§ 35.044 FILING NET PROFIT TAXES; ELECTION TO BE SUBJECT TO PROVISIONS OF SUBCHAPTER

   (A)    A taxpayer may elect to be subject to §§ 35.044 to 35.060 of the city code in lieu of the provisions set forth in the remainder of this subchapter. Notwithstanding any other provision of this subchapter, upon the taxpayer’s election, both of the following shall apply:

      (1)   The Tax Administrator shall serve as the sole administrator of each municipal income tax for which the taxpayer is liable for the term of the election; and

      (2)   The Administrator shall administer the tax pursuant to §§ 35.044 to 35.060 of the city code and any applicable provision of R.C. Chapter 5703.

   (B)   (1)   A taxpayer shall make the initial election on or before the first day of the third month after the beginning of the taxpayer’s taxable year by notifying the Tax Administrator and each municipal corporation in which the taxpayer conducted business during the previous taxable year, on a form prescribed by the Tax Administrator.

      (2)   (a)   The election, once made by the taxpayer, applies to the taxable year in which the election is made and to each subsequent taxable year until the taxpayer notifies the Tax Administrator and each municipal corporation in which the taxpayer conducted business during the previous taxable year of its termination of the election.

         (b)   A notification of termination shall be made, on a form prescribed by the Tax Administrator, on or before the first day of the third month of any taxable year.

         (c)   Upon a timely and valid termination of the election, the taxpayer is no longer subject to §§ 35.044 to 35.060 of the city code, and is instead subject to the provisions set forth in the remainder of this subchapter.

   (C)   (1)   (a)   On or before January 31 each year, each municipal corporation imposing a tax on income shall certify to the Tax Administrator the rate of the tax in effect on the first day of January of that year.

         (b)   If, after January 31 of any year, the electors of a municipal corporation approve an increase in the rate of the municipal corporation’s tax on income that takes effect within that year, the city shall certify to the Tax Administrator the new rate of tax not less than 60 days before the effective date of the increase, after which effective date the Administrator shall apply the increased rate.

      (2)   The city, within 90 days of receiving a taxpayer’s notification of election under division (B) of this section, shall submit to the Tax Administrator, on a form prescribed by the Tax Administrator, the following information regarding the taxpayer:

         (a)   The amount of any net operating loss that the taxpayer is entitled to carry forward to a future tax year;

         (b)   The amount of any net operating loss carryforward utilized by the taxpayer in prior years;

         (c)   Any credits granted by the city to which the taxpayer is entitled, the amount of such credits, whether the credits may be carried forward to future tax years, and, if the credits may be carried forward, the duration of any such carryforward;

         (d)   Any overpayments of tax that the taxpayer has elected to carry forward to a subsequent tax year; and

         (e)   Any other information the city deems relevant in order to effectuate the Tax Administrator’s efficient administration of the tax on the city’s behalf.

      (3)   If any municipal corporation fails to timely comply with divisions (C)(1) and (C)(2) of this section, the Tax Administrator shall notify the director of budget and management, who, upon receiving such notification, shall withhold from each payment made to the municipal corporation under § 35.047 of the city code 50% of the amount of the payment otherwise due to the municipal corporation under that section. The director shall compute the withholding on the basis of the tax rate most recently certified to the Tax Administrator until the municipal corporation complies with divisions (C)(1) and (C)(2) of this section.

   (D)   The Tax Administrator shall enforce and administer §§ 35.045 to 35.060 of the city code. In addition to any other powers conferred upon the Tax Administrator by law, the Tax Administrator may:

      (1)   Prescribe all forms necessary to administer those sections;

      (2)   Adopt such rules as the Tax Administrator finds necessary to carry out those sections; and

      (3)   Appoint and employ such personnel as are necessary to carry out the duties imposed upon the Tax Administrator by those sections.

   (E)   No Tax Administrator shall utilize §§ 35.045 to 35.060 of the city code in the Administrator’s administration of a municipal income tax, and those sections shall not be applied to any taxpayer that has not made the election under this section.

   (F)   Nothing in this subchapter shall be construed to make any section of this subchapter, other than §§ 35.003 and 35.045 to 35.060 of the city code, applicable to the Tax Administrator’s administration of a municipal income tax or to any taxpayer that has made the election under this section.

   (G)   The Tax Administrator shall not be considered a Tax Administrator, as that term is defined in § 35.003 of the city code.

(Ord. 2018-02, passed 2-12-2018; Ord. 2023-41, passed 11-16-2023)