(a) For taxable years beginning after 2003, each resident who engages in business, or whose salary, wages, commissions and other compensation, are subject to the tax imposed by this chapter, whether or not a tax be due thereon, and any nonresident who has a business operation within the City or nonresident taxpayers who have been employed within the City and receive some type of compensation or salary where City income tax is either not withheld or such withholding is not equal to the City income tax owed, shall make and file on or before April 15 in each year, a return with the City on a form or forms furnished by or obtainable upon request from the Income Tax Division of the City, setting forth:
(1) The aggregate amount of salaries, wages, commissions and other compensation earned by him, and income from such business, less allowable expenses incurred in the acquisition of such gross income, during the preceding year and subject to such tax.
(2) The amount of the tax imposed by this chapter, and
(3) Such other pertinent statements, information returns or other information as the Income Tax Director may require, including a statement that the figures used in the return are the figures used in the return for federal income tax adjusted to set forth only such income as is taxable under the provisions of this chapter.
(Ord. 14-2004. Passed 2-9-04.)
(b) For taxable years beginning after 2003, a taxpayer on a fiscal year account basis for Federal tax purposes shall, beginning with his first fiscal year any part of which falls within the tax period, pay the tax on the basis of his fiscal year and shall file his annual returns on the fifteenth day of the fourth month following the end of his fiscal year.
(c) The Income Tax Director may extend the time for filing of the annual return, upon the written request of the taxpayer and/or person acting on behalf of the taxpayer, for a period not to exceed three (3) months, or one (1) month beyond an extension requested of and granted by the Internal Revenue Service for the filing of the Federal Income Tax Return; provided that such written request is received by the Income Tax Director on or before the due date for filing annual returns. The Income Tax Director may further extend the time for filing of an annual return upon the written request of the taxpayer and/or person acting on behalf of the taxpayer, for a period not to exceed one (1) month beyond additional extensions requested of and granted by the Internal Revenue Service for the filing of the Federal Income Tax Return; provided that such written request is received by the Income Tax Director on or before the extended deadline. No penalty shall be assessed in those cases in which the return is filed and the final tax paid within the period as extended. Interest shall be assessed on any tax due throughout the entire period as extended in accordance with Section 181.10.
(d) The taxpayer making such return shall, at the time of the filing thereof, pay to the City the amount of taxes due. However, credit will be allowed and deducted from the amount shown to be due, as follows:
(1) Where any portion of the tax due has been deducted at the source pursuant to the provisions of Section 181.06.
(2) Where any portion of the tax has been paid by the taxpayer on a declaration pursuant to the provisions of Section 181.07.
(3) Where any portion of the tax due has been paid to another municipality on the same income, not to exceed a1.7% levy by another municipality on the same income, pursuant to the provisions of Section 181.15.
Only the balance, if any, shall be due and payable at the time of filing the return.
(e) Should it then appear that the taxpayer has paid more than the amount of tax to which the City is entitled under the provisions of this chapter, such overpayment shall be refunded or at the option of the taxpayer, credited to his next year's tax liability, provided, that no additional taxes or refunds of less than one dollar ($1.00) shall be collected or refunded.
(1) Claims for refund of taxes shall be brought within three years after the tax was due or the return was filed, whichever is later.
(2) Any person who makes a claim for a refund of overpayment shall be paid interest on the amount of the overpayment at the rate of interest prescribed by Ohio R.C. 5703.47.
A. The foregoing interest shall be allowed and paid on any overpayment by a taxpayer computed from the date of the overpayment until the date of the refund of the overpayment, except that if any overpayment is refunded within ninety (90) days after the final filing date of the annual return or ninety (90) days after the complete return is filed, whichever is later, no interest shall be allowed on the refunded overpayment.
B. For purposes of computing the payment of interest on overpayments, no amount of tax for any taxable year shall be treated as having been paid before the date on which the tax return for that year is due or before the date on which the complete return is filed, whichever is later.
(f) With respect to a nonqualified deferred compensation plan, the taxpayer sustains a qualifying loss only in the year in which the taxpayer receives the final distribution of money and property pursuant to that nonqualified deferred compensation plan and shall be allowed a refundable credit against the tax imposed by this chapter, in accordance with the provisions of Ohio R.C. 718.021.
(g) A corporation which files a consolidated return for federal income tax purposes pursuant to Section 1501 of the Internal Revenue Code may at its option make a consolidated return for the purposes of this chapter, provided, that affiliated corporations which do no business within the United States shall not be included in such consolidated return.
(1) In the case of a corporation that carries on transactions with its stockholders or with other corporations related by stock ownership, interlocking directorates or some other method, or in case any person operates a division, branch, factory, office, laboratory or other activity in the City constituting only a portion of its total business, the Income Tax Director shall require such additional information as may be necessary to ascertain whether net profits allocable to the City are being distorted by the shifting of income, apportionment of expenses or other devices available to a common control.
(2) If the Income Tax Director finds that a corporation’s net profits allocable to the City are distorted by reason of transactions with stockholders or with other corporations related by stock ownership, interlocking directorates or some other method, he shall adjust such transactions so as to produce a fair and proper allocation of net profits to the City. If necessary, the Income Tax Director may require the filing of a consolidated return.
(3) An affiliated group which has elected to file a consolidated return or a separate return with the City may not change its method of filing in any subsequent tax year without written approval from the Income Tax Director.
(h) Within three months from the final determination of any Federal tax liability affecting the taxpayer's Canton tax liability, such taxpayer shall make and file an amended Canton return showing income subject to the Canton tax based upon such final determination of Federal tax liability, and pay any additional tax shown due thereon or make a claim for refund of any overpayment.
(i) Any person who is sixty-five years or older and whose sole income is derived from the sources defined in Section 181.03(d), which items are exempted from the income tax levied by this chapter, or who has no tax liability as a result of the credit authorized pursuant to Section 181.03(e), shall be exempted from the filing requirements of this section.
(Ord. 275-2003. Passed 12-15-03; Ord. 108-2012. Passed 7-30-12; Ord. 165-2014. Passed 8-11-14; Ord. 252-2016. Passed 12-12-16.)