(A) Authority to levy tax.
(1) The tax on income and the withholding tax established by this subchapter are authorized by Article XVIII, § 3 of the Ohio Constitution. The tax on income and the withholding tax established by this subchapter are deemed to be levied in accordance with, and to be consistent with, the provisions and limitations of R.C. Chapter 718. This subchapter is deemed to incorporate the provisions of R.C. Chapter 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.
(B) Purposes of tax; rate.
(1) A continuing 1% income tax to provide funds for the purpose of general municipal operations, maintenance, new equipment, extension and enlargement of municipal services and facilities and capital improvements 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) An additional 0.25% tax on incomes effective January 1, 2013 for a period of 15 years to provide funds for village capital improvements for 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. This shall be an additional tax specifically for the purpose of constructing, reconstructing, repair, enlargement, acquisition and financing of new and existing capital improvements for the village for water service and sewer service. This additional tax may also be used to obtain financing and servicing debt for new and existing water and sewer infrastructure.
(C) Allocation of funds.
(1) The base 1% tax shall be allocated to general municipal purposes as set forth in division (B)(1) above.
(2) The additional 0.25% tax is temporary in nature and enacted by and initiative petition to be a tax on incomes effective January 1, 2013 for a period of 15 years and shall be allocated to capital for water services and sewer services as set forth in division (B)(2) above.
(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. H.B. 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 municipal income tax subchapter, effective January 1, 2016, comprehensively amends Ord. 18-11 in accordance with the provisions of R.C. Chapter 718 to allow the municipality to continue the income tax and withholding tax administration and collection efforts on behalf of the municipality.
(Ord. 18-15, passed 11-2-2015)
Statutory reference:
Authority to tax income and withhold tax, see R.C. § 718.04