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Montpelier Overview
Codified Ordinances of Montpelier, OH
Codified Ordinances of Montpelier, Ohio
CERTIFICATION
DIRECTORY OF OFFICIALS
ADOPTING ORDINANCE NO.
CONTENTS
EDITOR'S NOTE
COMPARATIVE SECTION TABLE
TABLES OF SPECIAL ORDINANCES OF MONTPELIER
CHARTER
PART ONE - ADMINISTRATIVE CODE
TITLE ONE - General Provisions
TITLE THREE - Legislative
TITLE FIVE - Administrative
TITLE SEVEN - Judicial
TITLE NINE - Taxation
CHAPTER 181 Income Tax
CHAPTER 183 Income Tax Rules and Regulations
CHAPTER 185 Municipal Income Tax Effective January 1, 2016
185.01 AUTHORITY TO LEVY TAX; PURPOSES OF TAX; RATE.
185.011 AUTHORITY TO LEVY TAX.
185.012 IMPOSITION OF TAX; PURPOSES OF TAX; RATE.
185.013 ALLOCATION OF FUNDS.
185.0131 RECREATION TAX.
185.0132 SUPPLEMENTAL RECREATION TAX.
185.0133 SUPPLEMENTAL PARKS AND RECREATION TAX.
185.0134 SEWER TAX.
185.0135 ALLOCATION OF ONE PERCENT INCOME TAX (2019).
185.014 STATEMENT OF PROCEDURAL HISTORY; STATE MANDATED CHANGES TO MUNICIPAL INCOME TAX.
185.02 EFFECTIVE DATE.
185.03 DEFINITIONS.
185.04 INCOME SUBJECT TO TAX FOR INDIVIDUALS.
185.041 DETERMINING MUNICIPAL TAXABLE INCOME FOR INDIVIDUALS.
185.042 DOMICILE.
185.043 EXEMPTION FOR MEMBER OR EMPLOYEE OF GENERAL ASSEMBLY AND CERTAIN JUDGES.
185.05 COLLECTION AT SOURCE.
185.051 COLLECTION AT SOURCE; WITHHOLDING FROM QUALIFYING WAGES.
185.052 COLLECTION AT SOURCE; OCCASIONAL ENTRANT.
185.053 COLLECTION AT SOURCE; CASINO AND VIDEO LOTTERY TERMINAL.
185.06 INCOME SUBJECT TO NET PROFIT TAX
185.061 DETERMINING MUNICIPAL TAXABLE INCOME FOR TAXPAYERS WHO ARE NOT INDIVIDUALS.
185.062 NET PROFIT; INCOME SUBJECT TO NET PROFIT TAX; ALTERNATIVE APPORTIONMENT.
185.063 CONSOLIDATED FEDERAL INCOME TAX RETURN.
185.064 TAX CREDIT FOR BUSINESSES THAT FOSTER NEW JOBS IN OHIO.
185.065 TAX CREDITS TO FOSTER JOB RETENTION.
185.07 DECLARATION OF ESTIMATED TAX.
185.08 CREDIT FOR TAX PAID.
185.081 RECIPROCITY PROVISION; CREDIT FOR TAX PAID TO OTHER MUNICIPALITIES; OTHER CREDITS.
185.082 REFUNDABLE CREDIT FOR QUALIFYING LOSS.
185.083 CREDIT FOR PERSON WORKING IN JOINT ECONOMIC DEVELOPMENT DISTRICT OR ZONE.
185.084 CREDIT FOR TAX BEYOND STATUTE FOR OBTAINING REFUND.
185.09 ANNUAL RETURN.
185.091 ANNUAL RETURN AND PAYMENT OF TAX.
185.092 RETURN AND PAYMENT OF TAX; INDIVIDUALS SERVING IN COMBAT ZONE.
185.093 USE OF OHIO BUSINESS GATEWAY; TYPES OF FILINGS AUTHORIZED.
185.094 EXTENSION OF TIME TO FILE.
185.095 AMENDED RETURNS.
185.096 REFUNDS.
185.10 PENALTY, INTEREST, FEES, AND CHARGES.
185.11 AUDIT.
185.12 ROUNDING.
185.13 AUTHORITY AND POWERS OF THE TAX ADMINISTRATOR.
185.131 AUTHORITY OF TAX ADMINISTRATOR; ADMINISTRATIVE POWERS OF THE TAX ADMINISTRATOR.
185.132 AUTHORITY OF TAX ADMINISTRATOR; COMPROMISE OF CLAIM AND PAYMENT OVER TIME.
185.133 AUTHORITY OF TAX ADMINISTRATOR; RIGHT TO EXAMINE.
185.134 AUTHORITY OF TAX ADMINISTRATOR; REQUIRING IDENTIFYING INFORMATION.
185.14 CONFIDENTIALITY.
185.15 FRAUD.
185.16 OPINION OF THE TAX ADMINISTRATOR.
185.17 ASSESSMENT; APPEAL BASED ON PRESUMPTION OF DELIVERY.
185.18 LOCAL BOARD OF TAX REVIEW; APPEAL TO LOCAL BOARD OF TAX REVIEW.
185.19 ACTIONS TO RECOVER; STATUTE OF LIMITATIONS.
185.20 ADOPTION OF RULES.
185.21 ELECTION SUBJECT TO ORC 718.80 TO 718.95.
185.40 FILING NET PROFIT TAXES; ELECTION TO BE SUBJECT TO PROVISIONS OF CHAPTER.
185.41 DEFINITIONS.
185.42 APPLICABILITY; TAXABLE SITUS; APPORTIONMENT.
185.43 RESERVED.
185.44 INFORMATION PROVIDED TO TAX ADMINISTRATORS; CONFIDENTIALITY.
185.45 FILING OF ANNUAL RETURN; REMITTANCE; DISPOSITION OF FUNDS.
185.451 ELECTRONIC FILING.
185.46 CONSOLIDATED RETURNS.
185.47 FAILURE TO PAY TAX.
185.48 DECLARATION OF ESTIMATED TAXES.
185.49 ADDITIONAL PENALTIES.
185.50 ASSESSMENTS AGAINST TAXPAYER.
185.51 REFUND APPLICATIONS.
185.52 AMENDED RETURNS.
185.53 EXAMINATION OF RECORDS AND OTHER DOCUMENTS AND PERSONS.
185.54 CREDITS.
185.55 RECKLESS VIOLATIONS; PENALTIES.
185.97 COLLECTION AFTER TERMINATION OF CHAPTER.
185.98 SAVINGS CLAUSE.
185.99 VIOLATIONS; PENALTY.
PART THREE - TRAFFIC CODE
PART FIVE - GENERAL OFFENSES CODE
PART SEVEN - BUSINESS REGULATION CODE
PART NINE - STREETS, UTILITIES AND PUBLIC SERVICES CODE
PART ELEVEN - PLANNING AND ZONING CODE
PART THIRTEEN - BUILDING CODE
PART FIFTEEN - FIRE PREVENTION CODE
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   185.064 TAX CREDIT FOR BUSINESSES THAT FOSTER NEW JOBS IN OHIO.
   The Municipality, by Ordinance, may grant a refundable or nonrefundable credit against its tax on income to a taxpayer to foster job creation in the Municipality. If a credit is granted under this section, it shall be measured as a percentage of the new income tax revenue the Municipality derives from new employees of the taxpayer and shall be for a term not exceeding fifteen years. Before the Municipality passes an ordinance granting a credit, the Municipality and the taxpayer shall enter into an agreement specifying all the conditions of the credit.
(Ord. 2193. Passed 11-23-15.)
   185.065 TAX CREDITS TO FOSTER JOB RETENTION.
   The Municipality, by Ordinance, may grant a refundable or nonrefundable credit against its tax on income to a taxpayer for the purpose of fostering job retention in the Municipality. If a credit is granted under this section, it shall be measured as a percentage of the income tax revenue the Municipality derives from the retained employees of the taxpayer, and shall be for a term not exceeding fifteen years. Before the Municipality passes an ordinance allowing such a credit, the Municipality and the taxpayer shall enter into an agreement specifying all the conditions of the credit.
(Ord. 2193. Passed 11-23-15.)
   185.07 DECLARATION OF ESTIMATED TAX.
   (A)    As used in this section:
      (1)    "Estimated taxes" means the amount that the taxpayer reasonably estimates to be the taxpayer's tax liability for a municipal corporation's income tax for the current taxable year.
      (2)   "Tax liability" means the total taxes due to a municipal corporation for the taxable year, after allowing any credit to which the taxpayer is entitled, and after applying any estimated tax payment, withholding payment, or credit from another taxable year.
   (B)   (1)   Every taxpayer shall make a declaration of estimated taxes for the current taxable year, on the form prescribed by the Tax Administrator, if the amount payable as estimated taxes is at least two hundred dollars. For the purposes of this section:
         (a)    Taxes withheld from qualifying wages shall be considered as paid to the municipal corporation for which the taxes were withheld in equal amounts on each payment date. If the taxpayer establishes the dates on which all amounts were actually withheld, the amounts withheld shall be considered as paid on the dates on which the amounts were actually withheld.
         (b)    An overpayment of tax applied as a credit to a subsequent taxable year is deemed to be paid on the date of the postmark stamped on the cover in which the payment is mailed or, if the payment is made by electronic funds transfer, the date the payment is submitted. As used in this division, "date of the postmark" means, in the event there is more than one date on the cover, the earliest date imprinted on the cover by the postal service.
         (c)   A taxpayer having a taxable year of less than twelve months shall make a declaration under rules prescribed by the Tax Administrator.
         (d)    Taxes withheld by a casino operator or by a lottery sales agent under section 718.031 of the Ohio Revised Code are deemed to be paid to the municipal corporation for which the taxes were withheld on the date the taxes are withheld from the taxpayer's winnings.
      (2)    Taxpayers filing joint returns shall file joint declarations of estimated taxes.
      (3)    The declaration of estimated taxes shall be filed on or before the date prescribed for the filing of municipal income tax returns under division (G) of Section 185.091 of this Chapter or on or before the fifteenth day of the fourth month of the first taxable year after the taxpayer becomes subject to tax for the first time.
      (4)    Taxpayers reporting on a fiscal year basis shall file a declaration on or before the fifteenth day of the fourth month after the beginning of each fiscal year or period.
      (5)    The original declaration or any subsequent amendment may be increased or decreased on or before any subsequent quarterly payment day as provided in this section.
   (C)   (1)    The required portion of the tax liability for the taxable year that shall be paid through estimated taxes made payable to the Municipality or Tax Administrator, including the application of tax refunds to estimated taxes and withholding on or before the applicable payment date, shall be as follows:
         (a)    On or before the fifteenth day of the fourth month after the beginning of the taxable year, twenty-two and one-half per cent of the tax liability for the taxable year;
         (b)   On or before the fifteenth day of the sixth month after the beginning of the taxable year, forty-five per cent of the tax liability for the taxable year;
         (c)    On or before the fifteenth day of the ninth month after the beginning of the taxable year, sixty-seven and one-half per cent of the tax liability for the taxable year;
         (d)    For and individual, on or before the fifteenth day of the first month of the following taxable year, ninety per cent of the tax liability for the taxable year. For a person other than an individual, on or before the fifteenth day of the twelfth month of the taxable year, ninety per cent of the tax liability for the taxable year.
      (2)    A taxpayer may amend a declaration under rules prescribed by the Tax Administrator. When an amended declaration has been filed, the unpaid balance shown due on the amended declaration shall be paid in equal installments on or before the remaining payment dates. The amended declaration must be filed on the next applicable due date as outlined in (C)(1)(a) through (d) of this section.
      (3)    On or before the fifteenth day of the fourth month of the year following that for which the declaration or amended declaration was filed, an annual return shall be filed and any balance which may be due shall be paid with the return in accordance with Section 185.091 of this Chapter.
         (a)    For taxpayers who are individuals, or who are not individuals and are reporting and filing on a calendar year basis, the annual tax return is due on the same date as the filing of the federal tax return, unless extended pursuant to division (G) of section 5747.08 of the Revised Code.
         (b)    For taxpayers who are not individuals, and are reporting and filing on a fiscal year basis or any period other than a calendar year, the annual return is due on the fifteenth day of the fourth month following the end of the taxable year or period.
      (4)    An amended declaration is required whenever the taxpayer's estimated tax liability changes during the taxable year. A change in estimated tax liability may either increase or decrease the estimated tax liability for the taxable year.
   (D)   (1)   In the case of any underpayment of any portion of a tax liability, penalty and interest may be imposed pursuant to Section 185.10 of this Chapter upon the amount of underpayment for the period of underpayment, unless the underpayment is due to reasonable cause as described in division (E) of this section. The amount of the underpayment shall be determined as follows:
         (a)    For the first payment of estimated taxes each year, twenty-two and one-half per cent of the tax liability, less the amount of taxes paid by the date prescribed for that payment;
         (b)    For the second payment of estimated taxes each year, forty-five per cent of the tax liability, less the amount of taxes paid by the date prescribed for that payment;
         (c)    For the third payment of estimated taxes each year, sixty-seven and one-half per cent of the tax liability, less the amount of taxes paid by the date prescribed for that payment;
         (d)    For the fourth payment of estimated taxes each year, ninety per cent of the tax liability, less the amount of taxes paid by the date prescribed for that payment.
      (2)    The period of the underpayment shall run from the day the estimated payment was required to be made to the date on which the payment is made. For purposes of this section, a payment of estimated taxes on or before any payment date shall be considered a payment of any previous underpayment only to the extent the payment of estimated taxes exceeds the amount of the payment presently required to be paid to avoid any penalty.
   (E)    An underpayment of any portion of tax liability determined under division (D) of this section shall be due to reasonable cause and the penalty imposed by this section shall not be added to the taxes for the taxable year if any of the following apply:
      (1)    The amount of estimated taxes that were paid equals at least ninety per cent of the tax liability for the current taxable year, determined by annualizing the income received during the year up to the end of the month immediately preceding the month in which the payment is due.
      (2)    The amount of estimated taxes that were paid equals at least one hundred per cent of the tax liability shown on the return of the taxpayer for the preceding taxable year, provided that the immediately preceding taxable year reflected a period of twelve months and the taxpayer filed a return with the municipal corporation under Section 185.091 of this Chapter for that year.
      (3)    The taxpayer is an individual who resides in the Municipality but was not domiciled there on the first day of January of the calendar year that includes the first day of the taxable year.
   (F)    A Tax Administrator may waive the requirement for filing a declaration of estimated taxes for any class of taxpayers after finding that the waiver is reasonable and proper in view of administrative costs and other factors.
(Ord. 2193. Passed 11-23-15; Ord. 2231. Passed 2-19-18.)
   185.08 CREDIT FOR TAX PAID.
   185.081 RECIPROCITY PROVISION; CREDIT FOR TAX PAID TO OTHER MUNICIPALITIES; OTHER CREDITS.
   (A)    If a resident of the Village of Montpelier is subject to and has paid a municipal income tax due to the operation of a business or the receipt of compensation in another taxing municipality in Ohio, such taxpayer shall be allowed a credit against the Village of Montpelier tax due for the taxes accrued and paid to the other municipality based upon a tax rate of up to one and six-tenths percent (1.60%). Provided, however, such credit shall not exceed the amount of the Village of Montpelier tax levied on such compensation or from the profits of a business, nor shall such credit or allowance be permitted for a school district tax.
   (B)    If a resident of the Municipality operates a business or businesses in another taxing municipality in Ohio and the business or businesses incur a loss, the amount of the loss is deemed primarily subject to the taxing jurisdiction of the other taxing municipality and may not be used to reduce the taxpayer's Montpelier tax base.
   (C)    With respect to any income tax applicable to a "pass-through entity" as that term is defined in Ohio R.C. 718.01, the Village of Montpelier shall grant a credit to taxpayers that are domiciled in the Village of Montpelier for taxes paid to another municipal corporation by a pass-through entity that does not conduct business in the Village of Montpelier. The amount of the credit shall equal the lesser of the following amounts:
      (1)    The amount, if any, of tax paid by the pass-through entity to another municipal corporation in this State, apportioned ratably according to the ownership interest of the taxpayer in proportion to the ownership interest of all owners of the entity;
      (2)    The amount of tax that would be imposed on the pass-through entity by the Village of Montpelier if the pass-through entity conducted business in the Village of Montpelier, apportioned ratably according to the ownership interest of the taxpayer in proportion to the ownership interest of all owners of the entity.
   (D)    A refundable credit shall be allowed against the income tax imposed by this chapter for each "qualifying loss," as the same is defined and limited by Ohio R.C. 718.021, in connection with a nonqualified deferred compensation plan, which qualifying loss is sustained by a taxpayer during the taxable year.
   
   (E)    (1)   Except as provided in subsection (E)(2) hereof, if tax or withholding is paid to a municipal corporation on income or wages, and if the Village of Montpelier imposes a tax on that income or wages after the time period allowed for a refund of the tax or withholding paid to the first municipal corporation, Village of Montpelier shall allow a nonrefundable credit, against the tax or withholding paid to the first municipal corporation with respect to such income or wages.
      (2)   If the tax rate in the Village of Montpelier is less than the tax rate in the first municipal corporation, then the credit described in subsection (E)(1) hereof shall be calculated using the tax rate in effect in Village of Montpelier.
      (3)    Nothing in this section permits any credit carry forward.
      (4)   No credit shall be given under this Section for any tax paid to any taxing authority in a state other than Ohio.
         (Ord. 2193. Passed 11-23-15.)
   185.082 REFUNDABLE CREDIT FOR QUALIFYING LOSS.
   (A)    As used in this section:
      (1)    "Nonqualified deferred compensation plan" means a compensation plan described in section 3121(v)(2)(C) of the Internal Revenue Code.
      (2)   (a)   Except as provided in division (A)(2)(b) of this section, "qualifying loss" means the excess, if any, of the total amount of compensation the payment of which is deferred pursuant to a nonqualified deferred compensation plan over the total amount of income the taxpayer has recognized for federal income tax purposes for all taxable years on a cumulative basis as compensation with respect to the taxpayer's receipt of money and property attributable to distributions in connection with the nonqualified deferred compensation plan.
         (b)   If, for one or more taxable years, the taxpayer has not paid to one or more municipal corporations income tax imposed on the entire amount of compensation the payment of which is deferred pursuant to a nonqualified deferred compensation plan, then the "qualifying loss" is the product of the amount resulting from the calculation described in division (A)(2)(a) of this section computed without regard to division (A)(2)(b) of this section and a fraction the numerator of which is the portion of such compensation on which the taxpayer has paid income tax to one or more municipal corporations and the denominator of which is the total amount of compensation the payment of which is deferred pursuant to a nonqualified deferred compensation plan.
         (c)   With respect to a nonqualified deferred compensation plan, the taxpayer sustains a qualifying loss only in the taxable year in which the taxpayer receives the final distribution of money and property pursuant to that nonqualified deferred compensation plan.
      (3)   "Qualifying tax rate" means the applicable tax rate for the taxable year for the which the taxpayer paid income tax to a municipal corporation with respect to any portion of the total amount of compensation the payment of which is deferred pursuant to a nonqualified deferred compensation plan. If different tax rates applied for different taxable years, then the "qualifying tax rate" is a weighted average of those different tax rates. The weighted average shall be based upon the tax paid to the municipal corporation each year with respect to the nonqualified deferred compensation plan.
   (B)   (1)    Except as provided in division (D) of this section, a refundable credit shall be allowed against the income tax imposed by a municipal corporation for each qualifying loss sustained by a taxpayer during the taxable year. The amount of the credit shall be equal to the product of the qualifying loss and the qualifying tax rate.
      (2)    A taxpayer shall claim the credit allowed under this section from each municipal corporation to which the taxpayer paid municipal income tax with respect to the nonqualified deferred compensation plan in one or more taxable years.
      (3)   If a taxpayer has paid tax to more than one municipal corporation with respect to the nonqualified deferred compensation plan, the amount of the credit that a taxpayer may claim from each municipal corporation shall be calculated on the basis of each municipal corporation's proportionate share of the total municipal corporation income tax paid by the taxpayer to all municipal corporations with respect to the nonqualified deferred compensation plan.
      (4)    In no case shall the amount of the credit allowed under this section exceed the cumulative income tax that a taxpayer has paid to a municipal corporation for all taxable years with respect to the nonqualified deferred compensation plan.
   (C)   (1)    For purposes of this section, municipal corporation income tax that has been withheld with respect to a nonqualified deferred compensation plan shall be considered to have been paid by the taxpayer with respect to the nonqualified deferred compensation plan.
      (2)    Any municipal income tax that has been refunded or otherwise credited for the benefit of the taxpayer with respect to a nonqualified deferred compensation plan shall not be considered to have been paid to the municipal corporation by the taxpayer.
   (D)    The credit allowed under this section is allowed only to the extent the taxpayer's qualifying loss is attributable to:
      (1)    The insolvency or bankruptcy of the employer who had established the nonqualified deferred compensation plan; or
      (2)    The employee's failure or inability to satisfy all of the employer's terms and conditions necessary to receive the nonqualified deferred compensation.
         (Ord. 2193. Passed 11-23-15.)
   185.083 CREDIT FOR PERSON WORKING IN JOINT ECONOMIC DEVELOPMENT DISTRICT OR ZONE.
   A Municipality shall grant a credit against its tax on income to a resident of the Municipality who works in a joint economic development zone created under section 715.691 or a joint economic development district created under section 715.70, 715.71, or 715.72 of the Ohio Revised Code to the same extent that it grants a credit against its tax on income to its residents who are employed in another municipal corporation, pursuant to Section 185.081 of this Chapter.
(Ord. 2193. Passed 11-23-15.)
   185.084 CREDIT FOR TAX BEYOND STATUTE FOR OBTAINING REFUND.
   (A)   Income tax that has been deposited or paid to the Municipality, but should have been deposited or paid to another municipal corporation, is allowable by the Municipality as a refund, but is subject to the three-year limitation on refunds as provided in Section 185.096 of this Chapter.
   (B)   Income tax that should have been deposited or paid to the Municipality, but was deposited or paid to another municipal corporation, shall be subject to collection and recovery by the Municipality. To the extent a refund of such tax or withholding is barred by the limitation on refunds as provided in Section 185.096, the Municipality will allow a non-refundable credit equal to the tax or withholding paid to the other municipality against the income tax the Municipality claims is due. If the Municipality's tax rate is higher, the tax representing the net difference of the tax rates is also subject to collection by the Municipality, along with any penalty and interest accruing during the period of nonpayment.
   (C)   No carryforward of credit will be permitted when the overpayment is beyond the three-year limitation for refunding of same as provided in Section 185.096 of this Chapter.
   (D)   Nothing in this section requires a Municipality to allow credit for tax paid to another municipal corporation if the Municipality has reduced credit for tax paid to another municipal corporation. Section 185.081 of this Chapter regarding any limitation on credit shall
prevail. (Ord. 2193. Passed 11-23-15.)
   185.09 ANNUAL RETURN.
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