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Notwithstanding Section 181.05 of the Codified Ordinances, for the tax year 2019, and only for the tax year 2019, due to the outbreak of COVID-19 and in response to the federal government delaying the filing deadline for 2019 taxes to July 15, 2020, the City of Germantown delays the filing date for Municipal Returns for the tax year 2019 to July 15, 2020. All other provisions of the City of Germantown Tax Code, unless specifically modified herein, shall remain in full force and effect. (Ord. 20-18. Passed 4-6-20.)
(a) (1) Each employer shall at the time of the payment of any salary, wage, commission or other compensation, deduct the tax of one and one quarter percent (1.25%) beginning November 3, 1987, of the gross salaries, wages, commissions or other compensation due by the employer to his employees who are subject to the provisions of this chapter. In making such deduction at the time of payment, the employer shall compute the tax to the nearest full cent so that mills of five or more shall be increased to the next full cent and mills less than five shall be dropped. No person shall be entitled to a refund merely because such rounding off of the tax results in an apparent overpayment based on his total earnings. Each employer shall, on or before the fifteenth day of each month, make a return and pay to the Superintendent, the tax withheld during the preceding month. Provided, however, the Superintendent shall have the authority to approve the filing of returns and payment of the tax withheld on a quarterly basis. In such case, the employer shall, on or before the fifteenth day of each month following the calendar quarters ending March 31, June 30, September 30 and December 31, make a return and pay to the Superintendent the tax withheld during the preceding calendar quarter. Such approval for quarterly filings and payments may be withdrawn by the Superintendent when it is to the best interests of the City to do so. The Superintendent shall provide by regulations, the manner in which such approval is to be granted or withdrawn.
(2) The employer shall be liable for the payment of the tax required to be deducted and withheld whether or not such tax has in fact been withheld.
(b) Such employer in collecting such tax, shall be deemed to hold the same, until payment is made by such employer to Germantown, as a trustee for the benefit of Germantown and any such tax collected by such employer from his employees shall, until the same is paid to Germantown, be deemed a trust fund in the hands of such employer.
(c) No person shall be required to withhold the tax on the wages or other compensation paid domestic servants employed by him exclusively in or about such person's residence, even though such residence is in Germantown, but such employee shall be subject to all of the requirements of this chapter.
(d) On or before January 31 of each year beginning with the year 1972, each employer shall file a withholding return on a form prescribed by and obtainable upon request from the Superintendent, setting forth the names and addresses of all employees from whose compensation the tax was withheld during the preceding calendar year and the amount of tax withheld from his employees and such other information as may be required by the rules and regulations adopted by the Superintendent.
(e) All employers that provide any contractual service within the Municipality and who employ subcontractors in conjunction with that service, shall provide the Municipality the names and addresses of the subcontractors. The subcontractors shall be responsible for all income tax withholding requirements under this chapter.
(Ord. 01-68. Passed 1-7-02.)
(a) Every person who anticipates the receipt of any taxable income which is not subject to Section 181.06, or who engages in any business, profession, enterprise or activity subject to the tax imposed by Section 181.03, shall file a declaration setting forth such person's estimated taxable income together with any estimated tax due thereon, if any; provided, however, if a person's income is wholly from wages from which the tax will be withheld and remitted to Germantown in accordance with Section 181.06, such person need not file a declaration.
(b) (1) Such declaration shall be filed on or before April 30 of each year during the life of this chapter, except that no penalties or interest shall be assessed, for not filing a declaration, on any resident taxpayer who was not domiciled in the Municipality on the first day of January of the year in which they became subject to estimated payments, nor shall penalties or interest be assessed on estimated payments if the taxpayer has remitted an amount equal to one hundred percent of the previous year's tax liability, provided that the previous year reflected a twelve-month period.
(2) Those taxpayers reporting on a fiscal year basis shall file a declaration within four months after the beginning of each fiscal year or period.
(c) (1) Such declaration shall be filed upon a form furnished by or obtainable upon request from the Superintendent. Credit shall be taken for the Germantown tax to be withheld from any portion of such income to determine the estimated tax due. In accordance with the provisions of Section 181.15, credit may be taken for tax to be paid to or to be withheld and remitted to another taxing municipality.
(2) The original declaration, or any subsequent amendment thereof, may be amended at any time.
(3) An amended declaration must be filed on or before January 31 of the following year, or in the case of a taxpayer on a fiscal year, on or before the date fixed by regulation of the Superintendent if it appears that the original declaration made for such taxable year underestimated the taxpayer's income by thirty percent (30%) or more. At such time a payment which, together with prior payments, is sufficient to pay the taxpayer's entire estimated liability shall be made. If upon the filing the return required by Section 181.05, it appears that the taxpayer did not pay ninety percent (90%) of his tax liability, as shown on such return, on or before January 31, or the date fixed by regulations, whichever is applicable, the difference between ninety percent (90%) of such taxpayer's tax liability and the amount of estimated tax actually paid on or before January 31, or the date fixed by regulation, whichever is applicable, shall be subject to the interest and penalty provisions of Section 181.10. An exception will be made if one hundred percent (100%) of the prior year tax liability has been paid in equal quarterly installments in the current year.
(d) (1) Such declaration of net estimated tax to be paid Germantown by taxpayers who are individuals shall be accompanied by a payment of at least one- fourth of ninety percent (90%) of the estimated annual tax, less credit, and at least a similar amount shall be paid on or before the last day of the seventh, tenth and thirteenth months after the beginning of the taxable year. Provided, however, that in case and amended declaration has been filed, the unpaid balance shown due thereon shall be paid in equal installments on or before the remaining payment dates.
(2) Such declaration of estimated tax to be paid Germantown by corporations and associations shall be accompanied by a payment of at least one fourth of 90% of the estimated annual tax and at least a similar amount shall be paid on or before June 15, September 15 and December 15. In the case of a fiscal year taxpayer the second, third, and fourth quarter payments shall be due on the fifteenth day of the sixth, ninth and twelfth months of the taxable year, respectively.
(3) Provided further, however, that the last-quarterly payment of estimated tax need not be made if the taxpayer files his final return and pays the balance of the tax due thereon within forty-five days following the end of his taxable year.
(e) On or before the last day of the fourth month of the calendar or fiscal year following that for which such declaration or amended declaration was filed, an annual return shall be filed and any balance which may be due Germantown shall be paid therewith in accordance with the provisions of Section 181.05.
(Ord. 01-68. Passed 1-7-02.)
(a) (1) It shall be the duty of the Superintendent to receive the tax imposed by this chapter in the manner prescribed herein from the taxpayers; to keep an accurate record thereof; and to report daily all moneys as received.
(2) It shall be the duty of the Superintendent to enforce payment of all taxes owing Germantown, to keep accurate records for a minimum of six years showing the amount due from each taxpayer required to file a declaration and/or make any return, including taxes withheld, and to show the dates and amounts of payments thereof.
(b) The Superintendent is hereby charged with the enforcement of the provisions of this chapter, and is hereby empowered, subject to the approval of Council by motion, to adopt and promulgate and to enforce rules and regulations relating to any matter or thing pertaining to the collection of taxes and administration and enforcement of the provisions of this chapter, including provisions for the reexamination and correction of returns.
(c) In any case where a taxpayer or employer has failed to file a return or has filed a return which does not show the proper amount of tax due, the Superintendent may assess the amount of tax appearing to be due, together with interest and penalties thereon, if any, in the following manner:
(1) General provisions.
A. If the Superintendent determines that any taxpayer subject to the provisions of this chapter has a tax liability for which he as filed no return or has filed an incorrect return and has failed to pay the full amount of tax due, the Superintendent shall issue a proposed assessment showing the amount of tax due, together with any penalty and interest that may have accrued thereon.
1. Such proposed assessment shall be served upon the taxpayer in person or by mailing to his last know address. Proof of mailing furnished by the U.S. Post Office shall be presumptive proof of receipt thereof by the addressee.
2. A taxpayer may, within fifteen days after the date the proposed assessment was served or mailed, file a written protest with the Superintendent. Within fifteen days after receipt of the protest, the Superintendent shall give the protestant an opportunity to be heard; provided further that the Superintendent may extend the date of hearing for good cause shown. After the hearing the Superintendent shall withdraw the assessment or he shall adjust or reaffirm the assessment and it shall then become final. If no protest is filed as herein provided, such proposed assessment shall become final fifteen days after being served.
B. After a proposed assessment becomes final, notice of such final assessment shall be issued and shall be served in the same manner as a proposed assessment.
1. A taxpayer shall have thirty days after the date the final assessment was served or mailed within which to file written notice of appeal with the Board of Tax Appeals. Such written notice of appeal shall be filed in a sealed envelope plainly marked "Appeal to Board of Tax Appeals" and mailed or delivered to the Superintendent who shall deliver such appeal to the Chairman of the Board of Tax Appeals, or, if the Chairman is not available, to the Vice-Chairman.
2. The Board of Tax Appeals, upon receipt of a notice of appeal, shall within fifteen days notify the Superintendent thereof who shall forward within fifteen days to the Board a certified transcript of all actions taken by him with respect to such final assessment. Such transcript shall be open to inspection by the appellant and his counsel. The Board of Appeals shall schedule a hearing on the appeal within 45 days from the date of the appeal. (See section 181.13.)
3. Any taxpayer against whom a final assessment has been issued and who has filed a notice of appeal shall be granted a hearing by the Board of Tax Appeals. At such hearing the appellant and the Superintendent shall be given opportunity to present evidence relating to the final assessment. After the conclusion of such hearing, the Board of Tax Appeals shall affirm, reverse or modify the final assessment and shall furnish a copy of its decision in respect thereof to the appellant and the Superintendent. The appellant's copy of such decision shall be served upon him in the same manner as herein provided for services of assessments.
C. When any taxpayer subject to the provisions of this chapter has filed a return indicating the amount of tax due and has failed to pay such tax to the Superintendent as required by this chapter, the Superintendent need not issue an assessment but may proceed under the provisions of Sections 181.11 and 181.12.
(2) Provisions affecting employers.
A. If the Superintendent determines that an employer subject to the provisions of this chapter has failed to file a return for tax withheld and has failed to pay to the Superintendent the full amount of such taxes, the Superintendent shall issue a proposed assessment showing the amount of tax due, together with any penalties and interest that may have accrued thereon, and the provision of subsections (c)(1)A. and B. hereof shall apply.
B. If the Superintendent determines that an employer subject to the provisions of this chapter has failed to withhold tax, the Superintendent shall issue a proposed assessment showing the tax due, together with any penalties and interest that may have accrued thereon, and the provisions of subsections (c)(1)A. and B. hereof shall apply.
C. When an employer subject to the provisions of this chapter has filed a return indicating the amount of tax withheld and has failed to pay such tax to the Superintendent as required by this chapter, the Superintendent may proceed under the provisions of Section 181.11 and 181.12 and need not issue an assessment as provided in subsections (c)(2)A. and B. hereof.
(d) Any taxpayer or employer who does not file a notice of appeal to the Board of Tax Appeals from a final assessment issued against him shall pay the amount thereof within thirty days after service of such final assessment.
(e) The Superintendent shall have the authority, when requested by the taxpayer and for good cause shown, to extend the time of making and filing any return whenever he deems it necessary so to do, but not to exceed a period of six months, or one month beyond any extension requested of or granted by the Internal Revenue Service for the filing of the Federal income tax return.
(f) When an application for deferred payment of tax due is filed by a taxpayer, the Superintendent may authorize partial payments of unpaid taxes when, in his judgment, the taxpayer is unable, due to hardship conditions, to pay the full amount of the tax when due, and when, in his judgment, such deterred payments are the best means of accomplishing the intent of this chapter. Provided, however, that the Superintendent shall not authorize an extension of time for the payment of such taxes due for more than six months beyond the date of the filing of the application.
(Ord. 01-68. Passed 1-7-02.)
(a) The Superintendent, or any authorized employee, is hereby authorized to examine the books, papers, records and copies of Federal income tax returns of any employer or of any taxpayer or person subject to, or whom the Superintendent believes is subject to the provisions of this chapter, for the purpose of verifying the accuracy of any return made, or if no return was made, to ascertain the tax due under this chapter. Every such employer, supposed employer, taxpayer or supposed taxpayer, is hereby directed and required to furnish within ten days following a written request by the Superintendent, or his duly authorized agent or employee, the means, facilities and opportunity for making such examinations and investigations as are hereby authorized.
(b) The Superintendent is hereby authorized to order any person presumed to have knowledge of the facts to appear before him and may examine such person, under oath, concerning any income which was or should have been returned for taxation or any transaction tending to affect such income, and for this purposes may compel the production of books, papers, records and copies of Federal income tax returns and the attendance of all personnel before him, whether as parties or witnesses, whenever he believes such persons have knowledge of such income or information pertinent to such inquiry.
(c) The refusal to produce books, papers, records and copies of Federal income tax returns, or the refusal to submit to such examination by any employer or person subject or presumed to be subject to the tax or by any officer, agent or employee of a person subject to the tax or required to withhold tax or the failure of any person to comply with the provisions of the section or with an order or subpoena of the Superintendent authorized hereby shall be deemed a violation of this chapter, punishable as provided in Section 181.12.
(d) Any information gained as the result of any returns, investigations, hearings or verifications required or authorized by this chapter shall be confidential, except for official purposes, or except when ordered by a court of competent jurisdiction. Any person divulging such information in violation of this chapter, shall, upon conviction thereof, be deemed guilty of a misdemeanor and shall be subject to a fine or penalty of not more than five hundred dollars ($500.00) or imprisoned for not more than six months, or both. Each disclosure shall constitute a separate offense.
In addition to the penalty, any employee of the City who violates the provisions of this section relative to the disclosure of confidential information shall be guilty of an offense punishable by immediate dismissal.
(e) Every taxpayer shall retain all records necessary to compute his tax liability for a period of six years from the date his return is filed, or the withholding taxes are paid.
(Ord. 01-68. Passed 1-7-02.)
(a) All taxes imposed and all monies withheld or required to be withheld by employers under the provisions of this chapter and remaining unpaid ten days after they become due shall bear interest at the rate at which interest is paid on refunds according to Ohio R.C. 5702.47, and updated annually.
(b) In addition to interest as provided in subsection (a) hereof, penalties are hereby imposed as follows based on the tax remaining unpaid ten days after they become due:
(1) For failure to pay taxes due, other than taxes withheld; one and one half percent (1 1/2%) per month or fraction thereof.
(2) For failure to remit taxes withheld from employees: three percent (3%) per month or fraction thereof, or ten percent (10%), whichever is greater.
(3) Where the taxpayer has failed to file a declaration on which he has estimated and paid a tax equal to or greater than the tax paid for the previous year, or has failed to file a declaration on which he was estimated and paid tax equal to or greater than ninety percent (90%) of the actual tax for the year, or has failed to file a final return and pay the total tax on or before the end of the month following the end of his taxable year; ten percent (10%) of the difference, between ninety percent (90%) of the actual tax for the year and the amount paid through withholding or declaration.
(4) Except in the case of fraud, the penalty shall not exceed fifty percent (50%) of the unpaid tax.
(5) Twenty-five dollars ($25.00) shall be assessed as an administrative charge for those taxpayers failing to timely file the annual return or failing to pay the taxes due.
(c) Exceptions. A penalty shall not be assessed on an additional tax assessment made by the Superintendent when a return has been filed in good faith and the tax paid thereon within the time prescribed by the Superintendent and provided further, that, in the absence of fraud, neither penalty nor interest shall be assessed on any additional tax assessment resulting from a Federal audit, providing an amended return is filed and the additional tax is paid within three months after final determination of the Federal tax liability.
(d) Upon recommendation of the Superintendent, the Board of Tax Appeals may abate penalty or interest, or both.
(e) Provided, however, that in no case shall penalty and interest charges be levied when the total of such penalty and interest amounts to less than one dollar ($1.00).
(f) Any person required to withhold the tax who knowingly fails to withhold such tax, or pay over such tax or knowingly attempts in any manner to evade or defeat such tax or the payment thereof, shall, in addition to other penalties provided by law, be liable to a penalty equal to the total amount of the tax evaded, or not withheld, or not paid over. No other penalty under this section shall be applied to any offense to which this penalty is applied.
(g) Interest but no penalty will be assessed where an extension has been granted by the Superintendent and the final tax paid within the period as extended.
(Ord. 01-68. Passed 1-7-02.)
(a) In addition to any criminal penalties which may be imposed pursuant to Section 181.12, all taxes imposed by Section 181.03 shall be collectible, together with any interest and penalties thereon, by civil suit. Except in the case of fraud, omission of twenty-five percent (25%) or more of income subject to this tax, or failure to file a return, an additional assessment shall not be made after three years from the time the return was due or filed, whichever is later. In the case of fraud, omission of 25% or more of income subject to this tax or failure to file a return, all additional assessments shall be made and all civil actions to recover Municipal income taxes and penalties and interest thereon shall be brought within six (6) years after the tax was due or the return was filed whichever is later. In those cases in which the Commissioner of Internal Revenue and the taxpayer have executed a waiver of the Federal statute of limitation, the period within which an additional assessment may be made by the Superintendent shall be one year form the time of the final determination of the Federal tax liability.
(b) Those officers or employees having control or supervision of, or charged with, the responsibility of filing the return and making payments for a corporation or association shall be personally liable for failure to file the return or pay the taxes and penalties and interest due as required. The dissolution, bankruptcy or reorganization of any employer does not discharge the officers' or employees' liability for a prior failure of such business to file a return or pay the taxes due.
(c) Taxes erroneously paid shall not be refunded unless a claim for refund is made within three years from the date which such payment was made or the return was due, or within three months after final determination of the Federal tax liability, whichever is later.
(d) Additional amounts of less than one dollar ($1.00) shall not be refunded or assessed unless such assessment results from income which the taxpayer has failed to report.
(Ord. 01-68. Passed 1-7-02.)
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