(A) To provide funds for the purposes of General Municipal Operations, Street Maintenance and Repair, Parks and Recreation, and enlargement of municipal services and facilities, the City of Ashland hereby levies an annual municipal income tax on income, qualifying wages, commissions and other compensation, and on net profits as hereinafter provided. The permeant annual tax is levied at an effective rate of one- and one-half percent (1.5%) with an additional one-half percent (0.5%) in effect January 1, 2022 through December 31, 2026. The tax is levied at a uniform rate on all persons residing in or earning or receiving income in the City of Ashland. The tax is levied on income, qualifying wages, commissions and other compensation, and on net profits as hereinafter provided in Section 230.03 of Chapter 230 and other sections as they may apply.
(B) The funds collected under the provisions of this chapter shall first be appropriated and disbursed for the purpose of defraying all costs of collecting the tax by this chapter and the cost of administering and enforcing its provisions. These costs shall be deducted from the base rate of the income tax collected, and the remaining balance of the base rate shall be appropriated and disbursed, as determined by City Council to the following three (3) funds:
(1) General Municipal Operations, Fund 101, 87%.
(2) Street Maintenance and Repair, Fund 202, 5.0%.
(3) Parks and Recreation, Fund 212, 8.0%.
Half of the income tax collected at the additional one-half percent (0.5%) shall be appropriated and disbursed to the fund for street repair and resurfacing (Fund 472). The remaining half shall be appropriated and disbursed for police (Fund 267) and fire personnel (Fund 268). The amounts for the police and fire funds shall be apportioned and disbursed in equal amounts to those funds.
(C) The tax on income and the withholding tax established by Chapter 230, Ordinance 88-15 and amended by Ordinance 63-18 Chapter 230, are authorized by Article XVIII, Section 3 of the Ohio Constitution. The tax is levied in accordance with, and is intended to be consistent with, the provisions and limitations of Ohio Revised Code (ORC 718). This Chapter is effective for tax years beginning on and after January 1, 2016. Municipal taxable years beginning on or before December 31, 2015, are subject to the income tax ordinance and amendments thereto, and rules and regulations and amendments thereto, as they existed before January 1, 2016.
(Ord. 62-21. Passed 10-5-21.)