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(a) Upon a finding by City Council pursuant to the Economic Development Incentive Program, the City may provide an inducement to a business entity in the form of a credit against the tax on net profits actually collected or which is otherwise due pursuant to Sections 181.02 et seq.
(b) All business entities shall be eligible, whether currently located in the City, whether incorporated, or otherwise.
(c) The Director of Administration of the City shall from time to time prepare and accept applications from business entities for consideration of a credit. The application shall describe among other information:
(1) The anticipated number of new employees and total employees to be located within the City;
(2) The new and total employment income generated;
(3) The tax revenue anticipated in connection with employees; and
(4) Any other information the Director of Administration deems necessary to perform under this program.
(d) Upon City Council's approval, the City shall enter into a Development and Incentive Agreement signed by the City and the business entity to receive a credit equal to a portion of the actual proceeds of the tax paid pursuant to Sections 181.02 et seq. from employees of the business entity.
(e) The tax credit may be applied against amounts that the business entity is otherwise required to remit to the City based upon its net profits, or refunded after collection by the City if, as a result of the credit, the business entity has remitted to the City an amount in excess of the tax otherwise due after application of the credit, as expressly stipulated in the Agreement. In no event shall the credit reduce the taxpayer's liability for the tax imposed by this chapter on its net profits below zero.
(f) Every Agreement shall state the maximum percentage of credit as against actual receipts to the City, which shall not be exceeded in any time period, notwithstanding any statement in the application, the Agreement, or in any other context. The Agreement shall be void and unenforceable to the extent that the tax actually collected by or remitted to the City under Sections 181.02 et seq. is insufficient to cover the tax credit or any portion thereof.
(g) No tax credit shall exceed a term of fifteen years.
(h) No tax credit shall be granted to a business entity without an express provision that the business entity will continue with the project in the City for a period of time equal to the term of the credit plus five years.
(i) Each Agreement shall contain conditions that the business entity must fulfill to receive the credit, or otherwise state that the credit is unconditional.
(j) Each Agreement shall contain provisions for reduction of the credit or refund of either a portion or the whole of the credit, upon the business entity's failure to meet the conditions required in the Agreement.
(Ord. 05-38. Passed 10-3-05.)
(a) The provisions of this chapter shall not be construed to tax the following:
(1) Military pay or allowances of members of the armed forces of the United States and of members of their reserve components, including the Ohio National Guard;
(2) Income of religious, fraternal, charitable, scientific, literary or educational institutions to the extent that such income is derived from tax-exempt real estate, tax-exempt tangible or intangible property or tax-exempt activities;
(3) Amounts excluded from federal gross income pursuant to section 107 of the Internal Revenue Code; Intangible income;
(4) The income of a public utility, when that public utility is subject to the tax levied under Sections 5727.24 or 5727.30 of the Ohio Revised Code;
(5) An S corporation shareholder's distributive share of net profits of the S corporation, other than any part of the distributive share of net profits that represents wages as defined in Section 3121(a) of the Internal Revenue Code or net earnings from self-employment as defined in Section 1402(a) of the Internal Revenue Code;
(6) Qualifying wages and other compensation paid to a nonresident for personal services performed by the nonresident in the City on twelve (12) or fewer days in a calendar year unless one of the following applies:
A. The individual is an employee of another person, the principal place of business of which is located in another municipality in Ohio that imposes a tax applying to compensation paid to the individual for services paid on those days; and the individual is not liable to that other municipality for tax on the compensation paid for such services.
B. The individual is a professional entertainer or professional athlete, the promoter of a professional entertainment or sports event, or an employee of such promoter, all as may be reasonably defined by the City.
(7) Beginning with the thirteenth (13th) day that a nonresident employee receives qualifying wages or other compensation for personal services performed in the City, all provisions of this chapter shall apply to the individual and the individual's employer, including with respect to qualifying wages paid for the first twelve days.
(b) The tax provided for herein shall not be levied on the personal earnings of any natural person under eighteen years of age.
(Ord. 05-38. Passed 10-3-05.)
(Ord. 05-38. Passed 10-3-05.)
No contract on behalf of the City for works or improvements of the City shall be binding or valid unless such contract contains the following provisions:
"Said hereby further agrees to withhold all City income taxes due or payable under the provisions of Ordinance No. 05-38 of the City of Grandview Heights, Ohio, for wages, salaries and commissions paid to its employees and further agrees that any of its subcontractors shall be required to agree to withhold any such City income taxes due under such ordinance for services performed under this contract."
(Ord. 05-38. Passed 10-3-05.)
(a) All taxes imposed by this chapter and remaining unpaid after they become due shall bear interest in addition to the amount of the unpaid tax, at the rate of eighteen percent (18%) per annum, and the taxpayers upon whom such taxes are imposed by this chapter shall be liable in addition thereto, to a penalty of ten percent (10%) of the amount of the unpaid tax.
(b) A penalty shall not be assessed on an additional tax assessment made by the Director of Finance or his delegate when a return has been filed in good faith and the tax paid thereon within the time prescribed by the Director of Finance or his delegate; 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.
(Ord. 05-38. Passed 10-3-05.)
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