(A) Authority to levy tax.
(1) The tax on income and the withholding tax established by this subchapter are authorized by Article XVIII, Section 3 of the Ohio Constitution. The tax on income and the withholding tax established by this subchapter are deemed to be levied in accordance with, and to be consistent with, the provisions and limitations of R.C. Chapter 718. This subchapter is deemed to incorporate the provisions of R.C. Chapter 718.
(2) The tax is an annual tax levied on the income of every person residing in or earning or receiving income in the municipal corporation, and shall be measured by municipal taxable income. The municipality shall tax income at a uniform rate. The tax is levied on municipal taxable income, as defined herein.
(B) Purposes of tax; rate.
(1) To provide funds for the purposes of general municipal operations, maintenance, new equipment, extension and enlargement of municipal services and facilities, and capital improvements of this municipality, and retirement of notes and bonded indebtness of the municipality there shall be, and is hereby, levied a tax on salaries, wages, commissions, and other compensation, and on net profits and rentals as hereinafter provided.
(2) Rate of tax is 1.5%.
(C) Allocation of funds. The funds collected under the provisions of this subchapter shall be applied for the following purposes and in the following order of priority, to-wit:
(1) Such part thereof as shall be necessary to defray all costs of collecting the taxes levied by this subchapter and the cost of administering and enforcing the provisions hereof.
(2) The balance shall be dispersed as follows:
(a) One percent of the funds collected shall be earmarked and paid into an income tax rebate fund which funds should not exceed $1,000 in amount at any time, provided, that when said maximum amount is reached then no earmarking of funds for such purposes shall be required except to maintain said fund at said maximum level.
(b) Five-tenths of one percent will be used for the debt retirement for construction of a reservoir and appurtenances thereto develop a future municipal water supply and for the purchase and cleanup of blighted properties with 91% of the funds dedicated to the reservoir and its appurtenances and 9% of the funds dedicated to the purchase and cleanup of blighted properties. This is in effect for the period of January 1, 2016 and ending December 31, 2025.
(c) The balance of all funds shall be used for purposes of general municipal operations, maintenance, new equipment, extension and enlargement of municipal services and facilities and capital improvements of this municipality, including but not limited to street and sewer construction improvement, maintenance and repair; construction, remodeling, or enlargement of public buildings and facilities; purchase and maintenance of new and additional equipment for the different departments, boards, and offices of the village; capital improvements for recreation and park, and for retirement of notes and bonded indebtedness of the municipality.
(D) Statement of procedural history; state mandated changes to municipal income tax.
(1) Significant and wide-ranging amendments to R.C. Chapter 718 were enacted by Am Sub HB 5, passed by the 130th General Assembly, and signed by Governor Kasich on December 19, 2014, and H.B. 5 required municipal corporations to conform to and adopt the provisions of R.C. Chapter 718 in order to have the authority to impose, enforce, administer, and collect a municipal income tax.
(2) As mandated by H.B. 5, municipal income tax Ordinance 2884 (this subchapter), effective January 1, 2016, comprehensively amends Ordinance 1202 in accordance with the provisions of R.C. Chapter 718 to allow the municipality to continue the income tax and withholding tax administration and collection efforts on behalf of the municipality.
(Ord. 2884, passed- - )