(A) An annual Village of Columbus Grove income tax return shall be completed and filed by every individual taxpayer and any taxpayer that is not an individual for each taxable year for which the taxpayer is subject to the tax, whether or not a tax is due thereon.
(1) The Tax Administrator may accept on behalf of all nonresident individuals the reconciliation form filled out by the employer, with W-2's or the same information, remitted to the Village of Columbus Grove.
(2) Retirees having no municipal taxable income are exempt from filing.
(B) If an individual is deceased, any return or notice required of that individual shall be completed and filed by the decedent's executor.
(C) If an individual is unable to complete and file a return required by the Village of Columbus Grove, the return required of that individual shall be completed and filed by that individual's duly authorized agent.
(D) Returns or notices of an estate or a trust shall be completed and filed by the fiduciary of the estate or trust.
(E) The Village of Columbus Grove shall permit spouses to file a joint return.
(F) (1) Each return required to be filed under this division shall contain the signature of the taxpayer and the person who prepared the return for the taxpayer. The return shall include the taxpayer's social security number or identification number. Each return shall be verified by a declaration under penalty of perjury.
(2) The Tax Administrator shall require a taxpayer who is an individual to include, with each manual return; and amended return, copies of the following documents: all of the taxpayer's Internal Revenue Service form W-2, and with respect to an amended tax return, any other documentation necessary to support the adjustments.
(3) The Tax Administrator may require a taxpayer that is not an individual to include, with each annual net profit return, or request for refund required under this section, copies of only the following documents; the taxpayer's Internal Revenue Service form 1041, form 1065, form 1120, form 1120-REIT, form 1120F, or form 1120S , and, with respect to an amended tax return, any other documentation necessary to support the return.
A taxpayer that is not an individual and files an annual net profit return electronically through the Ohio Business Gateway or in some other manner shall either mail the documents required under this division to the Tax Administrator, if electronic submission is available, submit the documents electronically.
(4) After a taxpayer files a tax return, the Tax Administrator may request, and the taxpayer shall provide, any information, statements, or documents required by the Village of Columbus Grove to determine and verify the taxpayer's municipal income tax liability. The requirements under division (F) of this section apply regardless of whether the taxpayer files on a generic form or on a form prescribed by the Tax Administrator.
(G) (1) Except as otherwise provided in this ordinance each return required to be filed under this section shall be completed and filed as required by the Tax Administrator on or before the date prescribed for the filing of state individual income tax returns under division (G) of Section 5747.08 or the ORC. The taxpayer shall complete and file the return on forms prescribed by the Tax Administrator or on generic forms, together with remittance made payable to the Village of Columbus Grove. No remittance is required if the net amount due is ten dollars or less.
(2) Any taxpayer that has duly requested an automatic six-month extension for filing the taxpayer's federal income tax return shall automatically receive an extension for the filing of the Village of Columbus Grove income tax return. A copy of the extension must be sent to the Village of Columbus Grove. The extension of the income tax return makes it due by the 30th day of October of that year. An extension of time to file under this division is not an extension of the time to pay any tax due unless the Tax Administrator grants an extension of that date.
(3) If the tax commissioner extends for all taxpayers the date for filing state income tax returns under division (G) of Section 5747.08 of the ORC, the taxpayer shall automatically receive an extension for filing of a Village of Columbus Grove return.
(4) If the Tax Administrator considers it necessary in order to ensure the payment of the tax imposed by the Village of Columbus Grove, the Tax Administrator may require taxpayers to file returns and make payments otherwise than as provided in this division, including taxpayers not otherwise required to file annual returns.
(5) To the extent that any provision in this division (G) of this section conflicts with any provision in divisions (N), (0), (P), or (Q) of this section, the provisions in divisions (N), (0), (P), or (Q) prevail.
(H) (1) For taxable years beginning after 2015 the Village of Columbus Grove shall not require a taxpayer to remit tax with respects to net profits if the net amount due is ten dollars or less.
(2) Any taxpayer not required to remit tax to the Village of Columbus Grove for a taxable year pursuant to division (H)( 1) of this section shall file with the Village of Columbus Grove annual net profit return under division (F)(3) of this section.
(I) If a payment is required to be made by electronic funds transfer, the payment is considered to be made when the payment is credited to an account designated by the Tax Administrator for the receipt of tax payments, except that, when a payment made by electronic funds transfer is delayed due to circumstances not under the control of the taxpayer, the payment is considered to be made when the taxpayer submitted the payment. This division shall not apply to payments required to be made under division (B)(1)(a) of Section 191.04
or provisions for semi-monthly withholding.
(J) Taxes withheld for the Village of Columbus Grove by an employer as described in Section 191.04
shall be allowed to the taxpayer as credits against payment of the tax imposed on the taxpayer by the Village of Columbus Grove, unless the amounts withheld were not remitted to the Village of Columbus Grove and the recipient colluded with the employer in connection with the failure to remit the amounts withheld.
(K) Each return required by the Village of Columbus Grove to be filed in accordance with this division shall include a box that the taxpayer may check to authorize another person, including a tax return preparer who prepared the return, to communicate with the Tax Administrator about matters pertaining to the return.
(L) The Tax Administrator shall accept for filing a generic form or any income tax return, report, or document required by the Village of Columbus Grove, provided that the generic form, once completed and filed, contains all of the information required by ordinance, or rules and regulations passed by the Village of Columbus Grove or the Tax Administrator, and provided the taxpayer or tax return preparer filing the generic form otherwise complies with the provisions of this chapter and of the Village of Columbus Grove's ordinance or rules and regulations governing the filing of returns, reports, or documents.
Filing via Ohio Business Gateway.
(M) (1) Any taxpayer subject to municipal income taxation with respect to the taxpayer's net profit from a business or profession may file the Village of Columbus Grove's income tax return, estimated municipal income tax return, or extension for filing a municipal income tax return, and may make payment of amounts shown to be due on such returns, by using the Ohio Business Gateway.
(2) Any employer or other payer may report the amount of municipal income tax withheld from qualifying wages, and may make remittance of such amounts, by using the Ohio Business Gateway.
(3) Nothing in this section affects the due dates for filing employer tax returns.
Extension for service in or for the armed forces.
(N) Each member of the national guard of any state and each member of a reserve component of the armed forces of the United States called to active duty pursuant to an executive order issued by the president of the United States or an act of congress of the United States, and each civilian serving as support personnel in a combat zone or contingency operation in support of the armed forces, may apply the tax Administrator of the Village of Columbus Grove for both an extension of time for filing of the return and an extension of time for payment of taxes required by the Village of Columbus Grove during the period of the member's or civilian's duty service, and for 180 days thereafter. The Application shall be filed on or before the one hundred eightieth day after the member's or civilian's duty terminates. An applicant shall provide such evidence as the Tax Administrator considers necessary to demonstrate eligibility for the extension.
(O) (l) If the Tax Administrator ascertains that an applicant is qualified for an extension under this section, the Tax Administrator shall enter into a contract with applicant for the payment of the tax in installments that begin on the 181 st day after the applicant's active duty or service terminates. The Tax Administrator may prescribe such contract terms as the Tax Administrator considers appropriate. However, taxes pursuant to a contract entered into under this division are not delinquent, and the Tax Administrator shall not require any payments of penalties or interest in connection with those taxes for the extension period.
(2) If the Tax Administrator determines that an applicant is qualified for an extension under this section, the applicant shall neither be required to file any return, report, or other tax document nor be required to pay any tax otherwise due to the municipal corporation before the 181 st day after the applicant's active duty or service terminates.
(3) Taxes paid pursuant to a contract entered into under (O)(1) of this division are not delinquent. The Tax Administrator shall not require any payments of penalties or interest in connection with those taxes for the extension period.
(P) (1) Nothing in this division denies to any person described in this division the application of divisions (N) and (0) of this section.
(2) (a) A qualifying taxpayer who is eligible for an extension under the Internal revenue Code shall receive both an extension of time in which to file any return, report, or other tax document and an extension of time in which to make any payment of taxes required by a municipal corporation in accordance with this chapter. The length of any extension granted under division (P)(2)(a) of this section shall be equal to the length of the corresponding extension that the taxpayer receives under the Internal Revenue Code. As used in this division "qualifying taxpayer" means a member of the national guard or a member of a reserve component of the armed forces of the United States called to active duty pursuant to either an executive order issued by the president of the United States or an act of congress of the United States, or a civilian serving as support personnel in a combat zone or contingency operation in support of the armed forces.
(b) Taxes whose payment is extended in accordance with division (P)(2)(a) of this section are not delinquent during the extension period. Such taxes become delinquent on the first day after the expiration of the extension period if the taxes are not paid prior to this date. The Tax Administrator shall not require any payment of penalties or interest in connection with those taxes for the extension period. The Tax Administrator shall not include any period of extension granted under division (C)(2)(a) of this section in calculating the penalty or interest due on any unpaid tax.
(Q) For each taxable year to which division (N),(O), or (P) of this section applies to a taxpayer, the provisions of divisions (0)(2) and (3) of this section, as applicable, apply to the spouse of that taxpayer if the filing status of the spouse and the taxpayer is married filing jointly for that year.
Consolidated municipal income tax return
(R) As used in this section:
(1) "Affiliated group of corporations" means an affiliated group as defined in Section 1504 of the Internal Revenue Code, except that, if such a group includes at least one incumbent local exchange carrier that is primarily engaged in the business of providing local exchange telephone service in this state, the affiliated group engaged shall not include any incumbent local exchange carrier that would otherwise be included in the group.
(2) "Consolidated federal income tax return" means a consolidated return filed for federal income tax purposes pursuant to Section 1501 of the Internal Revenue Code.
(3) "Consolidated federal taxable income" means the consolidated taxable income of an affiliated group of corporations, as computed for the purposes of filing a consolidated federal income tax return, before consideration of net operating losses or special deductions. "Consolidated federal taxable income" does not include income or loss of an incumbent local exchange carrier that is excluded from the affiliated group under division (R)(l) of this section.
(4) "Incumbent local exchange carrier" has the same meaning as in Section 4927.01 of the ORC.
(5) "Local exchange telephone service" has the same meaning as in Section 5727.01 of the ORC.
(S) (l) For taxable years beginning on or after January 1, 2016, a taxpayer that is a member of an affiliated group of corporations may elect to file a consolidated municipal income tax return for a taxable year if at least one member of the affiliated group of corporations is subject to the Village of Columbus Grove's income tax in that taxable year, and if the affiliated group of corporations filed a consolidated federal income tax return with respect to that taxable year. The election is binding for a five-year period beginning with the first taxable year of the initial election unless a change in the reporting method is required under federal law. The election continues to be binding for each subsequent five-year period unless the taxpayer elects to discontinue filing consolidated municipal income tax returns under division (S)(2) of this section or a taxpayer receives permission from the Tax Administrator. The Tax Administrator shall approve such a request for good cause shown.
(2) An election to discontinue filing consolidated municipal income tax returns under this section must be made in the first year following the last year of a five year consolidated municipal income tax return election period in effect under division (S)(1) of this section. The election to discontinue filing a consolidated municipal income tax return is binding for a five-year period beginning with the first taxable year of the election.
(3) An election made under division (S)(1) or (2) of this section is binding on all members of the affiliated group of corporations subject to a municipal income tax.
(T) A taxpayer that is a member of an affiliated group of corporations that filed a consolidated federal income tax return for a taxable year shall file a consolidated Village of Columbus Grove income tax return for that taxable year if the Tax Administrator determines, by a preponderance of the evidence, that intercompany transactions have not been conducted at arm's length and that there has been a distortive shifting of income or expenses with regard to allocation of net profits to the Village of Columbus Grove. A taxpayer that is required to file a consolidated Village of Columbus Grove income tax return for a taxable year shall file a consolidated Village of Columbus Grove income tax return for all subsequent taxable years, unless the taxpayer requests and receives written permission from the Tax Administrator to file a separate return or a taxpayer has experienced a change in circumstances.
(U) A taxpayer shall prepare a consolidated Village of Columbus Grove income tax return in the same manner as is required under the United States department of treasury regulations that prescribe procedures for the preparation of the consolidated federal income tax return required to be filed by the common parent of the affiliated group of which the taxpayer is a member.
(V) (1) Except otherwise provided in divisions (V)(2), (3), and (4) of this section, corporations that file a consolidated municipal income tax return shall compute adjusted federal taxable income, as defined in Section 191.02
, by substituting "consolidated federal taxable income" for "federal taxable income" wherever "federal taxable income" appears in that division and by substituting "an affiliated group of corporation's" for" a C corporation" wherever "a C corporation's" appear in that division.
(2) No corporation filing a consolidated Village of Columbus Grove income tax return shall make any adjustment otherwise required under Section (2)(C)(1) to the extent that the item of income or deduction otherwise subject to the adjustment has been eliminated or consolidated in the computation of consolidated federal taxable income.
(3) If the net profit or loss of a pass-through entity having at least eighty percent (80%) of the value of its ownership interest owned or controlled, directly or indirectly, by an affiliated group of corporations is included in that affiliated group's consolidated federal taxable income for a taxable year, the corporation filing a consolidated Village of Columbus Grove income tax return shall do one of the following with respect to that pass-through entity's net profit or loss for that taxable year.
(a) Exclude the pass-through entity's net profit or loss from the consolidated federal taxable income of the affiliated group and, for the purpose of making the computations required in divisions (R) through (Y) of Section 191.05
, exclude the property, payroll, and gross receipts of the pass-through entity in the computation of the affiliated group's net profit sitused to a municipal corporation. If the entity's net profit or loss is so excluded, the entity shall be subject to taxation as a separate taxpayer on the basis of the entity's net profits that would otherwise be included in the consolidated federal income of the affiliated group.
(b) Include the pass-through entity's net profit or loss in the consolidated federal income of the affiliated group and, for the purpose of making the computations required in divisions (R) through (Y) of Section 191.05
, include the property, payroll, and gross receipts of the pass-through entity in the computation of the affiliated group's net profit sitused to a municipal corporation. If the entity's net profit or loss is so included, the entity shall not be subject to taxation as a separate taxpayer on the basis of the entity's net profits that are included in the consolidated federal taxable income of the affiliated group.
(4) If the net profit or loss of a pass-through entity having less than eighty percent of the value of its ownership interest owned or controlled, directly or indirectly, by an affiliated group of corporations is included in that affiliated group's consolidated federal taxable income for a taxable year, all of the following apply:
(a) The corporation filing the consolidated municipal income tax return shall exclude the pass-through entity's net profit or loss from the consolidated federal taxable income of the affiliated group and, the property, payroll, and gross receipts of the pass-through entity in the computation of the affiliated group's net profit sitused to the Village of Columbus Grove.
(b) The pass-through entity shall be subject to the Village of Columbus Grove income taxation as a separate taxpayer in accordance with this chapter on the basis of the entity's net profits that would otherwise be included in the consolidated federal taxable income of the affiliated group.
(W) Corporations filing a consolidated Village of Columbus Grove income tax return shall make the computations required under divisions (R) through (Y) of Section 191.05
by substituting "consolidated federal taxable income attributable to" for "net profit from" wherever "net profit from" appears in that section and by substituting "affiliated group of corporations" for "taxpayer" appears in that section.
(X) Each corporation filing a consolidated Village of Columbus Grove income tax return is jointly and severally liable for any tax, interest, penalties, fines, charges, or other amount imposed by the Village of Columbus Grove in accordance with this chapter on the corporation, an affiliated group of which the corporation is a member for any portion of the taxable year, or any one or more members of such an affiliated group.
(Y) Corporations and their affiliates that made an election or entered into an agreement with the Village of Columbus Grove before January 1, 2016, to file a consolidated or combined tax return with the Village of Columbus Grove may continue to file consolidated tax returns in accordance with such election or agreement for taxable years beginning on and after January 1, 2016. (Ord. 2015-9. Passed 12-28-15.)