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Record of Ordinances
Ordinance No.: 2002-27
Passed: Nov. 11, 2002
AN ORDINANCE AMENDING ORDINANCE NO.
17-2000 IN REGARD TO THE RULES FOR THE PAYMENT OF ESTIMATED
INCOME TAXES IN ORDER TO BE IN CONFORMITY WITH CERTAIN REQUIREMENTS
OF STATE LAW EFFECTIVE JANUARY 2003 AND IN REGARD TO THE TREATMENT
OF OPERATING LOSSES.
WHEREAS, Ohio Revised Code Section 718.08 mandates certain
revisions in the filing of estimated tax payments beginning
in January of 2003;
WHEREAS, it is desired to make certain revisions in the utilization
of operating losses;
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE VILLAGE
OF WEST LAFAYETTE, STATE OF OHIO, THAT:
The Village Income tax provisions provided
in ORDINANCE NO. 17-2000 shall be and hereby are amended
to read as follows:
SECTION 1. PURPOSE.
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 this municipality
there shall be, and is hereby, levied a tax on salaries, wages,
commissions and other compensation, and on net profits as hereinafter
provided.
SECTION 2. DEFINITIONS.
As used in this ordinance, the following words shall have
the meaning ascribed to them in this SECTION, except as and
if the context clearly indicates or requires a different meaning.
TAX ADMINISTRATOR: the individual designated by the ordinance
to administer and enforce the provisions of the ordinance and
who shall be appointed by a majority of those elected to council.
ASSOCIATION: a partnership, limited partnership, a limited
liability company, or any other form of unincorporated enterprise,
owned by one or more persons.
BOARD OF REVIEW: the board created by and constituted
as provided in SECTION 14 of this ordinance.
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 twelve (12) months
or less ending on any day other than December 31st.
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, reasonable 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 exclusive of the amount of Ohio franchise
tax computed on the net worth basis; in the case of an association,
without deduction of salaries paid to partners, and other owners;
and otherwise adjusted to the requirement of this ordinance.
NON-RESIDENT: An individual domiciled outside this municipality.
NON-RESIDENT UNINCORPORATED BUSINESS ENTITY: An unincorporated
business entity not having an office or place of business within
this municipality.
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 members
thereof, and as applied to corporations, 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 regular
employees regularly in attendance.
RESIDENT: An individual domiciled in this municipality.
RESIDENT UNINCORPORATED BUSINESS ENTITY: An unincorporated
business entity having an office or place of business within
this municipality.
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
ordinance 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,
association, or any corporation or other entity, required hereunder
to file a return or pay a tax.
MUNICIPALITY: Wherever the words "this municipality"
are used in this ordinance, they shall mean the Village of West
Lafayette, State of Ohio.
The singular shall include the plural, and the masculine
shall include the feminine and the neuter.
SECTION 3.
IMPOSITION OF TAX.
A. Subject to the provisions of Section 18 of this
ordinance an annual tax for the purposes specified in Section
1 hereof shall be imposed on and after July 1, 1982, at the
rate
of One Percent (1%) per annum upon
the following:
1. On all salaries, wages, commissions and
other compensation earned during the effective period of the
ordinance by the residents of this municipality.
2. On all salaries, wages, commissions and other
compensation earned during the effective period of the ordinance
by non-residents for work done or services performed or rendered
in this municipality.
3. (a) On the portion attributable to this municipality
of the net profits earned during the effective period of this
ordinance 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 this municipality.
(b) On the portion of the distributive share
of the net profits earned during the effective period of this
ordinance of a resident partner or owner of a resident unincorporated
business entity not attributable to this municipality and not
levied against such unincorporated business entity by this municipality.
4. (a) On the portion attributable to this municipality of the
net profits earned during the effective period of this ordinance
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 this municipality, whether or not such unincorporated business
entity has an office or place of business in this municipality.
(b) On the portion of the distributive share
of the net profits earned during the effective period of this
ordinance of a resident partner or owner of a non-resident unincorporated
business entity not attributable to this municipality and not
levied against such other unincorporated business entity by
this municipality.
5. On the portion attributable to this municipality,
of the net profits earned during the effective period of this
ordinance of all corporations derived from sales made, work
done, services performed or rendered and business or other activities
conducted in this municipality, whether or not such corporations
have an office or place of business in this municipality.
B. The portion of the net profits attributable to
this municipality of a taxpayer conducting a business, profession
or other activity both within and without the boundaries of
this municipality shall be determined as provided in Section
718.02 of the Revised Code of Ohio and in accordance with the
rules and regulations adopted by the Tax Administrator pursuant
to this ordinance.
C. Rentals received from the renting or leasing of property
real, personal or mixed, are to be taxable only if and to the
extent that the rental, ownership, management or operation of
such property from which such rentals are derived (whether rented,
managed or operated by taxpayer individually or through agents
or representatives) constitute a business activity of the taxpayer
in whole or in part subject to the following conditions and
restrictions:
1. Where the gross monthly rental of any and all
items of property, real, personal or mixed, regardless of number
and value, aggregates in excess of $100.00 per month, it shall
be prima facie evidence that the rental, ownership, management
or operation of such property or properties is a business activity
of such taxpayer and the net income of such rental property
shall be subject to tax.
2. In the case of commercial property, the owner
shall be considered engaged in a business activity when the
rental is based on a fixed or fluctuating percentage of gross
or net sales, receipts or profits of the lessee, whether or
not such rental exceeds $100 per month.
3. In the case of farm property, the owner shall
be considered engaged in a business activity when he shares
in the crops or when the rental is based on a percentage of
the gross or net receipts derived from the farm whether or not
the gross income exceeds $100.00 per month.
4. Any person who operates a rooming house shall
be considered to be conducting a business activity whether or
not the gross income exceeds $100 per month.
5. In determining the amount of gross monthly rental
of any real property, periods during which rentals are not received
by reason of vacancy or any other cause shall not be taken into
consideration by the taxpayer.
6. Rentals received by a taxpayer engaged in the
business of buying and selling real estate shall be considered
as part of taxpayer's business income.
7. In determining the taxable net income from rentals,
the same regulations and guidelines used by the Internal Revenue
Service for federal income tax purposes to determine net rentals
shall be used.
8. Residents of this municipality are subject to
taxation upon net income from rentals as hereinbefore specified
on all rental properties located in this municipality and on
all rental properties located outside this municipality.
9. Non-residents of this municipality are subject
to such taxation of net rentals only on rental properties situated
within this municipality and in determining whether gross monthly
rentals exceed $100.00, only rental properties situated within
this municipality shall be considered.
D. Operating Loss.
1. If a net operating loss arising in a business
or profession has been sustained in any taxable year, such loss
may not be carried forward to any subsequent taxable
year nor carried back to any previous taxable year.
2. In the case of an individual having salary or
wages subject to taxation under this ordinance, if said individual
has a business, including farm and rental property, which
reflects a loss for the same accounting period, said
individual may not off-set the business loss against income
earned on salary or wages.
3. If an individual operates more than one business,
the profits of which are subject to taxation under this ordinance,
said individual may off-set profits from one business with the
net loss from another business, and report the resulting net
profit or loss for the purposes of this ordinance.
4. In any event, the net loss on a business used
to off-set net income from another business must exactly agree
with the net loss on said business as reported on the Federal
Income Tax Return Form 1040, as filed with the Federal Government.
E. Consolidated Returns.
1. Filing of consolidated returns may be permitted,
required, or denied in accordance with Rules and Regulations
prescribed by the Tax 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 this municipality
constituting a portion only of its total business, the Tax Administrator
shall require such additional information as he may deem necessary
to ascertain whether net profits are properly allocated to this
municipality. If the Tax Administrator finds net profits are
not properly allocated to this municipality by reason of transactions
with stockholders or with other corporations related by stock
ownership, interlocking directorate or transactions with some
division, branch, factory, office, laboratory or activity or
by some other method he shall make such allocation as he deems
appropriate to produce a fair and proper allocation of net profits
to this municipality.
3. On and after January 1, 2003, the Tax Administrator
shall accept for filing a consolidated income tax return from
any affiliated group of corporations subject to the municipal
corporation's tax if that affiliated group filed for the same
tax reporting period a consolidated return for federal income
tax purposes pursuant to section 1501 of the Internal Revenue
Code. [O.R.C. 718.06]
F. EXCEPTION. The provisions of this ordinance shall
not be construed to tax items of income received from the following
sources unless such income is the result of the operation of
taxpayer's business or reported as income thereof:
1. Military pay or allowances paid to members of
the Armed Forces of the United States
for active duty performed in excess to thirty (30) days.
2. Income in the form of poor relief, pensions,
annuities, social security, unemployment compensation and disability
benefits received from private industry or local, state or federal
governments, or from charitable, religious or educational organizations.
3. Income in the form of dues, contributions and
similar payments received by charitable, religious, educational
or literary organizations or labor unions, lodges and similar
organizations.
4. Income received as receipts from casual entertainment,
amusements, sports events and health and welfare activities
conducted by bona fide charitable, religious and educational
organizations and associations.
5. Income received by any association, organization,
corporation club or trust which is exempt from the payment of
federal income tax by reason of its charitable, religious, educational,
literary, scientific and related purposes.
6. Income received in the form of interest, dividends
and gains realized from the sale of property, real or personal.
7. Earnings and income of all persons under eighteen
(18) years of age, whether residents or non-residents.
8. Any other sources exempted by Section 718.01
of the Revised Code of Ohio.
SECTION 4.
EFFECTIVE PERIOD.
Said tax in accordance with the rates provided under this
ordinance 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 January 1, 2002, and including
time periods covered by fiscal years ending on and after January
1, 2002. All obligations heretofore accrued under Ordinance
No. 17-2000 shall remain in full force and effect and implemented
pursuant to this Ordinance.
SECTION 5.
RETURN AND PAYMENT OF TAX.
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 the year following the effective date of this ordinance,
and on or before April 30 of each year thereafter. When the
return is made for a fiscal year or other period different from
the calendar year, the return shall be filed within four (4)
months from the end of such fiscal year or period.
B. The return shall be filed with the Tax Administrator
on a form or forms furnished by or obtainable upon request from
such Tax 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 ordinary, reasonable, and
necessary 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 ordinance
on such earnings and profits; and
3. Such other pertinent statements, information
returns, or other information as the Tax Administrator may require.
4. Generic returns as provided in 718.05 of the
Revised Code of Ohio shall be accepted. [O.R.C. 718.05(C)]
C. 1. The Tax 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 (6) months, or one (1) month
beyond any extension requested of or granted by the Internal
Revenue Service for the filing of the Federal Income Tax Return.
The Tax 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.
2. Any taxpayer that has requested an extension
for filing a federal income tax return may request an extension
for the filing of a municipal income tax return. The taxpayer
shall make the request by filing a copy of the taxpayer's request
for a federal filing extension with the Tax Administrator. The
request for extension shall be filed not later than the last
day for filing the municipal income tax return as prescribed
by ordinance or rule of the municipal corporation. The Tax Administrator
shall grant such a request for extension for a period not less
than the period of the federal extension request. The Tax Administrator
may deny a taxpayer's request for extension only if the taxpayer
fails to timely file the request, fails to file a copy of the
request for the federal extension, owes the municipal corporation
any delinquent income tax or any penalty, interest, assessment,
or other charge for the late payment or nonpayment of income
tax, or has failed to file any required income tax return, report,
or other related document for a prior tax period. The granting
of an extension for filing a municipal corporation income tax
return does not extend the last date for paying the tax without
penalty unless the Tax Administrator grants an extension of
that date. [O.R.C. 718.05(D)]
D. 1. The taxpayer making a return shall, at the time
of filing thereof, pay to the Tax 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 Section 6 of this ordinance, or
where any portion of said tax shall have been paid by the taxpayer
pursuant to the provisions of Section 7 of this ordinance, or
where an income tax has been paid to another municipality, credit
for the amount so paid in accordance with Section 16 hereof,
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
to which this municipality is entitled under the provisions
of this ordinance may have such overpayment applied against
any subsequent liability hereunder or, at his election indicated
on the return, such overpayment (or part thereof) shall be refunded,
provided that no additional taxes or refunds of less than five
dollars ($5.00) shall be collected or refunded.
E. 1. AMENDED RETURNS: 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 requirement and/or limitations contained in Sections
12 and 16. Such amended returns shall be on a form obtainable
on request from the Tax Administrator. A taxpayer may not change
the method of accounting or apportionment of net profits after
the due date for the filing the original return.
2. Within three (3) months from the final determination
of any federal tax liability affecting the taxpayer's tax liability
to this municipality, such taxpayer shall make and file an amended
return showing income subject to the tax of this municipality
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.
SECTION 6.
COLLECTION AT SOURCE.
A. In accordance with Rules and Regulations prescribed
by the Tax Administrator, each employer within or doing business
within this municipality shall deduct at the time of the payment
of such salary, wage, commission or other compensation, the
tax of one percent (1%) of the gross salaries, wages, commissions
or other compensation due by the said employer to said 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 Tax Administrator the amount of taxes so deducted. Said
returns shall be on a form or forms prescribed by or acceptable
to the Tax Administrator and shall be subject to the Rules and
Regulations prescribed therefor by
the Tax 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
this municipality, as Trustee for the benefit of this municipality,
and any such tax collected by such employer from his employees
shall, until the same is paid to this municipality, 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 employees and such other information as
may be required by the Tax Administrator. All
payments not subject to withholding shall be reported on a
form required by the Tax Administrator.
D. The Tax Administrator for good cause may require immediate
returns and payments to be submitted to his office.
E. The above provisions of this section shall be subject
to the exemptions provided in Section 718.03 of the Revised
Code of Ohio. [718.03]
SECTION 7.
DECLARATIONS.
A. Every person who anticipates any taxable income which
is not subject to Section 6 hereof, or who engages in any business,
profession, enterprise, or activity subject to the tax imposed
by Section 3 hereof 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 this municipality
in accordance with Section 6 hereof, 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 ordinance, or
within four (4) 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 (4) 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 Tax Administrator, provided,
however, credit shall be taken for this municipality's income
tax to be withheld from any portion of such income. In accordance
with the provisions of' Section 16 hereof, credit may be taken
for tax to be paid to 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 by an individual of estimated tax to
be paid this municipality shall be accompanied by payments as
follows:
1.
At least twenty-two and one-half per cent of the taxpayer's
estimated tax liability for the current year shall be required
to have been remitted on or before the thirtieth day of April
or the day on which the annual tax return for the prior year
is required to be filed disregarding any extension, as prescribed
by ordinance or rule of the municipal corporation;
2.
At least forty-five per cent of the taxpayer's estimated
tax liability for the current year shall be required to have
been remitted on or before the thirty-first day of July;
3.
At least sixty-seven and one-half per cent of the taxpayer's
estimated tax liability for the current year shall be required
to have been remitted on or before the thirty-first day of October;
4.
At least ninety per cent of the taxpayer's estimated
tax liability for the year referred to in division (A) of this
section shall be required to have been remitted on or before
the thirty-first day of January.
E. Any amount deducted and withheld for taxes from the compensation
of an individual shall be considered as estimated taxes paid
in equal amounts on each of the payment dates prescribed by
division (D) of this section.
F. Such declaration by any person who is not an individual
of estimated tax to be paid this municipality shall be accompanied
by payments as follows:
1.
At least twenty-two and one-half per cent of the taxpayer's
estimated tax liability for the current year shall be required
to have been remitted on or before the day on which the annual
tax return for the prior year is required to be filed disregarding
any extension or, in the case of a fiscal year taxpayer, the
fifteenth day of the fourth month of the taxpayer's taxable
year;
2.
At least forty-five per cent of the taxpayer's estimated
tax liability for the current year shall be required to have
been remitted on or before the fifteenth day of June or, in
the case of a fiscal year taxpayer, the fifteenth day of the
sixth month of the taxpayer's taxable year;
3.
At least sixty-seven and one-half per cent of the taxpayer's
estimated tax liability for the current year shall be required
to have been remitted on or before the fifteenth day of September
or, in the case of a fiscal year taxpayer, the fifteenth day
of the ninth month of the taxpayer's taxable year;
4.
At least ninety per cent of the taxpayer's estimated
tax liability for the current year shall be required to have
been remitted on or before the fifteenth day of December or,
in the case of a fiscal year taxpayer, the fifteenth day of
the twelfth month of the taxpayer's taxable year.
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 this municipality shall be paid therewith in accordance
with the provisions of Section 5 hereof.
F. On and after January 1, 2003, estimated tax payments
shall be made in accordance with the provisions of Section 7
of this ordinance; prior to January 1, 2003, estimated tax payments
shall be made in accordance with the provisions of Ordinance
No. 17-2000. [O.R.C. 718.08]
SECTION 8.
MANDATORY REGISTRATION, QUESTIONNAIRES AND INFORMATION
LISTS.
A. Each current resident of the Village of West
Lafayette, Ohio shall register with the Village Income Tax Office
within sixty days of the passage of this ordinance.
B. Each new resident of the Village of West Lafayette,
Ohio shall register with the Village Income Tax Office within
thirty days of taking up residence in the Village of West Lafayette,
Ohio.
C. All employers, contractors or subcontractors who
do work in the Village of West Lafayette, Ohio shall register
with the Village Income Tax Office and shall present a list
of all subcontractors, contractors, or independent contractors
who do work for them within the Village whose profits, wages
or earnings are not presently subject to withholding of the
Village income tax. All business and individual questionnaires
must be returned within thirty days from the date of the commencement
of operations within the Village of West Lafayette, Ohio by
all subcontractors, contractors, and independent contractors.
D. All landlords who rent and/or lease property in
the Village of West Lafayette, Ohio shall submit an up-to-date
list of their tenants to the Village Income Tax Office of the
Village of West Lafayette upon request of the Village Tax Administrator,
within thirty days of the request.
SECTION 9.
DUTIES OF THE TAX ADMINISTRATOR.
A. 1. It shall be the duty of the Tax Administrator
to receive the tax imposed by this ordinance in the manner prescribed
herein from the taxpayers, to keep an accurate record thereof,
and to report all monies so received.
2. It shall be the duty of the Tax Administrator
to enforce payment of all taxes owing this municipality, to
keep accurate records for a minimum of seven (7) 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.
B. Said Tax Administrator is hereby charged with
the enforcement of the provisions of this ordinance, 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 the enforcement of the provision
of this ordinance, including provisions for the re-examination
and correction of returns.
The Tax Administrator is authorized to arrange for the
payment of unpaid taxes, interest and penalties on a schedule
of installment payments, when the taxpayer has proved to the
Tax Administrator that, due to certain hardship conditions,
he 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 under the ordinance.
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 Sections 11 and
13 of this ordinance shall apply.
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 Administrator may determine the amount of
tax appearing to be due this municipality 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.
D. Subject to the consent of the Board of Review or pursuant
to regulation
approved by said Board, the Tax Administrator shall have the
power to compromise any interest or penalty, or both, imposed
by Section 11 of this ordinance.
SECTION 10.
INVESTIGATIVE POWERS OF THE TAX ADMINISTRATOR PENALTY
FOR DIVULGING CONFIDENTIAL INFORMATION.
A. The Tax Administrator or any employee or agent authorized
by the Tax Administrator, 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, or whom the
Tax Administrator believes to be subject to the provisions of
this ordinance, for the purpose of verifying the accuracy of
any return made, or, if no return was made, to ascertain the
tax due under this ordinance. Every such employer, supposed
employer, taxpayer or supposed taxpayer is hereby directed and
required to furnish upon written request by the Tax Administrator,
or his duly authorized agent or employee, the means, facilities,
and opportunity for making such examinations and investigations
as are hereby authorized.
B. The Tax Administrator is hereby authorized to order
any person presumed to have knowledge of the facts to appear
before him or the Tax Administrator's authorized employee or
agent and the Tax Administrator or the Tax Administrator's
authorized employee or agent 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, whether as parties or witnesses, whenever
he believe 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 any 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 Tax Administrator
authorized hereby shall be deemed a violation of this Ordinance,
punishable as provided in Section 13 hereof.
D. Any information gained as the result of any returns,
investigations, hearings or verifications required or authorized
by this ordinance shall be confidential, except for official
purposes, or except in accordance with proper judicial order,
or as otherwise provided in Section 718.13 of the Ohio Revised
Code. [O.R.C 718.13] Any person divulging such information
in violation of this ordinance, shall, upon conviction thereof,
be deemed guilty of a misdemeanor and shall be subject to a
fine or penalty of not more than Five Hundred Dollars ($500.00)
or imprisoned for not more than six (6) months, or both. Each
disclosure shall constitute a separate offense.
In addition to the above penalty, any employee of this
municipality who violates the provisions of this Section relative
to the disclosure of confidential information shall be guilty
of an offense punishable by immediate dismissal.
E. Every taxpayer shall retain all records necessary
to compute his tax liability for a period of seven (7) years
from the date his return is filed, or the withholding taxes
are paid.
SECTION 11.
INTEREST AND PENALTIES.
A. All taxes imposed and all monies withheld
or required to be withheld by employers under the provisions
of this ordinance and remaining unpaid after they become due
shall bear interest at the rate of one-half of one per cent
(0.5 %) per month or fraction thereof.
B. In addition to interest as provided in paragraph A
hereof, penalties based on the unpaid tax are hereby imposed
as follows:
1. For failure to pay taxes due - other than
taxes withheld; one and one-half per cent (1.5 %) per month
or fraction thereof, or the sum of $10.00, whichever is greater.
2. For failure to remit taxes required to be
withheld from employees, five per cent (5%) per month or fraction
thereof.
C. EXCEPTIONS. A penalty shall not be assessed on an
additional tax assessment made by the Tax Administrator when
a return has been filed in good faith and the tax paid thereon
within the time prescribed by the Tax 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 (3) months
after final determination of the federal tax liability.
D. Upon recommendation of the Tax Administrator, the Board
of Review may abate penalty or interest, or both; upon an appeal
from the refusal of the Tax Administrator to recommend abatement
of penalty and interest, the Board may nevertheless abate penalty
or interest, or both.
E. The Tax Administrator shall not impose any penalty,
interest, interest penalty, or other similar assessment or charge
against a taxpayer for the late payment or nonpayment of estimated
tax liability in either of the following circumstances:
1. the taxpayer is an individual who resides in the
municipal corporation but was not domiciled there on the first
day of January of the current calendar year; [O.R.C 718.08(E)(1)]
2. the taxpayer has remitted an amount at least
equal to one hundred per cent of the taxpayer's tax liability
for the preceding year as shown on the return filed by the taxpayer
for the preceding year, provided that the return for the preceding
year reflected a twelve-month period and the taxpayer filed
a return for the preceding year. [O.R.C 718.08(E)(2)]
SECTION 12.
COLLECTION OF UNPAID TAXES AND REFUNDS OF OVERPAYMENT.
A. All taxes imposed by this ordinance shall be collectible,
together with any interest and penalties thereon, by a civil
action at law. All additional assessments shall be made and
all civil actions to recover municipal income taxes and penalties
and interest thereon shall be brought within three (3) years
after the tax was due or the return was filed, whichever is
later.
B. Taxes erroneously paid shall not be refunded unless
a claim for a refund is made. Claims for refund of municipal
income taxes must be brought within the time limitation provided
in Division A of this Section.
C. Amounts of less than five dollars ($5.00) shall not
be collected or refunded.
D. Interest shall be allowed and paid on any overpayment
by a taxpayer of any municipal income tax obligation from the
date of the overpayment until the date of the refund of the
overpayment, except that if any overpayment is refunded within
ninety days after the final filing date of the annual return
or ninety days after the complete return is filed, whichever
is later, no interest shall be allowed on the refunded overpayment.
For purposes of computing the payment of interest on overpayments,
no amount of tax for any taxable year shall be treated as having
been paid before the date on which the tax 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 section 5703.47 of the Revised Code. [718.12(D)]
SECTION 13.
VIOLATIONS – PENALTIES.
A. Any person who shall:
1. Fail, neglect or refuse to make any return or
registration or questionnaire or information list or declaration
required by this ordinance; or
2. Make any incomplete, false or fraudulent return
or registration or questionnaire or information list or declaration
; or
3. Willfully fail, neglect or refuse
to pay the tax, penalties or interest imposed by this ordinance;
or
4. Willfully fail, neglect or refuse to withhold
the tax from his employees or remit such withholding to the
Tax Administrator; or
5. Refuse to permit the
Tax Administrator 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. Fail to appear before the Tax Administrator and
to produce his books, records, papers or Federal income tax
returns relating to the income or net profits of a taxpayer
upon order or subpoena of the Tax Administrator; or
7. Refuse to disclose to the Tax Administrator any
information with respect to the income or net profits of a taxpayer;
or
8. Fail to comply with the provisions of this ordinance
or any order of subpoena of the Tax Administrator authorized
hereby; or
9. Give to an employer false information as to his
true name, correct social security number and residence address,
or fail to notify promptly an employer of any change in residence
and address thereof; or
10. Fail to use ordinary diligence in maintaining
proper records of employees' residence addresses, total wages
paid and this municipality's income tax withheld, or knowingly
to give the Tax Administrator false information; or
11. Attempt to do anything whatsoever to avoid
the payment of the whole or any part of the tax, penalties or
interest imposed by this ordinance;
shall be guilty of a misdemeanor and shall be fined not more
than Five Hundred Dollars ($500.00) or imprisoned not more than
six (6) months or both, for each offense.
B. Prosecutions for an offense made punishable under this
Section or any other provision of this ordinance shall be commenced
within three (3) 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 per cent (25%) or more of income
required to be reported, prosecution may be commenced within
six (6) 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 from making any information return, return or declaration,
from filing such form, or from paying the tax.
SECTION 14.
BOARD OF REVIEW.
A. A Board of Review, consisting of a chairman and two
other individuals to be appointed by Tax Administrator 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 SECTION
10 hereof with reference to the confidential character of information
required to be disclosed by the ordinance shall apply to such
matters as may be heard before the Board on appeal. [O.R.C.
733.85(D)]
B. All rules and regulations and amendments or changes
thereto, which are adopted by the Tax Administrator under the
authority conferred by this ordinance, 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 Tax Administrator, and, at the request of the taxpayer or
Tax Administrator, is empowered to substitute alternate methods
of allocation.
C. Whenever the Tax Administrator issues a decision regarding
a municipal income tax obligation that is subject to appeal
as provided in this section or in an ordinance or regulation
of the municipal corporation, the Tax Administrator shall notify
the taxpayer at the same time of the taxpayer's right to appeal
the decision and of the manner in which the taxpayer may appeal
the decision. [O.R.C. 718.11]
D. Any person dissatisfied with any ruling or decision
of the Tax Administrator which is made under the authority conferred
by this ordinance may appeal therefrom
to the Board of Review within thirty (30) days from the announcement
of such ruling or decision by the Tax Administrator, and the
Board shall, on hearing, have jurisdiction to affirm, reverse
or modify any such ruling or decision, or any part thereof.
All proceedings of the Board of Review shall be in conformity
with Section 718.11 of the Revised Code of Ohio. [O.R.C. 718.11]
E. Any person dissatisfied with the ruling or decision
of the Board of Review may appeal therefrom
to a court of competent jurisdiction within thirty (30) days
from the announcement of such ruling or decision pursuant to
Chapter 2506 of the Revised Code. [O.R.C. 733.85(D)]
SECTION 15.
ALLOCATION OF FUNDS.
The funds collected under the provisions of this ordinance
shall be deposited in a special fund known as the "Income
Tax Fund", which shall be a part of the General Fund, and
said funds shall be disbursed by the Village Treasurer in the
following order, to-wit:
A. Such part thereof as shall be necessary to defray all
costs of collecting the tax and the cost of administering and
enforcing the provisions hereof and making refunds therefrom.
B. Such part thereof as shall be necessary for the purpose
of paying the cost of general municipal operations.
C. Such part thereof as the Council of this municipality
may appropriate for the purpose of paying the cost of maintenance
and the purchase of new equipment.
D. Such part thereof as Council of this municipality may
appropriate for the purpose of paying the cost for the resurfacing,
repair and maintenance of streets and alleys in this municipality.
E. Such part thereof as Council of this municipality
may appropriate for the purpose of paying the cost for capital
improvements of this municipality, including but not limited
to, storm drainage and storm sewers, construction, improvement
and maintenance of public buildings, and to provide for parks
and playgrounds.
SECTION 16.
CREDIT FOR TAX PAID TO ANOTHER MUNICIPALITY.
A. Where a resident of this municipality is subject to
a municipal income tax in another municipality he 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 this municipality
who receives net profits, salaries, wages, commissions or other
personal service compensation for work done or services performed
or rendered outside of this municipality, if it be made to appear
that he has paid municipal income tax on the same income taxable
under this ordinance to another municipality, shall be allowed
a credit against the tax imposed by this ordinance of the amount
so paid by him or in his behalf to such other municipality.
The credit shall not exceed the tax assessed by this ordinance
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 Tax Administrator may by regulation
provide.
SECTION 17.
CONTRACT PROVISIONS.
No contract on behalf of this municipality for works
or improvements of this municipality shall be binding or valid
unless such contract contains the following provision:
A. "Said _________________________________ hereby
further agrees to withhold all municipal income taxes due or
payable under the provisions of this municipality's income tax
ordinance for wages, salaries, and commissions paid to his or
its employees and further agrees that any of his or its sub-contractors
shall be required to agree to withhold any of this municipality's
income taxes due under such income tax ordinance for services
performed under this contract."
SECTION 18.
SAVING CLAUSE.
If any sentence, clause, section or part of this ordinance,
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 ordinance and shall not affect or impair any of the remaining
provisions, sentences, clauses, sections or other parts of this
ordinance. It is hereby declared to be the intention of the
Council of this municipality that this ordinance would have
been adopted had such unconstitutional, illegal or invalid sentence,
clause, section or part thereof not been included herein.
It is hereby declared to be one of the primary purposes
of this ordinance to bring the prior Ordinance No. 17-2000 into
conformity with the requirements of Ohio Revised Code Section
718.08 concerning estimated tax payments effective January 1,
2003, and this ordinance shall be interpreted to effectuate
such.
SECTION 19.
COLLECTION OF TAX AFTER TERMINATION OF ORDINANCE.
A. This ordinance shall continue effective insofar as
the levy of taxes is concerned until repealed, and insofar as
the collection of taxes levied hereunder and actions or proceedings
for collecting any tax so levied or enforcing any provisions
of this ordinance 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 ordinance
shall have been fully terminated, subject to the limitations
contained in Sections 12 and 13 hereof.
B. Annual returns due for all or any part of the last
effective year of this ordinance shall be due on the date provided
in Sections 5 and 6 of this ordinance as though the same were
continuing.
SECTION 20.
EFFECTIVE DATE.
This Ordinance take effect and be in force at the earliest
date allowed by law.
PASSED IN COUNCIL this 11th day of November, 2002.
_________________________
Jack L. Patterson, Mayor
ATTEST:
__________________________
Bruce E. Fouch, Clerk-Treasurer
Approved as to form:
__________________________
R. Q. Baker, III
Village Solicitor
Village of West Lafayette
DC\WL-86044.031.DOC
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