193.01 AUTHORITY TO LEVY TAX; PURPOSES OF TAX; RATE.

193.011 AUTHORITY TO LEVY TAX.

     (A)   The tax on income and the withholding tax established by this Chapter 193 are authorized by Article XVIII, Section 3 of the Ohio Constitution. The tax on income and the withholding tax established by this Chapter 193 are deemed to be levied in accordance with, and to be consistent with, the provisions and limitations of Ohio Revised Code 718 (ORC 718). This Chapter is deemed to incorporate the provisions of ORC 718.

   (B)   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.

(Ord. 15-237. Passed 11-17-15.)

193.012 PURPOSES OF TAX; RATE.

   (A)    To provide funds for the purpose of general municipal operations and other municipal purposes of the City of Mansfield, there is hereby levied a tax upon earnings at the rate of one percent (1%), upon the following:

      (1)    On all salaries, qualifying wages, third party sick pay, commissions and other compensation earned on and after January 1, 1971, by resident individuals of the City of Mansfield.

      (2)    On income from all lottery, gambling, and sports winnings, and games of chance received by resident individuals of the City of Mansfield.

      (3)    On all salaries, qualifying wages, third party sick pay, commissions and other compensation earned on and after January 1, 1971, by nonresident individuals of the City of Mansfield, for work done or services performed or rendered in the City of Mansfield.

      (4)    On the net profits attributed to City of Mansfield, earned on and after January 1, 1971, of all resident unincorporated businesses, professions and other activities derived from work done or services rendered or performed and business or other activities conducted in the City of Mansfield.

      (5)    On the portion of the distributive share of the net profit earned on and after January 1, 1971, of a resident individual, partner or owner of a resident unincorporated business entity attributable to the City of Mansfield and not levied against such unincorporated business entity.

      (6)    On the net profits attributable to the City of Mansfield earned on and after January 1, 1971, of all nonresident unincorporated businesses, professions or other activities, derived from work done or services performed or rendered and business or other activities conducted in the City of Mansfield.

      (7)    On that portion of the distributive share of the net profits earned on and after

January 1, 1971, of a resident individual, partner or owner of a non-resident unincorporated business entity not attributable to the City of Mansfield and not levied against such unincorporated business entity.

      (8)    On the net profits earned on and after January 1, 1971, of all corporations derived from work done or services performed or rendered and business or other activities conducted in the City of Mansfield.

   (B)    In addition to the income tax levied pursuant to Section 193.012( A), there is hereby levied, to provide funds for the purpose of expenses and salaries in the Police and Fire Departments, a tax upon earnings at the additional rate of one-half of one percent (1/2%) upon those items enumerated in Section 193.012 (A)(1)-(8).

   (C)    In addition to the income tax levied pursuant to Sections 193.012 (A) and 193.012(B), there is hereby levied, to provide funds for the purpose of expenses of operation of the municipal government, a tax upon earnings at the additional rate of one quarter of one percent (.25%) upon those items enumerated in Section 193.012( A)(1)-(8) to be allocated and expended exclusively as follows: safety services- fifty percent (50%); parks and recreation - twenty-two percent (22%); demolition of vacant properties and removal of blight- twenty percent (20%); and street lighting- eight percent (8%).

   (D)   In addition to the income tax levied pursuant to Sections 193.012 (A), 193.012( B), and 193.012 (C), there is hereby imposed and levied an additional municipal income tax at the rate of one-quarter percent (1/4%) for a period of four (4) years commencing July 1, 2013, with the proceeds therefrom to be set aside and used exclusively for rehabilitation and repair of streets and park roads. Such additional income tax shall be levied on those sources of income set forth in Section 193.012 (A)(1)-(8) of income tax ordinance for the City of Mansfield on the effective date hereof and the Director of Finance shall administer and collect such additional income tax proceeds pursuant to the provisions contained in such income tax ordinance.

(Ord. 21-229. Passed 12-21-21.)

193.013 ALLOCATION OF FUNDS.

   (A)   The one percent (1%) basic income tax, income tax penalties and interest shall be disbursed based on the annual appropriation as passed by Council. Additional levies will be disbursed according to the levy as passed by the voters.

(Ord. 15-237. Passed 11-17-15.)

193.014 STATEMENT OF PROCEDURAL HISTORY; STATE MANDATED CHANGES TO MUNICIPAL INCOME TAX

   (A)   Significant and wide-ranging amendments to ORC 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 ORC 718 in order to have the authority to impose, enforce, administer and collect a municipal income tax.

   (B)   As mandated by H.B. 5, municipal income tax Ordinance 15-237, effective January 1, 2016, comprehensively amends Chapter 193 in accordance with the provisions of ORC 718 to allow the Municipality to continue the income tax and withholding tax administration and collection efforts on behalf of the Municipality.

(Ord. 15-237. Passed 11-17-15.)

193.02 EFFECTIVE DATE.

   (A)   Ordinance 15-237, effective January 1, 2016, and corresponding changes to ORC 718, apply to municipal taxable years beginning on or after January 1, 2016. All provisions of this Chapter 193 apply to taxable years beginning 2016 and succeeding taxable years.

   (B)   Ordinance 15-237 does not repeal the existing sections of Chapter 191 for any taxable year prior to 2016, but rather enacts Chapter 193 effective January 1, 2016. For municipal taxable years beginning before January 1, 2016, the Municipality shall continue to administer, audit, and enforce the income tax of the Municipality under ORC 718 and ordinances and resolutions of the Municipality as that chapter and those ordinances and resolutions existed before January 1, 2016.

(Ord. 15-237. Passed 11-17-15.)