(A) For the purposes of providing funds for making capital improvements and debt retirement and general municipal functions, including but not limited to street improvements, maintaining adequate personnel strength in the Police Division, Fire Division, Service Department, Recreation Department and administration of the City of Middleburg Heights ("City"), new equipment, improvement of municipal services and facilities of the City, there is hereby levied 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 2% (two percent). The tax is levied at a uniform rate on all persons residing in or earning or receiving income in the City. The tax is levied on income, qualifying wages, commissions and other compensation, and on net profits as hereinafter provided in Section 192.03 and other sections as they may apply.
(Ord. 2015-73. Passed 11-10-15.)
(2) The funds collected under this chapter shall be disbursed in the following manner:
(a) Such as necessary to defray all expenses of collecting the tax and of administering and enforcing this chapter shall be paid.
(b) For the year 2016, the balance of the original 1% rate remaining after the payment of the expenses referred to in subsection (a) hereof shall be divided eighty-five percent (85%), five percent (5%) and ten percent (10%) as follows:
(i) Eighty-five percent (85%) of such balance shall be deposited in the General Fund for municipal purposes;
(ii) Five percent (5%) of such balance shall be deposited into the Capital Improvement Fund; and
(iii) Ten percent (10%) shall be deposited in the Streets/Infrastructure Improvement Fund to be used first to pay principal and interest (“Bond Charges”) for the fiscal year on the City’s outstanding General Obligation (Limited Tax) Street Improvement Bonds, Series 2013, by transfer of such amount of Bond Charges to the Bond Retirement Fund, with any balance being used for additional projects permitted to be funded from the Streets/Infrastructure Improvement Fund.
(c) For the year 2017 and thereafter the balance of the original 1% rate remaining after the payment of the expenses referred to in subsection (a) hereof shall be divided eighty percent (80%), ten percent (10%) and ten percent (10%) as follows:
(i) Eighty percent (80%) of such balance shall be deposited in the General Fund for municipal purposes;
(ii) Ten percent (10%) of such balance shall be deposited into the Capital Improvement Fund; and
(iii) Ten percent (10%) shall be deposited in the Streets/Infrastructure Improvement Fund to be used first to pay principal and interest (“Bond Charges”) for the fiscal year on the City’s outstanding General Obligation (Limited Tax) Street Improvement Bonds, Series 2013, by transfer of such amount of Bond Charges to the Bond Retirement Fund, with any balance being used for additional projects permitted to be funded from the Streets/Infrastructure Improvement Fund.
(Ord. 2015-80. Passed 12-8-15.)
(C) The tax on income and the withholding tax established by this Chapter 192 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 Ohio Revised Code 718 (ORC 718). This Chapter 192 is effective for tax years beginning on or after January 1, 2016. Municipal taxable years beginning on or before December 31, 2015 are subject to Chapter 191, and any amendments thereto, and rules and regulations, and any amendments thereto, as they existed before January 1, 2016.
(Ord. 2015-73. Passed 11-10-15.)