(A) To provide funds for the purposes of general municipal operations, maintenance of equipment, new equipment, extension, enlargement, and improvement of municipal services and facilities, and capital improvements, and/or other legal municipal purpose, the City of Loveland hereby levies an annual municipal income tax on income, qualifying wages, commissions and other compensation, and on net profits as hereinafter provided.
(B) (1) The annual tax is levied at a rate of 1% (one percent). The tax is levied at a uniform rate on all persons residing in or earning or receiving income in the City of Loveland. The tax is levied on income, qualifying wages, commissions and other compensation, and on net profits as hereinafter provided in Section 184.03 of this Chapter and other sections as they may apply.
(2) (a) The funds collected under the provisions of this chapter shall be deposited in the City's General Fund and shall be applied for the following purposes and in the following order:
(1) Such part thereof, as shall be necessary to defray all costs of collecting the taxes levied by this Chapter and enforcing the provisions thereof.
(2) Such part thereof, to be determined later, as is necessary for the purposes of paying any refunds payable under this Chapter.
(3) The balance of the funds so collected shall be used for the purpose of paying the costs of general municipal operations.
(4) A Catastrophic Reserve Account in the amount of 20% of the operating expenditures of the City based on a percentage of the operating expenditures in the General Fund and Street Maintenance Fund and which spending shall be allowed only if approved by a resolution passed by a majority vote of City Council.
(b) A Catastrophic Reserve Account within the Income Tax Fund is hereby approved and established by Council.
(1) The Catastrophic Reserve Account shall be maintained at twenty percent (20%) of operating expenditures and is based on a percentage of operating expenditures in the General Fund, Street maintenance fund, Parks and Recreation fund, Special projects fund and Income tax operations.
(2) Spending from the Catastrophic Reserve Account shall be allowed only if approved by a resolution passed by majority vote of Council.
(C) The tax on income and the withholding tax established by this Chapter 184 are authorized by Article XVIII, Section 3 of the Ohio Constitution. The tax is levied in accordance with, and is intended to be consistent with, the provisions and limitations of Revised Code 718 (ORC 718).
(Ord. 2018-32. Passed 2-27-18.)