(A) Authority to levy tax.
(1) The tax on income and the withholding tax established by this Chapter 95A are authorized by Article XVIII, Section 3 of the Ohio Constitution. The tax on income and the withholding tax established by this Chapter 95A are deemed to be levied in accordance with, and to be consistent with, the provisions and limitations of Ohio Revised Code 718 (R.C. Chapter 718). This chapter 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) Purpose; rate.
(1) Purpose.
(a) Generally. To provide funds for the purposes of general municipal operations, maintenance, new equipment, extension, and enlargement of municipal services and facilities and capital improvements of the city, including the payment of interest and principal on notes and bonds which may be lawfully issued for such purposes, there shall be levied, as hereinafter provided, a tax on qualifying wages, commissions, and other compensation, on net profits, and on certain other income.
(b) Police purpose. Of the municipal income tax rate, 0.14% shall be solely to provide funds associated with the hiring and maintenance of 14 additional permanent police officers for the Police Division.
(c) Firefighter purpose.
1. Of the municipal income tax rate, 0.09% shall be solely to provide funds associated with the hiring and maintenance of eight additional permanent firefighters for the Fire Division.
2. Of the municipal income tax rate, 0.19% shall be solely to provide funds associated with the hiring and maintenance of at least 19 additional permanent firefighters for the Fire Division.
3. Of the municipal income tax rate, 0.08% shall be solely to provide funds associated with maintenance and operation of the Fire Division, including, but not limited to, providing for firefighters/emergency medical technicians and staff and equipment, for providing fire protection and ambulance service to the city.
(2) Rate. The tax rate is 2.00%.
(C) Allocation of funds. The funds collected under the provisions of this chapter shall be deposited with the first 1.5% to the general fund income tax account. Such funds shall be disbursed in the following order annually.
(1) Such part thereof as shall be necessary to defray all costs of administering and enforcing the provisions thereof.
(2) The balance of funds collected shall be disbursed as follows:
(a) Fifty percent for general fund;
(b) Five percent for Street Repair Fund;
(c) Eight and one-third percent for Capital Improvements Fund;
(d) Thirty-three and one-third percent for Sewer and Water Capital Improvements Fund; and
(e) Three and one-third percent for Park, Playground and Recreation Fund.
(3) Monies credited to such funds may, pursuant to authorization by Council, be used for the purpose of paying interest and principal on notes and bonds which may lawfully be issued for such purposes.
(4) Funds collected under the provisions of division (B)(1)(b) above shall be deposited solely for the purpose of funding 14 additional permanent police officers for the Police Division.
(5) Funds collected under the provisions of division (B)(1)(c)1. above shall be deposited solely for the purpose of funding eight additional permanent firefighters for the Fire Division.
(6) Funds collected under the provisions of division (B)(1)(c)2. above shall be deposited solely for the purpose of funding at least 19 additional permanent firefighters for the Fire Division.
(7) Funds collected under the provisions of division (B)(1)(c)3. above shall be deposited solely to provide funds associated with maintenance and operation of the Fire Division, including, but not limited to, providing for firefighters/emergency medical technicians and staff and equipment, for providing fire protection and ambulance service to the city.
(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 Chapter 95A, effective January 1, 2016, comprehensively amends Chapter 95 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. 8463, passed 11-2-2015)
Statutory reference:
Authority to tax income and withhold tax, see R.C. § 718.04