EDITOR’S NOTE: Chapter 880 is effective through December 31, 2015, and will be repealed effective January 1, 2016. At this time Chapter 880 has been retained in its entirety for reference purposes.
880.01 Purpose.
880.02 Definitions.
880.03 Levy of tax; rate; taxable income
880.04 Rental income; royalty income.
880.05 Operating loss carry-forward.
880.06 Consolidated returns.
880.07 Exceptions.
880.08 Effective period.
880.09 Date of filing return; employee covered by employer's return.
880.10 Form and content of return.
880.11 Extension of time for filing return.
880.12 Payment of tax on filing of return; overpayment.
880.13 Amended returns.
880.14 Collection at source.
880.15 Declarations of income not collected at source.
880.16 Filing of declaration.
880.17 Form of declaration.
880.18 Payment upon declaration.
880.19 Annual returns.
880.20 Powers and duties of the Administrator.
880.21 Refusal to produce records.
880.22 Confidentiality of information.
880.23 Retention of records by taxpayer.
880.24 Recovery of unpaid taxes.
880.25 Taxes erroneously paid.
880.26 Amounts less than one dollar.
880.27 Board of Review.
880.28 Allocation of funds.
880.29 Taxpayer relief and credit provisions.
880.30 Separability.
880.31 Continuation of tax; collection after termination.
880.32 Interest on unpaid taxes.
880.33 Penalties on unpaid taxes; exceptions.
880.34 Abatement of penalties and interest.
880.35 Violations.
880.36 Limitation on prosecution.
880.37 Failure to procure forms.
880.38 Taxpayers' rights.
880.39 Lottery tax account.
880.99 Penalty.
CROSS REFERENCES
Authority to tax - see Ohio Const., Art. XVIII, § 3
Enactment of Municipal Income Tax ordinances and resolutions - see CHTR. Art. IV, § 17
Payroll deductions - see Ohio R.C. 9.42
Municipal income tax - see Ohio R.C. Ch. 718
Department of Taxation - see ADM. Ch. 236
To provide funds for the purposes of general Municipal operation, maintenance, new equipment, extension and enlargement of Municipal services and facilities and capital improvements of the City, there is hereby levied a tax on salaries, wages, commissions and other compensation, and on net profits, as provided in this chapter.
(Ord. 371-68. Passed 2-28-68.)
As used in this chapter, unless the context clearly indicates otherwise:
(a) "Administrator" means the individual designated by this chapter, appointed by the Mayor with the concurrence of a two-thirds vote of Council, to administer and enforce this chapter.
(b) "Assignment" means the assignment made by a resident of the City of a claim for refund due from another taxing municipality granting credit to nonresidents thereof.
(c) "Association" means a partnership, limited partnership or any other form of unincorporated enterprise owned by two or more persons.
(d) "Board of Review" means the Board created by and constituted as provided in Section 880.27.
(e) "Business" means 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.
(f) "Corporation" means a corporation or joint stock association organized under the laws of the United States, the State or any other state, territory, foreign country or dependency.
(g) "Employee" means one who works for wages, salary, commission or any other type of compensation in the service of an employer.
(h) "Employer" means 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.
(i) "Fiscal year" means an accounting period of twelve months or less ending on any day other than December 31.
(j) "Fundamental change" means any substantial alteration by an employer, including liquidation, dissolution, bankruptcy and reorganizations such as merger, consolidation, acquisition, transfer or change in identity, form or organization.
(k) "Gross receipts" means the total income from any source whatsoever.
(l) "Manager" means any of the employer's officers, responsible persons, employees having control or supervision and employees charged with the responsibility of filing the return, paying taxes and otherwise complying with this chapter.
(m) "Net profits" means a net gain from the operation of a business, profession, enterprise or other activity, after provision for all ordinary and necessary expenses either paid or accrued in accordance with the accounting system used by the taxpayer for Federal income tax purposes, or a system approved by the Administrator, without deduction of taxes imposed by this chapter, Federal, State and other taxes based on income and, in the case of an association, without deduction of salaries paid to partners and other owners, and otherwise adjusted to the requirements of this chapter.
(n) "Nonresident" means an individual domiciled outside of the City.
(o) "Nonresident unincorporated business entity" means an unincorporated business entity not having an office or place of business in the City.
(p) "Person" means a natural person, partnership, fiduciary, association or corporation. Whenever used in any clause prescribing and imposing a penalty, "person," as applied to any unincorporated entity, means the partners or members thereof and, as applied to a corporation, the officers thereof.
(q) "Place of business" means any bona fide office (other than a mere statutory office), factory, warehouse or other space which is occupied and used by the taxpayer in carrying on any business activity individually or through one or more of his or her regular agents or employees regularly in attendance.
(r) "Reciprocity credit" means the credit granted by a municipality to its residents and to nonresidents whose municipality of residence grants a similar credit to nonresidents thereof, based on twenty-five percent of the lesser of the two rates.
(s) "Resident" means an individual domiciled in the City.
(t) "Resident unincorporated business entity" means an unincorporated business entity having an office or place of business in the City.
(u) "Taxable income" means wages, salaries and other compensation paid by an employer before any deduction and/or the net profits from the operation of a business, profession or other enterprise or activity adjusted in accordance with this chapter. Taxable income shall also mean lottery winnings and income derived from gambling, wagering, lotteries or schemes of chance but only when such amounts are equal to or exceed four million dollars ($4,000,000).
(v) "Taxable year" means the calendar year, or the fiscal year upon the basis of which the net profits are to be computed under this chapter, 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.
(w) "Taxing municipality" means any municipal corporation levying a municipal income tax on salaries, wages, commissions and other compensation earned by individuals and on the net profits earned from the operation of a business, profession or other activity.
(x) "Taxpayer" means a natural person over eighteen years of age, or any other person, required by this chapter to file a return or pay a tax.
(Ord. 5-85. Passed 4-22-85; Ord. 57-04. Passed 7-12-04.)
(1) On all salaries, wages, commissions and other compensation, lottery winnings and income derived from gaming, wagering, lotteries or schemes of chance but only when such amounts are equal to or exceed four million dollars ($4,000,000), and on net profits from unincorporated business entities and professions, earned during the effective period of this chapter by residents of the City;
(2) On all salaries, wages, commissions and other compensation earned during the effective period of this chapter by nonresidents for work done or services performed or rendered in the City. On lottery winnings and income derived from gaming, wagering, lotteries or schemes of chance, but only when such amounts are equal to or exceed four million dollars ($4,000,000), by nonresidents when the lottery ticket is purchased and/or the gaming, wagering or scheme of chance is conducted, inside the City limits;
(3) On the employer's income derived from finance and carrying charges associated with his or her consumer's accounts receivable;
(4) On the portion attributable to the City of the net profits earned during the effective period of this chapter 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 the City;
(5) On the portion of the distributive share of the net profits earned during the effective period of this chapter of a resident partner or owner of a resident unincorporated business entity not attributable to the City and not levied against such unincorporated business entity, provided, however, that the liability of an individual partner or owner taxable under this chapter on income attributable to another taxing municipality shall be subject to Section 880.29;
(6) On the portion attributable to the City of the net profits earned during the effective period of this chapter of all nonresident unincorporated businesses, professions or other entities, derived from sales made, work done, services performed or rendered and business or other activities conducted in the City, whether or not such unincorporated business entity has an office or place of business in the City;
(7) On the portion of the distributive share of the net profits earned during the effective period of this chapter of a resident partner or owner of a nonresident unincorporated business entity not attributable to the City and not levied against such unincorporated business entity, provided, however, that the liability of an individual partner or owner taxable under this chapter on income attributable to another taxing municipality shall be subject to Section 880.29; and
(8) On the portion attributable to the City, of the net profits earned during the effective period of this chapter of all corporations, derived from sales made, work done, services performed or rendered and business or other activities conducted in the City, whether or not such corporations have an office or place of business in the City.
(b) The portion of the net profits attributable to the City of a taxpayer conducting a business, profession or other activity both within and without the boundaries of the City shall be determined as provided in Ohio R.C. 718.02 and in accordance with the rules and regulations adopted by the Administrator pursuant to this chapter.
(Ord. 5-85. Passed 4-22-85; Ord. 57-04. Passed 7-12-04; Ord. 114-01. Approved by Voters 11-6-01; Res. R-27-07. Approved by Voters 11-6-07.)
(a) (1) Rental income received by a taxpayer shall be included in the computation of net profits from business activities only if and to the extent that the rental ownership, management or operation of the real estate from which such rentals are derived (whether so 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.
(2) Where the gross monthly rental of any and all real properties, regardless of the number and value, aggregates in excess of two hundred fifty dollars ($250.00) per month, it shall be prima-facie evidence that the rental, ownership, 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. However, 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, receipts or profits of the lessee, whether or not such rental exceeds two hundred fifty dollars ($250.00) per month. Further, in the case of farm property, the owner shall be considered engaged in a business activity when he or she shares in crops or when the rental is based on a percentage of the gross or net receipts derived from the farm, whether or not the gross income exceeds two hundred fifty dollars ($250.00) per month. A person who operates a licensed rooming house shall be considered in business whether or not the gross income exceeds two hundred fifty dollars ($250.00) per month.
(3) A. On or before February 1, 2005, all property owners of rental or leased residential property who rent said premises to tenants, shall file with the Finance Director of Avon, Ohio, a report showing the names, addresses and places of employment of each such tenant who occupies said residential premises within the corporation limits of the City, as of January 1, 2005.
B. Beginning January 1, 2005, and thereafter, within 30 days after a new tenant(s) occupies residential rental or leased property of any kind within the City, the property owner(s) of such rental or leased residential property who rents to the tenant(s), shall file with the Finance Director of the City, a report showing the name(s), address(es) and place(s) of employment of each such tenant who occupies said residential premises within the corporation limits of the City.
C. Beginning January 1, 2005, and thereafter, within 30 days after a tenant vacates a rental or leased residential property located within the City, the property owner of such vacated rental or leased property shall file with the Finance Director of the City, a report showing the date of vacating from the rental or leased residential property and identifying such vacating tenant(s) by name, forwarding address (if available) and place of employment (if available).
(b) Income earned by a taxpayer from a royalty interest in the production of an oil or gas well, whether managed, extracted or operated by the taxpayer individually or through an agent or other representative, shall be included in the computation of net profits from a business activity to the extent that such royalty interest constitutes a business activity of the taxpayer.
Where the gross income received by a taxpayer from a royalty interest in the production of an oil or gas well in a taxable year exceeds three thousand dollars ($3,000), it shall be prima-facie evidence that the income was derived from a business activity of such taxpayer and the net income from such royalty interest shall be subject to tax.
(Ord. 5-85. Passed 4-22-85; Ord. 212-04. Passed 12-28-04.)
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