171.01 Definitions.
171.02 Imposition of tax.
171.03 Allocation of net profit.
171.04 Levy of tax.
171.05 Return and payment of tax.
171.06 Amended return; refunds for overpayment.
171.07 Collection at source.
171.08 Declarations of estimated tax; payment.
171.09 Treasurer's duties.
171.10 Investigative powers of Treasurer.
171.11 Tax information confidential; penalty.
171.12 Collection of unpaid taxes.
171.13 Credit for tax paid to another municipality. (Repealed)
171.14 Exemptions.
171.15 Contracts to contain tax provision.
171.16 Interest and penalties.
171.17 Allocation of funds.
171.18 Separability.
171.19 Contractors and solicitors.
171.20 Board of Review.
171.99 Penalties.
CROSS REFERENCES
Power to levy income tax - see Ohio Const. , Art. XII, Sec. 8
Payroll deductions - see Ohio R.C. 9.42
Municipal income taxes - see Ohio R.C. Ch. 718
Income Tax (Effective as of January 1, 2016) - see ADM. Ch. 172.
Income Tax Operations Fund - see ADM. 173.02
As used in this chapter, the following words shall have the meanings ascribed to them in this section, unless the context clearly indicates or requires a different meaning. The singular includes the plural. The masculine gender includes the feminine and neuter genders.
(a) "Association" means a partnership, limited partnership or any other form of unincorporated enterprise owned by two or more persons.
(b) "Business" means an enterprise, activity, profession or undertaking of any nature conducted for profit or ordinarily conducted for profit, whether by an individual, partnership, fiduciary, trust, association, corporation or any other entity.
(c) "Corporation" means a corporation or joint stock association organized under the laws of the United States, the State of Ohio or any other state, territory or foreign country or dependency.
(d) "Employer" means an individual, partnership, association, corporation, govern-mental body, unit or agency or any other entity, whether or not organized for profit, who or that employs one or more persons on a salary, wage, commission or other compensation basis.
(e) "Employee" means one who works for wages, salary, commissions or other type of compensation in the service of an employer.
(f) "Gross receipts" means the total income from any source whatsoever.
(g) "Net profits" means the net gain from the operation of a business, profession, enterprise or other activity, whether or not such business, profession, enterprise or other activity is conducted for profit or is ordinarily conducted for profit, after provision for all ordinary and necessary expenses either paid or accrued, in accordance with the accounting system used by the taxpayer for Federal income tax purposes, without deduction of taxes imposed by this chapter, Federal, State and other taxes based on income, and, in the case of an association, without deduction of salaries paid to partners and other owners, and otherwise adjusted to the requirements of this chapter.
(h) "Person" means every natural person, partnership, fiduciary, association or corporation. Whenever used in any clause prescribing and imposing a penalty, the term "person", as applied to any unincorporated entity, means the parties or members thereof, and as applied to corporations the officers thereof.
(i) "Resident individual" means any individual who is domiciled in Mount Gilead or whose usual place of abode is in Mount Gilead.
(j) "Nonresident individual" means an individual who is not domiciled in Mount Gilead and whose usual place of abode is outside Mount Gilead.
(k) "Resident unincorporated business entity" means an unincorporated business entity having an office or place of business within Mount Gilead.
(l) "Nonresident unincorporated business entity" means an unincorporated business entity not having an office or place of business within Mount Gilead.
(m) "Place of business" means any bona fide office, other than a mere statutory office, factory, warehouse or other place which is occupied and used by the taxpayer in carrying on any business activity individually or through any one or more of his regular employees regularly in attendance.
(n) "Taxable income" means wages, salaries, commissions, sick pay and other compensation paid by an employer or employers before any deductions and/or the net profits from the operation of a business, profession or other enterprise or activity adjusted in accordance with the provisions of this chapter.
(o) "Taxable year" means the calendar year or the fiscal year upon the basis of which the net profits are to be computed under this chapter and, in the case of a return for a fractional part of a year, the period for which such return is required to be made.
(p) "Fiscal year" means an accounting period of twelve months or less ending on any day other than December 31.
(q) "Contractor" means one who, for a fixed price, undertakes to produce the performance of works on a large scale, or the furnishing of goods in large quantities, whether from the public, a company or an individual.
(r) "Subcontractor" means one who takes a portion of a contract from a principal contractor or another subcontractor.
(Ord. 1121. Passed 12-7-87.)
(a) To provide for general Municipal operations, maintenance, new equipment and capital improvements of the Village, there is hereby levied a tax, at the rate of one percent per annum, upon the following:
(1) On all salaries, wages, commissions, lottery winnings, prize moneys and other compensation earned by residents of the Village.
(2) On all salaries, wages, commissions, lottery winnings, prize moneys and other compensation earned by nonresidents of the Village for work done or services performed or rendered within the Village.
(3) On all salaries, wages, commissions, lottery winnings, prize moneys, and other compensation earned by nonresidents who are employed by a firm or business within the Village limits of Mt. Gilead, Ohio, and who have contact with the Village by virtue of the fact that said employee and/or said employee's employer benefit from the protections, opportunities and benefits provided by the Village to enable said employee to earn said income, in whole or in part.
(4) On the net profits earned of all unincorporated businesses, professions or other activities conducted by residents of the Village.
(5) On the net profits earned of all unincorporated businesses, professions or other activities conducted in the Village by nonresidents.
(6) On the net profits of all corporations, estates, trusts and limited partnerships, derived from work done or services performed or rendered and business or other activities conducted in the Village, whether or not such corporations, estates, trusts and limited partnerships have their principal or any place of business located in the Village.
(b) For the purposes of paragraphs (a)(4) and (5) hereof, an association shall not be taxable as an entity, but any member thereof who is a resident of the Village shall be taxed individually on his entire share, whether distributed or not, of the annual net profits of the association, and any nonresident member shall be taxed individually only on that portion of his share, whether distributed or not, of the annual net profits of the association as is derived from work done, services performed or rendered and business or other activities conducted in the Village.
(Ord. 1199. Passed 12-17-90; Ord. 1513. Passed 3-15-04.)
(a) In the taxation of income which is subject to the tax, if the books and records of a taxpayer conducting a business or profession both within and without the boundaries of the Village shall disclose with reasonable accuracy what portion of its net profit is attributable to that part of the business or profession conducted within the boundaries of the Village, then only such portion shall be considered as having a taxable situs in the Village for purposes of the tax. In the absence of such records, net profit from a business or profession conducted both within and without the boundaries of the Village shall be considered as having a taxable situs in the Village for purposes of the tax in the same proportion as the average ratio of:
(1) The average net book value of the real and tangible personal property owned or used by the taxpayer in the business or profession in the Village during the taxable period to the average net book value of all of the real and tangible personal property owned or used by the taxpayer in the business or profession during the same period, wherever situated.
As used in the preceding paragraph, "real property" includes property rented or leased by the taxpayer and the value of such property shall be determined by multiplying the annual rental thereon by either.
(2) Wages, salaries, lottery winnings, prize moneys and other compensation paid during the taxable period to persons employed in the business or profession for services performed in the Village to wages, salaries, lottery winnings, prize moneys, and other compensation paid during the same period to persons employed in the business or profession, wherever their services are performed.
(3) Gross receipts of the business or profession from sales made and services performed during the taxable period in the Village to gross receipts of the business or profession during the same period from sales and services, wherever made or performed.
(b) In the event that the foregoing allocation formula does not produce an equitable result, another basis may, under uniform regulations, be substituted by the Village Treasurer so as to produce such result.
(c) As used in this chapter, "sales made in the Village" means:
(1) All.sales of tangible personal property which is delivered within the Village regardless of where title passes if shipped or delivered from a stock of goods within the Village;
(2) All sales of tangible personal property which is delivered within the Village regardless of where title passes, even though transported from a point outside the Village, if the taxpayer is regularly engaged through its own employees in the solicitation or promotion of sales within the Village and the sales result from such solicitation or promotion;
(3) All sales of tangible personal property which is shipped from a place within the Village to purchasers outside the Village regardless of where title passes if the taxpayer is not, through its own employees, regularly engaged in the solicitation or promotion of sales at the place where delivery is made.
(Ord. 661. Passed 12-21-64; Ord. 1513. passed 3-15-04.)
The tax shall be levied, collected and paid with respect to the salaries, wages, lottery winnings, prize moneys, commissions and other compensation earned on and after January 1, 2004, and with respect to the net profits of businesses, professions and other activities earned on and after January 1, 2004. However, where the fiscal year of the business, profession and other activity differs form the calendar year, the tax shall be applied to that part of the net profits for the fiscal year as shall be earned on and after January 1, 2004, to the close of the taxpayer's fiscal year. Thereafter, the taxpayer shall report on its fiscal year basis.
Where the fiscal year of a business, profession or other activity is other than a calendar year, in computing initial tax the profits of such taxpayer shall be determined by dividing the annual profits by twelve and multiplying the quotient by the number of months within the period commencing January 1, 2004, and ending at the conclusion of such fiscal year.
(Ord. 661. Passed 12-21-64; Ord. 1513. Passed 3-15-04.)
(a) Each taxpayer who engages in business or whose salaries, wages, lottery winnings, commissions and other compensation are subject to the tax imposed by this chapter, shall, whether or not a tax is due, thereon, make and file a return on or before April 15 of each year with the Village Tax Administrator on a form furnished by or obtainable from the Village Tax Administrator, setting forth the aggregate amount of salaries, wages, lottery winnings, commissions, and other compensation earned and/or net profits earned and/or gross income from such business less allowable expenses in the acquisition of such gross income earned during the preceding year and subject to the tax, together with such other pertinent information as the Village Tax Administrator may require. However, when the return is made for a fiscal year or other period different from the calendar year, the return shall be made on or before the fifteenth day of the fourth month after the close of such fiscal year, or other period. Every resident shall make and file a municipal income tax return on or before April 15 for the previous calendar year except as follows:
(1) Residents under the age of eighteen years.
(2) After the filing of returns for the tax year and review of the information contained therein, the Tax Administrator or his designated agent may exempt from filing those individuals who reported income from non taxable sources when it appears this is and shall continue to be their only income source. This shall include retirees, total disabled and active military personnel.
(b) If a net operating loss has been sustained any taxable year, such losses may not be carried forward or backward to any other taxable year.
(c) The taxpayer making a return shall, at the time of the filing thereof, pay to the Village Clerk-Treasurer the amount of taxes shown as due thereon.
(d) A taxpayer who has overpaid his income tax in any taxable year may request a refund, provided, however, that there is no other tax liability and provided, further, that no amount of less than one dollar ($1.00) will be refunded or collected.
(Ord. 1154. Passed 3-6-89; Ord. 1513. Passed 3-15-04; Ord. 1522. Passed 12-6-04; Ord. 1689. Passed 12-2-13; Ord. 1714. Passed 3-2-15.)
Where an amended return must be filed in order to report additional income and to pay any additional tax due, or to claim a refund of tax overpaid, subject to the requirements and/or limitations contained in Section 171.05, such amended return shall be on a form obtainable on request from the Village Clerk-Treasurer. A taxpayer may not change the method of accounting or apportionment of net profits after the due date for filing the original return.
Within three months from the final determination of any Federal tax liability affecting the taxpayer's Village tax liability, such taxpayer shall make and file an amended Village return showing income subject to the Village tax based upon such final determination of Federal tax liability, and pay any additional tax shown due thereon or make a claim for refund of any overpayment.
No refund shall be allowed unless a written request is presented to the Village Treasurer within six months of the date the taxes were due.
(Ord. 1121. Passed 12-7-87.)
(a) Each employer within or doing business within the Village limits of the Village of Mount Gilead, shall deduct, at the time of payment of such salaries, wages, commissions or other compensation, from all employees the tax of one percent (1%) of the gross salaries, wages, commissions or other compensation due by the employer to the employee and shall, on or before the last day of the month following the close of each calendar quarter, make a return and pay to the Village Treasurer the amount of taxes so deducted. 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.
(b) Each employer who maintains a place of business in the Village and another branch within the metropolitan area of the Village must also withhold the tax from employees residing in the Village but working at the employer's metropolitan area branch even though the payroll records and place of payment are outside the Village. The employer shall make and file a return on a form furnished by the Village Treasurer, showing the amount of tax deducted by the employer from the salaries, wages, lottery winnings, prize moneys, commissions or other compensation of any employee and paid by the employer to the Village Treasurer.
(c) The employer, on or before January 31, unless written request for a thirty day extension is made to and granted by the Village Treasurer, following any calendar year in which such deductions have been made, or should have been made by an employer, shall file with the Village Treasurer an information return entitled "Withholding Tax Reconciliation" (using Internal Revenue Form W-3), and including Internal Revenue Form W-2 for each employee from whom income tax has been or should have been withheld, showing the name and address of the employee, the total amount of salaries, wages, lottery winnings, commissions and other compensation paid such employee during the year, and the amount of Village income tax withheld from each employee.
(d) Where a resident of the Village performs service for his employer in another municipality which services are subject to withholding in the other municipality, the employer shall have the authority to reduce the withholding to the Village to the extent of the tax liability in the other municipality.
(e) The officer or employee having control or supervision of or charged with the responsibility of filing any return or declaration required by this chapter and making payment, or any officer of a corporation who is responsible for execution of the corporation’s fiscal responsibilities, shall be personally liable for failure to file any return or declaration or pay the tax or employer withholding due by the provisions of this chapter. The dissolution, termination or bankruptcy or a corporation does not discharge a responsible officer’s or employee’s liability for a failure of the corporation to file returns or declarations or pay tax or employer withholding due.
(Ord. 1430. Passed 9-5-00; Ord. 1513. Passed 3-15-04.)
Every person who anticipates any taxable income which is not subject to Section 171.07, or who engages in any business, profession, enterprise or activity subject to the tax imposed by Section 171.02(c)(1) and (c)(2), 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. However, if a person's income is wholly from wages, salaries, lottery winnings, prize moneys, commissions or other compensation from which the tax will be withheld and remitted to the Village in accordance with Section 171.07, such person need not file a declaration.
Such declarations shall be filed on or before April 15 of each year during the life of this chapter (Ord. 661, passed December 21, 1964 and Ord. 1121, passed December 7, 1985), or on or before the fifteenth day of the fourth month the taxpayer becomes subject to tax for the first time.
Those 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.
Such declaration shall be filed upon a form furnished by or obtainable from the Village Treasurer, provided, however, that credit shall be taken for the Village tax to be withheld from any portion of such income. In accordance with the provisions of Section 171. 07, credit may be taken for tax to be paid to or to be withheld and remitted to another taxing municipality.
The original declaration, or any subsequent amendment thereof, may be increased or decreased on or before any subsequent quarterly payment day as provided for herein.
Such declarations of estimated tax to be paid to the Village 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 fifteenth day of the seventh, ninth and twelfth months after the beginning of the taxable year. However, in case 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.
On or before the fifteenth day of the fourth month of the year following that for which such declaration or amended declaration was filed, an annual return shall be filed and any balance which may be due the Village shall be paid therewith in accordance with the provisions of Section 171.05.
(Ord. 661. Passed 12-21-64; Ord. 1513. Passed 3-15-04.)
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