(a) Authority to Levy Tax.
(1) The tax on income and the withholding tax established by this Chapter 891 are authorized by Article XVIII, Section 3 of the Ohio Constitution, The tax on income and the withholding tax established by this Chapter 891 are deemed to be levied in accordance with, and to be consistent with, the provisions and limitations of Ohio Revised Code Chapter 718 (Ohio R.C. Chapter 718). This chapter is deemed to incorporate the provisions of Ohio R.C. Chapter 718.
(2) 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.
(b) Purposes of Tax; Rate.
(1) Purpose. To provide funds for the purposes of general municipal operations, maintenance, new equipment, service and facilities, capital improvements, road, street and highway construction and improvement, improvement of police protection, improvement of fire protection, improvement and construction of storm drainage and the improvement of general municipal functions of the City, there shall be and is hereby levied a tax as is set forth in this chapter.
(2) Rate. The rate of the tax imposed by this chapter of the Codified Ordinances is 2.00% per year and 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.
(c) Allocation of Funds. The income tax that is collected shall be allocated to the General Fund of the City.
(d) Statement of Procedural History; State Mandated Changes to Municipal Income Tax.
(1) Significant and wide-ranging amendments to Ohio R.C. Chapter 718 were enacted by Am. Sub. H.B. 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 Ohio R.C. Chapter 718 in order to have the authority to impose, enforce, administer and collect a municipal income tax.
(2) As mandated by H.B. 5, municipal income tax Ordinance 2015-O-026, effective January 1, 2016, comprehensively amends Chapter 890 in accordance with the provisions of Ohio R.C. Chapter 718 to allow the Municipality to continue the income tax and withholding tax administration and collection efforts on behalf of the Municipality.
(Ord. 2015-O-026. Passed 11-24-15.)
Statutory reference:
Authority to tax income and withhold tax, see Ohio R.C. 718.04