Loading...
(A) As used in this section:
(1) COMBINED TAX LIABILITY means the total amount of a taxpayer’s income tax liabilities to all municipal corporations in this state for a taxable year.
(2) ESTIMATED TAXES means the amount that the taxpayer reasonably estimates to be the taxpayer’s combined tax liability for the current taxable year.
(B) (1) Except as provided in division (B)(4) of this section, every taxpayer shall make a declaration of estimated taxes for the current taxable year, on the form prescribed by the Tax Commissioner, if the amount payable as estimated taxes is at least $200.
(2) Except as provided in division (B)(4) of this section, a taxpayer having a taxable year of less than 12 months shall make a declaration under rules prescribed by the Commissioner.
(3) The declaration of estimated taxes shall be filed on or before the fifteenth day of the fourth month after the beginning of the taxable year or on or before the fifteenth day of the fourth month after the taxpayer becomes subject to tax for the first time.
(4) The Tax Commissioner may waive the requirement for filing a declaration of estimated taxes for any class of taxpayers after finding that the waiver is reasonable and proper in view of administrative costs and other factors.
(C) Each taxpayer shall file the declaration of estimated taxes with, and remit estimated taxes to, the Tax Commissioner at the times and in the amounts prescribed in division (C)(1) of this section. Remitted taxes shall be made payable to the Treasurer of State.
(1) The required portion of the combined tax liability for the taxable year that shall be paid through estimated taxes shall be as follows:
(a) On or before the fifteenth day of the fourth month after the beginning of the taxable year, 22.5% of the combined tax liability for the taxable year;
(b) On or before the fifteenth day of the sixth month after the beginning of the taxable year, 45%of the combined tax liability for the taxable year;
(c) On or before the fifteenth day of the ninth month after the beginning of the taxable year, 67.5% of the combined tax liability for the taxable year;
(d) On or before the fifteenth day of the twelfth month of the taxable year, 90% of the combined tax liability for the taxable year.
(2) If the taxpayer determines that its declaration of estimated taxes will not accurately reflect the taxpayer’s tax liability for the taxable year, the taxpayer shall increase or decrease, as appropriate, its subsequent payments in equal installments to result in a more accurate payment of estimated taxes.
(3) (a) Each taxpayer shall report on the declaration of estimated taxes the portion of the remittance that the taxpayer estimates that it owes to each municipal corporation for the taxable year.
(b) Upon receiving a payment of estimated taxes under this section, the Commissioner shall immediately forward the payment to the Treasurer of State. The Treasurer shall credit the payment in the same manner as in R.C. § 718.85(B).
(D) (1) In the case of any underpayment of estimated taxes, there shall be added to the taxes an amount determined at the rate per annum prescribed by R.C. § 5703.47 upon the amount of underpayment for the period of underpayment, unless the underpayment is due to reasonable cause as described in division (E) of this section. The amount of the underpayment shall be determined as follows:
(a) For the first payment of estimated taxes each year, 22.5% of the combined tax liability, less the amount of taxes paid by the date prescribed for that payment;
(b) For the second payment of estimated taxes each year, 45% of the combined tax liability, less the amount of taxes paid by the date prescribed for that payment;
(c) For the third payment of estimated taxes each year, 67.5% of the combined tax liability, less the amount of taxes paid by the date prescribed for that payment;
(d) For the fourth payment of estimated taxes each year, 90% of the combined tax liability, less the amount of taxes paid by the date prescribed for that payment.
(2) The period of the underpayment shall run from the day the estimated payment was required to be made to the date on which the payment is made. For purposes of this section, a payment of estimated taxes on or before any payment date shall be considered a payment of any previous underpayment only to the extent the payment of estimated taxes exceeds the amount of the payment presently due.
(E) An underpayment of any portion of a combined tax liability shall be due to reasonable cause and the penalty imposed by this section shall not be added to the taxes for the taxable year If any of the following apply:
(1) The amount of estimated taxes that were paid equals at least 90% of the combined tax liability for the current taxable year, determined by annualizing the income received during the year up to the end of the month immediately preceding the month in which the payment is due.
(2) The amount of estimated taxes that were paid equals at least 100% of the tax liability shown on the return of the taxpayer for the preceding taxable year, provided that the immediately preceding taxable year reflected a period of 12 months and the taxpayer filed a municipal income tax return for that year.
(Ord. 8660, passed 2-20-2018)
(1) If a taxpayer required to file a tax return under §§ 95A.80 to 95A.95 of this chapter fails to make and file the return within the time prescribed, including any extensions of time granted by the Tax Commissioner, the Commissioner may impose a penalty not exceeding $25 per month or fraction of a month, for each month or fraction of a month elapsing between the due date, including extensions of the due date, and the date on which the return is filed. The aggregate penalty, per instance, under this division shall not exceed $150.
(a) For each of the first two failures, 5% of the amount required to be reported on the return;
(b) For the third and any subsequent failure, 10% of the amount required to be reported on the return.
(3) If a taxpayer that has made the election allowed under § 95A.80 of this chapter fails to timely pay an amount of tax required to be paid under this chapter, the Commissioner may impose a penalty equal to 15% of the amount not timely paid.
(4) If a taxpayer files what purports to be a tax return required by §§ 95A.80 to 95A.95 of this chapter that does not contain information upon which the substantial correctness of the return may be judged or contains information that on its face indicates that the return is substantially incorrect, and the filing of the return in that manner is due to a position that is frivolous or a desire that is apparent from the return to delay or impede the administration of §§ 95A.80 to 95A.95 of this chapter, a penalty of up to $500 may be imposed.
(6) If any person makes a false or fraudulent claim for a refund under § 95A.91 of this chapter, a penalty may be imposed not exceeding the greater of $1,000 or 100% of the claim. Any penalty imposed under this division, any refund issued on the claim, and interest on any refund from the date of the refund, may be assessed under § 95A.90 of this chapter without regard to any time limitation for the assessment imposed by division (A) of that section.
(B) For purposes of this section, the tax required to be shown on a tax return shall be reduced by the amount of any part of the tax paid on or before the date, including any extensions of the date, prescribed for filing the return.
(C) Each penalty imposed under this section shall be in addition to any other penalty imposed under this section. All or part of any penalty imposed under this section may be abated by the Tax Commissioner. The Commissioner may adopt rules governing the imposition and abatement of such penalties.
(D) All amounts collected under this section shall be considered as taxes collected under §§ 95A.80 to 95A.95 of this chapter and shall be credited and distributed to municipal corporations in the same proportion as the underlying tax liability is required to be distributed to such municipal corporations under R.C. § 718.83.
(Ord. 8660, passed 2-20-2018)
(A) (1) If any taxpayer required to file a return under § 95A.80 to 95A.95 of this chapter fails to file the return within the time prescribed, files an incorrect return, or fails to remit the full amount of the tax due for the period covered by the return, the Tax Commissioner may make an assessment against the taxpayer for any deficiency for the period for which the return or tax is due, based upon any information in the Commissioner’s possession.
(2) The Tax Commissioner shall not make or issue an assessment against a taxpayer more than three years after the later of the date the return subject to assessment was required to be filed or the date the return was filed. Such time limit may be extended if both the taxpayer and the Commissioner consent in writing to the extension. Any such extension shall extend the three-year time limit in § 95A.91 of this chapter for the same period of time. There shall be no bar or limit to an assessment against a taxpayer that fails to file a return subject to assessment as required by §§ 95A.80 to 95A.95 of this chapter, or that files a fraudulent return. The Commissioner shall give the taxpayer assessed written notice of the assessment as provided in R.C. § 5703.37. With the notice, the Commissioner shall provide instructions on how to petition for reassessment and request a hearing on the petition.
(B) Unless the taxpayer assessed files with the Tax Commissioner within 60 days after service of the notice of assessment, either personally or by certified mail, a written petition for reassessment signed by the authorized agent of the taxpayer assessed having knowledge of the facts, the assessment becomes final, and the amount of the assessment is due and payable from the taxpayer to the Treasurer of State. The petition shall indicate the taxpayer’s objections, but additional objections may be raised in writing if received by the Commissioner prior to the date shown on the final determination. If the petition has been properly filed, the Commissioner shall proceed under R.C. § 5703.60.
(C) After an assessment becomes final, if any portion of the assessment remains unpaid, including accrued interest, a certified copy of the Tax Commissioner’s entry making the assessment final may be filed in the office of the Clerk of the Court of Common Pleas in the county in which the taxpayer has an office or place of business in this state, the county in which the taxpayer’s statutory agent is located, or Franklin County.
(1) Immediately upon the filing of the entry, the Clerk shall enter a judgment against the taxpayer assessed in the amount shown on the entry. The judgment may be filed by the Clerk in a loose-leaf book entitled “special judgments for municipal income taxes,” and shall have the same effect as other judgments. Execution shall issue upon the judgment upon the request of the Tax Commissioner, and all laws applicable to sales on execution shall apply to sales made under the judgment.
(2) If the assessment is not paid in its entirety within 60 days after the day the assessment was issued, the portion of the assessment consisting of tax due shall bear interest at the rate per annum prescribed by R.C. § 5703.47 from the day the Commissioner issues the assessment until the assessment is paid or until it is certified to the Attorney General for collection under R.C. § 131.02, whichever comes first. If the unpaid portion of the assessment is certified to the Attorney General for collection, the entire unpaid portion of the assessment shall bear interest at the rate per annum prescribed by R.C. § 5703.47 from the date of certification until the date it is paid in its entirety. Interest shall be paid in the same manner as the tax and may be collected by issuing an assessment under this section.
(D) All money collected under this section shall be credited to the municipal income tax fund and distributed to the municipal corporation to which the money is owed based on the assessment issued under this section.
(E) If the Tax Commissioner believes that collection of the tax will be jeopardized unless proceedings to collect or secure collection of the tax are instituted without delay, the Commissioner may issue a jeopardy assessment against the taxpayer liable for the tax. Immediately upon the issuance of the jeopardy assessment, the Commissioner shall file an entry with the Clerk of the Court of Common Pleas in the manner prescribed by division (C) of this section. Notice of the jeopardy assessment shall be served on the taxpayer assessed or the taxpayer’s legal representative in the manner provided in R.C. § 5703.37 within five days of the filing of the entry with the Clerk. The total amount assessed is immediately due and payable, unless the taxpayer assessed files a petition for reassessment in accordance with division (B) of this section and provides security in a form satisfactory to the Commissioner and in an amount sufficient to satisfy the unpaid balance of the assessment. Full or partial payment of the assessment does not prejudice the Commissioner’s consideration of the petition for reassessment.
(F) (1) Notwithstanding the fact that a petition for reassessment is pending, the taxpayer may pay all or a portion of the assessment that is the subject of the petition. The acceptance of a payment by the Treasurer of State does not prejudice any claim for refund upon final determination of the petition.
(2) If upon final determination of the petition an error in the assessment is corrected by the Tax Commissioner, upon petition so filed or pursuant to a decision of the Board of Tax Appeals or any court to which the determination or decision has been appealed, so that the amount due from the taxpayer under the corrected assessment is less than the portion paid, there shall be issued to the taxpayer, its assigns, or legal representative a refund in the amount of the overpayment as provided by § 95A.91 of this chapter, with interest on that amount as provided by that section.
(Ord. 8660, passed 2-20-2018)
(A) An application to refund to a taxpayer the amount of taxes paid on any illegal, erroneous, or excessive payment of tax under §§ 95A.80 to 95A.95 of this chapter, including assessments, shall be filed with the Tax Commissioner within three years after the date of the illegal, erroneous, or excessive payment of the tax, or within any additional period allowed by § 95A.90(A) of this chapter. The application shall be filed in the form prescribed by the Tax Commissioner.
(B) (1) On the filing of a refund application, the Tax Commissioner shall determine the amount of refund to which the applicant is entitled. The amount determined shall be based on the amount overpaid per return or assessment. If the amount is greater than $10 and not less than that claimed, the Commissioner shall certify that amount to the Director of Budget and Management and the Treasurer of State for payment from the tax refund fund created in R.C. § 5703.052. If the amount is greater than $10 but less than that claimed, the Commissioner shall proceed in accordance with R.C. § 5703.70.
(2) Upon issuance of a refund under this section, the Commissioner shall notify each municipal corporation of the amount refunded to the taxpayer attributable to that municipal corporation, which shall be deducted from the municipal corporation’s next distribution under R.C. § 718.83.
(C) Any portion of a refund determined under division (B) of this section that is not issued within 90 days after such determination shall bear interest at the rate per annum prescribed by R.C. § 5703.47 from the ninety-first day after such determination until the day the refund is paid or credited. On an illegal or erroneous assessment, interest shall be paid at that rate from the date of payment on the illegal or erroneous assessment until the day the refund is paid or credited.
(Ord. 8660, passed 2-20-2018)
(A) If any of the facts, figures, computations, or attachments required in an annual return filed by a taxpayer that has made the election allowed under § 95A.80 of this chapter and used to determine the tax due under §§ 95A.80 to 95A.95 of this chapter must be altered as the result of an adjustment to the taxpayer’s federal income tax return, whether initiated by the taxpayer or the Internal Revenue Service, and such alteration affects the taxpayer’s tax liability under those sections, the taxpayer shall file an amended return with the Tax Commissioner in such form as the Commissioner requires. The amended return shall be filed not later than 60 days after the adjustment is agreed upon or finally determined for federal income tax purposes or after any federal income tax deficiency or refund, or the abatement or credit resulting therefrom, has been assessed or paid, whichever occurs first. 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 Commissioner before filing the amended return.
(B) 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. An amended return required by this section is a return subject to assessment under § 95A.90 of this chapter for the purpose of assessing any additional tax due under this section, together with any applicable penalty and interest. The amended return shall not reopen those facts, figures, computations, or attachments from a previously filed return no longer subject to assessment that are not affected, either directly or indirectly, by the adjustment to the taxpayer’s federal tax return.
(C) In the case of an overpayment, an application for refund may be filed under this division within the 60-day period prescribed for filing the amended return, even if that period extends beyond the period prescribed in § 95A.91 of this chapter, if the application otherwise conforms to the requirements of that section. An application filed under this division (C) 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 income tax return unless it is also filed within the time prescribed in § 95A.91 of this chapter. The application 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 income tax return.
(Ord. 8660, passed 2-20-2018)
(A) the Tax Commissioner, or any authorized agent or employee thereof, may examine the books, papers, records, and federal and state income tax returns of any taxpayer or other person that is subject to §§ 95A.80 to 95A.95 of this chapter for the purpose of verifying the accuracy of any return made or, if no return was filed, to ascertain the tax due as required under those sections. Upon written request by the Commissioner or a duly authorized agent or employee thereof, every taxpayer or other person subject to this section is required to furnish the opportunity for the Commissioner, authorized agent, or employee to investigate and examine such books, papers, records, and federal and state income tax returns at a reasonable time and place designated in the request.
(B) The records and other documents of any taxpayer or other person that is subject to §§ 95A.80 to 95A.95 of this chapter shall be open to the Tax Commissioner’s inspection during business hours and shall be preserved for a period of six years following the end of the taxable year to which the records or documents relate, unless the Commissioner, in writing, consents to their destruction within that period, or by order requires that they be kept longer. The Commissioner may require any person, by notice served on that person, to keep such records as the Commissioner determines necessary to show whether or not that person is liable, and the extent of such liability, for the income tax levied by a municipal corporation.
(C) The Tax Commissioner may examine under oath any person that the Commissioner reasonably believes has knowledge concerning any income that was or would have been returned for taxation or any transaction tending to affect such income. The Commissioner may, for this purpose, compel any such person to attend a hearing or examination and to produce any books, papers, records, and federal income tax returns in such person’s possession or control. The person may be assisted or represented by an attorney, accountant, bookkeeper, or other tax practitioner at any such hearing or examination. This division does not authorize the practice of law by a person who is not an attorney.
(D) No person issued written notice by the Tax Commissioner compelling attendance at a hearing or examination or the production of books, papers, records, or federal income tax returns under this section shall fail to comply.
(Ord. 8660, passed 2-20-2018)
(A) A credit, granted by resolution or ordinance of the city pursuant to § 95A.06 (D) or (E) of this chapter, shall be available to a taxpayer that has made the election allowed under § 95A.80 of this chapter, against the municipal corporation’s tax on income. A municipal corporation shall submit the following information to the Tax Commissioner on or before the later of January 31, 2018, or the thirty-first day of January of the first year in which the taxpayer is eligible to receive the credit:
(1) A copy of the agreement entered into by the city and taxpayer under § 95A.06 (D) or (E) of this chapter;
(2) A copy of the ordinance or resolution authorizing the agreement entered into between the city and the taxpayer.
(B) (1) Each taxpayer that claims a credit shall submit, with the taxpayer’s tax return, documentation issued by the city granting the credit that confirms the eligibility of the taxpayer for the credit, the amount of the credit for which the taxpayer is eligible, and the tax year to which the credit is to be applied.
(2) Such documentation shall be provided in the form prescribed by the Tax Commissioner.
(3) Nothing in this section shall be construed to authorize the Tax Commissioner to enter into an agreement with a taxpayer to grant a credit, to determine if a taxpayer meets the conditions of a tax credit agreement entered into by the city and taxpayer under § 95A.06 (D) or (E) of this chapter, or to modify the terms or conditions of any such existing agreement.
(Ord. 8660, passed 2-20-2018)
(A) Except as provided in division (B) of this section, whoever recklessly violates § 95A.84(A) of this chapter shall be guilty of a misdemeanor of the first degree and shall be subject to a fine of not more than $1,000 or imprisonment for a term of up to six months, or both.
(B) Each instance of access or disclosure in violation of § 95A.84(A) of this chapter constitutes a separate offense.
(C) These specific penalties shall not be construed to prevent the city from prosecuting any and all other offenses that may apply.
(Ord. 8660, passed 2-20-2018)
(A) Except as provided in division (B) of this section, whoever violates § 95A.15 of this chapter, § 95A.14(A) of this chapter, or § 95A.05(A) of this chapter by failing to remit municipal income taxes deducted and withheld from an employee, shall be guilty of a misdemeanor of the first degree and shall be subject to a fine of not more than $1,000 or imprisonment for a term of up to six months, or both. In addition, the violation is punishable by dismissal from office or discharge from employment, or both.
(B) Any person who discloses information received from the Internal Revenue Service in violation of Internal Revenue Code sections 7213(a), 7213A, or 7431 shall be guilty of a felony of the fifth degree and shall be subject to a fine of not more than $5,000 plus the costs of prosecution, or imprisonment for a term not exceeding five years, or both. In addition, the violation is punishable by dismissal from office or discharge from employment, or both.
(C) Each instance of access or disclosure in violation of § 95A.14(A) of this chapter constitutes a separate offense.
(D) Whoever violates any provision of this chapter for which violation no penalty is otherwise provided, is guilty of a misdemeanor of the first degree on a first offense; on a second offense within one year after the first offense, the person is guilty of a misdemeanor of the first degree; on each subsequent offense within one year after the first offense, the person is guilty of a misdemeanor of the first degree. By way of an illustrative enumeration, violations of this chapter shall include but not be limited to the following acts, conduct, and/or omissions:
(1) Fail, neglect or refuse to make any return or declaration required by this chapter;
(2) Knowingly make any incomplete return;
(3) Willfully fail, neglect, or refuse to pay the tax, penalties, and interest, or any combination thereof, imposed by this chapter;
(4) Cause to not be remitted the city income tax withheld from qualifying wages of employees to the municipality municipal corporation as required by § 95A.05(A);
(5) Neglect or refuse to withhold or remit municipal income tax from employees;
(6) Refuse to permit the Tax Commissioner or any duly authorized agent or employee to examine his or her books, records, papers, federal and state income tax returns, or any documentation relating to the income or net profits of a taxpayer;
(7) Fail to appear before the Tax Commissioner and to produce his or her books, records, papers, federal and state income tax returns, or any documentation relating to the income or net profits of a taxpayer upon order or subpoena of the Tax Commissioner;
(8) Refuse to disclose to the Tax Commissioner any information with respect to such person’s income or net profits, or in the case of a person responsible for maintaining information relating to his or her employers’ income or net profits, such person’s employer’s income or net profits;
(9) Fail to comply with the provisions of this chapter or any order or subpoena of the Tax Commissioner;
(10) To avoid imposition or collection of municipal income tax, willfully give to an employer or prospective employer false information as to his or her true name, correct Social Security number and residence address, or willfully fail to promptly notify an employer or a prospective employer of any change in residence address and date thereof;
(11) Fail, as an employer, agent of an employer, or other payer, to maintain proper records of employees residence addresses, total qualifying wages paid and municipal tax withheld, or to knowingly give the Tax Commissioner false information;
(12) Willfully fail, neglect, or refuse to make any payment of estimated municipal income tax for any taxable year or any part of any taxable year in accordance with this chapter; or
(13) Attempt to do anything whatsoever to avoid the payment of the whole or any part of the tax, penalties or interest imposed by this chapter.
(14) For purposes of this section, any violation that does not specify a culpable mental state or intent, shall be one of strict liability and no culpable mental state or intent shall be required for a person to be guilty of that violation.
(15) For purposes of this section, the term PERSON shall, in addition to the meaning prescribed in § 95A.03, include in the case of a corporation, association, pass-through entity or unincorporated business entity not having any resident owner or officer within the city, any employee or agent of such corporation, association, pass-through entity or unincorporated business entity who has control or supervision over or is charged with the responsibility of filing the municipal income tax returns and making the payments of the municipal income tax as required by this chapter.
(Ord. 8463, passed 11-2-2015)
Statutory reference:
Violations; penalties, see R.C. § 718.99