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(a) For the purposes of this chapter, when any of the following words or terms are used herein they shall have the meaning or construction ascribed to them in this section:
(1) “City” means the City of Cleveland, Ohio.
(2) “Commissioner” means the Commissioner of Assessments and Licenses or his or her authorized representative.
(3) “Division” means the Division of Assessments and Licenses of the City of Cleveland.
(4) “Leasing” or any similar term means any transfer of the possession (regardless of whether or not such possession is exclusive) or the right to possession of a motor vehicle to a user for a valuable consideration.
(5) “Lessor” means any person who, in connection with a trade or business conducted by such person, leases a motor vehicle directly to lessee. In a multiparty transaction, the lessor is the person who transfers the motor vehicle to the lessee. A person who merely finances or underwrites a leasing transaction, without doing more, is not a lessor for purposes of this chapter.
(6) “Limousine for hire” means any motor vehicle which is used in the business of operating for hire as a chauffeur-driven vehicle that secures or accepts passengers within the City and that does not secure or accept passengers for hire on the public streets or in public or quasi-public places.
(7) “Motor vehicle” means any motor vehicle as defined in division (B) of RC 4501.01, except motor vehicles of gross weight of six thousand (6,000) pounds or greater.
(8) “Public hack” means any motor vehicle whose owner or driver secures or accepts passengers for hire within the City on the public streets or quasi- public places.
(9) “Rental period” means the term of the lease as specified in the lease. A lease renewal denotes an additional rental period. A lease extension does not denote an additional rental period.
(10) “Tax” means the motor vehicle license tax imposed pursuant to Section 198.03.
(b) In this chapter, unless the context otherwise requires, words in the singular number include the plural, and in the plural include the singular, words of the masculine gender include the feminine and the neuter, and when the sense so indicates, words of the neuter gender may refer to any gender.
(Ord. No. 532-91. Passed 3-18-91, eff. 3-22-91)
(a) For the purpose of providing funds for general municipal operations, procurement of fixed assets or permanent improvements, payment of debt charges, the elimination of deficits in City funds, contributions for recreational, cultural, and extracurricular programs in the Cleveland Public Schools, and for all other lawful purposes, an excise tax is hereby imposed upon the privilege of leasing motor vehicles within the City to a lessee. Such tax shall be imposed upon the lessor and shall be in the amount of three dollars ($3.00) per vehicle per rental period for any lease entered into or renewed after April 1, 1991 and before April 1, 1992; four dollars ($4.00) per vehicle per rental period for any lease for which the total lease amount exceeds sixteen dollars ($16.00) entered into or renewed after April 1, 1992, and before August 1, 1995; and six dollars ($6.00) per vehicle per lease for which the total lease amount exceeds twenty- five dollars ($25.00) for any lease entered into or renewed on or after August 1, 1995. The lessor shall not divide a transaction into multiple leases to avoid tax liability under this division.
(b) Any tax herein imposed is in addition to any other taxes authorized by law.
(c) The lessor shall be required to pay this tax to the Commissioner as provided in division (e) of this section. The lessor shall be allowed to pass this tax along to his or her lessees as a separate charge on his or her rental bills or invoices.
(d) This tax shall not apply to any lessor who is a governmental body; nor shall it apply to any lessor upon whom the imposition of the tax would violate the United States Constitution or the Constitution of the State of Ohio; nor shall it apply to the lease of limousines for hire or public hacks.
(e) Except as provided herein, the lessor shall pay this tax on a monthly basis, with the tax due on motor vehicles leased within the month by the last day of the following month. A remittance return shall accompany each monthly payment. The format of such remittance return shall be prescribed by the Commissioner, and such return shall include the number of motor vehicles leased within that month and any other reasonable information the Commissioner deems necessary. The remittance returns shall be filed and signed by the Lessor under penalty as provided in Section 198.99 of this chapter. If in the second quarter of a given calendar year, the lessor’s tax liability pursuant to this division averages less than one hundred dollars ($100.00) per month, then the lessor may, at the lessor’s option, in lieu of filing monthly tax returns and making monthly tax remittances, pay in each of the three (3) subsequent quarters an amount equal to the tax liability in the second quarter. A remittance form prescribed by the Commission, with requirements similar to the monthly remittance return referred to above, shall be signed and filed by the lessor with his or her annual payment.
(Ord. No. 1025-A-95. Passed 6-29-95, eff. 6-29-95)
(a) Any tax not paid when due shall bear interest at the rate of two percent (2%) per month, or fraction thereof, until the tax is paid.
(b) In addition to any interest charges, any tax not paid when due shall subject the lessor failing to pay such tax to a ten percent (10%) late payment penalty, unless a late filing penalty is due as provided in division (c) below. This penalty shall be calculated upon the amount of tax underpaid.
(c) In addition to any interest charges, any remittance return not filed when due shall subject the lessor failing to file such to a ten percent (10%) late filing penalty calculated upon the total tax liability due for such filing period.
(d) Any payment or return not physically received by the Commissioner by the due date shall be considered late.
(e) All payments received shall first be applied to penalty due, then interest due and finally the tax due for the period the payment is made for.
(f) The lessor shall be required to pay all tax, interest and penalty due from him or her, except that if the Commissioner finds that any late payment or late filing was due to reasonable cause, the penalty for such shall not apply.
(Ord. No. 532-91. Passed 3-18-91, eff. 3-22-91)
(a) Every lessor subject to the tax imposed herein shall keep accurate and complete books and records of his or her leasing business which will include invoices, rental agreements, annual inventories of motor vehicles available for rental and other pertinent papers and documents. All such books and records which are required to be kept by this chapter shall be kept in the English language and shall, at all times during business hours of the day, be subject to inspection by the Commissioner or his or her duly authorized agents and employees.
(b) It shall be presumed that all leases of motor vehicles occur at the lessor’s place of business and are subject to tax under this chapter until the contrary is established. The burden of proving that a lease is not taxable hereunder shall be upon the lessor.
(Ord. No. 532-91. Passed 3-18-91, eff. 3-22-91)
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