(A) Authority to levy tax.
(1) The tax on income and the withholding tax established by this chapter are authorized by Art. XVIII, § 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 Ohio R.C. Ch. 718. This chapter is deemed to incorporate the provisions of Ohio R.C. Ch. 718.
(2) The tax is an annual tax levied on the income of every person residing in or earning or receiving income in the municipal corporation, and shall be measured by municipal taxable income. The municipality shall tax income at a uniform rate. The tax is levied on municipal taxable income, as defined herein.
(Prior Code, § 880.011)
(B) Purposes of tax; rate.
(1) A tax at the rate of 2% is hereby levied on gross income as defined in § 880.03 of this chapter including salaries, wages, commissions and other compensation, and on net profits, to provide funds for the purposes of general municipal operations, maintenance, new equipment, extensions and enlargements of municipal services and facilities and capital improvements, is hereby levied a tax on gross income including salaries, wages, commissions and other compensation, and on net profits, as herein provided.
(2) Effective 1-1-2014, there is hereby levied on gross income, as defined in § 880.03 of this chapter, an additional 0.25% to provide funds for the purpose of providing funds to pay for roadway reconstruction and resurfacing of streets and alleys, to include any debt service on the aforementioned improvements.
(Prior Code, § 880.012)
(C) Allocation of funds.
(1) The funds collected under the provisions of division (B)(1) above shall be deposited in a special fund known as the Income Tax Revenue Fund, and said funds shall be disbursed in the following manner:
(a) First, such part therefore as shall be necessary to defray all expense of collecting the tax and administering and enforcing the provisions of the chapter shall be paid; and
(b) Second, to defray all expenses of the General Fund and other funds as designated in the annual budget adopted by City Council.
(2) The funds collected under the provisions of division (B)(2) above shall be deposited in a special fund known as the Street Capital Improvement Fund for the purpose of street improvements, as defined by Ord. 127-2013.
(Prior Code, § 880.013)
(D) Statement of procedural history; state mandated changes to municipal income tax.
(1) Significant and wide-ranging amendments to Ohio R.C. Ch. 718 were enacted by Am. Sub. H.B. 5, passed by the 130th General Assembly, and signed by Governor Kasich on 12-19-2014, and H.B. 5 required municipal corporations to conform to and adopt the provisions of Ohio R.C. Ch. 718 in order to have the authority to impose, enforce, administer and collect a municipal income tax.
(2) As mandated by H.B. 5, municipal income tax Ord. 182-2015, effective 1-1-2016, comprehensively amends pervious regulations in accordance with the provisions of Ohio R.C. Ch. 718 to allow the municipality to continue the income tax and withholding tax administration and collection efforts on behalf of the municipality.
(Prior Code, § 880.014)
(Ord. 182-2015, passed 11-23-2015)