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181.04 EFFECTIVE PERIOD.
   Said tax shall be levied, collected and paid with respect to the wages, salaries, lottery winnings, and other winnings from any and all types of gambling and with respect to the net profits of businesses, professions or other activities earned on and or after January 1, 2004.
(Ord. 2004-04. Passed 3-2-04.)
 
181.05 DETERMINATION OF ALLOCATION OF TAX.
   (a)    Method of Determination. In the taxation of income which is subject to Village Income Taxes, if the books and records of a taxpayer conducting a business or profession both within and without the boundaries of the Village of Linndale shall disclose with reasonable accuracy what portion of its net profit is attributable to that part of the business or profession conducted within the boundaries of the Village of Linndale, then only such portion shall be considered as having a taxable situs in the Village of Linndale for the purposes of municipal income taxation. The portion of the entire net profits of a taxpayer to be allocated as having been derived from within the Village of Linndale, in the absence of actual records thereof, shall be determined as follows:
      (1)    Multiply the entire net profits by a business allocation percentage to be determined by a three-factor formula of property, payroll, and sales, each of which shall be given equal weight, as follows:
         A.    The average net book value of the real and tangible personal property owned or used by the taxpayer in the business or profession in the Village, during the taxable period to the average net book value of all the real and tangible personal property owned or used by the taxpayer in the business or profession during the same period, wherever situated.
As used in the preceding paragraph, real property shall include property rented or leased by the taxpayer and the value of such property shall be determined by multiplying the annual rental thereon by eight.
         B.    Wages, salaries and other compensation paid during the taxable period to persons employed in the business or profession for services performed in the Village to wages, salaries, and other compensation paid during the same period to persons employed in the business or profession, wherever their services are performed.
         C.    Gross receipts of the business or profession from sales made and services performed during the taxable period in the Village to gross receipts of the business or profession during the same period from sales and services, wherever made or performed.
      (2)    In the event that the foregoing allocation formula does not produce an equitable result, another basis may, under uniform regulations, be substituted so as to produce such result.
 
   (b)    Sales Made in the Village. As used in Section 181.05 (a)(1)C. "sales made in the Village of Linndale" mean:
      (1)    All sales of tangible personal property which is delivered within the Village regardless of where title passes if shipped or delivered from a stock of goods within the Village.
      (2)    All sales of tangible personal property which is delivered within the Village regardless of where title passes even though transported from a point outside the Village if the taxpayer is regularly engaged through its own employees in the solicitation or promotion of sales within the Village and the sales result from such solicitation or promotion.
      (3)    All sales of tangible personal property which is shipped from a place within the Village to purchasers outside of the Village regardless of where title passes if the taxpayer is not, through its own employees, regularly engaged in the solicitation or promotion of sales at the place where delivery is made.
 
   (c)    Total Allocation. 
       (1)    Add together the percentages determined in accordance with Section 181.05(a)(1) A., B. and C. or such of the aforesaid percentages as are applicable to the particular taxpayer and divide the total so obtained by the number of percentages used in deriving the total in order to obtain the business allocation percentage referred to in Section 181.05(a).
      (2)    A factor is applicable even though it may be allocable entirely in or outside the Village.
 
   (d)    Rentals. 
      (1)    Rental income received by a taxpayer shall be included in the computation of net profits from business activities under Section 181.03(c),(d) and (e) only if and to the extent that the rental ownership, management or operations of the real estate from which such rentals are derived (whether so rented, managed or operated by a taxpayer individually or through agents or other representatives) constitutes a business activity of the taxpayer in whole or in part.
      (2)    Where the gross monthly rental of any and all real properties, regardless of number and value, aggregates in excess of one hundred twenty-five dollars ($125.00) per month, it shall be prima facie evidence that the rental, ownership, management or operation of such properties is a business activity of such taxpayer, and the net income of such rental property shall be subject to tax; provided that in the case of commercial property, the owner shall be considered engaged in a business activity when the rental is based on a fixed or fluctuating percentage of gross or net sales, receipts or profits of the lessee, whether or not such rental exceeds one hundred twenty-five dollars ($125.00) per month; provided further that in the case of farm property, the owner shall be considered engaged in a business activity when he shares in crops or when the rental is based on a percentage of the gross or net receipts derived from the farm, whether or not the gross income exceeds such one hundred twenty-five dollars ($125.00) per month; and provided further that the person who operates a licensed rooming house shall be considered in business whether or not the gross income exceeds one hundred twenty-five dollars ($125.00) per month.
 
   (e)    Operating Loss-Carry Forward.
      (1)    The portion of a net operating loss sustained in any taxable year subsequent to July 1, 1970, allocable to the Village may be applied against the portion of the profit of succeeding tax years allocable to the Village of Linndale until exhausted but in no event for more than five taxable years immediately following the year in which the loss occurred. No portion of a net operating loss shall be carried back against net profits of any prior year.
      (2)    The portion of net operating loss sustained shall be allocated to the Village in the same manner as provided herein for allocating net profits to the Village.
      (3)    The Administrator shall provide by Rules and Regulations the manner in which such net operating loss carry-forward shall be determined.
         (Ord. 1970.- .)
 
181.06 EXEMPTIONS.
   The tax provided for herein shall not be levied on the following:
   (a)    Pay or allowance of active members of the Armed Forces of the United States or on the 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.
   (b)    Poor relief, unemployment insurance benefits, old age pensions or similar payments including disability benefits received from local, State or Federal governments or charitable, religious or educational organizations.
   (c)    Proceeds of insurance paid by reason of the death of the insured; pensions, disability benefits, annuities or gratuities not in the nature of compensation for services rendered from whatever source derived.
   (d)    Receipts from seasonal or casual entertainment, amusements, sport events and health and welfare activities when any such are conducted by bona fide charitable, religious or educational organizations and associations.
   (e)    Alimony received.
   (f)    Personal earnings of any natural person under eighteen years of age.
   (g)    Compensation for personal injuries or for damages to property by way of insurance or otherwise.
   (h)    Interest, dividends and other revenue from intangible property.
   (i)    Gains from involuntary conversion, cancellation of indebtedness, interest on Federal obligations, items of income already taxed by the State of Ohio from which the City is specifically prohibited from taxing and income of a decedent's estate during the period of administration (except such income from the operation of a business).
   (j)    Salaries, wages, commissions and other compensation and net profits, the taxation of which is prohibited by the United States Constitution or any act of Congress limiting the power of the States or their political subdivisions to impose net income taxes on income derived from interstate commerce.
   (k)    Salaries, wages, commissions and other compensation and net profits, the taxation of which is prohibited by the Constitution of the State of Ohio or any act of the Ohio General Assembly limiting the power of the Village to impose net income taxes. (Ord. 1970.- .)
 
181.07 RETURNS.
   (a)    When Return Required To Be Made. Each taxpayer, except as herein provided, shall, whether or not a tax be due thereon, make and file a return on or before April 30, of the year following the effective date of this chapter, and on or before April 30, of each year thereafter. When the return is made for a fiscal year or other period different from the calendar year, the return shall be filed within four months from the end of such fiscal year or period. The Administrator is hereby authorized to provide by regulation that the return of an employer or employers, showing the amount of tax deducted by the employer or employers from the salaries, wages, commissions or other compensation of an employee, and paid by him or them to the Administrator shall be accepted as the return required of any employee whose sole income, subject to tax under this chapter, is such salary, wages, commissions or other compensation.
 
   (b)    Form and Content of Return. The return shall be filed with the Administrator on a form or forms furnished by or obtainable upon request from such Administrator, setting forth:
      (1)    The aggregate amounts of salaries, wages, commissions and other compensation earned and gross income from business, profession or other activity, less allowable expenses incurred in the acquisition of such gross income earned during the preceding year and subject to such tax.
      (2)    The amount of the tax imposed by this chapter on such earnings and profits, and
      (3)    Such other pertinent statements, information returns, or other information as the Administrator may require.
 
   (c)    Extension of Time for Filing Returns. The Administrator may extend the time for filing of the annual return upon the request of the taxpayer for a period not to exceed 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. The Administrator may require a tentative return, accompanied by payment of the amount of tax shown to be due thereon by the date the return is normally due. No penalty or interest shall be assessed in those cases in which the return is filed and the final tax paid within the period as extended.
 
   (d)    Consolidated Returns. 
      (1)    Filing of consolidated returns may be permitted or required in accordance with Rules and Regulations prescribed by the Administrator.
      (2)    In the case of a corporation that carried on transactions with its stockholders or with other corporations related by stock ownership, interlocking directorates, or some other method, or in case any person operates a division, branch, factory, office, laboratory or activity within the Village constituting a portion only of its total business, the Administrator shall require such additional information as he may deem necessary to ascertain whether net profits are properly allocated to the Village of Linndale. If the Administrator finds that net profits are not properly allocated to the Village by reason of transactions with stockholders or with other corporations related by stock ownership, interlocking directorates, or transactions with such division, branch, factory, office, laboratory or activity or by some other method, he shall make such allocation as he deems appropriate to produce a fair and proper allocation of net profits, to the Village.
 
   (e)    Amended Returns.
      (1)    Where necessary an amended return must be filed in order to report additional income and pay any additional tax due, or claim a refund of tax overpaid, subject to the requirements, limitations, or both, contained in Section 181.10, and Section 181.11 hereof. Such amended return shall be on a form obtainable on request from the Administrator. A taxpayer may not change the method of accounting or apportionment of net profits after the due date for filing the original return.
      (2)    Within three months from the final determination of any federal tax liability affecting the taxpayer's Village of Linndale tax liability, such taxpayer shall make and file an amended Village return showing income subject to the Village tax based upon such final determination of federal tax liability, and pay any additional tax shown due thereon or make claim for refund of any overpayment.
(Ord. 83-19. Passed 8-11-83.)
181.08 PAYMENT OF TAX.
   (a)   Payment of Tax on Filing of Return.
      (1)   The taxpayer making a return shall, at the time of filing thereof, pay to the Administration the amount of taxes shown as due thereon; provided, however, that where any portion of the tax shall have been deducted at the source pursuant to the provisions of subsection (b) hereof, or where any portion of such tax have been paid by the taxpayer pursuant to the provisions of subsection (c) hereof, or whether an income tax has been paid to another municipality, credit for the amount so paid in accordance with Section 181.11 hereof, shall be deducted from the amount to be due and only the balance, if any, shall be due and payable at the time of filing such return.
      (2)   A taxpayer who has overpaid the amount of the tax to which the Village is entitled under the provisions of this chapter may have such overpayment applied against any subsequent liability hereunder or, at his election, indicated on the return, such overpayment (or part thereof) shall be refunded, provided that no additional taxes or refunds of less than one dollar ($1.00) shall be collected or refunded.
   (b)   Collection at Source.
      (1)   In accordance with rules and regulations prescribed by the Administrator, each employer within or doing business within the Village of Linndale shall deduct at the time of the payment of such wages, salaries, commission or other compensations the tax of two percent (2%) per annum of the gross salaries due by the wages, salaries, commission or other compensation due by the said employer to said employee and shall, on or before the last day of the month following the close of each calendar quarter make a return and pay the amount of taxes so deducted, subject to the provisions of Subsections (b), (3), (4) and (5) hereof, Said returns shall be on a form or forms prescribed by or acceptable to the Administrator and shall be subject to the rules or regulations prescribed therefore by the Administrator. Such employer shall be liable for the payment of the tax required to be deducted and withheld, whether or not such taxes in fact have been withheld.
      (2)   Such employer in collecting the tax shall be deemed to hold the same, until payment is made by such employer to the Village, as a Trustee for the benefit of the Village and any such tax collected by such employer, shall, until the same is paid to the Village be deemed a trust fund in the hands of such employer.
      (3)   Such employer who deducts the tax in an amount of hundred dollars ($100,000) or more in the first or second month of a calendar quarter shall, on or before the twentieth day of the following month, pay to the Administrator the amount of taxes so
      (4)   Such employer who makes such payment on a monthly basis for the first two months of a calendar quarter shall pay such tax deducted for the third month of a calendar quarter at the regular time for filing the employer’s quarterly return of income tax withheld.
      (5)   Such payment shall be on a form or forms furnished by or obtainable from the Administrator upon request, setting forth the amount of tax deducted for the Month. A receipted copy of such form shall be returned to the employer to be attached to and filed with the employer’s quarterly return of income tax withheld.
      (6)   No person shall be required to withhold the tax on wages or other compensation paid domestic servants employed by him exclusively in or about such person’s resident, even though such residence is in the Village of Linndale but such employee shall be subject to all the requirements of this chapter.
   (c)   Declarations of Income Not Collected at Source.
Every person who anticipates any taxable income which is not subject to subsection (b) hereof, 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 estimated income for the estimated profit or loss from such business activity together with the 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 the Village in accordance with subsection (b) hereof, such person need not file a declaration.
   (d)   Filing of Declaration.
      (1)   The declaration required by subsection (c) hereof shall be filed on or before April 30, of each year doing the effective period set forth in Section 181.04 or within four months of the date the taxpayer becomes subject to the tax for the first time.
      (2)   Those taxpayers reporting on a fiscal year basis shall file a declaration within four months after the beginning of each fiscal year period.
   (e)   Form of Declaration.
      (1)   The declaration required by subsection (c) hereof shall be filed upon a form furnished by, or obtainable from, the Administrator setting forth, provided however, credit shall be taken for the Village tax to be withheld from any portion of salaries, wages, commissions, lottery winnings, other gambling winnings, and other compensation earned and gross income, income from business, profession, other enterprise or activity, less allowable expenses incurred in the acquisition of such gross income earned during the preceding year and subject to tax. In accordance with the provisions of Section 181.11, hereof, credit may be taken for tax to be paid or to be withheld and remitted to another taxing municipality.
      (2)   The original declaration (or subsequent amendment thereof) may be increased or decreased on or before any subsequent quarterly payment date as provided for herein.
   (f)   Payment to Accompany Declaration. Such declaration of estimated tax to be paid to the Village shall be accompanied by a payment of at least one-fourth of the estimated annual tax and at least a similar amount shall be paid on or before the last day of the sixth, ninth, and twelfth months after the beginning of the taxable year. Provided, however, that in case an amended declaration has been filed, the unpaid balance shown thereon shall be paid in equal installments on or before the remaining payment date.
(Ord. 2004-04. Passed 3-2-04.)
 
181.09 INTEREST AND PENALTIES.
   (a)    Interest on Unpaid Tax. All taxes imposed and all moneys withheld or required to be withheld by employers under the provisions of this chapter and remaining unpaid after they become due shall bear interest at the rate of six percent (6%) per annum or fraction thereof.
 
   (b)    Penalties on Unpaid Tax. In addition to interest as provided in subsection (a) hereof, penalties based on the unpaid tax are hereby imposed as follows:
      (1)    For failure to pay taxes due, other than taxes withheld; ten percent (10%) per annum or fraction thereof.
      (2)    For failure to remit taxes withheld from employees; ten percent (10%) per month or fraction thereof.
 
   (c)    Exceptions. A penalty shall be assessed on an additional tax assessment made by the Administrator against a taxpayer when a return has been filed in good faith and the tax paid thereon within the time prescribed by the Administrator; 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 a final determination of the federal tax liability.
 
   (d)    Abatement of Interest and Penalty. Upon recommendation of the Administrator, the Board of Review may abate penalty or interest, or both, or upon an appeal from the refusal of the Administrator to recommend abatement of penalty and interest, the Board may nevertheless abate penalty or interest, or both, for good cause shown.
 
   (e)    Violations. Any person who shall:
      (1)    Fail, neglect or refuse to make any return or declaration required by this chapter; or
      (2)    Make any incomplete, false or fraudulent return; or
      (3)    Fail, neglect or refuse to pay the tax, penalties or interest imposed by this chapter; or
      (4)    Fail, neglect or refuse to withhold the tax from his employees or remit such withholding to the Administrator; or
      (5)    Refuse to permit the Administrator, or any duly authorized agent or employee to examine his books, records, papers and federal income tax returns relating to the income or net profits of a taxpayer; or
      (6)    Fail to appear before the Administrator and to produce his books, records, papers or federal income tax returns relating to the income or net profits of a taxpayer upon order or subpoena of the Administrator; or
      (7)    Refuse to disclose to the Administrator any information with respect to the income or net profits of a taxpayer; or
      (8)    Fail to comply with the provisions of this chapter or any order or subpoena of the Administrator authorized hereby; or
      (9)    Give to any employer false information as to his true name, correct Social Security number and residence address or fail to promptly notify an employer of any change in residence address or date thereof; or
      (10)    Fail to use ordinary diligence in maintaining proper records of employees' residence addresses, total wages paid and Village tax withheld, or to knowingly give the Administrator false information; or
      (11)    Attempt to do anything whatever to avoid the payment of the whole or any part of the tax, penalties or interest imposed by this chapter, shall be guilty of a misdemeanor and shall be fined not more than five hundred dollars ($500.00) or imprisoned not more than six months or both, for each offense.
 
   (f)    Limitation on Prosecution. All prosecutions under this section must be commenced within five years from the time of the offense complained of except in the case of failure to file a return or in the case of filing a false or fraudulent return, in which event the limitation of the time within which prosecution must be commenced shall be ten years from the date the return was due or the date the false or fraudulent return was filed.
 
   (g)    Failure to Procure Forms Not Excuse. The failure of any employer or person to receive or procure a return, declaration or other required form shall not excuse him from making any information return, return or declaration, from filing such form, or from paying the tax.
(Ord. 1970- .)
181.10 COLLECTION OF UNPAID TAXES AND REFUNDS OF OVER-PAYMENTS.
   (a)    Unpaid Taxes Recoverable as Other Debts. All taxes imposed by this chapter shall be collectible, together with any interest and penalties thereon, by suit, as other debts of like amount are recoverable. Except in the case of fraud, of omission of a substantial portion of income subject to this tax, or of 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, provided, however, in those cases in which a Commissioner or Internal Revenue and the taxpayer have executed a waiver of the federal statute of limitations, the period within which an additional assessment may be made by the Administrator shall be one year from the time of the final determination of the federal tax liability.
 
   (b)    Refunds of Taxes Erroneously Paid. 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 the final determination of the federal tax liability, whichever is later.
 
   (c)    Amounts of Less Than One Dollar. Amounts of less than one dollar ($1.00) shall not be collected or refunded.
(Ord. 1970- .)
 
181.11 TAX CREDIT.
   (a)    When the taxable income of a resident of Linndale is subject to a municipal income tax in another municipality on the same income taxable under this income tax ordinance, such resident shall be allowed a credit of the amount of income tax paid on such taxable income to such other municipality, equal to 100% of the amount obtained by multiplying the lower of the tax rate of such other municipality or of Linndale by the taxable income earned in or attributable to the municipality of employment or business activity. For the purposes of this section taxable income shall include the distributive share of net profits of a resident partner or owner of an unincorporated business entity.
 
   (b)    A claim for credit or refund under this section shall be made in such manner as the Administrator may by regulation provide. In the event such Linndale resident fails, neglects, or refuses to file an annual return or declaration on the form prescribed by the Administrator, he shall not be entitled to such credit or refund and shall be considered in violation of this income tax ordinance for failure to file a return.
(Ord. 1971-14. Passed 12-7-71.)
 
   (c)    Claim for Credit. Any claim for credit for income taxes paid another municipality on the same income taxable hereunder, or claim for or assignment of any refund due to the credit provided for herein, must be filed with the Administrator on or before December 31 of the year following that for which such credit is claimed, provided that, in the case such claim for reciprocity refund shall have been assigned to the municipality of residence, such municipality of residence shall file a claim for refund with the Administrator on or before January 31 following. Failure to file such claim for reciprocity credit or refund, or assignment thereof, within the time prescribed herein shall render such credit, claim for refund, or assignment null and void.
(Ord. 1970- .)
 
181.12 DISBURSEMENT OF RECEIPTS OF TAX COLLECTION.
   (a)    Disbursement of Funds Collected. The funds collected under the provisions of this chapter shall be disbursed in the following manner:
      (1)    First, such part thereof as shall be necessary to defray all expenses of collecting the tax and of administering and enforcing the provisions of this chapter shall be paid.
      (2)    The balance remaining after payment of the expenses referred to in subsection (a)(1) hereof shall be deposited in the General Fund for Municipal purposes.
         (Ord. 1970- .)
 
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