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(a) Payment of Tax on Filing of Return.
(1) The taxpayer making a return shall, at the time of the filing thereof, pay to the Administrator the amount of taxes shown as due thereon, provided that where any portion of the tax so due has been deducted at the source pursuant to the provisions of subsection (b) hereof or where any portion of such tax has 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 890.09 shall be deducted from the amount shown 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 tax to which the City 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.
(Ord. 68-27. Passed 7-23-68.)
(b) Collection at Source.
(1) In accordance with rules and regulations prescribed by the Administrator, each employer within or doing business within the City shall deduct at the time of the payment of such salary, wages, wages, commission or other compensation, the tax of 2% per year of the gross salary, wages, commissions or other compensation due by the employer to each employee and shall, on or before the twentieth day of the month following the close of each calendar quarter, make a return and pay to the Administrator the amount of taxes so deducted, subject to the provisions of subsections (c), (d) and (e) hereof. Such returns shall be on a form prescribed by or acceptable to the Administrator and shall be subject to the rules and regulations prescribed therefor 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 have in fact been withheld.
(Ord. 82-O-8. Passed 6-22-82.)
(2) Such employer in collecting such tax shall be deemed to hold the same, until payment is made by such employer to the City, as a trustee for the benefit of the City and any such tax collected by such employer from his employees, shall, until the same is paid to the City, be deemed a trust fund in the hands of such employer.
(Ord. 68-27. Passed 7-23-68.)
(3) Such employer who deducts the tax in an amount of one hundred dollars ($100.00) or more per month shall, on or before the twentieth day of the following month, pay to the Administrator the amount of taxes so deducted on a monthly basis, beginning with the first month the employer exceeds one hundred dollars ($100.00) in taxes withheld.
(Ord. 82-O-8. Passed 6-22-82.)
(4) Such employer who makes such payments 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 payments shall be on a form 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 residence, even though such residence is in the City, but such employee shall be subject to all of the requirements of this chapter.
(7) Any business or employer that subcontracts any portion of work on a construction project (the "contractor") to another individual or entity (the "subcontractor") which fails to pay all taxes imposed or forward all taxes required to be withheld under the provisions of this chapter shall pay to the City the full amount of taxes owed plus interest as outlined in Section 890.13(a). Any subcontractor which fails to pay all taxes imposed or forward all taxes required to be withheld under the provisions of this chapter shall also be liable under this section. The individual or entity that retained the contractor shall also be liable under this section, and so forth up to the owner or developer of the construction project.
(8) The City shall not issue any type of permit to a business or employer that has not completed a Withholding and Business Registration Form and a Registration of Contractor's Form as prescribed by the Administrator.
(9) As part of the registration process, contractors shall complete a notarized statement, as provided by the City, setting forth: (1) the names of all individuals to be employed on the project; (2) the names of all independent contractors/subcontractors to be used on the project; (3) the number of days estimated that each independent contractor/ subcontractor will work on the project; and (4) all steps taken to ensure that all employees, or subcontractors that are sole proprietorships or partnerships, have the legal right to work in the United States of America.
(10) If, for whatever reason, a subcontractor starts to perform work for a contractor on the project that was not identified during the initial registration process, within three calendar days after the subcontractor starts performing work for the contractor, the contractor shall submit the notarized statement required in division (b)(9) with respect to the subcontractor.
(11) The City shall not give final approval, which may include withholding of any retainer amount due, for work performed on any construction project undertaken by the City to any individual or entity working on said project until presented with documentation from the City's tax authority that all City income tax due are current.
(12) If a contractor violates any part of this section, it shall be subject to a fine in the amount of one thousand dollars ($1,000.00).
(13) The determination of independent contractor/subcontractor or employee status for purposes of this section and this Chapter 890 shall be the same as those factors used by the Internal Revenue Service in its code and regulations.
(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 levied in Section 890.03, shall file a declaration setting forth such estimated income or the estimated profit or loss from such business activity, together with the estimated tax due thereon, if any, provided that if a person's income is wholly from wages from which the tax will be withheld and remitted to the City in accordance with subsection (b) hereof, such person need not file a declaration.
(d) Filing of Declaration.
(1) The declaration required in subsection (c) hereof shall be filed on or before April 30 of each year during the effective period set forth in Section 890.03(b) 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 or period.
(e) Form of Declaration.
(1) The declaration required in subsection (c) hereof shall be filed upon a form furnished by or obtainable from the Administrator, provided that credit shall be taken for City tax to be withheld from any portion of such income. In accordance with the provisions of Section 890.09, credit may be taken for tax to be paid or to be withheld and remitted to another taxing municipality.
(2) The original declaration (or any subsequent amendment thereof) may be increased or decreased on or before any subsequent quarterly payment date as provided in this section.
(f) Payment to Accompany Declaration. Such declaration of estimated tax to be paid to the City 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 that if an amended declaration has been filed, the unpaid balance shown due thereon shall be paid in equal installments on or before the remaining payment dates.
(g) Annual Return. On or before the last day of the fourth month of the year following that for which such declaration or amended declaration was filed, an annual return shall be paid therewith in accordance with the provisions of subsection (a) hereof.
(h) Extensions. The Administrator may extend the time of filing any return required, of making any payment or performing any other act required by this section for a period not to exceed six months beyond the original due date.
(Ord.68-27. Passed 7-23-68; Ord. 2007-O-03. Passed 4-10-07.)
(a) Unpaid Taxes Recoverable as Other Debts. All taxes imposed by this chapter shall be collectable, together with any interest and penalties thereon, by suit as other debts of like amount are recoverable. Except in the case of fraud, omission of a substantial portion of income subject to this tax or 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 that in those cases in which a Commissioner of 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 on 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 ($1.00).Amounts of less than one dollar ($1.00) shall not be collected or refunded.
(Ord.68-27. Passed 7-23-68.)
(a) If a City resident has paid a municipal income tax on the same income to another municipality, such resident may claim a credit of the amount of income tax paid to such other municipality, but not in excess of the tax assessed by this chapter.
(b) If a City resident is entitled to a credit for taxes paid another municipality, such resident is required to file a return or form in such manner as the Administrator may prescribe. If such resident fails, neglects or refuses to file such return or form, he shall not be entitled to such credit and shall be considered in violation of this chapter for failure to file a return and make payment of taxes due under the provisions of this chapter.
(c) Any claim for credit for income taxes paid another municipality on the same income taxable under the provisions of this chapter shall be filed with the Administrator on or before December 31 of the year following that for which such credits claimed. Failure to file such claim within such time shall render such credit null and void.
The funds collected under the provisions of this chapter shall be disbursed in the following manner:
(a) First, such part thereof as is necessary to defray all expenses of collecting the tax and of administering and enforcing the provisions of this chapter shall be paid. (b) The balance remaining after payment of the expenses referred to in subsection
(a) hereof shall be deposited in the General Fund for recreation programs, road improvements, capital expenditures and other Municipal purposes set forth in Section 890.01.
(Ord.86-O-27. Passed 11-19-86.)
(a) Duty to Receive Tax Imposed. The Administrator shall receive the tax imposed by this chapter in the manner prescribed herein from the taxpayer, keep an accurate record thereof and report all moneys so received.
(b) Duty to Enforce Collection. The Administrator shall enforce payment of all taxes owing to the City, keep accurate records showing the amount due from each taxpayer required to file a declaration and make any return, or both, including taxes withheld, and show the dates and amounts of payments thereof.
(c) Authority to Make and Enforce Regulations. The Administrator is hereby charged with the enforcement of the provisions of this chapter and is hereby empowered, subject to the approval of the Board of Review, to adopt and promulgate and to enforce rules and regulations relating to any matter or thing pertaining to the collection of taxes and the administration and enforcement of the provisions of this chapter, including provisions for the re-examination and correction of returns.
(d) Authority to Arrange Installment Payments. The Administrator is hereby authorized to arrange for the payment of unpaid taxes, interest and penalties on a schedule of installment payments, 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. Such authorization shall not be granted until proper returns are filed by the taxpayer for all amounts owed by him under this chapter. Failure to make any deferred payment when due shall cause the total unpaid amount, including penalty and interest, to become payable on demand and the provisions of Sections 890.08 and 890.13 shall apply.
(e) Authority to Determine Amount of Tax Due. In any case where a taxpayer has failed to file a return or has filed a return which does not show the proper amount of tax due, the Administrator may determine the amount of tax appearing to be due the City from the taxpayer and shall send to such taxpayer a written statement showing the amount of tax so determined, together with interest and penalties thereon, if any.
(f) Authority to Make Investigations. The Administrator, or any authorized employee, is hereby authorized to examine the books, papers, records and Federal Income Tax returns of any employer or of any taxpayer or person subject to, or whom the Administrator believes is subject to, the provisions of this chapter, for the purpose of verifying the accuracy of any return made, or, if no return was made, to ascertain the tax due under this chapter. Every such employer, supposed employer, taxpayer or supposed taxpayer is hereby directed and required to furnish upon written request by the Administrator, or his duly authorized agent or employee, the means, facilities and opportunity for making such examinations and investigations as are hereby authorized.
(g) Authority to Compel Productions of Records. The Administrator is hereby authorized to order any person presumed to have knowledge of the facts to appear before him and may examine such person, under oath, concerning any income which was or should have been returned for taxation or any transaction tending to affect such income, and for this purpose may compel the production of books, papers, records and Federal Income Tax returns and the attendance of any person before him, whether as a party or a witness, whenever he believes such person has knowledge of such income or information pertinent to such inquiry.
(h) Refusal to Produce Records. The refusal to produce books, papers, records and Federal Income Tax returns or the refusal to submit to such examination by any employer or person subject or presumed to be subject to the tax or by any officer, agent or employee of a person subject to the tax or required to withhold tax, or the failure of any person to comply with the provisions of this chapter or with an order or subpoena of the Administrator authorized hereby, shall be deemed a violation of this chapter punishable as provided in Section 890.99.
(i) Taxpayer Required to Retain Records. Every taxpayer shall retain all records necessary to compute his tax liability for a period of seven years from the date his return is filed, or the withholding taxes are paid.
(j) Authority in Contract for Central Collection Facilities. The Mayor is hereby authorized to enter into an agreement, subject to the consent of Council, on behalf of the City with any other municipal corporation or collection agency if other than a municipal corporation to permit such other municipal corporation or collection agency to act as agent for the City for the purposes of administering the income tax laws of the City and of providing a central collection facility for the collection of the income tax on behalf of the City.
(k) Authority to Contract for Service. In the event the Mayor, on behalf of the City, enters into an agreement with any other municipal corporation or collection agency to act as agent of the City for the purposes of administering the income tax laws of the City and of providing a central facility for the collection of the income tax, as provided in this section, then all or part of the duties and authority of the Administrator may be assigned by such agreement to such other municipal corporation or collection agency.
(l) Confidential Nature of Information Obtained.
(1) Any information gained as the result of any returns, investigations, -hearings or verifications required or authorized by this chapter shall be confidential, except for official purposes or except in accordance with proper judicial order. No person shall divulge such information in violation of this section.
(2) In addition to the penalty provided in Section 890.99, an employee of the City who violates the provisions of this section relative to the disclosure of confidential information is guilty of an offense punishable by immediate dismissal.
(Ord.68-27. Passed 7-23-68.)
(a) Establishment; Composition; Organization. There is hereby established a Board of Review in and for the City, consisting of the Fiscal Officer or person designated by him, the Law Director or Assistant Law Director designated by him, and a member of Council to be elected by that body. The Board shall select each year for a one-year term one of its members to serve as Chairman and one to serve as Secretary. A majority of the members of the Board shall constitute a quorum. The Board shall adopt its own procedural rules and shall keep a record of its transactions. Any hearing by the Board may be conducted privately and the provisions of Section 890.11(1), with reference to the confidential character of information required to be disclosed by this chapter, shall apply to such matters as may be heard before the Board.
(b) Duty to Approve Regulations.All rules and regulations, and amendments or changes thereto, which are adopted by the Administrator under the authority conferred by this chapter, shall be approved by the Board before the same become effective.
(c) Right of Appeal.Any person dissatisfied with any ruling or decision of the Administrator which is made under the authority conferred by this chapter may appeal therefrom to a court of competent jurisdiction in the manner prescribed by law.
(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 one and one-half percent per month or fraction thereof.
(b) Penalties on Unpaid Tax. In addition to interest as provided in Section 890.08 and 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, one and one-half percent per month or fraction thereof and for failure to file an annual return when due, a minimum of twenty-five dollars ($25.00); and
(2) For failure to remit taxes withheld from employees, ten percent per month or fraction thereof.
(Ord.80-O-13. Passed 6-10-80.)
(c) Exceptions. A penalty shall not be assessed on an additional tax assessment made by the Administrator when a return has been filed in good faith and the tax paid thereon within the time prescribed by the Administrator. In the absence of fraud, neither penalty nor interest shall be assessed on any additional tax assessment against a taxpayer by the Administrator resulting from a Federal audit, provided that 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 the recommendation of the Administrator or for good cause shown, the Board of Review may abate penalty or interest, or both.
(Ord.68-27. Passed 7-23-68.)
No person shall do any of the following:
(a) Fail, neglect or refuse to make any return or declaration required by this chapter; (b) Make any incomplete, false or fraudulent return;
(c) Fail, neglect or refuse to pay the tax, penalties or interest imposed by this chapter;
(d) Fail, neglect or refuse to withhold the tax from his employees or remit such withholding to the Administrator;
(e) 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;
(f) 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;
(g) Refuse to disclose to the Administrator any information with respect to the income or net profits of a taxpayer;
(h) Fail to comply with the provisions of this chapter or any order or subpoena of the Administrator authorized hereby;
(i) Give to any employer false information as to his true name, correct Social Security number and residence address or fail to properly notify an employer of any change in residence address and date thereof;
(j) Fail to use ordinary diligence in maintaining proper records of employees' residence addresses, total wages paid and City tax withheld, or knowingly give the Administrator false information; or
(k) 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.
(Ord.68-27. Passed 7-23-68.)
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