(a) Authority to levy tax.
(1) The tax on income and the withholding tax established by this Chapter 885 are authorized by Article XVIII, Section 3 of the Ohio Constitution. The tax on income and the withholding tax established by this Chapter 885 are deemed to be levied in accordance with, and to be consistent with, the provisions and limitations of Ohio R.C. 718. This chapter is deemed to incorporate the provisions of ORC 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. (ORC 718.04)
(b) Purposes of tax; rate. For the purpose of providing funds for the purpose of general municipal operations, which includes police, maintenance, repair and upgrading of existing streets, new equipment, extension and enlargement of Municipal services and facilities and capital improvements of the city there is hereby levied a tax at the rate of 2.25% per annum. (ORC 718.04)
(c) Allocation of funds.
(1) Effective January 1, 2016, from all municipal income tax receipts received by the city, the following allocation is hereby to be made to the General Fund: 100%.
(2) The Director of Finance is hereby authorized and directed to take all necessary action in order to carry out the allocation provided for in subsection (c)(1) hereof.
(d) Statement of procedural history; state mandated changes to municipal income tax.
(1) Significant and wide-ranging amendments to ORC 718 were enacted by Am Sub H.B. 5 (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 ORC 718 in order to have the authority to impose, enforce, administer and collect a municipal income tax.
(2) As mandated by H.B. 5, City of Centerville Ordinance 19-15, (Ordinance 19-15) effective January 1, 2016, comprehensively amends Chapter 880 in accordance with the provisions of ORC 718 to allow the municipality to continue the income tax and withholding tax administration and collection efforts on behalf of the municipality.
(Ord. 19-15. Passed 11-16-15; Ord. 11-16. Passed 6-20-16.)