(A) Authority to levy tax.
(1) The tax on income and the withholding tax established by this subchapter, §§ 36.075 et seq., 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 Ohio Revised Code 718 (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) The purpose of this tax is to provide funds for the purpose of general municipal operations, maintenance of new equipment, extension and enlargement of municipal services and facilities and capital improvements.
(2) The rate of tax shall be 1% per annum.
(C) Allocation of funds.
(1) Parks and grounds: 3%.
(2) Street Construction, Maintenance and Repair Fund: 12%.
(3) Capital Projects: 2%.
(4) General Fund: 83%.
(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. HB 5, passed by the 136th 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, municipal income tax Ordinance 37-2015, effective January 1, 2016, comprehensively amends §§ 36.050 - 36.063 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. 37-2015, passed 10-19-2015; Ord. 46-2015, passed 11-16-2015)
Statutory reference:
Authority to tax income and withhold tax, see R.C. § 718.04