(A) Return and payment of tax.
(1) (a) An annual return with respect to the income tax levied on municipal taxable income by the municipality shall be completed and filed by every taxpayer for any taxable year for which the taxpayer is subject to the tax, regardless of whether or not income tax is due.
(b) The Tax Administrator shall accept on behalf of all nonresident individual taxpayers a return filed by an employer, agent of an employer or other payer located in the municipality under § 37.059(A)(3) when the nonresident individual taxpayer’s sole income subject to the tax is the qualifying wages reported by the employer, agent of an employer, or other payer, and no additional tax is due to the municipality.
(c) All resident individual taxpayers, 18 years of age and older, shall file an annual municipal income tax return with the municipality, regardless of income or liability.
(2) If an individual is deceased, any return or notice required of that individual shad be completed and filed by that decedent’s executor, administrator or other person charged with the property of that decedent.
(3) If an individual is unable to complete and file a return or notice required by the municipality in accordance with this subchapter, the return or notice required of that individual shall be completed and filed by the individual’s duly authorized agent, guardian, conservator, fiduciary or other person charged with the care of the person or property of that individual. Such duly authorized agent, guardian, conservator, fiduciary or other person charged with the care of the person or property of that individual shall provide, with the filing of the return, appropriate documentation to support that they are authorized to file a return or notice on behalf of the taxpayer. This notice shall include any legally binding authorizations, and contact information including name, address and phone number of the duly authorized agent, guardian, conservator, fiduciary or other person.
(4) Returns or notices required of an estate or a trust shall be completed and filed by the fiduciary of the estate or trust. Such fiduciary shall provide, with the filing of the return, appropriate documentation to support that they are authorized to file a return or notice on behalf of the taxpayer. This notice shall include any legally binding authorizations, and contact information including name, address and phone number of the fiduciary.
(5) No municipal corporation shall deny spouses the ability to file a joint return.
(6) (a) Each return required to be filed under this section shall contain the signature of the taxpayer or the taxpayer’s duly authorized agent and of the person who prepared the return for the taxpayer, and shall include the taxpayer’s Social Security number or taxpayer identification number. Each return shall be verified by a declaration under penalty of perjury.
(b) A taxpayer who is an individual is required to include, with each annual return, amended return or request for refund required under this section, copies of only the following documents: all of the taxpayer’s Internal Revenue Service Form W-2, Wage and Tax Statements, including all information reported on the taxpayer’s federal W-2, as well as taxable wages reported or withheld for any municipal corporation; the taxpayer’s Internal Revenue Service Form 1040 or, in the case of a return or request required by a qualified municipal corporation, Ohio IT 1040; and, with respect to an amended tax return or refund request, any other documentation necessary to support the refund request or the adjustments made in the amended return. An individual taxpayer who files the annual return required by this section electronically is not required to provide paper copies of any of the foregoing to the Tax Administrator unless the Tax Administrator requests such copies after the return has been filed.
(c) A taxpayer that is not an individual is required to include, with each annual net profit return, amended net profit return or request for refund required under this section, copies of only the following documents: the taxpayer’s Internal Revenue Service Form 1041, Form 1065, Form 1120, Form 1120-REIT, Form 1120F or Form 1120S, and, with respect to an amended tax return or refund request, any other documentation necessary to support the refund request or the adjustments made in the amended return.
(d) A taxpayer that is not an individual and that files an annual net profit return electronically through the Ohio Business Gateway or in some other manner shall either mail the documents required under this division (A) to the Tax Administrator at the time of filing or, if electronic submission is available, submit the documents electronically through the Ohio Business Gateway or a portal provided by municipality. The Department of Taxation shall publish a method of electronically submitting the documents required under this division (A) through the Ohio Business Gateway on or before January 1, 2016. The Department shall transmit all documents submitted electronically under this division (A) to the appropriate Tax Administrator.
(e) After a taxpayer files a tax return, the Tax Administrator shall request, and the taxpayer shall provide, any information, statements or documents required by the municipality to determine and verify the taxpayer’s municipal income tax liability. The requirements imposed under this division (A)(6) apply regardless of whether the taxpayer files on a generic form or on a form prescribed by the Tax Administrator.
(f) Any other documentation, including schedules, other municipal income tax returns or other supporting documentation necessary to verify credits, income, losses or other pertinent factors on the return shall also be included to avoid delay in processing, or disallowance by the Tax Administrator of undocumented credits or losses.
(7) (a) 1. Except as otherwise provided in this subchapter, each individual income tax return required to be filed under this section shall be completed and filed as required by the Tax Administrator on or before the date prescribed for the filing of state individual income tax returns under R.C. § 5747.08(G). The taxpayer shall complete and file the return or notice on forms prescribed by the Tax Administrator or on generic forms, together with remittance made payable to the municipality or Tax Administrator.
2. Except as otherwise provided in this subchapter, each annual net profit income tax return required to be filed under this section by a taxpayer that is not an individual shall be completed and filed as required by the Tax Administrator on or before the fifteenth day of the fourth month following the end of the taxpayer’s taxable year or period. The taxpayer shall complete and file the return or notice on forms prescribed by the Tax Administrator or on generic forms, together with remittance made payable to the municipality or Tax Administrator.
3. In the case of individual income tax return required to be filed by an individual, and net profit income tax return required to be filed by a taxpayer who is not an individual, no remittance is required if the amount shown to be due is $10 or less.
(b) If the Tax Administrator considers it necessary in order to ensure the payment of the tax imposed by the municipality in accordance with this subchapter, the Tax Administrator may require taxpayers to file returns and make payments otherwise than as provided in this section, including taxpayers not otherwise required to file annual returns.
(c) With respect to taxpayers to whom division (B) below applies, to the extent that any provision in this division (A) conflicts with any provision in division (B) below, the provision in division (B) below prevails.
(8) (a) For taxable years beginning after 2015, the municipality shall not require a taxpayer to remit tax with respect to net profits if the amount due is $10 or less.
(b) Any taxpayer not required to remit tax to the municipality for a taxable year pursuant to division (A)(8)(a) above shall file with the municipality an annual net profit return under divisions (A)(6)(c) and (A)(6)(d) above.
(9) This division (A)(9) shall not apply to payments required to be made under § 37.059(A)(2)(a).
(a) If any report, claim, statement or other document required to be filed, or any payment required to be made, within a prescribed period or on or before a prescribed date under this subchapter is delivered after that period or that to the Tax Administrator or other municipal official with which the report, claim, statement or other document is required to be filed, or to which the payment is required to be made, the date of the postmark stamped on the cover in which the report, claim, statement, or other document or payment is mailed shall be deemed to be the date of delivery or the date of payment. THE DATE OF POSTMARK means, in the event there is more than one date on the cover, the earliest date imprinted on the cover by the postal service.
(b) If a payment is required to be made by electronic funds transfer, the payment is considered to be made when the payment is credited to an account designated by the Tax Administrator for the receipt of tax payments, except that, when a payment made by electronic funds transfer is delayed due to circumstances not under the control of the taxpayer, the payment is considered to be made when the taxpayer submitted the payment. For purposes of this section, SUBMITTED THE PAYMENT means the date which the taxpayer has designated for the delivery of payment, which may or may not be the same date as the date the payment was initiated by the taxpayer.
(10) The amounts withheld for the municipality by an employer, the agent of an employer or other payer as described in § 37.059(A) shall be allowed to the recipient of the compensation as credits against payment of the tax imposed on the recipient unless the amounts withheld were not remitted to the municipality and the recipient colluded with the employer, agent or other payer in connection with the failure to remit the amounts withheld.
(11) Each return required by the municipality to be filed in accordance with this section shall include a box that the taxpayer may check to authorize another person, including a tax return preparer who prepared the return, to communicate with the Tax Administrator about matters pertaining to the return. The return or instructions accompanying the return shall indicate that by checking the box the taxpayer authorizes the Tax Administrator to contact the preparer or other person concerning questions that arise during the examination or other review of the return and authorizes the preparer or other person only to provide the Tax Administrator with information that is missing from the return, to contact the Tax Administrator for information about the examination or other review of the return or the status of the taxpayer’s refund or payments, and to respond to notices about mathematical errors, offsets, or return preparation that the taxpayer has received from the Tax Administrator and has shown to the preparer or other person. Authorization by the taxpayer of another person to communicate with the Tax Administrator about matters pertaining to the return does not preclude the Tax Administrator from contacting the taxpayer regarding such matters.
(12) The Tax Administrator of the municipality shall accept for filing a generic form of any income tax return, report or document required by the municipality in accordance with this subchapter, provided that the generic form, once completed and filed, contains all of the information required by ordinances, resolutions or rules adopted by the municipality or Tax Administrator, and provided that the taxpayer or tax return preparer filing the generic form otherwise complies with the provisions of this subchapter and of the municipality’s ordinance or resolution governing the filing of returns, reports, or documents.
(13) When income tax returns, reports or other documents require the signature of a tax return preparer, the Tax Administrator shall accept a facsimile of such a signature in lieu of a manual signature.
(14) (a) As used in this division (A)(14), WORKSITE LOCATION has the same meaning as in § 37.059(B).
(b) A person may notify a Tax Administrator that the person does not expect to be a taxpayer with respect to the municipal corporation for a taxable year if both of the following conditions apply:
1. The person was required to file a tax return with the municipal corporation for the immediately preceding taxable year because the person performed services at a worksite location within the municipal corporation, and the person has filed all appropriate and required returns and remitted all applicable income tax and withholding payments as provided by this subchapter. The Tax Administrator is not required to accept an affidavit from a taxpayer who has not complied with the provisions of this subchapter;
2. a. The person no longer provides services in the municipal corporation, and does not expect to be subject to the municipal corporation’s income tax for the taxable year; and
b. The person shall provide the notice in a signed affidavit that briefly explains the person’s circumstances, including the location of the previous worksite location and the last date on which the person performed services or made any sales within the municipal corporation. The affidavit also shall include the following statement: “The affiant has no plans to perform any services within the municipal corporation, make any sales in the municipal corporation, or otherwise become subject to the tax levied by the municipal corporation during the taxable year. If the affiant does become subject to the tax levied by the municipal corporation for the taxable year, the affiant agrees to be considered a taxpayer and to properly register as a taxpayer with the municipal corporation, if such a registration is required by the municipal corporation’s resolutions, ordinances, or rules.” The person shall sign the affidavit under penalty of perjury.
3. If a person submits an affidavit described in division (A)(14)(b)2. above, the Tax Administrator shall not require the person to file any tax return for the taxable year unless the Tax Administrator possesses information that conflicts with the affidavit or if the circumstances described in the affidavit change, or the taxpayer has engaged in activity which results in work being performed, services provided, sales made or other activity that results in municipal taxable income reportable to the municipality in the taxable year. It shall be the responsibility of the taxpayer to comply with the provisions of this subchapter relating to the reporting and filing of municipal taxable income on an annual municipal income tax return, even if an affidavit has been filed with the Tax Administrator for the taxable year. Nothing in this division (A)(14) prohibits the Tax Administrator from performing an audit of the person.
(B) Return and payment of tax; individuals serving in combat zone.
(1) Each member of the National Guard of any state and each member of a reserve component of the armed forces of the United States called to active duty pursuant to an executive order issued by the President of the United States or an act of the Congress of the United States, and each civilian serving as support personnel in a combat zone or contingency operation in support of the armed forces, may apply to the Tax Administrator of the municipality for both an extension of time for filing of the return and an extension of time for payment of taxes required by the municipality in accordance with this subchapter during the period of the member’s or civilian’s duty service and for 180 days thereafter. The application shall be filed on or before the one hundred eightieth day after the member’s or civilian’s duty terminates. An applicant shall provide such evidence as the Tax Administrator considers necessary to demonstrate eligibility for the extension.
(2) (a) If the Tax Administrator ascertains that an applicant is qualified for an extension under this division (B), the Tax Administrator shall enter into a contract with the applicant for the payment of the tax in installments that begin on the one hundred eighty-first day after the applicant’s active duty or service terminates. Except as provided in division (B)(2)(c) below, the Tax Administrator may prescribe such contract terms as the Tax Administrator considers appropriate.
(b) If the Tax Administrator ascertains that an applicant is qualified for an extension under this section, the applicant shall neither be required to file any return, report or other tax document nor be required to pay any tax otherwise due to the municipality before the one hundred eighty-first day after the applicant’s active duty or service terminates.
(c) Taxes paid pursuant to a contract entered into under division (B)(2)(a) above are not delinquent. The Tax Administrator shall not require any payments of penalties or interest in connection with those taxes for the extension period.
(3) (a) Nothing in this division denies to any person described in this division (B)(3) the application of divisions (B)(1) and (B)(2) above.
(b) 1. A qualifying taxpayer who is eligible for an extension under the Internal Revenue Code shall receive both an extension of time in which to file any return, report or other tax document and an extension of time in which to make any payment of taxes required by the municipality in accordance with this subchapter. The length of any extension granted under this division (B)(3)(b)1. shall be equal to the length of the corresponding extension that the taxpayer receives under the Internal Revenue Code. As used in this section, QUALIFYING TAXPAYER means a member of the National Guard or a member of a reserve component of the armed forces of the United States called to active duty pursuant to either an executive order issued by the President of the United States or an act of the Congress of the United States, or a civilian serving as support personnel in a combat zone or contingency operation in support of the armed forces.
2. Taxes the payment of which is extended in accordance with division (B)(3)(b)1. above are not delinquent during the extension period. Such taxes become delinquent on the first day after the expiration of the extension period if the taxes are not paid prior to that date. The Tax Administrator shall not require any payment of penalties or interest in connection with those taxes for the extension period. The Tax Administrator shall not include any period of extension granted under division (B)(3)(b)1. above in calculating the penalty or interest due on any unpaid tax.
(4) For each taxable year to which divisions (B)(1), (B)(2) or (B)(3) above applies to a taxpayer, the provisions of divisions (B)(2)(a) and (B)(2)(c) or (B)(3) above, as applicable, apply to the spouse of that taxpayer if the filing status of the spouse and the taxpayer is married filing jointly for that year.
(C) Use of Ohio Business Gateway; types of filings authorized.
(1) Any taxpayer subject to municipal income taxation with respect to the taxpayer’s net profit from a business or profession may file any municipal income tax return, or estimated municipal income tax return, or extension for filing a municipal income tax return, and may make payment of amounts shown to be due on such returns, by using the Ohio Business Gateway.
(2) Any employer, agent of an employer or other payer may report the amount of municipal income tax withheld from qualifying wages, and may make remittance of such amounts, by using the Ohio Business Gateway.
(3) Nothing in this section affects the due dates for filing employer withholding tax returns or deposit of any required tax.
(4) The use of the Ohio Business Gateway by municipal corporations, taxpayers or other persons does not affect the legal rights of municipalities or taxpayers as otherwise permitted by law. The state shall not be a party to the administration of municipal income taxes or to an appeal of a municipal income tax matter, except as otherwise specifically provided by law.
(5) Nothing in this division (E) shall be construed as limiting or removing the authority of any municipal corporation to administer, audit and enforce the provisions of its municipal income tax.
(D) Extension of time to file.
(1) Any taxpayer that has duly requested an automatic six-month extension for filing the taxpayer’s federal income tax return shall automatically receive an extension for the filing of a municipal income tax return. The extended due date of the municipal income tax return shall be the fifteenth day of the tenth month after the last day of the taxable year to which the return relates.
(2) Any taxpayer that qualifies for an automatic federal extension for a period other than six months for filing the taxpayer’s federal income tax return shall automatically receive an extension for the filing of a municipal income tax return. The extended due date of the municipal income tax return shall be the same as that of the extended federal income tax return.
(3) A taxpayer that has not requested or received a six-month extension for filing the taxpayer’s federal income tax return may request that the Tax Administrator grant the taxpayer a six-month extension of the date for filing the taxpayer’s municipal income tax return. If the request is received by the Tax Administrator on or before the date the municipal income tax return is due, the Tax Administrator shall grant the taxpayer’s requested extension.
(4) An extension of time to file under this subchapter is not an extension of the time to pay any tax due unless the Tax Administrator grants an extension of that date.
(5) If the State Tax Commissioner extends for all taxpayers the date for filing state income tax returns under R.C. § 5747.08(G), a taxpayer shall automatically receive an extension for the filing of a municipal income tax return. The extended due date of the municipal income tax return shall be the same as the extended due date of the state income tax return.
(E) Amended returns.
(1) (a) A taxpayer shall file an amended return with the Tax Administrator in such form as the Tax Administrator requires if any of the facts, figures, computations or attachments required in the taxpayer’s annual return to determine the tax due levied by the municipality in accordance with this subchapter must be altered.
(b) Within 60 days after the final determination of any federal or state tax liability affecting the taxpayer’s municipal tax liability, that taxpayer shall make and file an amended municipal return showing income subject to the municipal income tax based upon such final determination of federal or state tax liability, and pay any additional municipal income tax shown due thereon or make a claim for refund of any overpayment, unless the tax or overpayment is $10 or less.
(c) If a taxpayer intends to file an amended consolidated municipal income tax return, or to amend its type of return from a separate return to a consolidated return, based on the taxpayer’s consolidated federal income tax return, the taxpayer shall notify the Tax Administrator before filing the amended return.
(2) (a) In the case of an underpayment, the amended return shall be accompanied by payment of any combined additional tax due together with any penalty and interest thereon. If the combined tax shown to be due is $10 or less, such amount need not accompany the amended return. Except as provided under division (E)(2)(b) below, the amended return shall not reopen those facts, figures, computations, or attachments from a previously filed return that are not affected, either directly or indirectly, by the adjustment to the taxpayer’s federal or state income tax return unless the applicable statute of limitations for civil actions or prosecutions under § 37.073 has not expired for a previously filed return.
(b) The additional tax to be paid shall not exceed the amount of tax that would be due if all facts, figures, computations and attachments were reopened.
(3) (a) In the case of an overpayment, a request for refund may be filed under this division (E)(3)(a) within the period prescribed by § 37.073(E) for filing the amended return even if it is filed beyond the period prescribed in that division if it otherwise conforms to the requirements of that division. If the amount of the refund is $10 or less, no refund need be paid by the municipality to the taxpayer. Except as set forth in division (E)(3)(b) below, a request filed under this division (E)(3)(a) shall claim refund of overpayments resulting from alterations to only those facts, figures, computations or attachments required in the taxpayer’s annual return that are affected, either directly or indirectly, by the adjustment to the taxpayer’s federal or state income tax return unless it is also filed within the time prescribed in division (F) below. Except as set forth in this division (E)(3)(a), the request shall not reopen those facts, figures, computations or attachments that are not affected, either directly or indirectly, by the adjustment to the taxpayer’s federal or state income tax return.
(b) The amount to be refunded shall not exceed the amount of refund that would be due if all facts, figures, computations and attachments were reopened.
(F) Refunds.
(1) Upon receipt of a request for a refund, the Tax Administrator of the municipality, in accordance with this section, shall refund to employers, agents of employers, other payers or taxpayers, with respect to any income or withholding tax levied by the municipality:
(a) Overpayments of more than $10; and
(b) Amounts paid erroneously if the refund requested exceeds $10.
(2) (a) Except as otherwise provided in this section, returns setting forth a request for refund shall be filed with the Tax Administrator, within three years after the tax was due or paid, whichever is later. Any documentation that substantiates the taxpayer’s claim for a refund must be included with the return filing. Failure to remit all documentation, including schedules, other municipal income tax returns, or other supporting documentation necessary to verify credits, income, losses or other pertinent factors on the return will cause delay in processing and/or disallowance of undocumented credits or losses.
(b) On filing of the refund request, the Tax Administrator shall determine the amount of refund due and certify such amount to the appropriate municipal corporation official for payment. Except as provided in division (F)(2)(c) below, the Administrator shall issue an assessment to any taxpayer whose request for refund is fully or partially denied. The assessment shall state the amount of the refund that was denied, the reasons for the denial, and instructions for appealing the assessment.
(c) If a Tax Administrator denies in whole or in part a refund request included within the taxpayer’s originally filed annual income tax return, the Tax Administrator shall notify the taxpayer, in writing, of the amount of the refund that was denied, the reasons for the denial and instructions for requesting an assessment that may be appealed under § 37.072.
(3) A request for a refund that is received after the last day for filing specified in division (F)(2) above shall be considered to have been filed in a timely manner if any of the following situations exist:
(a) The request is delivered by the postal service, and the earliest postal service postmark on the cover in which the request is enclosed is not later than the last day for filing the request;
(b) The request is delivered by the postal service, the only postmark on the cover in which the request is enclosed was affixed by a private postal meter, the date of that postmark is not later than the last day for filing the request, and the request is received within seven days of such last day; or
(c) The request is delivered by the postal service, no postmark date was affixed to the cover in which the request is enclosed or the date of the postmark so affixed is not legible, and the request is received within seven days of the last day for making the request.
(4) Interest shall be allowed and paid on any overpayment by a taxpayer of any municipal income tax obligation from the date of the overpayment until the date of the refund of the overpayment, except that if any overpayment is refunded within 90 days after the final filing date of the annual return or 90 days after the completed return is filed, whichever is later, no interest shall be allowed on the refund. For the purpose of computing the payment of interest on amounts overpaid, no amount of tax for any taxable year shall be considered to have been paid before the date on which the return on which the tax is reported is due, without regard to any extension of time for filing that return. Interest shall be paid at the interest rate described in § 37.064(A).
(Ord. 18-15, passed 11-2-2015)
Statutory reference:
Amended returns, see R.C. § 718.41
Annual return; filing; extensions, see R.C. § 718.05
Filing extension for certain armed forces service, see R.C. § 718.052
Limitations, see R.C. § 718.12
Requests for refunds, see R.C. § 718.19
Use of Ohio Business Gateway, see R.C. § 718.051