A. On all income six hundred dollars ($600.00) and over received from gaming, wagering, lotteries, sports winnings, or schemes of chance by residents, and all income received from gaming, wagering, lotteries or schemes of chance by nonresidents as a result of activities located in the Municipality, including the purchase in the Municipality of lottery tickets, as reported on IRS Form W-2G, Form 5754 and or any other Form required by the Internal Revenue Service that reports winnings from gambling, prizes and lottery winnings. In no circumstance shall deductions be allowed against these winning . However, deductions shall be allowed against gambling and sports winnings if the taxpayer is considered a professional gambler for federal income tax purposes.
B. Royalty Income - earned by a taxpayer from a royalty interest in the production of an oil or gas well, whether managed, extracted or operated by the taxpayer individually or through an agent or other representative, shall be included in the computation of net profits from a business activity to the extent that such royalty interest constitutes a business activity of the taxpayer. Where the gross income received by a taxpayer from royalty interest in the production of an oil or gas well in a taxable year exceeds $1000.00, it shall be prima facie evidence that the income was derived from a business activity of such taxpayer and the net income from such royalty interest shall be subject to tax.
C. All employers, businesses, contractors or subcontractors who do work in the City shall register with the Income Tax Department of the City and shall present thereto a list of all employees, subcontractors, contractors or others who may do work for them whose profits, wages or earnings are not presently subject to withholding of the East Liverpool City Income Tax before they begin doing business therein. Further, all employers, businesses, contractors or subcontractors have a continuing duty to notify the City Income Tax Department of any additional employees, subcontractors, contractors or others when such new employee, subcontractor, contractor or other is hired or contracted with or by such employer, business, contractor or subcontractor. There shall be no cost for the registration of any business, employee, contractor or subcontractors thereof.
D. All new businesses, employers, contractors, developers, subcontractors or any other such person or entity must register with the City Income Tax Department before they will be eligible to receive any City services including but not limited to, City utilities. Each new resident of the City shall register with the Tax Department of the City within thirty (30) days of residence in the City. There shall be no cost for this registration.
E An officer or employee of an employer who has control or supervision of, or is charged with responsibility for filing the City income tax report or paying the City income tax withheld for employees, shall be personally liable for failure to file the report and/or for failure to pay the City income tax withheld. Dissolution, bankruptcy, or reorganization of an employer shall not discharge an officer's or employees personal liability for a prior failure of the employer to file City income tax returns and/or to pay City income tax due or withheld on behalf of employees.
F. All employers that provide any contractual service within East Liverpool City and who employ subcontractors in conjunction with that service shall provide East Liverpool the names and address of the subcontractors. The subcontractors shall be responsible for all income tax withholding requirements under East Liverpool's ordinance.
G. Tax Registration Requirements for Construction Permits.
1. All contractors involved in any project within the incorporated city limits whether general contractor, subcontractor or other, must be identified and registered with the City Income Tax Department before any permit from the Housing, Planning and Zoning Office will be issued for the project. The general contractor, or owner if self contracted, is responsible for notifying any additional contractors brought into the project after the start of the project that income tax registration is required.
2. In the event that an unregistered contractor is discovered performing work within the city limits, the City Income Tax Department shall have the authority to stop the project until such time as contractor or contractors are in compliance. The City Income Tax Department shall also have the authority to stop any project where the contractor or contractors are registered but one or more is delinquent in filing city income tax or paying city income tax with the City Income Tax Department.
3. All contractors, including the owner if the project was self-contracted, shall provide a listing of any and all contractors or subcontractors who worked with or for them during the tax year within the city limits with such list to be included with the annual income tax return of the contractor or owner.
H. Landlords of residential, commercial or other property within the City of East Liverpool are required to submit a report to the City Income Tax Department listing new adult tenants whether by lease, sublease or other such agreement in any rental property owned by landlord within the city limits, and also listing tenants who have moved from said rental properties during the reporting period. The reports shall be filed at the time of annual license payment or when new tenants move into the unit/units. Penalties for non-filing shall be assessed in accordance with Section 187.10.
I. CONTRACT PROVISIONS
No contract on behalf of the City for works or improvements of the City shall be binding or valid unless such contact contains the following provisions:
"Said hereby further agrees to withhold all City income tax due or payable under the provisions of chapter 183, Income Tax, of the Codified Ordinances of the City of East Liverpool, Ohio, for wages, salaries, and commissions paid to its employees and further agrees that any of its contractors shall be required to agree to withhold any such City income taxes due under said Chapter for services performed under this contract."
(Ord. 56, 2015. Passed 11-2-15.)