(A) Authority to levy tax.
(1) The tax on income and the withholding tax established by this Chapter are authorized by Article XVIII, Section 3 of the Ohio Constitution. The tax on income and the withholding tax established by this Chapter are deemed to be levied in accordance with, and to be consistent with, the provisions and limitations of R.C. Chapter 718). This chapter is deemed to incorporate the provisions of R.C. Chapter 718.
(2) The tax levied hereunder is an annual tax levied on the income of every person residing in or earning or receiving income in the village, and shall be measured by municipal taxable income, as defined herein. The village shall tax income at a uniform rate.
(R.C. § 718.04)
(B) Purposes of tax; rate.
(1) The purpose of the tax levied under this chapter is, without limitation, to provide funds for adequate general municipal operations, projected capital improvements and the establishment of adequate reserves for the normal operations of the village. There shall be, and is hereby, levied a tax on salaries, wages, commissions and other compensation, and on net profits as hereinafter provided.
(2) Tax rate. An annual tax for the purposes specified herein shall be imposed on and after January l, 2016, at the rate of 2% per annum.
(R.C. § 718.04)
(C) Allocation of funds. The funds to be derived from the enforcement of this chapter shall be allocated in accordance with the determination of the Council by ordinances passed from time to time.
(D) Statement of procedural history; state mandated changes to municipal income tax.
(1) Significant and wide-ranging amendments to R.C. Chapter 718 were enacted by Am Sub HB 5, passed by the 130th General Assembly, and signed by Governor Kasich on December 19, 2014, and H.B. 5 required municipal corporations to conform to and adopt the provisions of R.C. Chapter 718 in order to have the authority to impose, enforce, administer and collect a municipal income tax.
(2) As mandated by H.B. 5, this chapter is effective January 1, 2016 and replaces chapter 93 for all tax years beginning January 1, 2016 in accordance with the provisions of R.C. Chapter 718 to allow the village to continue the income tax and withholding tax administration and collection efforts on behalf of the village.
(Ord. 2015-12, passed 11-9-15)