172.01 Authority to levy tax; purposes of tax; rate.
172.02 Effective date.
172.03 Definitions.
172.04 Income subject to tax for individuals.
172.05 Collection at source.
172.06 Income subject to net profit tax.
172.07 Declaration of estimated tax.
172.08 Credit for tax paid.
172.09 Annual return.
172.10 Penalty, interest, fees and charges.
172.11 Audit.
172.12 Rounding.
172.13 Authority and powers of the Tax Administrator.
172.14 Confidentiality.
172.15 Fraud.
172.16 Opinion of the Tax Administrator.
172.17 Assessment; appeal based on presumption of delivery.
172.18 Local Board of Tax Review; appeal to Local Board of Tax Review.
172.19 Actions to recover; statute of limitations.
172.20 Adoption of rules.
172.21 Collection of tax after termination of chapter.
172.22 Savings clause.
172.23 Information by landlords.
172.24 Election to be subject to Ohio R.C. 718.80 to 718.95
172.99 Violations; penalty.
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 through December 31, 2015) - see ADM. Ch. 171
Income Tax Operations Fund - see ADM. 173.02
(a) Authority to Levy Tax.
(1) The tax on income and the withholding tax established by this Chapter 172 are authorized by Article XVIII, Section 3 of the Ohio Constitution. The tax on income and the withholding tax established by this Chapter 172 are deemed to be levied in accordance with, and to be consistent with, the provisions and limitations of Ohio Revised Code 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) The taxes levied pursuant to division (b)(2) of this section shall be to provide for general Municipal operations, maintenance, new equipment and capital improvements of the Village.
(2) 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 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.
(3) In addition to the tax rate levied pursuant to division (b)(2) of this section, effective on or after January 1, 2023, 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 .25% 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. Notwithstanding division (b)(1) of this section, the purpose of this tax shall be to the provision of fire and emergency medical services.
(c) Allocation of Funds. The funds collected under the provisions of this chapter shall be applied for the following purposes and in the following order:
(1) Such part thereof as shall be necessary to defray all costs of collecting the taxes levied by this chapter and enforcing the provisions hereof.
(2) Such part thereof as Council may appropriate to the General Fund for the purpose of paying the cost of general Municipal operations.
(3) Such part thereof as Council may appropriate for the purpose of paying the cost of maintenance of and purchase of new equipment, motorized or other.
(4) Such part thereof as Council may appropriate for the purpose of paying the cost of the repair and maintenance of streets.
(5) In any event, at least 5% of all monies collected under division (b)(3) of this section shall be deposited in a special fund to be used only for permanent improvements as defined in Ohio R.C. 133.01. No monies from the special fund created in this subsection shall be expended without special authorization of Council.
(6) Notwithstanding divisions (c)(2) through (c)(5) of this section, taxes levied pursuant to division (b)(3) of this section shall be for the provision of fire and emergency medical services after deducing those expenses provided for in division (c)(1) of this section.
(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 2015-1730, effective January 1, 2016, comprehensively amends Chapter 171 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. 1730. Passed 12-7-15; Ord. 1868. Passed 12-20-21.)
Statutory reference:
Authority to tax income and withhold tax, see Ohio R.C. 718.04
(a) Ordinance 2015-1730, effective January 1, 2016, and corresponding changes to Ohio R.C. Chapter 718, apply to Municipal taxable years beginning on or after January 1, 2016. All provisions of this Chapter 172 apply to taxable years beginning 2016 and succeeding taxable years.
(b) Ordinance 2015-1730 does not repeal the existing sections of Chapter 171 for any taxable year prior to 2016, but rather amends Chapter 171 effective January 1, 2016. For Municipal taxable years beginning before January 1, 2016, the Municipality shall continue to administer, audit, and enforce the income tax of the Municipality under Ohio R.C. Chapter 718 and ordinances and resolutions of the Municipality as that chapter and those ordinances and resolutions existed before January 1, 2016.
(Ord. 1730. Passed 12-7-15.)
Statutory reference:
Related provisions, see Ohio R.C. 718.04
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