such employer in collecting said tax shall be deemed to hold the same, until payment is made by such employer to the village, as a trustee for the benefit of the village and any such tax collected by such employer from his or her employees shall, until the same is paid to the village, be deemed a trust fund in the hands of such employer.

(C) On or before January 31 of each year, each employer shall file a withholding return setting forth the names and addresses of all employees from whose compensation the tax was withheld during the preceding calendar year and the amount of tax withheld from his or her employees and such other information as may be required by the Administrator.(Ord. 8-70, passed 10-12-70)

(A) Every person who anticipates any taxable income which is not subject to 38.05, or who engages in any business, profession, enterprise or activity subject to the tax imposed by 38.03, shall file a declaration setting forth such estimated income or the estimated profit or loss from such business activity, together with the estimated tax due thereon, if any, provided, however, if a person's income is wholly from wages from which the tax will be withheld and remitted to the village in accordance with 38.05, such person need not file a declaration.

(B) (1) Such declaration shall be filed on or before April 30 of each year during the life of this chapter, or within four months of the date the taxpayer becomes subject to tax for the first time.

(2) Those taxpayers reporting on a fiscal year basis shall file a declaration within four months after the beginning of each fiscal year or period.

(C) (1) Such declaration shall be filed upon a form furnished by, or obtainable from, the Administrator, provided, however, credit shall be taken for the village tax to be withheld from any portion of such income. In accordance with the provisions of 38.10 hereof, credit may be taken for tax to be paid or to be withheld and remitted to another taxing municipality.

(2) The original declaration (or any subsequent amendment thereof) may be increased or decreased on or before any subsequent quarterly payment date as provided for herein.

(D) Such declaration of estimated tax to be paid the village accompanied by a payment of at least one-fourth of the estimated annual tax and at least a similar amount shall be paid on or before the last day of the sixth, ninth and twelfth months after the beginning of the taxable year. Provided, however, that in the case an amended declaration has been filed, the unpaid balance shown due thereon shall be paid in equal installments on or before the remaining payment dates.

(E) On or before the last day of the fourth month of the year following that for which such declaration or amended declaration was filed, an annual return shall be filed and any balance which may be due the village shall be paid therewith in accordance with the provisions of 38.04 hereof. (Ord. 8-70, passed 10-12-70)

(A) All taxes imposed and all monies withheld or required to be withheld by employers under the provisions of this chapter and remaining unpaid after they become due shall bear interest at the rate of 1/2 % per month or fraction thereof .

(B) In addition to interest as provided in division (A) above, penalties based on the unpaid tax are hereby imposed as follows:

(1) For failure to pay taxes due - other than taxes withheld - 1/2 % per month or fraction thereof.

(2) For failure to remit taxes withheld from employees - 3% per month or fraction thereof.

(C) A penalty shall not be assessed on an additional tax assessment made by the Administrator when a return has been filed in good faith and the tax paid thereon within the time prescribed by the Administrator; and provided further that, 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 months after final determination of the federal tax liability.

(D) Upon recommendation of the Administrator, the Board of Review may abate penalty or interest, or both, or upon an appeal from the refusal of the Administrator to recommend abatement of penalty and interest, the Board may nevertheless abate penalty or interest, or both. (Ord. 8-70, passed 10-12-70)

(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. Except in the case of fraud, omission of 25% or more of income required to be reported, or failure to file a return, an additional assessment shall not be made after three years from the time the return was due or filed whichever is later, provided, however, in those cases in which a Commissioner of Internal Revenue and the taxpayer have executed a waiver of the federal statue of limitation, the period within which an additional assessment may be made by the Administrator shall be one year from the time of the final determination of the federal tax liability.

(B) Taxes erroneously paid shall not be refunded unless a claim for a refund is made within three years from the date which such payment was made or the return was due, or within three months after final determination of the federal tax liability, whichever is later.

(C) Amounts of less than $1 shall not be collected or refunded.

(Ord. 8-70, passed 10-12-70)

The funds collected under the provisions of this chapter shall be deposited in a special fund known as "Income Tax Fund" and said funds shall be disbursed in the following manner:

(A) Such part thereof as shall be necessary to defray all costs of collecting the taxes and the cost of administering and enforcing the provisions thereof.

(B) Fifty percent of the net available income tax receipts received annually shall be deposited in the General Fund to defray operating expenses of the village.

(C) Fifty percent of net available income tax receipts received annually shall be deposited in the Permanent Improvement Fund to be used for capital improvements for the village. (Ord. 8-70, passed 10-12-70; Am. Ord. 3-95, passed 5-8-95)

(A) Where a resident of the village is subject to a municipal income tax in another municipality, he or she shall not pay a total municipal income tax on the same income greater than the tax imposed at the higher rate.

(B) Every individual taxpayer who resides in the village who receives net profits, salaries, wages, commissions or other personal service compensation for work done or services performed or rendered outside of the village, if it be made to appear that he or she has paid a municipal income tax on the same income taxable under this chapter to another municipality, shall be allowed a credit against the tax imposed by this chapter of the amount so paid by him or her or in his or her behalf to such other municipality. The credit shall not exceed the tax assessed by this chapter on such income earned in such other municipality or municipalities where such tax is paid.

(C) A claim for refund or credit under this section shall be made in such manner as the Administrator may, by regulation, provide. (Ord. 8-70, passed 10-12-70)

(A) This chapter shall continue effective insofar as the levy of taxes is concerned until repealed, and insofar as the collecting of taxes levied hereunder and actions or proceedings for collection any tax so levied or enforcing any provisions of this chapter are concerned, it shall continue effective until all of said taxes levied in the aforesaid period are fully paid and any and all suits and prosecutions for the collection of said taxes or for the punishment of violations of this chapter have been fully terminated, subject to the limitations contained in 38.08 and 10.99.

(B) Annual returns due for all or any part of the last effective year of this chapter shall be due on the date provided in 38.04 and 38.05 as though the same were continuing.

(Ord. 8-70, passed 10-12-70)

(A) Administrator

(1) (a) It shall be the duty of the Administrator to receive the tax imposed by this chapter in the matter prescribed herein from the taxpayers; to keep an accurate record thereof; and to report all monies so received.

(b) It shall be the duty of the Administrator to enforce payment of all taxes owing the village, 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 taxes imposed and levied pursuant to the provisions of this chapter shall be administered by the Administrator, appointed by the Village Council and such other employees as may be from time to time determined by the Council of the village, and they shall receive such salary as may be determined by the Village Council.

(2) Said Administrator is hereby charged with the enforcement of the provisions of this chapter, and is hereby empowered, subject to the approval of the Board of Review, to adopt and promulgate and to enforce rules and regulations relating to any matter or thing pertaining to the collection of taxes and the administration and enforcement of the provisions of this chapter, including provisions for the reexamination and correction of returns.

(a) The Administrator is authorized to arrange for the payment of unpaid taxes, interest and penalties on a schedule of installment payments, when the taxpayer has proven to the Administrator that, due to certain hardship conditions, he or she is unable to pay the full amount of the tax due. Such authorization shall not be granted until proper returns are filed by the taxpayer for all amounts owed by him or her under the chapter.

(b) Failure to make any deferred payment when due shall cause the total unpaid amount, including penalty and interest, to become payable on demand and the provisions of 38.08 and 10.99 shall apply.

(3) 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 Administrator may determine the amount of tax appearing to be due the village 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.

(4) Subject to the consent of the Board of Review or pursuant to regulation approved by said Board, the Administrator shall have the power to compromise any interest or penalty, or both, imposed by 38.07 (Ord. 8-70, passed 10-12-70)

(B) Assistant Income Tax Administrator

(1) The position of Assistant Income Tax Administrator is hereby created.

(2) The rate of pay shall be as set by ordinance of the Council.

(3) The duties of the Assistant Income Tax Administrator are to advise and assist the Income Tax Administrator in carrying out the duties and functions provided for in this chapter.

(4) The Assistant Income Tax Administrator shall have all the powers and be subject to all the limitations imposed upon the Income Tax Administrator in this chapter.

(Ord. 6-93, passed 6-15-93)

(A) The Administrator, or any authorized employee, is hereby authorized to examine the books, papers, records and federal income tax returns of any employer or any taxpayer or person subject to or whom the Administrator believes is subject to the provisions of this chapter, 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 is hereby directed and required to furnish upon written request by the Administrator, or his or her duly authorized agent or employee, the means, facilities, and opportunity for making such examinations and investigations as are hereby authorized.

(B) The Administrator is hereby authorized to order any person presumed to have knowledge of the facts to appear before him or her and may examine such 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 him or her, whether as parties or witnesses, whenever he or she 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 to submit to such examination by the employer or person subject or presumed to be subject to the tax or by any officer, agent or employee of a person subject to the tax or required to withhold tax or the failure of any person to comply with the provisions of this section or with an order or subpoena of the Administrator authorized hereby shall be deemed a violation of this chapter, punishable as provided in 10.99.

(D) Any information gained as a 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. The Administrator may furnish copies of returns filed under this chapter to the Internal Revenue Service and to the Tax Commissioner. Any person divulging such information in violation of this chapter shall be subject to the penalty provided in 10.99.

(E) Every taxpayer shall retain all records necessary to compute his or her tax liability for a period of three years from the date his or her return is filed, or the withholding taxes are paid.(Ord. 8-70, passed 10-12-70)

(A) A Board of Review, consisting of the Treasurer, President of Council and the Village Solicitor, is hereby created. 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. Any hearing by the Board may be conducted privately and the provisions of 38.13 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 on appeal.

(B) All rules and regulations and amendments or changes thereto, which are adopted by the Administrator under the authority conferred by this chapter, must be approved by the Board of Review before the same become effective. The Board shall hear and pass on appeals from any ruling or decision of the Administrator, and at the request of the taxpayer or Administrator, is empowered to substitute alternate methods of allocation.

(C) Any person dissatisfied with any ruling or decision of the Administrator which is made under the authority conferred by this chapter may appeal therefrom to the Board of Review within 30 days from the announcement of such ruling or decision by the Administrator, and the Board shall, on hearing, have jurisdiction to affirm, reverse or modify any such ruling or decision, or any part thereof. (Ord. 8-70, passed 10-12-70)

(A) No person shall:

(1) Fail, neglect or refuse to make any return or declaration required by this chapter; or

(2) Make any incomplete, false or fraudulent return; or

(3) Fail, neglect or refuse to pay the tax, penalties or interest imposed by this chapter; or

(4) Fail, neglect or refuse to withhold the tax from his or her employees or remit such withholding to the Administrator; or

(5) Refuse to permit the Administrator or any duly authorized agent or employee to examine his or her books, records, papers and federal income tax returns relating to the income or net profits of a taxpayer; or

(6) Fail to appear before the Administrator and to produce his or her books, records, papers or Federal income tax returns relating to the income or net profits of a taxpayer upon order or subpoena of the Administrator; or

(7) Refuse to disclose to the Administrator any information with respect to the income or net profits of a taxpayer; or

(8) Fail to comply with the provisions of this chapter or any order of subpoena of the Administrator authorized hereby; or

(9) Give to an employer false information as to his or her true name, correct social security number and residence address, or fail to promptly notify an employer of any change in residence address and date thereof; or

(10) Fail to use ordinary diligence in maintaining proper records of employee's residence addresses, total wages paid and the village tax withheld, or to knowingly give the Administrator false information; 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.

(B) Prosecutions for an offense made punishable under this section or any other provision of 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 25% or more of income required to be reported, prosecutions may be commenced within six years after the commission of the offense.

(C) The failure of any employer or person to receive or procure a return, declaration or other required form shall not excuse him or her from making any information return, or declaration, from filing such form, or from paying the tax. (Ord. 8-70, passed 10-12-70)