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(a) If, as a result of investigation conducted by the City Income Tax Administrator, a return is found to be incorrect, the City Income Tax Administrator is authorized to assess and collect any underpayment of tax withheld at the source or any underpayment of tax owing by any taxpayer with respect to earnings or net profits or both: If no return has been filed and a tax is found to be owed the tax actually owed may be assessed and collected with or without the formality of obtaining a delinquent return from the employer or taxpayer.
If the tax assessed was erroneously paid or withheld to another municipality and if at the time of assessment the period allowed for refund from said municipality has expired, a non-refundable credit will be allowed. Said credit shall be calculated under the provisions of Section 185.04 of the Ordinance.
(b) Should it be disclosed, either as a result of an investigation by the City Income Tax Administrator, or through the medium of the filing of a claim or petition for refund or credit, that an overpayment has been made, the following guidelines shall apply:
(1) The claim must be made within three years from the date on which such payment was made or the return was due, whichever is later.
(2) No refund shall be made to any taxpayer until he has complied with all provisions of the Ordinance and has furnished all information required by the City Income Tax Administrator.
(3) Overpayments will either be refunded or credited to the taxpayer’s current year’s liability at his or her option. Where no election has been made by the taxpayer, overpayments of any year’s taxes shall be applied as follows:
A. To taxes owed for any year in the order in which such taxes become due.
B. In the case of a business, any refund or credit may be applied to an outstanding balance in the corresponding withholding account.
C. To his or her account in the form of a credit in the current tax year.
(4) Credits of less than $2.01 will not be allowed and refunds of less than $2.01 will not be paid.
(e) The employer will in every instance be required to pay the full tax which should have been withheld, even though he may fail to withhold it from the employee. If too much has been withheld, the excess shall be refunded by the employer to the employee. The withholding agent (employer) will be expected to maintain complete records of such adjustments with the employees and explain the details of such adjustments in the withholding return either by schedule or statement. A refund of over-withheld tax may be paid directly to the employee provided the employer submits a statement to the City Income Tax Administrator detailing the circumstances involving said overpayment and relinquishing the right to have said funds directly refunded to them.
(f) In those cases in which too much has been withheld by an employer from an employee and remitted to the City Income Tax Administrator, and there has been a termination of the employee-employer relationship, the taxpayer (employee) may obtain an adjustment by application to the City Income Tax Administrator.
(Res. 240-2003. Passed 12-30-03.)
All taxes imposed by the Ordinance remaining unpaid when the same have become due, together with all interest and penalties thereon, become a debt due the City of Bucyrus from the taxpayer, and are recoverable as other debts by suit instituted by the City Income Tax Administrator, said Administrator’s representative, or City Prosecutor.
Employers who or which, although obliged under the Ordinance to withhold and remit to the City Income Tax Administrator, the taxes required to be withheld at the source (Section 187.15) shall if they fail to withhold and remit become liable to the City of Bucyrus in a civil action to enforce the payment of the debt created by such failure.
When a final return is filed as described in Section 187.14 and a deficiency is determined to be due the City of Bucyrus, action to collect the same must be brought within three (3) years after the tax was due or the return filed, whichever is later. However, in the case of fraud, failure to file or the omission of twenty-five (25) percent or more of income required to be reported and taxed prosecution may be commenced within six (6) years of the later of commission of the offense, due date of return or date return was filed.
If any of the above circumstances occur and are discovered by the Federal Internal Revenue Service or any other tax administering authorities, taxpayers are required to notify the City Income Tax Administrator within 30 days and satisfy the City of Bucyrus claim on such discovery.
(Res. 240-2003. Passed 12-30-03.)
This chapter is inapplicable to any person or corporation upon whom or which it is beyond the legal power of Council to impose the tax; it is likewise inapplicable as to any property, income or profits (or part thereof) as to which it is beyond the legal power of Council to levy the tax. (Res. 240-2003. Passed 12-30-03.)
If any sentence, clause, section or part of this chapter, or any tax against any individual or any of the several groups specified herein, is found to be unconstitutional, illegal, or invalid, such unconstitutionality, illegality or invalidity shall affect only such sentence, clause, section or part of this chapter and shall not affect or impair any of the remaining provisions, sentences, clauses, sections, or other parts of this chapter. It is hereby declared to be the intention of the Council of the City of Bucyrus that this chapter would have been adopted had such unconstitutional, illegal or invalid sentence, clause, section or part thereof not been included herein. (Res. 240-2003. Passed 12-30-03.)
In the case of hourly employees where a pay period of one half (½) month or less, encompasses two (2) different tax rate periods, said payroll shall be considered a split payroll with the proper rate applied to each period’s earnings. If the breakdown of said payroll would constitute an accounting hardship on the employer, with the permission of the City Income Tax Administrator, an equitable average rate of pro-rating of earnings, or any such fair solution may be allowed.
In the case of salaried employees paid on a calendar month, or less basis, and said payroll encompasses two (2) different tax rate periods, said payroll shall be considered a split payroll with the proper rate applied to each period’s earnings. If the breakdown of said payroll would constitute an accounting hardship on the employer, with the permission of the City Income Tax Administrator, an equitable average rate of pro-rating of earnings shall be allowed.
(Res. 240-2003. Passed 12-30-03.)
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