164.15 REFUNDABLE CREDIT FOR QUALIFYING LOSS.

   (a)   As used in this Section:

      (1)   "Nonqualified deferred compensation plan" means a compensation plan described in Section 3121(v)(2)(C) of the Internal Revenue Code.

      (2)   i.   Except as provided in Division (a)(2)(ii) of this Section, "qualifying loss" means the excess, if any, of the total amount of compensation the payment of which is deferred pursuant to a nonqualified deferred compensation plan over the total amount of income the taxpayer has recognized for federal income tax purposes for all taxable years on a cumulative basis as compensation with respect to the taxpayer's receipt of money and property attributable to distributions in connection with the nonqualified deferred compensation plan.

         ii.   If, for one or more taxable years, the taxpayer has not paid to one or more municipal corporations income tax imposed on the entire amount of compensation the payment of which is deferred pursuant to a nonqualified deferred compensation plan, then the "qualifying loss" is the product of the amount resulting from the calculation described in Division (a)(2)(i) of this Section computed without regard to Division (a)(2)(ii) of this Section and a fraction the numerator of which is the portion of such compensation on which the taxpayer has paid income tax to one or more municipal corporations and the denominator of which is the total amount of compensation the payment of which is deferred pursuant to a nonqualified deferred compensation plan.

         iii.   With respect to a nonqualified deferred compensation plan, the taxpayer sustains a qualifying loss only in the taxable year in which the taxpayer receives the final distribution of money and property pursuant to that nonqualified deferred compensation plan.

      (3)   "Qualifying tax rate" means the applicable tax rate for the taxable year the taxpayer paid income tax to a municipal corporation with respect to any portion of the total amount of compensation the payment of which is deferred pursuant to a nonqualified deferred compensation plan. If different tax rates applied for different taxable years, then the "qualifying tax rate" is a weighted average of those different tax rates. The weighted average shall be based upon the tax paid to the municipal corporation each year with respect to the nonqualified deferred compensation plan.

   (b)   (1)   Except as provided in Division (d) of this Section, a refundable credit shall be allowed against the income tax imposed by a municipal corporation for each qualifying loss sustained by a taxpayer during the taxable year. The amount of the credit shall be equal to the product of the qualifying loss and the qualifying tax rate.

      (2)   A taxpayer shall claim the credit allowed under this Section from each municipal corporation to which the taxpayer paid municipal income tax with respect to the nonqualified deferred compensation plan in one or more taxable years.

      (3)   If a taxpayer has paid tax to more than one municipal corporation with respect to the nonqualified deferred compensation plan, the amount of the credit that a taxpayer may claim from each municipal corporation shall be calculated on the basis of each municipal corporation's proportionate share of the total municipal corporation income tax paid by the taxpayer to all municipal corporations with respect to the nonqualified deferred compensation plan.

      (4)   In no case shall the amount of the credit allowed under this Section exceed the cumulative income tax that a taxpayer has paid to a municipal corporation for all taxable years with respect to the nonqualified deferred compensation plan.

   (c)   (1)   For purposes of this Section, municipal corporation income tax that has been withheld with respect to a nonqualified deferred compensation plan shall be considered to have been paid by the taxpayer with respect to the nonqualified deferred compensation plan.

      (2)   Any municipal income tax that has been refunded or otherwise credited for the benefit of the taxpayer with respect to a nonqualified deferred compensation plan shall not be considered to have been paid to the municipal corporation by the taxpayer.

   (d)   The credit allowed under this Section is allowed only to the extent the taxpayer's qualifying loss is attributable to:

      (1)   The insolvency or bankruptcy of the employer who had established the nonqualified deferred compensation plan; or

      (2)   The employee's failure or inability to satisfy all of the employer's terms and conditions necessary to receive the nonqualified deferred compensation.

         (Ord. 93-2015. Passed 11-23-15.)

164.16 CREDIT FOR TAX BEYOND STATUTE FOR OBTAINING REFUND.

   (a)   Income tax that has been deposited or paid to the Municipality, but should have been deposited or paid to another municipal corporation, is allowable by the Municipality as a refund, but is subject to the three-year limitation on refunds as provided in Section 164.19 of this Chapter.

   (b)   Income tax that should have been deposited or paid to the Municipality, but was deposited or paid to another municipal corporation, shall be subject to collection and recovery by the Municipality. To the extent a refund of such tax or withholding is barred by the limitation on refunds as provided in Section 164.19, the Municipality will allow a non-refundable credit equal to the tax or withholding paid to the other municipality against the income tax the Municipality claims is due. If the Municipality's tax rate is higher, the tax representing the net difference of the tax rates is also subject to collection by the Municipality, along with any penalty and interest accruing during the period of nonpayment.

   (c)   No carryforward of credit will be permitted when the overpayment is beyond the three-year limitation for refunding of same as provided in Section 164.19 of this Chapter.

(Ord. 93-2015. Passed 11-23-15.)

164.17 EXTENSION OF TIME TO FILE.

   (a)   Any taxpayer that has duly requested an automatic six-month extension for filing the taxpayer's federal income tax return will automatically receive an extension for the filing of a municipal income tax return. The extended due date of the municipal income tax return shall be the fifteenth day of the tenth month after the last day of the taxable year to which the return relates. For tax years ending on or after January 1, 2023, the extended due date of the Municipality’s income tax return for a taxpayer that is not an individual shall be the 15th day of the eleventh month after the last day of the taxable year to which the return relates.

   (b)   Any taxpayer that qualifies for an automatic federal extension for a period other than six-months for filing the taxpayer's federal income tax return will automatically receive an extension for the filing of a municipal income tax return. The extended due date of the municipal income tax return shall be the same as that of the extended federal income tax return.

   (c)   A taxpayer that has not requested or received a six-month extension for filing the taxpayer's federal income tax return may submit a written request that the Tax Administrator grant the taxpayer a six-month extension of the date for filing the taxpayer's municipal income tax return. If the request is received by the Tax Administrator on or before the date the municipal income tax return is due, the Tax Administrator must grant the taxpayer's requested extension.

   (d)   An extension of time to file under this Chapter is not an extension of time to pay any tax due.

   (e)   If the State Tax Commissioner extends for all taxpayers the date for filing state income tax returns under Section 5747.08(G) of the Ohio Revised Code, a taxpayer shall automatically receive an extension for the filing of a municipal income tax return. The extended due date of the municipal income tax return shall be the same as the extended due date of the state income tax return.

   (f)   If a taxpayer receives an extension for the filing of a municipal income tax return under division (a), (b), (c), or (e) of this section, the tax administrator shall not make any inquiry or send any notice to the taxpayer with regard to the return on or before the date the taxpayer files the return or on or before the extended due date to file the return, whichever occurs first.

   If a tax administrator violates division (f) of this section, the municipal corporation shall reimburse the taxpayer for any reasonable costs incurred to respond to such inquiry or notice, up to one hundred fifty dollars.

   Division (f) of this section does not apply to an extension received under division (a) of this section if the tax administrator has actual knowledge that the taxpayer failed to file for a federal extension as required to receive the extension under division (a) of this section or failed to file for an extension under division (c) of this section. (Ord. 114-2023. Passed 11-13-23.)

164.18 AMENDED RETURNS.

   (a)   (1)   A taxpayer shall file an amended return with the Tax Administrator in such form as the Tax Administrator requires if any of the facts, figures, computations, or attachments required in the taxpayer's annual return to determine the tax due levied by the Municipality in accordance with this Chapter must be altered.

      (2)   Within sixty days after the final determination of any federal or state tax liability affecting the taxpayer's municipal tax liability, that taxpayer shall make and file an amended municipal return showing income subject to the municipal income tax based upon such final determination of federal or state tax liability, and pay any additional municipal income tax shown due thereon or make a claim for refund of any overpayment, unless the tax or overpayment is ten dollars or less.

      (3)   If a taxpayer who is otherwise permitted to do so under this Chapter or under Chapter 718 of the Ohio Revised Code intends to file an amended consolidated municipal income tax return, or to amend its type of return from a separate return to a consolidated return, based on the taxpayer's consolidated federal income tax return, the taxpayer shall notify the Tax Administrator before filing the amended return, following the provisions of Section 164.09 of this Chapter.

   (b)   (1)   In the case of an underpayment, the amended return shall be accompanied by payment of any combined additional tax due together with any penalty and interest thereon. If the combined tax shown to be due is ten dollars or less, such amount need not accompany the amended return. Except as provided under Division (b)(2) of this Section, the amended return shall not reopen those facts, figures, computations, or attachments from a previously filed return that are not affected, either directly or indirectly, by the adjustment to the taxpayer's federal or state income tax return unless the applicable statute of limitations for civil actions or prosecutions under Section 164.33 of this Chapter has not expired for a previously filed return.

      (2)   The additional tax to be paid shall not exceed the amount of tax that would be due if all facts, figures, computations, and attachments were reopened.

   (c)   (1)   In the case of an overpayment, a request for refund may be filed under this Division within the period prescribed by Section 164.19(b)(1) for filing the amended return even if it is filed beyond the period prescribed in that Division if it otherwise conforms to the requirements of that Division. If the amount of the refund is ten dollars or less, no refund need be paid by the Municipality to the taxpayer. Except as set forth in

Division (c)(2) of this Section, a request filed under this Division shall claim refund of overpayments resulting from alterations to only those facts, figures, computations, or attachments required in the taxpayer's annual return that are affected, either directly or indirectly, by the adjustment to the taxpayer's federal or state income tax return unless it is also filed within the time prescribed in Section 164.19 of this Chapter. Except as set forth in Division (c)(2) of this Section, the request shall not reopen those facts, figures, computations, or attachments that are not affected, either directly or indirectly, by the adjustment to the taxpayer's federal or state income tax return.

      (2)   The amount to be refunded shall not exceed the amount of refund that would be due if all facts, figures, computations, and attachments were reopened. (Ord. 93-2015. Passed 11-23-15.)

164.19 REFUNDS.

   (a)   Upon receipt of a request for a refund, the Tax Administrator of the Municipality, in accordance with this Section, shall refund to employers, agents of employers, other payers, or taxpayers, with respect to any income or withholding tax levied by the Municipality:

      (1)   Overpayments of more than ten dollars;

      (2)   Amounts paid erroneously if the refund requested exceeds ten dollars.

   (b)   (1)   Except as otherwise provided in this Chapter, returns setting forth a request for refund shall be filed with the Tax Administrator, within three years after the tax was due or paid, whichever is later. Any documentation that substantiates the taxpayer's claim for a refund must be included with the return filing. Failure to remit all documentation, including schedules, other municipal income tax returns, or other supporting documentation necessary to verify credits, income, losses or other pertinent factors on the return will cause delay in processing, and / or disallowance of undocumented credits or losses.

      (2)   On filing of the refund request, the Tax Administrator shall determine the amount of refund due and certify such amount to the Finance Director for payment. Except as provided in Division (b)(3) of this Section, the Tax Administrator shall issue an assessment to any taxpayer whose request for refund is fully or partially denied. The assessment shall state the amount of the refund that was denied, the reasons for the denial, and instructions for appealing the assessment.

      (3)   If the Tax Administrator denies in whole or in part a refund request included within the taxpayer's originally filed annual income tax return, the Tax Administrator shall notify the taxpayer, in writing, of the amount of the refund that was denied, the reasons for the denial, and instructions for requesting an assessment that may be appealed under Section 164.32 of this Chapter.

   (c)   A request for a refund that is received after the last day for filing specified in Division (b) of this Section shall be considered to have been filed in a timely manner if any of the following situations exist:

      (1)   The request is delivered by the postal service, and the earliest postal service postmark on the cover in which the request is enclosed is not later than the last day for filing the request.

      (2)   The request is delivered by the postal service, the only postmark on the cover in which the request is enclosed was affixed by a private postal meter, the date of that postmark is not later than the last day for filing the request, and the request is received within seven days of such last day.

      (3)   The request is delivered by the postal service, no postmark date was affixed to the cover in which the request is enclosed or the date of the postmark so affixed is not legible, and the request is received within seven days of the last day for making the request.

   (d)   Interest shall be allowed and paid on any overpayment by a taxpayer of any municipal income tax obligation from the date of the overpayment until the date of the refund of the overpayment, except that if any overpayment is refunded within ninety days after the final filing date of the annual return or ninety days after the completed return is filed, whichever is later, no interest shall be allowed on the refund. For the purpose of computing the payment of interest on amounts overpaid, no amount of tax for any taxable year shall be considered to have been paid before the date on which the return on which the tax is reported is due, without regard to any extension of time for filing that return. Interest shall be paid at the interest rate described in Section 164.21(a)(4) of this Chapter.

   (e)   As used in this Section, "withholding tax" has the same meaning as in Section 164.21 of this Chapter. (Ord. 93-2015. Passed 11-23-15.)

164.20 DOMICILE.

   (a)   As used in this Section:

      (1)   "Domicile" means the true, fixed and permanent home of the taxpayer to which whenever absent, the taxpayer intends to return. Domicile differs from residency. Although a person may have multiple residences, a person can have only one domicile.

      (2)   An individual is presumed to be domiciled in the Municipality for all or part of a taxable year if the individual was domiciled in the Municipality on the last day of the immediately preceding taxable year or if the Tax Administrator reasonably concludes that the individual is domiciled in the Municipality for all or part of the taxable year.

      (3)   An individual may rebut the presumption of domicile described in Division (a)(1) of this Section if the individual establishes by a preponderance of the evidence that the individual was not domiciled in the Municipality for all or part of the taxable year.

   (b)   For the purpose of determining whether an individual is domiciled in the Municipality for all or part of a taxable year, factors that may be considered include, but are not limited to, the following:

      (1)   The individual's domicile in other taxable years;

      (2)   The location at which the individual is registered to vote;

      (3)   The address on the individual's driver's license;

      (4)   The location of real estate for which the individual claimed a property tax exemption or reduction allowed on the basis of the individual's residence or domicile;

      (5)   The location and value of abodes owned or leased by the individual;

      (6)   Declarations, written or oral, made by the individual regarding the individual's residency;

      (7)   The primary location at which the individual is employed;

      (8)   The location of educational institutions attended by the individual's dependents as defined in Section 152 of the Internal Revenue Code, to the extent that tuition paid to such educational institution is based on the residency of the individual or the individual's spouse in the municipal corporation or state where the educational institution is located;

      (9)   The number of contact periods the individual has with the Municipality. For the purposes of this Division, an individual has one "contact period" with the Municipality if the individual is away overnight from the individual's abode located outside of the Municipality and while away overnight from that abode spends at least some portion, however minimal, of each of two consecutive days in the Municipality. For purposes of this Section, the State's contact period test or bright-line test and resulting determination have no bearing on municipal residency or domicile.

   (c)   All applicable factors are provided in Section 718.012 of the Ohio Revised Code.

(Ord. 93-2015. Passed 11-23-15.)

164.21 PENALTY, INTEREST, FEES, AND CHARGES.

   (a)   As used in this Section:

      (1)   "Applicable law" means this Chapter, ordinances, codes, directives, instructions, and rules and regulations adopted by the Municipality provided such ordinances, codes, directives, instructions, and rules and regulations impose or directly or indirectly address the levy, payment, remittance, or filing requirements of a municipal income tax.

      (2)   "Federal short-term rate" means the rate of the average market yield on outstanding marketable obligations of the United States with remaining periods to maturity of three years or less, as determined under Section 1274 of the Internal Revenue Code, for July of the current year.

      (3)   "Income tax," "estimated income tax," and "withholding tax" mean any income tax, estimated income tax, and withholding tax imposed by a municipal corporation pursuant to applicable law, including at any time before January 1, 2016.

      (4)   "Interest rate as described in Division (a) of this Section" means the federal short-term rate, rounded to the nearest whole number per cent, plus five per cent. The rate shall apply for the calendar year next following the July of the year in which the federal short-term rate is determined in accordance with Division (a)(2) of this Section.

      (5)   "Return" includes any tax return, report, reconciliation, schedule, and other document required to be filed with the Municipality by a taxpayer, employer, any agent of the employer, or any other payer pursuant to applicable law, including at any time before January 1, 2016.

      (6)   "Unpaid estimated income tax" means estimated income tax due but not paid by the date the tax is required to be paid under applicable law.

      (7)   "Unpaid income tax" means income tax due but not paid by the date the income tax is required to be paid under applicable law.

      (8)   "Unpaid withholding tax" means withholding tax due but not paid by the date the withholding tax is required to be paid under applicable law.

      (9)   "Withholding tax" includes amounts an employer, any agent of an employer, or any other payer did not withhold in whole or in part from an employee's qualifying wages, but that, under applicable law, the employer, agent, or other payer is required to withhold from an employee's qualifying wages.

   (b)   (1)   This Section applies to the following:

         i.   Any return required to be filed under applicable law for taxable years beginning on or after January 1, 2016;

         ii.   Income tax, estimated income tax, and withholding tax required to be paid or remitted to the Municipality on or after January 1, 2016 for taxable years beginning on or after January 1, 2016

      (2)   This Section does not apply to returns required to be filed or payments required to be made before January 1, 2016, regardless of the filing or payment date. Returns required to be filed or payments required to be made before January 1, 2016, but filed or paid after that date will be subject to the ordinances and rules and regulations, as adopted from time to time before January 1, 2016. (Ord. 93-2015. Passed 11-23-15.)

   (c)   The Municipality shall impose on a taxpayer, employer, agent of the employer, and any other payer, and will attempt to collect, the interest amounts and penalties prescribed in this Section when the taxpayer, employer, agent of the employer, or any other payer for any reason fails, in whole or in part, to make to the Municipality timely and full payment or remittance of income tax, estimated income tax, or withholding tax or to file timely with the Municipality any return required to be filed.

      (1)   Interest shall be imposed at the rate defined as "interest rate as described in Division (a) of this Section", per annum, on all unpaid income tax, unpaid estimated income tax, and unpaid withholding tax. This imposition of interest shall be assessed per month, or fraction of a month.

      (2)   With respect to unpaid income tax and unpaid estimated income tax, a penalty equal to fifteen percent of the amount not timely paid shall be imposed.

      (3)   With respect to any unpaid withholding tax, a penalty equal to fifty percent of the amount not timely paid shall be imposed.

      (4)   (i)   For tax years ending on or before December 31, 2022, with respect to returns other than estimated income tax returns, the Municipality may impose a penalty of twenty-five dollars for each failure to timely file each return, regardless of the liability shown thereon for each month, or any fraction thereof, during which the return remains unfiled regardless of the liability shown thereon. The penalty shall not exceed one hundred fifty dollars for each failure.

         (ii)    For tax years ending on or after January 1, 2023, with respect to returns other than estimated income tax returns, the Municipality may impose a penalty not exceeding twenty-five dollars for each failure to timely file each return, regardless of the liability shown thereon, except that the Municipality shall abate or refund the penalty assessed on a taxpayer's first failure to timely file a return after the taxpayer files that return.

            (Ord. 114-2023. Passed 11-13-23.)

   (d)   With respect to income taxes, estimated income taxes, withholding taxes, and returns, the Municipality shall not refund or credit any penalty, amount of interest, charges, or additional fees that were properly imposed or collected before January 1, 2016.

   (e)   The Tax Administrator may, in the Tax Administrator's sole discretion, abate or partially abate penalties or interest imposed under this Section when the Tax Administrator deems such abatement or partial abatement to be appropriate. Such abatement or partial abatement shall be properly documented and maintained on the record of the taxpayer who received benefit of such abatement or partial abatement.

   (f)   The Municipality may impose on the taxpayer, employer, any agent of the employer, or any other payer the Municipality's post-judgment collection costs and fees, including attorney's fees. (Ord. 93-2015. Passed 11-23-15.)

164.22 AUDIT.

   (a)   At or before the commencement of an audit, as defined in Section 164.05(c) of this Chapter, the Tax Administrator shall provide to the taxpayer a written description of the roles of the Tax Administrator and of the taxpayer during an audit and a statement of the taxpayer's rights, including any right to obtain a refund of an overpayment of tax. At or before the commencement of an audit, the Tax Administrator shall inform the taxpayer when the audit is considered to have commenced.

   (b)   Except in cases involving suspected criminal activity, the Tax Administrator is required to conduct an audit of a taxpayer during regular business hours and after providing reasonable notice to the taxpayer. A taxpayer who is unable to comply with a proposed time for an audit because the proposed time would cause inconvenience or hardship must offer reasonable alternative dates for the audit.

   (c)   At all stages of an audit by the Tax Administrator, a taxpayer is entitled to be assisted or represented by an attorney, accountant, bookkeeper, or other tax practitioner. The Tax Administrator shall prescribe a form by which a taxpayer may designate such a person to assist or represent the taxpayer in the conduct of any proceedings resulting from actions by the Tax Administrator. If a taxpayer has not submitted such a form, the Tax Administrator may accept other evidence, as the Tax Administrator considers appropriate, that a person is the authorized representative of a taxpayer.

   (d)   A taxpayer may refuse to answer any questions asked by the person conducting an audit until the taxpayer has an opportunity to consult with the taxpayer's attorney, accountant, bookkeeper, or other tax practitioner. This Division does not authorize the practice of law by a person who is not an attorney.

   (e)   The taxpayer or the person conducting the audit may record, electronically or otherwise, the audit examination. (Ord. 93-2015. Passed 11-23-15.)