ORDINANCE #04-37             PASSED NOVEMBER 1, 2004

 

AN ORDINANCE AUTHORIZING

A MUNICIPAL INCOME TAX AND

OUTLINING THE PROVISIONS THEREOF

 

 

 

 

BE IT ORDAINED, by the Council of the Village of Spencerville, State of Ohio, to-wit:

 

SECTION ONE:  Purpose of Levy of Income Tax.  To provide funds for the purposes of general municipal operations, maintenance, new equipment, extension and enlargement of municipal services and facilities, capital improvements, and to provide revenue to pay for fire and ambulance protection of this municipality there shall be, and is hereby levied, a tax on salaries, wages, commissions and other commission and other compensation, and on net profits as hereinafter provided.

 

SECTION TWO:  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.

 

Administrator -  The individual designated by the ordinance, appointed by Council, 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 Section 13 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.

 

Capital Improvement - Any permanent, i.e. having a useful life of at least 5 years, improvement of village lands, buildings, streets, and water and sewage systems and facilities.

 

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 of dependency.

 

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

 

 

 

 

 

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Net Profits - Federal Taxable Income (FTI),  before net operating losses and special deductions with the following adjustments.

 

            1.         Deduct intangible income to the extent it is included in FTI. 

 

            2.         Add 5% of the amount deducted as intangible income, but not the portion             

of the intangible income related to the sale, exchange or disposition of

                        property described in section 1221 of the Internal Revenue Code (IRC).

 

            3.         Add any losses allowed in the computation of FTI if the losses related

                        to the sale, exchange, or disposition of property described in section

                        1221 or 1231 of IRC.

 

            4.         Except for depreciation recapture described in section 1245 or 1250 of

                        IRC, deduct income and gain included in FTI to the extent the income and

                        gain relate to the sale, exchange or disposition of an asset described in

                        section 1221 or 1231 of IRC.

 

            5.         Add taxes on or measured by net income allowed as a deduction in the

                        computation of FTI.

 

            6.         In the case of a real estate investment trust or regulated investment        

                        company, add all dividends, distributions, or amounts set aside for the

                        benefit of investors and allowed as a deduction in the computation of FTI.

 

            7.         In the case of a taxpayer that is not a C corporation and is not an individual,

                        the taxpayer shall compute FTI as if the taxpayer were a C corporation and,

                        in addition to the above adjustments, shall not be allowed a deduction for

                        guaranteed payments, payments to a qualified self-employed retirement

                        plan, payments for health or life insurance for an owner or owner-employee,        

                        or federal self-employment tax.

 

            8.         Use apportionment formula to apportion profit to each municipality using

                        an equally weighted formula of property, payroll, and sales (the property

                        factor uses original cost instead of net book value).  If the apportionment

                        formula does not produce an equitable result, another basis may be

                        substituted, under uniform regulations.

 

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.

 

Taxable Income - Wages, salaries, and other compensation paid by an employer or employers beginning with the Medicare wage base (box 5 of the W2 form) with the following mandatory adjustments:

 

            1.         Add supplemental unemployment compensation benefits described in

                        Section 3402 (o)(2) of IRC.

           

            2.         Add compensation of pre-1986 employees exempt from Medicare that

                        is not in the Medicare wage base solely because of the Medicare

                        grandfathering provision.

 

Taxable Year - The calendar year, or the fiscal year upon the basis of which net profit 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.

 

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Taxpayer - A person, whether an individual, partnership, association, or any corporation or other entity, required hereunder to file a return or pay a tax.

 

The singular shall include the plural, and the masculine shall include the feminine and the neuter.

 

SECTION THREE:  Imposition of Tax.

 

A.  Subject to the provisions of Section Sixteen of this ordinance, an annual tax for the purposes specified in Section One hereof shall be imposed on and after January 1, 1989, at the rate of 1.25% per annum upon the following:

 

            1.         On all salaries, wages, commissions and other compensation earned

                        during the effective period of this ordinance by 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 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.

 

            6.         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 Administrator pursuant to this

                        ordinance.

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            7.         Rental income received by a taxpayer shall be included in the computation

                        of net profits from business activities under subparagraphs (3a), (4a) and

                        (5) above, only if and to the extent that the rental, ownership, management

                        or operation of the real estate from which such rentals are derived (whether

                        rented, managed or operated by a taxpayer individually or through agents

                        or other representatives) constitutes a business activity of the taxpayer

                        in whole or in part.

 

                        Where the gross monthly rental of any and all real properties, regardless of

                        number and value, aggregate in excess of Two Hundred Fifty and 00/100

                        ($250.00) per month, it shall be prima facie evidence that the rental, owner-

                        ship, management or operation of such properties is a business activity of

                        such taxpayer, and the net income of such rental property shall be subject

                        to tax; provided that 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, exceeds Two Hundred

                        fifty and 00/100 Dollars ($250.00) per month; provided further that in the

                        case of farm property, the owner shall be considered engaged in a business

                        activity when he shares in crops or when the rental is based on a percentage

                        of the gross income exceeds said $250.00 per month; and provided  further

                        that the person who operates a licensed rooming house shall be considered

                        in business whether or not the gross income exceeds $250.00 per month.

 

B.  Operating Loss Carry Forward.

 

            1.         The portion of a net operating loss sustained in any taxable year allocable

                        to this municipality may be applied against the portion of the profit of

                        succeeding year(s) allocable to this municipality, until exhausted but in no

                        event for more than five (5) 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 this

                        municipality in the same manner as provided herein for allocating net

                        profits to this municipality.

 

 

C.  Consolidated Returns.

 

            1.         Filing of consolidated returns may be permitted, required, or denied in

                        accordance with rules and regulations prescribed by the Administrator.

 

            2.         In the case of a corporation that carries on transactions with its stockholders

                        or with other corporations related by stock ownership, interlocking

                        directories, 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 Administrator shall

                        require such additional information as he/she may deem necessary to

                        ascertain whether net profits are properly allocated to this municipality.

                        If the 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 directorates, or

                        transactions with such division, branch, factory, office, laboratory or

                        activity or by some other method, he/she shall make such allocation as

                        he/she deems appropriate to produce a fair and property allocation of net

                        profits to this municipality.

 

 

 

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D.  Exceptions

 

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 Section 718.01 of the Revised Code of Ohio to the extent that such net profits are exempted from municipal income taxes under said section. 

 

The tax provided for herein shall also not be levied upon:

 

            1.         Poor relief, unemployment insurance benefits, old age pensions or similar

                        payments received from local, state or federal governments or charitable or

                        religious organizations.

 

            2.         Proceeds of insurance, annuities, workman’s compensation insurance,

                        social security benefits, pensions, compensation for damages for personal

                        injuries and like reimbursement, not including damages for loss of profits.                                

 

            3.         Compensation for damage to property by way on insurance or otherwise.

 

            4.         Interest and dividends from intangible property.

 

            5.         Military pay and allowances received as a member of the armed forces of

                        The United States.

 

            6.         Any charitable, educational fraternal or other type of non-profit

                        association or organization enumerated in Section 718.01 of the Revised

                        code of Ohio which is exempt from payment of real estate taxes is exempt

from payment of the tax imposed by this ordinance.

 

            7.         Any association or organization falling in the category listed in the

                        preceding paragraph not exempt from the payment of real estate taxes

                        is required to file declarations and final returns and remit the taxes levied

                        under this ordinance on all business activities of a type ordinarily

                        conducted for profit by taxpayers operating for profit.

 

            8.         Where such non-profit association or organization conducts income

                        producing business both within and without the corporate limits, it shall

                        calculate its profits allocable to this municipality under the method or

                        methods provided above.

 

            9.         IRC section 125 cafeteria plans.

 

 

SECTION FOUR:  Effective Period.

 

Said tax 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, 1989.

 

SECTION FIVE:  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 15 of the year following the effective date

            of this ordinance, and on or before April 15, 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 by the fifteenth day of the fourth month following the end of the 

 

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            taxable year.   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 or them to the Administrator shall

            be accepted unless otherwise specified as the return required of any employee

            whose sole income, subject to tax under this ordinance, is such salary, wages,

            commissions, or other compensation.

 

            Each resident individual of this municipality shall file an annual municipal tax

            return, except when the individual’s sole income falls under Section Three, Part D           

of this ordinance, whether or not a tax be due thereon, and whether or not they pay          

another municipal income tax or have this municipal income tax withheld from     

wages, salaries, and other compensation by an employer or employers.

 

            Non-resident individuals employed within this municipality whose employer or      

employers have withheld this municipal income tax from wages, salaries,

commissions or  other compensation, are not required to file an annual return for  

this municipality.

                         

 

B.         The return shall be filed with the Administrator on a form or forms furnished by

            or obtainable upon request from such Administrator, or on forms acceptable by 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 ordinance, 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

                        the Administrator may require. (i.e. Federal Schedules C, D, E, F, 2106)

 

C.         The taxpayer making a return shall, at the time of the filing thereof, pay to the

            Administrator for 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 Six 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 15 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.

 

            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 One Dollar ($1.00) shall be collected or

            refunded.

 

           

D.        Extensions.

            The Administrator may extend the time for filing of the annual return upon the

            the request of the taxpayer and upon receiving a copy of the federal extension

 

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            request.  The extension due date will be to the last day of the month following the

            month to which the federal return has been extended.  The Administrator may

            require a tentative return, accompanied by the payment of the amount of tax shown

            to be due thereon by the date the return is normally due.  No penalty shall be

            assessed in those cases in which the return is filed and the final tax paid within

            the period as extended.

 

E.         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 requirements and/or limitations contained in Section Eleven and Fifteen.

 

            Such amended returns shall be on a form obtainable on request from the

            Administrator.  A taxpayer may not change the method of accounting or apportion-

            ment of net profits after the due date for filing the original return.

 

            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 income 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 over-

            payment.

 

 

SECTION SIX:  Collection at Source.          

 

A.        In accordance with Rules and Regulations prescribed by the Administrator, each

            employer within or doing business within this municipality shall deduct at the        

            time of the payment of such salary, 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 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 therefore 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 been in fact 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 a 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 March 1 of each year beginning with the year 1989, 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 Administrator.  All payments not subject

            to withholding shall be reported on a form required by the Administrator.

 

D.        The Tax Administrator, for good cause, may required immediate returns and

            payments to be submitted to his/her office.

 

E.         No employer shall be required to withhold the tax from the payment of wages and

            other compensation paid an employee whom the employer reasonably expects

            will not earn more than $600.00 annually from the employer.

 

 

 

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SECTION SEVEN:  Declarations.

 

A.        Every person who anticipates any taxable income which is not subject to Section

            Six hereof, or who engages in any business, profession, enterprise or activity subject

            to the tax imposed by Section Three 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 Six hereof, such person need not file

            a declaration.

 

B.         Such declaration shall be filed on or before April 15 of each year during the life of

            this ordinance, or on the fifteenth day of the fourth (4) month of the date the taxpayer becomes subject to tax for the first time.

 

 Those taxpayers reporting on a fiscal year basis shall file a declaration by the fifteenth  day  of the fourth month after the beginning of each fiscal year or period.

 

C.         Such declaration shall be filed upon a form furnished by, or obtainable from, the

            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 15 hereof, credit may be taken for tax to be paid to or

            to be withheld and remitted to another taxing municipality.

 

            The original declaration (or any subsequent amendment thereof) may be increased

            or decreased on or before any subsequent quarterly payment date and provided for

            herein.

 

D.        Such declaration or estimated tax to be paid this municipality shall be accompanied

            by a payment of at least one-fourth (¼) of the estimated annual tax and at least

            a similar amount shall be paid on or before the last day of the seventh, tenth and

            thirteenth months after the beginning of the taxable year.  Provided however, that

            in 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 fifteenth 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 Five hereof.

 

 

SECTION EIGHT:  Duties of the Administrator

 

A.        It shall be the duty of the Village Income 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.

 

            It shall be the duty of the Administrator to enforce payment of all taxes owing this

            municipality, to keep accurate records for a minimum of five (5) 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.

 

 

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B.         Said 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

            enforcement of the provisions of this ordinance, including provisions for the re-

            examination and correction of returns.

 

            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 proved

            to the 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 property

            returns are filed by the taxpayer for all amounts owned 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

            provision of Section Eleven and Twelve of the 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 Administrator may determine the

            amount of tax appearing to be due this municipality from the taxpayer and shall sent

            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 regulations approved

            by said Board, the Administrator shall have the power to compromise any interest or

            penalty, or both, imposed by Section Ten of this ordinance.

 

 

SECTION NINE:  Investigative Powers of the Administrator - Penalty for Divulging Confidential Information.

 

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 of any

            taxpayer of person subject to, or whom the Administrator believes is 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.  The

            investigative powers, and power of subpoena of records and persons, given the

            Administrator by this ordinance, shall be exercised as follows:

 

            1.         The Administrator shall make written request to the taxpayer, employer, or

                        supposed taxpayer or employer to examine the books, records, papers, and

                        federal income tax return of such person or entity, and/or request for a   

                        conference.

 

            2.         If the person or entity refuses to honor such request, then the Administrator

                        shall apply to the Board of Review for authority to issue a subpoena or

                        order for such records, returns, or personal conference.

 

            3.         If, upon hearing, with at least 10 days notice to the person or entity the

            Board of Review finds that the request to examine records or for a personal

            conference is reasonable, the Board shall authorize the Administrator to issue his

            subpoena or order.

 

 

 

 

 

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B.         The Administrator, or any authorized employee, following the procedure stated

            above, 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

            provisions of this ordinance, for the purpose of verifying the accuracy of any return

            made, or if not 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 Administrator, or his

            dully authorized agent or employee, the opportunity for making such examinations

            and investigations as are hereby authorized, as provided above.   

 

C.         The Administrator, following the procedures stated above is hereby authorized to

            order any person presumed to have knowledge of the fact to appear before him and

            examine such person, under oath, concerning any income which was or should have

            been reported 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 person before him, whether as parties or

            witnesses, whenever he believes such persons have knowledge of such income or

            information pertinent to such inquiry.

 

 

D.        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 an 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 ordinance,

            punishable as provided in Section 12 hereof.

 

E.         Any information gained as a result of any returns, investigations, verifications or

            hearings before the Administrator, required by the ordinance or authorized by these

            Rules and Regulations shall be confidential and no disclosure thereof shall be made

            except for official purposes or as ordered by a court of competent jurisdiction.  Any

            person divulging such information shall be guilty of a misdemeanor punishable by a

            maximum fine of Five Hundred and 00/100 Dollars ($500.00) or imprisonment 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 the Section relative to the disclosure of confidential information shall

            be guilty of an offense punishable by immediate dismissal.

 

 

SECTION TEN:  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 percent (½%) 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 withheld; one and one-half per cent

                        (1 ½%) per month or fraction thereof.

 

            2.         For failure to remit taxes withheld from employees; five percent (5) per

                                    month or fraction thereof.

 

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C.         Exceptions.  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 (3) 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/or interest, the board may nevertheless abate

            penalty or interest, or both.

 

 

SECTION ELEVEN:  Collection of Unpaid Taxes and Refunds of Overpayments

 

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 Part A of this section.

 

C.         Amounts of less than one dollar ($1.00) shall not be collected or refunded.

 

 

SECTION TWELVE:  Violations and Penalties

 

A.        Any person who shall

 

            1.         Fail, neglect or refuse to make any return or declaration required by this

                        ordinance; or

 

            2.         Make any incomplete, false or fraudulent return; or

 

            3.         Willfully fail, neglect or refuse to pay the tax, penalties or interest imposed

                        by this ordinance; or

 

            4.         Willfully fail, neglect to withheld the tax from his employees or remit such

                        withholdings to the Administrator; or

 

            5.         Refuse to permit the 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 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 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 ordinance or any order or          

                        subpoena of the Administrator authorized hereby; or

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            9.         Give to an employer false information as to his 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 employees’

                        residence addressed, total wages paid and this municipality’s income tax

                        withheld, or to knowingly give the Administrator false information; or

 

            11.        Attempt to do anything whatsoever to avoid 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 (25%) or more of income required to be reported,

            prosecutions 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, or

            declaration, from filing such form, or paying the tax.

 

 

SECTION THIRTEEN:  Board of Review.

 

A.        A Board of Review, consisting of a chairman and two other individuals to be

            appointed by the Council of the Village of Spencerville, Ohio 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 Nine

            hereof with reference to the confidential character of the information required to be

            disclosed by the ordinance shall apply to such matters as may be heard before the

            Board of Appeal.

 

B.         All rules, regulations, forms and amendments or changes thereto, which are adopted

            by the 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 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 ordinance may appeal there from to the

            Board of Review within thirty (30) days from the announcement of such ruling or

            decision by the Administrator, and the Board shall, on hearing, having jurisdiction

            to affirm, reverse, or modify any such ruling or decision, or any part thereof.

 

D.        Following an appeal to the local Board of Review, a municipal income tax appeal

            may be made to either common pleas court or to the Ohio Board of Tax Appeals.

 

 

 

 

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SECTION FOURTEEN:  Allocation of Funds.

 

The net funds collected under the provisions of this ordinance shall be deposited sixty percent (60%) to the General Fund of which fourteen percent (14%)  of net revenue shall be paid quarterly to the Spencerville Fire Department for said contract with Village and six percent (6%) of net revenue shall be paid quarterly to Spencerville EMS for said contract with Village and Forty percent (40%) shall be deposited in the Capital Project Fund and shall be disbursed as appropriated by Village Council.

 

SECTION FIFTEEN:  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 a 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 no exceed the tax assessed by this ordinance on

            such income earned in such other 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.

 

 

SECTION SIXTEEN:  Saving Clause.

 

If any sentence, clause, section or part of this ordinance, 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 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.

 

 

SECTION SEVENTEEN:  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 hereunder 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 Eleven and Twelve hereof.

 

 

 

 

 

 

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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 Five and Six of this ordinance as

            thought he same were continuing.

 

 

 

SECTION EIGHTEEN

 

All ordinances or parts of ordinances in conflict with the provisions of this ordinance, but containing identical provisions are hereby superseded by this ordinance and shall be of no further effect.

 

 

SECTION NINETEEN

 

This ordinance shall take effect and be in full force upon passage by council and the earliest period allowed by law.

 

 

 

ATTEST:___________________________________            ________________________________

                         Dawn R. Bailey, Clerk/Treasurer                                  Lynn D. Cummins, Mayor

 

 

 

 

 

 

 

           

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                        .