(a) Unpaid Taxes.
(1) All taxes imposed by the Ordinance and not paid when due become, together with interest and penalties thereon, a debt due the City of Lorain from the taxpayer and are recoverable as are other debts by civil or criminal action. Employers who are required under Section 191.07(b) to withhold and remit the taxes required to be withheld at the source and who fail to withhold and remit become liable to the City of Lorain in civil or criminal action to enforce the payment of the debt created by such failure.
(2) Civil or criminal action to recover municipal income taxes shall be brought within three (3) years after the tax was due or the return was filed, whichever is later.
(3) Prosecution for an offense made punishable under a municipal ordinance imposing an income tax shall be commenced within three (3) years after the commission of the offense provided that in the case of fraud, failure to file a return or omission of twenty-five percent (25%) or more of income required to be reported, prosecution may be commenced within six (6) years after the commission of the offense.
(Ord. 97-07. Passed 7-16-07.)
(4) A. The Administrator is authorized to arrange for the payment of unpaid income taxes, interest and penalties on a schedule of installment payments not to exceed twelve (12) months, when the taxpayer has proved to the Administrator that, due to certain hardship conditions, he is unable to pay the full amount of the tax due.
B. An administrative fee in the amount of twenty-five dollars ($25.00) shall be paid by a taxpayer before the taxpayer is placed on a schedule of installment payments for the payment of unpaid income taxes, interest and penalties.
C. A one percent (1%) interest fee per month shall be assessed on the total amount of unpaid income taxes, interest and penalties placed on an installment schedule.
D. Failure to make any deferred payment when due shall cause the total unpaid amount, including penalty and interest, to become payable on demand. In addition, any taxpayer who is placed on an installment plan shall consent to a default judgement being entered against them for purposes of having their wages garnished in order to pay the total amount due.
E. If the taxpayer of a premises fails to comply with the terms of the installment agreement within the time prescribed, the Administrator shall initiate such actions as are necessary and shall file the judgment with the Lorain County Clerk of Courts, for the total amount of the unpaid income taxes, interest and penalties due, to be assessed, and execution shall issue at the request of the Administrator. The judgment shall have the same effect as other judgments.
(5) An administrative fee equal to not less than twenty-five percent (25%) nor more than thirty-five percent (35%) of the total delinquent amount shall be added to the delinquent amount if such delinquent amount is assigned to an authorized agent of the City of Lorain for collection.
(Ord. 4-09. Passed 1-5-09.)
(b) Refunds.
(1) Taxes erroneously paid shall not be refunded unless a claim for refund is made in writing within three (3) years from the date on which such payment was made or return was due.
(2) Overpayments will either be refunded or credited to the taxpayer’s current year’s liability at his option, except that where taxes are owned for any previous years, overpayments shall be applied in the order in which such taxes became due before any refund is made. Where no election has been made by the taxpayer, overpayments of any year’s taxes shall be applied as follows:
A. To taxes, penalty or interest owed for any previous year.
B. To his current estimated tax liability (and any excess refunded).
C. Civil or criminal actions to recover refunds of municipal income taxes and penalties and interest on municipal income taxes shall be brought within three (3) years after the tax was due or the return was filed, whichever is later and must be brought after the taxpayer requests a refund in accordance with subsection (b) hereof.
(Ord. 152-94. Passed 12-19-94.)