(a) Each person eighteen years of age or older who is or was a resident of the Village of Montpelier at any time during a taxable year, whether or not a tax is due thereon, shall make and file a return on or before April 15 of each year. When the return is made for a fiscal year or other period different from the calendar year, the return shall be filed within 105 days from the end of such fiscal year or period.
(b) The Director of Finance may provide by regulation and with the approval of Council that the return of an employer showing the amount of tax deducted by the employer from the qualifying wages, commissions, other compensation and other income of a resident employee, and paid by such employer to the tax commissioner, shall be accepted as the return required of a resident employee whose sole income, subject to the tax under this chapter, is such salary, wages, commissions, other compensation and other income.
(c) The return shall be filed with the Director of Finance on a form or forms furnished or obtainable upon request from the Director of Finance or on other forms deemed acceptable by the Director of Finance setting forth:
(1) The aggregate amounts of qualifying wages, commissions, other compensation and other income received and gross income and gross receipts from a business, association, profession, corporation or other activity, less allowable expenses incurred in the acquisition of such income and gross receipts earned during the preceding year and subject to such tax.
(2) The amount of the tax imposed by this chapter on such compensation and profits; and
(3) Such other pertinent statements, information returns or other information as the Director of Finance may require, including but not limited to copies of all W-2 forms, 1099 Miscellaneous Income Forms, and all applicable federal schedules.
(d) The Village of Montpelier shall accept a generic form of its annual income tax return if the generic form once completed and filed contains all of the information required to be submitted with the Village of Montpelier’s prescribed returns, reports or documents, and if the taxpayer or return preparer filing the generic form otherwise complies with the rules or ordinances of the Village of Montpelier governing the filing of returns, reports or documents.
(e) The Director of Finance may grant an extension for filing of the annual return upon the request of the taxpayer for a period not to exceed six (6) months, or one (1) month beyond any extension requested or granted by the Internal Revenue Service for the filing of the Federal Income Tax Return for taxable years prior to 2004. For taxable year 2004 the extended due date shall be the last day of the month following the month to which the due date of the federal income tax return has been extended. For taxable years subsequent to 2004 the extended due date shall be the last day of the month to which the due date of the federal income tax return has been extended. The extension request may be made by filing a copy of the taxpayer’s request for a federal filing extension, or by filing a written request. The Director of Finance may deny the extension if the taxpayer’s income tax account with the Village of Montpelier is delinquent in any way. The Director of Finance may require a tentative return, accompanied by payment of the amount of tax shown to be due thereon by the date return is normally due. No penalty shall be assessed in those cases in which the return is filed and the final tax paid within the period as extended.
(f) Payment of tax:
(1) The taxpayer making a return shall, at the time of the filing thereof, pay to the Director of Finance the amount of taxes shown as due thereon; provided, however, that where any portion of the tax so due shall have been deducted at the source pursuant to the provisions of Section 181.15 of this chapter, or where any portion of said tax shall have been paid by the taxpayer pursuant to the provisions of Section 181.14 of this chapter, or where an income tax has been paid to another municipality pursuant to the provisions of Section 181.11 of this chapter, credit for the amount so paid in accordance with Sections 181.11, 181.14, and 181.15 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 said return.
(2) A taxpayer who has overpaid the amount of tax to which the Village of Montpelier 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 two dollars ($2.00) shall be collected or refunded. (See Section 181.12 (c), (d), and (e)).
(g) Amended returns:
(1) Where necessary, an amended return must be filed in order to report additional income and pay any additional tax due, or claim a refund of tax overpaid, subject to the requirements and/or limitations contained in Sections 181.11 and 181.12. Such amended returns shall be on a form obtainable on request from the Director of Finance. A taxpayer may not change the method of accounting (i.e., cash or accrual) or apportionment of net profits after the due date for filing the original return.
(2) Within three (3) months from the final determination of any federal tax liability affecting the taxpayer’s village of Montpelier tax liability, such taxpayer shall make and file an amended Village of Montpelier return showing income subject to the Village of Montpelier tax based upon such final determination of federal tax liability, and pay any additional tax shown due thereof or make claim for refund of any overpayment.
(h) Retirees having no income taxable to Montpelier shall be exempt from this filing requirement. This exemption from filing shall be in effect until such time that the retiree receives taxable income, for municipal income tax purposes, at which time the retiree shall be required to comply with the provisions of this section.
(i) Resident taxpayers who are under eighteen years of age at the end of the taxable year shall not be required to file a tax return.
(j) Any business, profession, association or corporation reporting a net loss is subject to the filing requirements of this chapter.
(k) Consolidated Returns:
(1) Any affiliated group which files a consolidated return for federal income tax purposes pursuant to Section 1501 of the Internal Revenue Code may file a consolidated return with the Village of Montpelier. However, once the affiliated group has elected to file a consolidated return or a separate return with the Village of Montpelier, the affiliated group may not change their method of filing in any subsequent tax year without written approval from the Director of Finance.
(2) In the case of a corporation that carried on transactions with its stockholders or with other corporations related by stock ownership, interlocking directorates, or some other method, or in case any person operates a division, branch, factory, office, laboratory or activity within the Village of Montpelier constituting a portion only of its total business, the Director of Finance shall require such additional information as he may deem necessary to ascertain whether net profits are properly allocated to the Village of Montpelier. If the Director of Finance finds net profits are not properly allocated to the Village of Montpelier, by reason of transactions with stockholders or with other corporations related by stock ownership, interlocking directorates, or transactions with such division, branch, factory, office, laboratory or activity or by some other method, he shall make such allocation as he deems appropriate to produce a fair and property allocation of net profits to the Village of Montpelier.
(l) Business losses cannot be offset against business income.
(m) Loss carryforward and loss carry back are not permitted.
(Ord. 2019. Passed 12-20-04.)