(a) To provide funds for the purposes of general municipal operations, maintenance, new equipment, extension and enlargement of municipal services and facilities and capital improvements, the Municipality of East Palestine hereby levies an annual municipal income tax on income, qualifying wages, commissions and other compensation, and on net profits as hereinafter provided.
(b) (1) Effective January 1, 2020, the annual tax levied by the Municipality of East Palestine shall increase by one-half percent (0.50%) (additional funds) from a rate of one percent (1.00%) to a permanent rate of one and one-half percent (1.50%). The tax is levied at a uniform rate on all persons residing in or earning or receiving income in the Municipality of East Palestine. The tax is levied on income, qualifying wages, commissions and other compensation, and on net profits as hereinafter provided in Section 882.03 of this chapter and other sections as they may apply.
(2) The additional funds collected under the provisions of the chapter shall be deposited into the General Fund, and such additional funds collected shall thereafter be allocated and dispersed in the following order and manner:
A. Such part thereof as is necessary to defray the costs of collecting the taxes and the cost of administering and enforcing the provisions of this chapter.
B. The balance of additional funds collected as a result of the one-half percent (0.50%) increase set forth in division (b)(1) of this section shall be allocated and dispersed as follows:
1. A minimum of twenty-five percent (25.00%) shall be allocated and dispersed to the Police Division of the Municipality of East Palestine for the general operations of the police department including, but not limited to, payment of department personnel, maintenance of facilities and equipment, new equipment, and for such other purposes as improve and advance the operations of said department;
2. A minimum of twenty-five percent (25.00%) shall be allocated and dispersed to the Fire Division of the Municipality of East Palestine for the general operations of the fire department including, but not limited to, payment of fire and EMS department personnel, maintenance of fire and EMS facilities and equipment, new fire and EMS equipment, and for such other purposes as improve and advance the operations of said department;
3. Remaining additional funds collected, if any, as a result of the one-half percent (0.50%) increase set forth in divisions (b)(1) of this section, after the allocations established in divisions 1. and 2. above, shall be allocated and dispersed to the General Fund of the Municipality of East Palestine to provide funds for the purposes of general municipal operations, maintenance, new equipment, extension and enlargement, and improvement of municipal services and facilities, capital improvements in and of the Municipality, and for the promotion of economic development in and for the municipality.
(c) The tax on income and the withholding tax established by this chapter are authorized by Article XVIII, Section 3 of the Ohio Constitution. The tax is levied in accordance with, and is intended to be consistent with, the provisions and limitations of R.C. Chapter 718.
(Ord. 19-2015. Passed 10-26-15; Ord. 30-2017. Passed 12-28-2017; Ord. 14-2018. Passed 12- 27-18.)