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Cleveland, OH Code of Ordinances
CITY OF CLEVELAND, OHIO CODE OF ORDINANCES
CHARTER OF THE CITY OF CLEVELAND
PART ONE: ADMINISTRATIVE CODE
TITLE I: GENERAL PROVISIONS
TITLE III: LEGISLATIVE
TITLE V: ADMINISTRATIVE ORGANIZATION
TITLE VII: JUDICIAL
TITLE IX: BOARDS AND COMMISSIONS
TITLE XI: EMPLOYMENT AND COMPENSATION
TITLE XIII: FISCAL MANAGEMENT
TITLE XV: PURCHASES AND CONTRACTS
TITLE XVII: TAXATION
CHAPTER 191 - MUNICIPAL INCOME TAX
§ 191.0101 Purpose of Levy
§ 191.0301 Definitions Generally
§ 191.030101 Adjusted Federal Taxable Income
§ 191.030102 Administrative Rulings
§ 191.0302 Administrator
§ 191.0303 Association
§ 191.0304 Board of Review
§ 191.030401 Board of Tax Appeals
§ 191.0305 Business
§ 191.030501 City
§ 191.0306 Corporation
§ 191.0307 Employee
§ 191.0308 Employer
§ 191.0309 Fiscal Year
§ 191.0310 Gross Receipts
§ 191.031001 Intangible Income
§ 191.031002 Internal Revenue Code
§ 191.0311 Net Profits
§ 191.0312 Nonresident
§ 191.031201 Nonresident Owner
§ 191.0313 Nonresident Unincorporated Business Entity
§ 191.031301 Ohio Revised Code
§ 191.031302 Other Payer
§ 191.031303 Owner
§ 191.031304 Pass-Through Entity
§ 191.0314 Person
§ 191.0315 Place of Business
§ 191.031501 Qualifying Wages
§ 191.0316 Resident
§ 191.031601 Resident Owner
§ 191.0317 Resident Unincorporated Business Entity
§ 191.031701 Rules and Regulations
§ 191.031702 S Corporation
§ 191.031703 State
§ 191.031704 Tax Commissioner
§ 191.0318 Taxable Income
§ 191.031801 Taxable Situs
§ 191.0319 Taxable Year
§ 191.0320 Taxpayer
§ 191.0321 Unincorporated Business Entity
§ 191.0501 Rate and Taxable Income
§ 191.050101 Additional Taxable Income - Repealed
§ 191.0502 Effective Date
§ 191.0701 Method of Determination
§ 191.0702 Sales Made in the City
§ 191.0703 Total Allocation
§ 191.0704 Rentals
§ 191.0705 Operating Loss; Carry Forward
§ 191.0901 Sources of Income Not Taxed
§ 191.1101 Date for Filing Returns
§ 191.1102 Form and Content of Return
§ 191.1103 Extension of Time for Filing Returns
§ 191.1104 Consolidated Returns
§ 191.1105 Amended Returns
§ 191.1301 Payment of Tax on Filing of Return
§ 191.1302 Collection at Source
§ 191.1303 Declarations of Income Not Collected at Source
§ 191.1304 Filing of Declaration
§ 191.1305 Form of Declaration
§ 191.1306 Payment to Accompany Declaration
§ 191.1307 Annual Return
§ 191.1501 Interest on Unpaid Tax
§ 191.1502 Penalties on Unpaid Tax
§ 191.1503 Exceptions to Penalties
§ 191.1504 Abatement of Interest and Penalty
§ 191.1505 Violations
§ 191.1506 Limitation of Prosecution
§ 191.1507 Failure to Procure Tax Forms
§ 191.1701 Unpaid Taxes Recoverable as Other Debts
§ 191.1702 Refund of Taxes Erroneously Paid
§ 191.1703 Amounts of Less than One Dollar
§ 191.1901 Reserved
§ 191.1902 Cleveland Resident Subject to Income Tax in Other Municipality
§ 191.1903 Claim for Credit
§ 191.2001 Deposit of Funds
§ 191.2002 Monthly Report of Undistributed Balance
§ 191.2101 Disbursement of Funds Collected
§ 191.2301 Receipt and Records of Tax
§ 191.2302 Enforcement of Collection
§ 191.2303 Authority to Make and Enforce Regulations
§ 191.2304 Authority to Arrange Installment Payments
§ 191.2305 Authority to Determine Amount of Tax Due
§ 191.2306 Investigations
§ 191.2307 Authority to Compel Production of Records
§ 191.2308 Refusal to Produce Records
§ 191.2309 Confidential Nature of Information; Disclosure of Returns and Return Information
§ 191.2310 Taxpayer Required to Retain Records
§ 191.2311 Authority to Contract for Central Collection Facilities
§ 191.2312 Withholding Taxes from Federal Employees
§ 191.2501 Board of Review Established
§ 191.2502 Board to Approve Regulations and Hear Appeals
§ 191.2503 Right of Appeal
§ 191.2701 Declaration of Legislative Intent
§ 191.2702 Collection of Tax after Termination of Chapter
§ 191.99 Penalty
CHAPTER 192 - 2016 MUNICIPAL INCOME TAX
CHAPTER 193 - TRANSIENT OCCUPANCY TAX
CHAPTER 195 - ADMISSIONS TAX
CHAPTER 196 - PARKING OCCUPANCY TAX
CHAPTER 197 - MOTOR VEHICLE LICENSE TAX
CHAPTER 198 - MOTOR VEHICLE LESSOR TAX
CHAPTER 199 - TAX ON COIN OPERATED AMUSEMENT DEVICES
PART TWO: HEALTH CODE
PART THREE: LAND USE CODE
PART FOUR: TRAFFIC CODE
PART FIVE: MUNICIPAL UTILITIES AND SERVICES CODE
PART SIX: OFFENSES AND BUSINESS ACTIVITIES CODE
TITLE VIIA: CLEVELAND NEIGHBORHOOD FORM-BASED CODE
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§ 191.0703 Total Allocation
   Add together the percentages determined in accordance with Section 191.0701(a), or such of the aforesaid percentages as are applicable to the particular taxpayer, and divide the total so obtained by the number of percentages used in deriving the total in order to obtain the business allocation percentage referred to in Section 191.0701.
   A factor is applicable even though it may be allocable entirely within or without the City.
(Ord. No. 2208-04. Passed 12-13-04, eff. 12-17-04)
§ 191.0704 Rentals
   (a)   Rental income received by a taxpayer shall be included in the computation of net profits from business activities under divisions (c) to (e) of Section 191.0501, only if and to the extent that the rental, ownership, management or operations of the real estate from which such rentals are derived, whether so rented, managed or operated by a taxpayer individually or through agents or other representatives, constitutes a business activity of the taxpayer in whole or in part.
   (b)   Where the gross monthly rental of any and all real properties, regardless of number and value, aggregates in excess of one hundred twenty-five dollars ($125.00) per month, it shall be prima facie evidence that the rental, ownership, management or operation of such properties, is a business activity of such taxpayer, and the net income of such rental property shall be subject to tax. However, in the case of commercial property, the owner shall be considered engaged in a business activity when the rental is based on a fixed or fluctuating percentage of gross or net sales, receipts or profits, of the lessee, whether or not such rental exceeds one hundred twenty-five dollars ($125.00) per month; provided further that in the case of farm property, the owner shall be considered engaged in a business activity when he or she shares in crops or when the rental is based on a percentage of the gross or net receipts derived from the farm, whether or not the gross income exceeds one hundred twenty-five dollars ($125.00) per month. It is provided further that the person who operates a licensed rooming house shall be considered in business whether or not the gross income exceeds one hundred twenty-five dollars per month ($125.00).
(Ord. No. 2208-04. Passed 12-13-04, eff. 12-17-04)
§ 191.0705 Operating Loss; Carry Forward
   (a)   The portion of a net operating loss sustained in any taxable year subsequent to January 1, 1967, allocable to the City may be applied against the portion of the net profit of succeeding tax years allocable to the City, until exhausted but in no event for more than five (5) taxable years immediately following the year in which the loss occurred. No portion of a net operating loss shall be carried back against net profits of any prior year.
   (b)   The portion of net operating loss sustained shall be allocated to the City in the same manner as provided herein for allocating net profits to the City.
   (c)   The Tax Administrator shall provide by Rules and Regulations the manner in which such net operating loss carry forward shall be determined.
(Ord. No. 2067-05. Passed 11-28-05, eff. 12-5-05)
§ 191.0901 Sources of Income Not Taxed
   The tax provided for in this chapter shall not be levied on the following:
   (a)   Military pay or allowance of members of the armed forces of the United States and of members of their reserve components, including the Ohio National Guard;
   (b)   Income of religious, fraternal, charitable, scientific, literary, or educational institutions to the extent that such income is derived from tax exempt real estate, tax exempt tangible or intangible property or tax exempt activities;
   (c)   Proceeds from welfare benefits, unemployment benefits, social security benefits;
   (d)   Proceeds of insurance paid by reason of the death of the insured; pensions, disability benefits, annuities, or gratuities not in the nature of compensation for services rendered from whatever source derived;
   (e)   Receipts from seasonal or casual entertainment, amusements, sports events, and health and welfare activities when any such are conducted by bona fide charitable, religious, or educational organizations and associations;
   (f)   Alimony received;
   (g)   Personal earnings of any natural person under eighteen (18) years of age;
   (h)   Compensation for personal injuries or for damages to property by way of insurance or otherwise;
   (i)   Interest, dividends, gains, and other revenue from intangible property described in RC 718.01(A)(5);
   (j)   Gains from involuntary conversion; cancellation of indebtedness, to the extent exempt from federal income tax; interest on Federal obligations; items of income already taxed by the State that the City is specifically prohibited from taxing; and income of a decedent’s estate during the period of administration, except such income from the operation of a business;
   (k)   An S corporation shareholder’s distributive share of net profits of the S corporation to the extent such distributive shares are allocated or apportioned to sources outside the State of Ohio other than any portion of the distributive shares of net profits that represents wages as defined in Section 3121(a) of the Internal Revenue Code or net earnings from self-employment as defined in Section 1402(a) of the Internal Revenue Service Code;
   (l)   The rental value of a parsonage, or the rental allowance furnished as compensation and actually used for a parsonage, by a minister;
   (m)   Compensation and net profits, the taxation of which is prohibited by the United States Constitution or any act of Congress limiting the power of the states or their political subdivisions to impose net income taxes on income derived from interstate commerce;
   (n)   Compensation and net profits, the taxation of which is prohibited by the Constitution of the State or any act of the Ohio General Assembly limiting the power of the City to impose net income tax;
   (o)   Only the income items listed in this Section 191.0901 are not subject to the tax imposed by this chapter. All other compensation, net profits and other income earned and/or received by a taxpayer shall be subject to the tax imposed by this chapter unless prohibited by State or federal law.
(Ord. No. 2208-04. Passed 12-13-04, eff. 12-17-04)
§ 191.1101 Date for Filing Returns
   (a)   Each taxpayer who engages in business or whose qualifying wages are subject to the tax imposed by this chapter, except as herein provided, shall, whether or not a city income tax is due thereon, make and file a return on or before April 30 of the year following November 28, 1966, and on or before April 30 of each year thereafter. When the return is made for a fiscal year or other period different from the calendar year, the return shall be filed within four (4) months from the end of such fiscal year or period.
   (b)   Unless the filing exemption in division (e) of this section applies, for taxable years beginning after 2003, each taxpayer shall, whether or not a city income tax is due thereon, make and file an annual city income tax return or report on the fifteenth (15th) day of the fourth (4th) month following the end of the taxpayer’s taxable year.
   (c)   No taxpayer shall be required to file an annual city income tax return or report prior to the filing date for the corresponding tax reporting period as prescribed for such taxpayer under the Internal Revenue Code.
   (d)   Tax returns required to be filed under this section shall be deemed filed when postmarked by the United States Postal Service or the date of receipt recorded by authorized delivery service as defined in RC 5703.056. Tax returns otherwise delivered to the Tax Administrator during normal business hours shall be deemed filed on the date received.
   (e)   The Tax Administrator is authorized to provide by regulation that the return of an employer, showing the amount of tax deducted by the employer from the qualifying wages of an employee, and paid by him, her or them to the Tax Administrator shall be accepted as the return required of any employee whose sole income, subject to tax under this chapter, is such qualifying wages. This filing exemption is limited to nonresident taxpayers whose sole income is qualifying wages for which the tax imposed by this chapter has been withheld and remitted to the City by the employer.
(Ord. No. 2208-04. Passed 12-13-04, eff. 12-17-04)
§ 191.1102 Form and Content of Return
   The city income tax return shall be filed with the Tax Administrator on a form prescribed by and obtainable upon request from the Tax Administrator or on a generic form in accordance with RC 718.05, setting forth:
   (a)   The aggregate amounts of all qualifying wages, net profits and all other taxable income earned and/or received by the taxpayer during the taxable year and subject to the city income tax;
   (b)   The amount of the tax imposed by this chapter on such qualifying wages, net profits; and all other taxable income;
   (c)   Such other pertinent statements, schedules, information, returns, copies of federal or state tax returns or any other information as the Tax Administrator may require; and
   (d)   In accordance with RC 718.051 and the Rules and Regulations, taxpayers subject to the city income tax on the net profits from a business or profession may file the city income tax return by using the Ohio Business Gateway.
(Ord. No. 2067-05. Passed 11-28-05, eff. 12-5-05)
§ 191.1103 Extension of Time for Filing Returns
   (a)   Except as otherwise provided in division (g) of this section, any taxpayer who has requested an extension for filing a federal income tax return may request an extension for filing the city income tax return for the same taxable year by filing a copy of the request for federal extension with the Tax Administrator in accordance with RC 718.05 and the Rules and Regulations. Any taxpayer not required to file a federal income tax return may request an extension for filing the city income tax return in accordance with RC 718.05 and the Rules and Regulations.
   (b)   Requests for extensions are not automatic and may be denied in accordance with RC 718.05.
   (c)   If granted, request for extensions filed before January 1, 2004, shall extend the due date of the city income tax return for a period not less than the period of the federal extension requested.
   (d)   For taxable years beginning after 2003, if the request for extension to file the city income tax return is granted, the extended due date shall be the last day of the month following the month to which the due date of the federal income tax return has been extended.
   (e)   The granting of an extension to file the city income tax return does not extend the last date to pay any city income tax due without penalty or interest in accordance with Sections 191.1501 and 191.1502 of this chapter.
   (f)   No late filing penalty shall be imposed if the city income tax return is filed on or before the due date as extended.
   (g)   In accordance with RC 718.051 and the Rules and Regulations, taxpayers subject to the city income tax on the net profits from a business or profession that have received an extension to file the federal income tax return by using the Ohio Business Gateway will receive an extension to file the city income tax return for the same taxable year provided that, the requirements of RC 718.051 are met. In accordance with that Section, the extended due date will be the last day of the same month to which the due date for filing the federal return has been extended.
   (h)   Extensions to file the city income tax return granted through the Ohio Business Gateway do not extend the time to pay any city income tax due without penalty or interest in accordance with Sections 191.1501 and 191.1502 of this chapter.
(Ord. No. 2208-04. Passed 12-13-04, eff. 12-17-04)
§ 191.1104 Consolidated Returns
   (a)   Filing of consolidated returns may be permitted or required in accordance with the Rules and Regulations prescribed by the Tax Administrator. A consolidated return may be filed by any affiliated group of corporations subject to the tax imposed by this chapter if that affiliated group filed for the same taxable year a consolidated return for federal income tax purposes pursuant to Section 1501 of the Internal Revenue Code. If an affiliated group of corporations subject to the tax imposed by this chapter is required to file a consolidated return or files a consolidated return in accordance with this section, the affiliated group of corporations must continue to file consolidated returns including that group of corporations and any other group of corporations included in the federal consolidated filing group for all subsequent taxable years that the group files a consolidated tax return for federal tax purposes unless, on or before the due date for filing the city income tax return for the taxable year, the affiliated group obtains written permission from the Tax Administrator to file separate returns for that year.
   (b)   In the case of a corporation that carried 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 activity within the City constituting a portion only of its total business, the Tax Administrator shall require such additional information as he or she may deem necessary to ascertain whether net profits are properly allocated to the City. If the Tax Administrator finds that net profits are not properly allocated to the City by reason of transactions with stockholders or with other corporations related by stock ownership, interlocking directorates or transactions with such division, branch, factory, office, laboratory or activity or by some other method, the Tax Administrator shall make such allocation to produce a fair and proper allocation of net profits to the City.
(Ord. No. 2067-05. Passed 11-28-05, eff. 12-5-05)
§ 191.1105 Amended Returns
   (a)   Where necessary an amended return shall be filed in order to report additional income and pay any additional city income tax due, or claim a refund of city income tax overpaid, subject to the requirements, limitations, or both, contained in Sections 191.1701 to 191.1703, 191.1902 and 191.1903. Such amended return shall be on a form prescribed by and obtainable upon request from the Tax Administrator. A taxpayer may not change the method of accounting, filing status or method of apportionment of the net profits after the due date for filing the original city income tax return.
   (b)   Within three (3) months from the final determination of any federal tax liability affecting the taxpayer’s city tax liability, such taxpayer shall make and file an amended city return showing income subject to the city income tax based upon such final determination of federal tax liability, and pay any additional city income tax shown due thereon or make claim for refund of any over payment.
(Ord. No. 2208-04. Passed 12-13-04, eff. 12-17-04)
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