TITLE NINE – TAXATION
Chap. 181 INCOME TAXES
CHAPTER 181
INCOME TAX
181.01 DEFINITIONS 181.14 REFUNDS
181.02 IMPOSITION OF TAX 181.15 ANNUAL RETURN AND PAYMENT OF TAX
181.03 EFFECTIVE DATE
181.04 RECIPROCITY PROVISION:
CREDIT FOR 181.16 CONTRACTOR COMPLIAN
TAX
PAID TO OTHER MUNICIPALITIES 181.17 EXEMPTIONS FROM FILING ANNUAL TAX
RETURN
181.05 ADMINISTRATION 181.18 COLLECTION AT SOURCE; WITHHOLDING BY EMPLOYER
181.06 INVESTIGATIVE POWERS
OF CLERK-TREASURER 181.18.1
COLLECTION AT SOURCE:
181.07 INTEREST AND CIVIL
PENALITIES 181.19 DECLARATIONS
181.08 VIOLATIONS 181.20 RECORDS TO BE KEPT BY EMPLOYERS AND
TAXPAYER
181.09 ALLOCATION OF FUNDS
181.10 BOARD OF REVIEW
181.21 INCOME TAX FUND
181.11
APPLICABILITY
181.22 COLLECTION OF UNPAID TAXES;
CIVIL LITIGATION-CRIMINAL
181.12 SEVERABILITY
181.13 INCOME NOT SUBJECT TO TAX 181.23 IDENTIFICATION
REQUIRED
181.24 SAVINGS
CLAUSE
CROSS REFERENCE
Power to
levy income tax – see Ohio Const., Art. XII, Sec 8
Payroll deductions – see Ohio
R.C. 9.42
Municipal Income taxes – see
Ohio R.C. Ch 718
181.01 DEFINITIONS.
As used in this chapter, 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:
(a) “Adjusted Federal Taxable Income” means a C-Corporation’s Federal taxable income before net operating losses and special deductions as determined under the internal revenue code, adjusted as follows:
(1) Deduct intangible income to the extent included in federal taxable income. The deduction shall be allowed regardless of whether the intangible income relates to assets used in a trade or business or assets held for the production of income.
(2) Add an amount equal to the five percent of intangible income deducted under division (A)(1) of this section, but excluding that portion of intangible income directly related to the sale, exchange, or other disposition of properly described in section 1221 of the Internal Revenue Code;
(3) Add any losses allowed as a deduction in the computation of Federal Taxable Income if the losses directly related to the sale, exchange, or other disposition of properly described in section 1221 or 1231 of the Internal Revenue Code;
(4) (A) Except as provided in division (A)(4)(B) of this section, deduct income to the extent the income and gain directly relate to the sale, exchange, or other disposition of an asset described in Section 1221 or 1231 of Internal Revenue Code;
(B) Division (A)(4)(A) of this section does not apply to the extent the income or gain is income or gain described in Section 1245 or 1250 of the Internal Revenue Code.
(5) Add taxes on or measured by net income allowed as a deduction in the computation of Federal Taxable Income;
(6) In the case of a real estate investment trust and regulated investment company, add all amounts with respect to dividends to, distributions to, or amounts set aside for or credited to the benefit of investors and allowed as a deduction in the computation of Federal Taxable Income.
(7) If the taxpayer is not a C-Corporation and is not an individual, the taxpayer shall compute adjusted Federal Taxable Income as if the taxpayer were a C-Corporation, except:
(A) Guaranteed payments and other similar amounts paid or accrued to a partner, former partner, member, or former member shall not be allowed as a deductible expense; and
(B) Amounts paid or accrued to a qualified self-employed retirement plan with respect to an owner or owner-employee of the taxpayer, amounts paid or accrued to or for health insurance for an owner or owner-employee, and amounts paid or accrued to or for life insurance for an owner or owner-employee shall not be allowed as a deduction.
(8) Nothing in this section shall be construed as allowing the taxpayer to add or deduct any amount more than once or shall be construed as allowing any taxpayer to deduct any amount paid to or accrued for purposes of federal self-employment tax.
(b) “Association” means a partnership, limited partnership, or any other form of unincorporated enterprise, owned by two or more persons.
(c) “Business” means an enterprise, activity, profession or undertaking of any nature conducted for profit or ordinarily conducted for profit, whether by an individual, partnership, limited partnership, corporation, association or any other entity.
(d) “Corporation” means a corporation or
joint stock association organized under the laws of the
(e) “Employee” means an individual whose earnings are subject to the withholding of Federal Income Tax or Social Security tad or Medicare tax. Where earnings of an individual are not subject to withholding of Federal Income Tax, Social Security Tax or Medicare Tax, such person is not an employee and is not subject to withholding under the provisions of Section 181.18.
(f) “Employer” means an individual, partnership, limited partnership, association, corporation, government body, unit or agency, or any one or more persons on a salary, wage, commission or other compensation basis.
(g) “Fiduciary” means a guardian trustee, executor, administrator or any other person acting in any fiduciary capacity for any individual, trust, estate or business.
(h) For taxable years beginning on or after January 1, 2004, “Net Profit” for a taxpayer other than individual means adjusted federal taxable income and “Net Profit” for a taxpayer who is an individual means the individual’s profit, other than amounts described in revised code section 718.01, Division (F), required to be reported on schedule C, Schedule E, or Schedule F.
(i) “Non-resident” means an individual, partnership, limited partnership, corporation, association or other entity domiciled outside the Village.
(j) “Other entity” means any person or unincorporated body not previously named or defined and includes, inter alia, fiduciaries located within the Village.
(k) “Person” means every natural person, partnership, limited partnership, corporation, fiduciary or association. Whenever used in any clause prescribing and imposing a penalty, the term “person” as applied to any association, shall mean the partners or members thereof, and as applied to corporation, the officers thereof.
(l) “Qualifying wages” means wages, as defined in section 3121(A) of the Internal Revenue Code, without regard to any wage limitations, adjusted as follows:
(1) Deduct any amount included in wages if the amount constitutes compensation attributable to a plan or program described in section 125 of the Internal Revenue Code.
(2) Add the following amounts:
(A) Any amount not included in wages solely because the employee
was employed by the employer prior to
(B) Any amount not included in wages because the amount arises from the sale, exchange, or other disposition of a stock option, the exercise of a stock option, or the sale, exchange, or other disposition of stock purchased under a stock option and the municipal corporation has not, by resolution or ordinance, exempted the amount from withholding and tax; this paragraph applies only to those amounts constituting ordinary income.
(C) Any amount not included in wages if the amount is an amount described in section 401(k) or 457 of the Internal Revenue Code; this paragraph applies only to employee contributions and employee deferrals.
(D) Any amount that is supplemental unemployment compensation benefits described in section 3402(O)(2) of the Internal Revenue Code and not included in wages.
(m) “Resident” means an individual,
partnership, limited partnership, corporation, association or other entity
domiciled in the
(n) “Taxpayer” means any person, Business Corporation or any other entity subject to the tax imposed by this chapter and required to file a return or to pay or remit the tax imposed by this chapter.
(o) “Village” means the Village of New London, Ohio.
181.02 IMPOSITION OF TAX.
To provide funds for the purpose of general Municipal operations, maintenance of equipment, new equipment, extension, enlargement and improvement of Municipal services and facilities and capital improvements of the Village of New London, there be, and hereby is levied a tax upon the earnings at the rate of one percent (1%) upon the following:
(a) On all qualifying wages earned or
received by resident individuals of the
(b) On all qualifying wages earned or received
by non-resident individuals of the
(c) On all income derived from gaming,
wagering, lotteries or schemes of chance is won or received from
(d) On the net profit attributable to New London, earned by all resident unincorporated businesses, professions and other activities derived from work done or services rendered or performed and business or other activities conducted in the Village of New London.
(e) On the net profit attributable to
(f) On the portion of the distributive share of the net profits earned by a resident individual from an unincorporated or incorporated business entity which is located outside of New London.
(g) On that portion of the distributive share of net profits of a resident individual, partner or owner of a nonresident unincorporated business entity.
(h) On the net profits earned by all
corporations derived from work done or services performed or rendered and
business or other activities conducted in the
(i) Net profit
from a business or profession conducted both within and without the boundaries
of the
A. The average original cost of the real and tangible personal property owned or used by the taxpayer in the business or profession in the Village of New London during the taxable period to the average original cost of all the real and tangible personal property owned by or used by the taxpayer in the business or profession during the same period wherever situated.
As used in the preceding paragraph, real property shall include property rented or leased by the taxpayer and the value of such property shall be determined by multiplying the annual rental thereon by eight.
B. Wages, salaries, and other compensation
paid during the taxable period to persons employed in the business or
profession for services performed in the
C. Gross receipts of the business or
profession from sales made and services performed during the taxable period in
the
In the event that the foregoing apportionment formula does not produce an equitable result, another basis may, under uniform regulations be substituted so as to produce such result.
(2)
As used in this subsection, “Sales made in the
A. All sales of tangible personal property which is delivered within
The
B. All
sales of tangible personal property which is delivered within the
Taxpayer is regularly engaged
through its own employees in the solicitation or promotion of sales within the
C. All sales of tangible personal property which is shipped from a
Place within the
D. To the fullest extent allowed by State law, on all lottery
Winnings, regardless of how denominated, received by
any Person from any source, including but not limited to any lottery Authorized, sanctioned, sponsored, conducted, or Participated in by the State of Ohio, or any of its subdivisions.
181.03 EFFECTIVE
DATE.
The tax shall be levied, collected
and paid with respect to salaries, wages, commissions and other compensation
earned on and after
Section 3.
That, for tax year 2004 and thereafter, Section 181.04 of the Codified
Ordinances of the
(FOR 2004 Filing)
181.04 RECIPROCITY PROVISION: CREDIT FOR TAX PAID TO OTHER MUNICIPALITIES.
(a) If a resident of New London operates a business or businesses in another taxing municipality in Ohio and the business or businesses incur a loss, the amount of the loss is deemed primarily subject to the taxing jurisdiction of the other taxing municipality and may not be used ot reduce the taxpayers New London Tax base.
(For 2005 Filing ) 181.04 RECIPROCITY PROVISION; CREDIT FOR TAX PAID
TO OTHER MUNICIPALITIES; OTHER CREDITS.
(a) If a resident of New London is subject to and has paid a municipal income tax due to the operation of a business or the receipt of compensation in another taxing municipality in Ohio, such taxpayer shall be allowed a credit against the New London tax due but such credit shall not exceed the amount of New London tax levied on such compensation or from the profits of a business, nor shall such credit or allowance be permitted for a school district tax.
(b) If a resident of
(c) With respect to any income tax
applicable to a “pass-through entity” as that term is defined in Ohio R.C.
718.01 the
(1) The amount, if any, if tax paid by the pass-through entity to another municipal corporation in this State, apportioned ratably according to the ownership interest of the taxpayer in proportion to the ownership interest of all owners of the entity;
(2) The amount of tax that would be imposed on the pass-through entity by the Village of New London if the pass-through entity conducted business in the Village, apportioned ratably according to the ownership interest of the taxpayer in proportion to the ownership interest of all owners of the entity.
(d) A refundable credit shall be allowed against the income tax imposed by this chapter for each “qualifying loss,” as the same is defined and limited by Section 718.021 of the revised code, in connection with a nonqualified deferred compensation plan, which qualifying loss is sustained by a taxpayer during the taxable year.
(e) (1) Except as provided in division (2) of this section, if tax or withholding is paid to a municipal corporation on income or
wages, and if
wages after the time period allowed for a refund of the tax or withholding
paid to the first municipal corporation,
(2) If the tax rate in
in division (1) of
this section shall be calculated using the tax rate in effect in
(3) Nothing in this section permits any credit carry forward
181.05 ADMINISTRATION.
It shall be the duty of the Clerk-Treasurer:
(a) To annually audit the records of the Income Tax Clerk and to conduct such other inspections and audits as she deems appropriate to insure that proper procedures required by the State Code and Ordinances are being met.
(b) It shall be the duty of the Income Tax Clerk, under the direct supervision of the Village Clerk-Treasurer:
(1) To Receive the tax imposed by this chapter in the manner prescribed herein from the taxpayers; to keep an accurate record thereof; to report and turn over to the Clerk-Treasurer
All monies so received.
(2) To keep accurate records for a minimum of five years, showing the amount due from each taxpayer required to file a declaration
And/or make any return, including taxes withheld, and to show the dates and amounts of payments thereof.
(3) To enforce the provisions of this chapter and to enforce the rules and regulations of Council, relating to any matter or thing
Pertaining to the collection of Village income taxes and the administration and enforcement of the provisions of this chapter,
Including provisions for the examination and correction of returns and payments.
(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 Income Tax Clerk may determine the amount of tax appearing to be due the Village from the taxpayer and shall send to such taxpayer a written statement showing the amount 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 the Council, the Income Tax Clerk shall have the power to compromise any interest or penalty, or both, imposed by this chapter.
(e) A Department of Taxation is hereby created within the Office of the Clerk-Treasurer. Such department of taxation shall have such deputies clerks, and other employees as may be from time to time determined by Council, and shall receive such salary as may be determined by Council. The Clerk-Treasurer shall recommend all appointments of personnel and purchase of all equipment, supplies, and materials for the department of taxation subject to the approval of Council. The Department of Taxation shall be charged with the administration and operation of this chapter, under the direction of the Village Clerk-Treasurer The Clerk-Treasurer shall prescribe the form and method of accounts and reports for said department, as well as the forms for taxpayer’s returns and declarations and shall be charged with the internal examination and audit all such accounts. The Income Tax Clerk shall exhibit accurate records showing the amount received from
each taxpayer and the date of said receipts. The Clerk-Treasurer shall also make written reports to Council annually of all monies collected
hereunder during the preceding year.
(Ord.
86-11. Passed
181.06 INVESTIGATIVE POWERS OF CLERK-TREASURER; PENALTY FOR
DIVULGING CONFIDENTIAL INFORMATION.
(a) The Clerk-Treasurer or his duly authorized agent or employee is hereby authorized to examine the books, papers and records of any employer, or of any taxpayer or person subject to the tax, or believed to be subject to the provisions of this chapter, for the purpose of verifying the accuracy of any return made, or if, no return was made, to ascertain the tax due. Every such employer, supposed employer, taxpayer or supposed taxpayer is hereby directed and required to furnish to the Clerk-Treasurer or his duly authorized agent or employee, within thirty days following a written request by the Clerk-Treasurer or his duly authorized agent, or employee, the means facilities, and opportunity for making such e3xamination and investigations as are hereby authorized.
(a) The Clerk-Treasurer or his duly authorized agent or employee, is hereby authorized to examine any person, employer or employee under oath, concerning any income which was or should have been returned for taxation, and for this purpose may compel the production of books, Federal income tax records, papers and records and the attendance of all persons before him whether as parties or witnesses, wherever he believes such persons have knowledge of such income.
(b) The refusal to produce books, papers, records and Federal income tax return, or the refusal to submit to such examination by any employer or person subject to presumed to be subject to the tax 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 any order or subpoena of the clerk-treasurer authorized hereby shall be deemed a violation of this chapter.
(c) Tax returns investigations, hearings and all audit papers and information connected therewith are confidential and shall be carefully preserved so that they shall not be available for inspection by anyone other than the proper agents of the Village for official purposes
(Ord.
73-15. Passed
(d) Any information gained as the result of the filing of any tax returns, investigations, hearings or verifications required or authorized shall be Confidential, except for official purposes which includes the exchange of information with other tax authorities and except in accordance with proper judicial order. Any person divulging such information shall upon conviction thereof be deemed guilty of a misdemeanor of the first degree. Each disclosure shall constitute a separate offense. In addition to the above penalties, any employee of the Village who violates the provisions of this section relative to disclosure of confidential information shall be immediately dismissed from the service of the Village. (Ord. 97-01. Passed 2-4-97)
181.07 INTEREST AND
CIVIL PENALTIES.
(a) All taxes imposed by this chapter, including taxes withheld or required to be withheld from wages by an employer and remaining unpaid after they have become due, shall bear interest on the amount of the unpaid tax at the rate of one-half percent (1/2%) per month or portion thereof until paid. Further, the taxpayers upon whom said taxes are imposed, and the employers required by this chapter to deduct, withhold and pay taxes imposed by the chapter shall be liable, in addition to the interest, to a penalty of one-half of one percent (1/2%) of the amount of the unpaid tax for each month or fraction of a month until paid with a minimum penalty of ten ($10.00). Upon recommendation of the Clerk-Treasurer, the Board of Review may abate interest penalties, or both, and upon appeal from the refusal of the Clerk-Treasurer to so recommend, the taxpayer may appeal to the Board of Review in accordance with Section 181.10 (d)
(b) Any taxpayer who is required to file an annual tax return with the Village and how fails to file the annual tax return timely, shall be liable to a penalty of fifteen dollars ($15.00) regardless of whether or not a tax is found to be due. (Ord. 97-01. Passed -2-4-97)
(c) Notwithstanding the foregoing paragraphs, no penalty, interest, or other assessment will be made for the late payment or nonpayment of estimated tax liability in either of the following circumstances:
(1) The Taxpayer is an individual who lives in the Village but was not domiciled in the Village on January 1 of the current calendar year; or
(2) The taxpayer has remitted through estimated tax payments or otherwise a total amount which is at least equal to one hundred percent (100%) of the taxpayer’s tax liability for the preceding year as shown on the return filed by the taxpayer for that 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. (Ord. 00-25 Passed 12-12-00)
181.08 VIOLATIONS.
(a) The following shall be considered violations of this chapter.
(1) Failing, neglecting, or refusing to make any return or declaration required by this chapter; or
(2) Making any incomplete, false or fraudulent return or
(3) Failing, neglecting or refusing to pay the tax, penalties or interest imposed by this chapter; or
(4) Failing, neglecting or refusing to withhold the tax from employees or to remit such withholding to the Clerk-Treasurer; or
(5) Refusing to permit the Clerk-Treasurer or any duly authorized agent or employee to examine books, records and papers and Federal income tax returns relating to the income or net profits of a taxpayer; or
(6) Failing to appear before the Clerk-Treasurer and to produce books, records, federal income tax returns and papers relating to the income or net profits of a taxpayer under order or subpoena of the Clerk-Treasurer.
(7) Refusing to disclose to the Clerk-Treasurer any information with respect to the income or net profits of a taxpayer; or
(8) Failing to comply with the provisions of this chapter or any order or subpoena of the Clerk-Treasurer authorized hereby ; or
(9) Attempting to do anything whatever to avoid the payment of the whole or any part of the tax, penalties or interest imposed by this chapter. (Ord. 73-15 Passed 7-12-73)
(b) Any person who violates any of the provisions of subsection (a) hereof shall be guilty of a misdemeanor of the first degree (Ord.86-6 Passed 3-18-86)
(c) The failure of any employer or taxpayer 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 from paying the tax.
181.09 ALLOCATION OF
FUNDS
The funds collected under the provisions of this chapter shall be deposited in the General Fund and said funds collected for the tax period of January 1, 1974 and thereafter, shall be disbursed in the following order, to wit:
(a) Such part thereof as shall be necessary to defray all costs of collecting the taxes and the cost of administering and enforcing the provisions thereof. (Ord 73-15, Passed 7-12-73)
(b) Not more than ninety percent (90%) of the net available income tax receipts received annually may be used to defray operating expenses of the Village.
(c) At least ten percent (10%) of net available income tax receipts received annually shall be set aside and used for capital improvements for the Village, including, but not limited to, development and construction of storm sewers and street improvements; for public buildings, park, playgrounds; and for equipment necessary for police, fire, street traffic and safety equipment.
181.10 BOARD OF REVIEW.
(a) The Board of Review shall consist of three members appointed by the Mayor with approval of Council, one member to be appointed for 1 year, one member to be appointed for 2 years; one member to be appointed for 3 years. No member shall be appointed to the Board of Review who holds other public office or appointment.
(1) Annually, thereafter, the Mayor shall appoint, with consent of Council, one member for a term of 3 years.
(2) All members of said board to serve without compensation.
(b) A majority of the members of the Board of Review shall constitute as a quorum. The Board of review shall adopt its own procedural rules and shall keep a record of its transactions in the form of minutes, in a bound book, and shall list members present at each meeting.
(c) All hearings of the Board shall be conducted privately and the provisions of Section 181.06 with reference to the confidential character of information required to be disclosed by this chapter shall apply to such matters as may be heard before the Board of Review on appeal.
(d) Whenever the Clerk-Treasurer issues a decision regarding a municipal income tax obligation of a taxpayer, the Clerk-Treasurer shall notify the taxpayer at the same time of the taxpayer’s right to appeal and the manner in which the appeal may be taken. Any person who is aggrieved by a decision of the Clerk-Treasurer and who has filed with the Village the required returns or other documents pertaining to the municipal income tax obligation at issue may appeal that decision to the Board of Review by filing a request with the Board; such a request shall be in writing, shall state why the decision should be deemed incorrect or unlawful, and shall be filed within thirty days after the Clerk-Treasurer issues the decision complained of. The Board shall schedule a hearing within forty five days after receiving a request, unless hearing is waived by the taxpayer; and the taxpayer may appear before the Board and be represented by an attorney at law, a certified public accountant, or another representative. The Board may affirm reverse, or modify the decision of the Clerk-Treasurer or any part thereof and shall issue a written decision within ninety days after the Board’s final hearing on the appeal, which shall be sent by ordinary mail to the petitioner within fifteen days after issuing the decision.
(e) Any person dissatisfied with any ruling or decision the Board of Review may appeal therefrom in accordance with state law within sixty days from the announcement of such ruling or decision.
181.11 APPLICABILITY.
This chapter shall not apply to any person, firm, corporation or to any property as to who or which it is beyond the power of Council to impose the tax herein provided for. The singular shall include the plural and the masculine shall include the feminine and the neuter.
181.12 SEVERABILITY.
If any sentence, clause, section or part of this chapter, or any tax against any individual or any of the several groups specified herein, is found to be unconstitutional, illegal, or invalid, such unconstitutionality, illegality or invalidity shall affect only such sentence, clause, section or part of this chapter and shall not affect or impair any of the remaining provisions, sentences, clauses, sections or other parts of this chapter. It is hereby declared to be the intention of Council that this chapter would have been adopted had such unconstitutional illegal or invalid Council that this chapter would have been adopted had such unconstitutional, illegal or invalid sentence, clause, and section part thereof not be included herein. (ORD 73-15 passed 7-12-73)
181.13 INCOME NOT
SUBJECT TO TAX.
The provisions of this chapter shall not be construed as levying a tax upon the following:
i. Funds received from local, state, or federal governments because of active duty service in the Armed Forces of the United States by the person rendering such service, or as a result of another person rendering such service.
ii. Poor relief, pensions, social security, unemployment compensation except for supplemental unemployment benefits or similar payments, disability benefits received from private industry or local, state or Federal governments, or from charitable, religious or educational organizations.
iii. Dues, contributions and similar payments received by charitable religious educational or literary organizations or labor unions, lodges and similar organizations.
iv. Receipts from casual entertainment, amusements, sports events, and health and welfare activities conducted by bona fide charitable, religious and educational organizations and associations.
v. Any association, organization, corporation, club or trust, which is exempt from Federal taxes on income by reason of its charitable religious, educational literary, scientific, etc. purposes.
vi. Gains from involuntary conversations, cancellation of indebtedness, interest on Federal obligations, alimony and income of a decedent’s estate during the period of administration (except such income from the operating business)
vii. Earnings and income of all persons under eighteen years of age, whether residents or non-residents.
viii. Intangible income as set forth at Ohio R.C. 718.01
ix. Unreimbursed employee business expenses (2106 expenses) which the employee has deducted as an itemized deduction on the Federal tax return. Taxpayer must furnish a copy of the Form 2106 and schedule "A” as filed with IRS.
x. Medical insurance premiums deducted by self-employed taxpayers on their Federal tax return as an adjustment from gross income to arrive at adjusted gross income.
xi. Compensation paid to an individual for personal services performed within the Village, if the individual does not reside in the Village, performs, such personal services, in the municipal corporation on twelve or fewer days in the calendar year, and if the individual is an employee the principle pace of business of individual employer is located outside the Village. This subsection does not apply to professional entertainers or professional athletes or to promoters of professional entertainment or sports events and their employees. (Ord 00-25. Passed (12-12-00)
xii. Items excluded from Federal gross income pursuant to Section 107 0of the Internal Revenue Code, commonly referred to as parsonage allowances (Ord. 02-14 passed 9-10-02)
181.14 REFUNDS.
(a) Should it appear that any taxpayer has paid more than the amount of tax to which the Village of New London is entitled under the provisions of this chapter, a refund of the amount so overpaid shall be made, provided a proper claim for refund of such overpayment of tax has been filed by the taxpayer, or same may be applied toward the declaration of tax due for the ensuing year. Claims for refunds shall be made on forms prescribed by and obtainable from the Clerk-Treasurer.
(b) All application for refunds shall be made within three years of the due date of a final return.
(c) No refund will be made for an amount less than one dollars ($1.00) (Ord 73-015. Passed 7-12-73)
181.15 ANNUAL RETURN
AND PAYMENT OF TAX.
(a) Effective January 1, 1997, each taxpayer eighteen years of age or older whose earnings or profits are subject to the tax imposed by this chapter shall whether or not tax is due but, subject to paragraph (b) following, on or before April 15th of each year make and file a return with the Clerk-Treasurer on a form furnished by or obtainable from the Clerk-Treasurer setting forth the aggregate amount of salary, wages or other compensation and net profits earned by him during the preceding year and subject to the tax, together with other pertinent information as the Clerk-Treasurer may required. However, when the final return is made for a fiscal year or the period different from the calendar year, the return shall be made within 105 days from the end of such fiscal year or other period whether or not a tax is due thereon. The tax due shall be computed on the return and the taxpayer shall pay the tax due at the time of filing. Such return shall be deemed filed when postmarked by the United States Post Office or delivered during normal business hours to the Tax office Notwithstanding any filing deadlines prescribed by this section, an annual income tax return or report due to the Village maybe filed within the time prescribed in the federal income tax code for the corresponding tax reporting period if such period is later than the time allowed in this section.
(b) The return of an employer or employers showing the amount of tax deducted by such employer or employers from the salaries, wages, or compensation of any employee and paid by him or them to the Clerk-Treasurer, shall be accepted s the return required of any employee whose sole income subject to the tax is such salary, wages, or compensation.
(c)Extension of time for filing returns. Any taxpayer that has requested an extension for filing a federal income tax return may request an extension for the fling of a Village income tax return filing a copy of the taxpayer’s request for a federal filing extension with the Clerk-Treasurer no later than the last day for filing the Village income tax return. The extension with the Village will be granted for the same time period as the federal extension unless the request is not timely filed with the Village or the taxpayer already owes the Village delinquent income tax, penalty, interest, assessments, or other charges for late payments or nonpayment of income tax, or the taxpayer has failed to file a required income tax return, report, or other related documents for a prior tax period. Interest as allowed by law will be charged from the original due date of the return until the date of actual payment. For taxable years beginning after 2003, the extended due date of the municipal income tax return shall be the last day of the month following the month to which the due date of the federal income tax return has been extended.
(d)”Pass-through entities” (Partnerships, limited liability companies, and sub-S corporations) as that term is defined in Ohio R.C. 718.14 must file an annual return and shall pay the applicable tax on the income of the pass-through entity in the hands of that entity, and the same income shall not be taxed, nor a return filed, for said income in the hands of the owners of the entity.
(e) If a taxpayer operates a business (including rentals or leasing) which sustains a loss during the taxable year and has not other source of business income which is subject to the tax, the loss may be carried forward for a period of up to five consecutive years subsequent to the year of the loss to be used against future profits generated by a business; but such business losses shall not be deducted from any individuals “Qualifying Wages” under any circumstances.
(f) Subject to subsection (e), if a taxpayer has multiple sources of income subject to the tax, he or she may combine the sources of income to arrive at the income subject to New London income tax. This includes income from husbands and wives which may be combined to arrive at the income subject to New London income tax.
(g) In lieu of the forms adopted by the Clerk-Treasurer as provided in paragraph (a) above, a taxpayer may file a generic form of any return, report, or other document if the generic form, once completed and filed, contains all of the information required to be submitted in the standard form prescribed by the Clerk-Treasurer, so long as the taxpayer complies with the rules or ordinances of the Village governing the filing of returns, reports, or other documents.
(h) The Village of New London shall accept for filing a consolidated income tax return from any affiliated group of corporations subject to the Village’s tax if that affiliated group filed for the same tax reporting period a consolidation return for Federal income tax purposes pursuant to Section1 501 of the Internal Revenue Code.
(i) On and after January 1, 2005, the Village will accept a return, an estimated return, and payments of tax, which have been properly submitted in accordance with the Ohio Business Gateway project of the state of Ohio.
181.16 CONTRACTOR
COMPLIANCE.
No building permit shall be issued by the Village and no building or fixture construction or repair work shall be undertaken within the Village, including but not limited to plumbing, sewer, heating, electrical, water proofing, siding, roofing, blacktop, landscaping, lawn maintenance, tree work and any other work relating to real estate, building, or fixture construction or repair, until the contractor and/or sub-contractor, has first registered his name, address, social security number, E.I.N. and principal place of business with the Village Income Tax Department and obtained a Certificate of Registration from said Department.
(a) In the case where a sub-contractor’s name is unknown at the time of initial registration of the contractor, such registration shall be permitted and thereafter, within five days for obtaining such information, the contractor and subcontractor shall each register with the Village Income Tax Department.
(b) Failure of the contractor to provide registration information as provided above shall result in the revocation of any registration and certificate previously issued. Revocation shall also occur in the event of failure to file tax return, including withholding returns, failure to withhold and/or pay any taxes, interest or penalties owed to the Village, failure to be current in the obligation to pay any taxes, interest or penalties owed to the Village, or for other good cause articulated by the Income Tax Department. Otherwise, said registration of the change in any relevant information as set forth herein to be declared, or the same shall be revoked, subject to re-registration in compliance with this section.
(c) Any fees for the above shall be set by the Tax Department and shall bear a reasonable relation to the work and/or forms expense involved in such registration and issuing of said certificate.
(d) In cases of transient and /or temporary work being done in the Village, persons, firms, partnership. Or corporations performing the same shall be subject to registration but the Tax Department is authorized to charge a reasonable blanket amount to said contractor and/or subcontractor to cover registration fees and any taxes likely to be incurred for said work being done in the Village. However, this shall not include the responsibility and liability for employee’s withholding taxes, which still shall be required under this chapter, unless the same has specifically been included. If said taxpayer does not wish to pay said blanket amount suggested by the Tax Department’s aid taxpayer shall be charged the registration fee as set forth herein and be responsible for filing all returns and paying all taxes penalties and interest under this chapter (Ord. 97-10 Passed 2-4-97)
181.17 EXEMPTION FROM
FILING ANNUAL TAX RETURNS.
If any of the exemptions shown below apply, such person need not complete the balance of the form, except for the Declaration and signature at the bottom thereof.
Income Tax From shall have the following exemptions language thereon:
1. _____________ Retired. No Income subject to the Village of New London Income Tax for the entire year of 20____. I received only Social Security, Pension, Interest, or dividend Income. I do not own rental property in my name or as a partner or Sub-S Corporation shareholder.
2. _____ Unemployed. No earned income for the entire 20___.
3. _____ Homemaker
4. _____ Disabled.
5. _____ Welfare
6. _____ A.D.C.
7. _____ A member of the Armed
Forces of the
And on active duty military status. (This does not include civilians employed by the Military or National Guard)
8. _____ Non-resident. I never lived in New London, Ohio and I do not work in or
receive income
from
9._____
I have moved from
(Ord. 97-01. Passed 2-4-97)
181.18 COLLECTION AT SOURCE;
WITHHOLDING BY EMPLOYER.
(a) It is required of each employer within the Village of New London (as defined Section 181.01 (e) who employs one or more persons on a salary, wage, commission, or other compensation basis, to deduct from compensation paid to such employee subject to this chapter at the time of such payment, the tax imposed in Section 181.02 or said salary, wage, bonus, incentive payment, commission or other compensation due by said employer to said employee.
(b) Notwithstanding the provisions of subsection (a) hereof, when, an employer within the Village of New London employs a Village of New London resident in another taxing municipality which requires the employer to deduct the tax from such taxing municipality from the New London resident employed there, such employer shall withhold and remit to the Village of New London the difference, if any, between the tax imposed by such other taxing municipality and the tax imposed by this chapter or shall withhold New London tax on one hundred percent (100%) of the income subject to New London Tax if the New London resident/ empl9oyee is employed in a location which does not impose municipal tax.
(c) Each Employer shall make and file a withholding tax return with the Clerk-Treasurer and pay to the Clerk-Treasurer the taxes deducted and withheld on the last day of the month following the end of each quarter ,i.e., April 30th, July 31st, October 31st, and January 31st.
(d) Such return shall be on a form or forms prescribed by and obtainable from the Clerk-Treasurer and shall be deemed field when postmarked, by the United States Post office or delivered to the Tax office during normal business hours. Such employer in collecting the tax, shall be deemed to hold the same as Trustee for the benefit of the City until payment is made by such employer to the Village and any such tax collected by such employer from his employees shall until the same is paid to the Village, be deemed a trust fund in the hands of such employer.
(e) The officer or employee having control or supervision or charged with the responsibility of filing the return and making the payment, shall be personally liable for failure to file the return and making the payment, or pay the taxes, penalty and interest due as required herein. The dissolution, bankruptcy or reorganization of an employer does not discharge an officer’s or employee’s liability for a prior failure of such business to file a return or pay taxes and penalty and interest due.
(f) On or before January 31 following any a calendar year such employer shall with the Clerk-Treasurer an information return for each employee along with an annual reconciliation form which the income tax has been or should have been withheld, showing the name, address and social security number of the employee, the total amount of compensation paid during the year and the amount of the municipal income tax withheld from such employee. The information return shall include all of the information required to be reported to the Internal Revenue Service by the employer on a W-2 Form. At the time of filing this return, the employer shall pay over any amount deducted or which should have been deducted or withheld during the preceding year but which was not remitted.
(g) All individuals, businesses, employers, brokers or others who are required under the Internal Revenue Code to furnish forms 1099 to IRS for individuals or businesses to whom or which they have paid non-employee compensation, shall furnish copies of the said form 1099 to the Clerk-Treasurer or in lieu thereof, a listing containing the same information as required by IRS on the 1099’s on or before the due date for such forms 12099 as established by IRS. Failure to provide the foregoing information will result in any deduction for payment by the taxpayer taken on the taxpayer’s tax return to be disallowed.
(1) The deducting and withholding of personal service compensation of all other employees (including officers of corporations) shall attach to the portion of the personal service compensation of such employee which the total number of working days employed within the Village bears to the total number of working days employed within and outside the Village.
(2) If it is impossible to apportion the earnings as provided above, because of the peculiar nature of the service of the employee, or the unusual basis of compensation, apportionment shall be made in accordance with the facts and the tax d3educted and withheld accordingly.
(3) The occasional entry into the Village of a nonresident employee who performs the duties for which he is employed entirely outside the Village, but enters the Village for the purpose of reporting, receiving instructions accounting, etc. incidental to his duties outside the Village, shall not be deemed to take such employee out of the class of those rendering their service entirely outside the Village.
(h) An employer shall withhold the tax on the full amount of any advance made to an employee on account of commissions where such advances are in excess of commission earned.
(i) An employer, required to withhold the tax on compensation paid to an employee shall, in determining the amount on which the tax is to be withheld, ignore any amount allowed and paid by the employer to the employee for expense necessarily and actually incurred by the employee in the actual performance of his service, provided, that such expense must be of the kind and in the amount recognized and allowed as deductible expense for Federal income tax purposes.\
(j) The mere fact that the tax is not withheld will not relieve the employee of the responsibility of filing a return and paying the tax on the compensation received. However, if the tax has been withheld but has not been paid over to the Village, the employee is relieved of responsibility to the extent of the taxes withheld, unless the employee colluded with the employer in connection with the failure to remit a payment.
(k) Commissions and fees paid to professional men, brokers, and others who are independent contractors and not employees of the payer, are not subject to withholding or collection of the tax at the source, such taxpayers must in all instances file returns and pay the tax pursuant to the provision of Section 181.02.
(l) The failure of any employer residing either within or outside the Village, to collect the tax and to make any return prescribed herein shall not relieve the employee from the payment of such tax in compliance with this chapter respecting the making of returns and the payment taxes.
(m) The requirements of this section shall apply to any nonresident employer, or to the agent of such nonresident employer, or to any other nonresident payer who pays an individual an item included in the taxable income of that individual employee or payee, if the total amount of tax required to be divulged and withheld for the Village on account of all of the employers employees or payers payees exceeds one hundred fifty dollars ($150.00) for the calendar year.
(n) For tax years 2004 and thereafter the obligations to withhold taxes described herein shall extend only to qualifying wages as defined in this chapter.
(o)
181.18.1 COLLECTION
AT SOURCE: LANDLORD PROVISIONS.
Every owner of one or more rental units is hereby directed to furnish to the Income Tax Administrator, a semi-annual roster of the names of all persons considered by that owner to be the tenant and/or lessee in such rental units and shall also file a statement of any changes in the roster at the end of each month. The semi-annual statement provided for herein shall be field with the Income Tax Administrator on or before the thirty –first day of January and the thirty-first day of July, unless and extension of time is granted by the Tax Administrator (Ord 97-13 Passed 11-11-97)
181.19 DECLARATIONS.
(a) An employee whose entire wages salaries or other compensation for any taxable year will be subjected to the withholding provisions under Section 181.18 and whose tax will accordingly be withheld as to this entire earnings for such year by his employer, and who during such taxable year expects to derive no other compensation or other income which is subject to tax under this chapter, need not file a declaration as provided in this section.
(b) all other taxpayers, as defined in this chapter subject to the taxes imposed in Section 181.02, and every taxpayer , who anticipates any income or net profits not subject to total withholding as provide din the next preceding paragraph, shall file with the Village Clerk-Treasurer a declaration of his estimates tax follows:
(1) On or before April 30 of each calendar year, taxpayer shall file a declaration of his estimated tax for the taxable period beginning January 1, and ending December 31 of the calendar year.
( c) Taxpayers that are not individuals, who are permitted pursuant to the provisions of Section 181.03 to file a return and pay their tax upon a fiscal year basis, shall file there declaration on or before the fifteenth day of the fourth month following the beginning of each such fiscal year. Those taxpayers on a fiscal year basis shall make payments as follows:
22 ½% by the 15th day of the fourth month of the taxpayers taxable year;
45% by the 15th day of the sixth month;
67 ½% by the 15th day of the ninth month; and
90% by the 15th day of the 12th month.
(d) The estimated tax for calendar year taxpayers may be paid in full with the filing of the declaration or in installments as follows:
(1) For calendar year taxpayers that are individuals:
22 ½% by April 30
45% by July 31
67 ½% by October 31
90% by January 31.
Any amounts 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.
(2) For calendar year taxpayers that are not individuals:
22 ½% by the taxpayer’s Federal return filing date
45% by June 15
67 ½% by September 15
90% by December 15.
(e) The declarations so required shall be filed upon a form furnished by or obtainable from the Clerk-Treasurer. Any taxpayer who has filed an estimate for Federal Income Tax purposes may, in making the declaration required hereunder, simply state therein that the figures therein contained are the same figures used by the taxpayer in making the declaration of his estimate for the Federal Income Tax. However, in addition to such statement, any such taxpayer may, in such declaration, modify and adjust such declared income so as to exclude there from income which is not subject to tax under this chapter.
(f) Any estimate filed hereunder may be amended by the filing of an amended estimate at the time prescribed for the payment of any installment of tax paid in accordance with subsection (g) hereof.
(g) If any such taxpayer shall, on or before any of the installment payment dates specified herein, file an emended declaration showing an increase or decrease of the estimated tax, the installments then and thereafter due shall be increased or diminished (as the case may be) in such manner that the balance of the estimated tax shall be fully paid on or before the last date of payment of the taxable year. (Ord. 02-14. Passed 9-10-02)
181.20 RECORDS TO BE
KEPT BY EMPLOYERS AND TAXPAYER.
Employers and other subject to the tax under this chapter are required to keep such records as will enable the filing of true an accurate returns, whether of taxes withheld at source or of taxes payable upon earning or net profits, or both, and such records are to be preserved to enable the Clerk-Treasurer or any agent or employee of the Clerk-Treasurer, to verify the correctness of the returns filed.
181.21 INCOME TAX
FUND.
The Clerk-Treasurer shall cause to be created a separate fund to be known as the Income Tax Fund, into which receipts of Village Income Tax shall be deposited.