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181.09 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 or person subject to, or whom the Income Tax Administrator believes is subject to, the provisions of this chapter, for the purpose of verifying the accuracy of any return made, or, if no return has been made, to ascertain the tax due under this chapter. Every such employer, supposed employer, taxpayer or supposed taxpayer is hereby directed and required to furnish within ten days upon written request by the Income Tax Administrator or his duly authorized agent or employee, the means, facilities and opportunity for making such examinations and investigations as are hereby authorized.
   (b)   The Administrator is hereby authorized to order any person presumed to have knowledge of the facts to appear before him and may examine such person, under oath, concerning any income which was or should have been returned for taxation or any transaction tending to effect such income, and for this purpose may compel the production of books, papers, records and federal income tax returns and the attendance of all persons before him, whether as parties or witnesses, whenever he believes such persons have knowledge of such income or information pertinent to such inquiry.
   (c)   The refusal to produce books, papers, records and federal income tax returns, or the refusal to submit to such examination by any employer or person subject or presumed to be subject to the tax or by any officer, agent or employee of a person subject to the tax or required to withhold tax or the failure of any person to comply with the provisions of this section or with any order or subpoena of the Income Tax Administrator authorized hereby shall be deemed a violation of this chapter, punishable as provided in Section 181.99.
   (d)   Any information gained as a result of any returns, investigations, hearings or verifications required or authorized by this chapter shall be confidential, and no disclosure thereof shall be made except to municipal, county, state or federal taxing agencies or unless ordered by a court of competent jurisdiction, or unless disclosure is necessary to the conduct of a hearing before the Board of Review. Any appointed employee divulging such information in violation of this section shall be subject to dismissal. Any person divulging such information in violation of this section shall be fined not more than five hundred dollars ($500.00) or imprisoned not more than six months, or both. Each disclosure shall constitute a separate offense.
   (e)   Tax returns and all audit papers and information connected therewith are confidential and shall be carefully preserved so that they are not available for inspection by anyone other than the following listed proper agents of the City for official purposes:
      (1)   The City Auditor
      (2)   The Tax Administrator
      (3)   Employees of the Income Tax Division
      (4)   City Law Director.
   (f)   Every taxpayer shall retain all records necessary to compute his or her tax liability for a period of three years from the date his or her return is filed, or the withholding taxes are paid. (Ord. 04-07. Passed 5-21-07.)
181.10 INTEREST AND PENALTIES.
   (a)   All taxes imposed and all moneys withheld or required to be withheld by employers under the provisions of this chapter and remaining unpaid after they become due shall bear interest at the rate of one percent (1%) per month or fraction thereof until paid in full.
   (b)   In addition to interest as provided in subsection (a) hereof, penalties based on the unpaid tax are hereby imposed as follows:
      (1)   For failure to pay taxes due, other than taxes withheld, one percent (1%) per month or fraction thereof, or five percent (5%) of the total tax due, whichever is greater.
      (2)   For failure to remit taxes withheld from employees, three percent (3%) per month or fraction thereof, or five percent (5%) of the total tax due, whichever is greater.
      (3)   Where the taxpayer has failed to file a declaration on which he has estimated and paid a tax equal to or greater than the tax paid for the previous year, or has failed to file a declaration on which he has estimated and paid tax equal to or greater than seventy percent (70%) of the actual tax for the year, or has failed to file a final return and pay the total tax on or before the end of the month following the end of his taxable year, ten percent (10%) of the difference between seventy percent (70%) of the actual tax for the year and the amount paid through withholding or declaration.
      (4)   Except in the case of fraud, the penalty shall not exceed fifty percent (50%) of the unpaid tax.
   (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. Furthermore, in the absence of fraud, neither penalty nor interest shall be assessed on any additional tax assessment resulting from a federal audit, providing an amended return is filed and the additional tax is paid within three months after the final determination of the federal tax liability.
   (d)   At the Administrator's discretion, the Administrator may abate up to five thousand dollars ($5,000) of penalty or interest or both, and upon recommendation of the Administrator, the Board of Review may abate penalty or interest, or both, of a taxpayer who appeals for such abatement under the provisions of Section 181.12 subsequent to a denial of such abatement by the Administrator.
   (e)   Any person required to withhold the tax who knowingly fails to withhold such tax, or pay over such tax or knowingly attempts in any manner to evade or defeat such tax or payment thereof, shall, in addition to other penalties provided by law, be liable for a penalty equal to the total amount of the tax evaded, or not withheld, or not paid over. No other penalty under this section shall be applied to any offense to which this penalty is applied.
   (f)   Penalty shall not be assessed where an extension has been granted by the Administrator and the final tax paid within the period as extended.
   (g)   Penalties shall be imposed by the Administrator on those taxpayers failing to file their tax returns when due, and who are not otherwise exempt from filing requirements by virtue of Section 181.03(d), a civil penalty of twenty-five dollars ($25.00) shall be imposed for the first instance and fifty dollars ($50.00) for each subsequent instance.
(Ord. 04-07. Passed 5-21-07.)
181.11 COLLECTION OF UNPAID TAXES AND REFUNDS OF OVERPAYMENTS.
   (a)   All taxes imposed by this chapter shall be collectable, together with any interest and penalties thereon by civil suit, as other debts of like amount are recoverable. Except in the case of fraud, omission of twenty-five percent (25%) or more of income subject to this tax, or failure to file a return, an additional assessment shall not be made after three years from the time the return was due or filed, whichever is later. However, in those cases in which the Commission of Internal Revenue and the taxpayer have executed a waiver of the federal statute of limitations, the period within which an additional assessment may be made by the Administrator shall be one year from the time of the final determination of the federal tax liability.
   (b)   Taxes erroneously paid shall not be refunded unless a claim for refund is made within three years from the date on which such payment was made or the return was due, or within three months after final determination of the federal tax liability, whichever is later. (Subject to Ohio R.C. 718.06)
   (c)   Additional amounts of less than one dollar ($1.00) shall not be collected or refunded, unless such assessment results from income which the taxpayer has failed to report.
(Ord. 04-07. Passed 5-21-07.)
181.12 BOARD OF REVIEW.
   (a)   A Board of Review consisting of the Mayor, or a person designated by him or her, the Auditor, or a person designated by him or her, and the Law Director, or an assistant Law Director designated by him or her, is created. All rules and regulations and amendments or changes thereto, which are adopted by the Administrator under the authority conferred by this chapter, shall be approved by the Board before the same become effective. After such approval, such rules, regulations, amendments and changes shall be filed with the Clerk of Council and shall be open to public inspection.
   (b)   Any person dissatisfied with any ruling or decision of the Administrator which is made under the authority conferred by this chapter, may appeal therefrom to the Board within fifteen days from the announcement of such ruling or decision by the Administrator, and the Board shall, upon hearing the appeal, have jurisdiction to affirm, reverse or modify any such ruling or decision or any part thereof. Such hearing shall be scheduled within thirty days from the date of appeal. Also, the Board ruling shall be made within fifteen days from the date of the hearing.
   Any person dissatisfied with any ruling or decision of the Board may appeal therefrom to a court of competent jurisdiction within sixty days from the announcement of such ruling or decision.
   (c)   The Law Director shall be chairman of the Board, and the City Auditor shall serve as secretary thereof. 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. All hearings on appeal by the Board may be conducted privately to the extent allowed by Ohio R.C. 121.22, and the provisions of Section 181.09, with reference to the confidential character of information required to be disclosed by this chapter shall apply to such matters as may be heard before the Board on appeal. Such records are not public records available for inspection under Ohio R.C. 149.43. (Ord. 04-07. Passed 5-21-07.)
181.13 ALLOCATION OF FUNDS.
   The funds collected under the provisions of this chapter shall be deposited in the Special Income Tax Fund and such funds shall be disbursed each calendar year in the following manner, to-wit:
   (a)   Such part thereof as shall be necessary to defray all costs of collecting the tax and the cost of administering and enforcing the provisions of this chapter.
   (b)   Four percent (4%) of net available income tax receipts received annually shall be used for waterworks improvement.
   (c)   Four percent (4%) of net available income tax receipts received annually shall be used for street and road improvements.
   (d)   Six percent (6%) of net available income tax receipts received annually shall be appropriated and set aside in the Master Capital Improvement Fund #402.
   (e)   Eighty-six percent (86%) of net available income tax receipts received annually shall be used for operation expenses of the City and/or specified capital improvements as determined by Council.
      (Ord. 6-16. Passed 2-16-16.)
181.14 CREDIT FOR TAX PAID TO ANOTHER MUNICIPALITY.
   (a)   Where a resident of the City of Alliance is subject to a municipal income tax in another municipality, he or she shall not pay a total municipal income tax on the same income greater than the tax imposed at the highest rate.
   (b)   Every individual taxpayer who resides in the City but receives net profits, salaries, income, wages, commissions, other personal service compensation or a distributive share of net profits from a resident or nonresident unincorporated business entity or association of which he is a partner or owner, for work done or services performed or rendered outside the City, if it is made to appear that he (or she) or such business entity has paid a municipal income tax on or with respect to the same income taxable under this chapter to another municipality, shall be allowed a credit against the tax imposed by this chapter in the amount so paid by him or her, in his or her behalf, or by such business entity, to the other municipality; provided however, that the credit allowed hereunder shall not exceed one and three quarters percent (1.75%) of the taxable income. In no event, however, shall any municipal income tax to the extent paid to another municipality and allowed as a credit hereunder be deductible in computing the net profit of such taxpayer or such business entity.
   (c)   A claim for refund or credit under this section shall be made in such manner as the Administrator may by regulation provide.
   (d)   No credit shall be given unless the taxpayer claims such credit on his final tax return or other form prescribed by the Tax Administrator, and presents such evidence as W-2 form(s) of the payment of a similar tax to another municipality, as the Administrator may require.
   (e)   The Administrator, or any duly authorized agent or employee, may exchange information with the Administrator or his authorized agent or employees of other taxing jurisdictions for the purpose of verifying any claim for credit by the City of Alliance residents, or for the purpose of verifying any claims for credit for taxes paid to the City of Alliance by residents of such other taxing jurisdictions, and may enter into agreements for such purpose.
(Ord. 04-07. Passed 5-21-07.)
181.15 SAVING CLAUSE.
   This chapter shall not apply to any person, firm, corporation or to any property, as to whom or which it is beyond the power of Council to impose the tax herein provided for. If any sentence, clause, section or part of this chapter, or any tax against any individual or any of the several groups specified herein is found to be unconstitutional, illegal or invalid, such unconstitutionality, illegality or invalidity shall affect only such clause, sentence, section or part of this chapter and shall not affect or impair any of the remaining provisions, sentences, clauses, sections or other parts of the chapter. It is hereby declared to be the intention of Council that this chapter would have been adopted had such unconstitutional, illegal or invalid sentence, clause, section or part thereof not been included herein.
(Ord. 04-07. Passed 5-21-07.)
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