A. Direct accounts for businesses (if filing under a Federal ID Number)
Tax preparers should review ORC 718 for information on determining city taxable income for business returns.
1. Identification and filing business returns
(a) Business entities: It is the duty of each business entity doing business within or for the City to identify their business with the Income Tax Division within fifteen (15) days of establishing their business, through the completion of a Business Income Tax Registration form. It is also the duty of each business to identify subcontractors working for their businesses and to submit Form 1099-MISC to the City Income Tax Division for said contractors on or before the last day of February of each year.
(b) It shall be the responsibility of the taxpayer to inform the Income Tax Division, in writing, of any change of the taxpayer's address within fifteen (15) days of such change.
(c) A person may notify the Tax Administrator that he/she does not expect to be a taxpayer with respect to the City for a taxable year if both the following conditions apply:
.1 The person was required to file a tax return with the City for the immediate preceding year because the person performed services at a worksite location within the municipality; and
.2 The person no longer provides services in the City and does not expect to be subject to City income tax for the taxable year.
If both of the above conditions are met, the person may request an account to be inactivated by completing and signing the Request to Close a Business Account Affidavit form available on the Income Tax Division webpage or at the Income Tax Office. As required by ORC 718.05 (N), the person shall provide the notice in a signed affidavit that briefly explains the circumstances, including the location of the previous worksite location and the last date on which the person performed services or made any sales within the municipal corporation. The affidavit also shall include the following statement: "The affiant has no plans to perform any services within the municipal corporation, make any sales in the municipal corporation, or otherwise become subject to the tax levied by the municipal corporation during the taxable year. If the affiant does become subject to the tax levied by the municipal corporation for the taxable year, the affiant agrees to be considered a taxpayer and to properly register as a taxpayer with the municipal corporation if such registration is required by the municipal corporation's resolutions, ordinances or rules." The affiant shall sign the Affidavit under penalty of perjury. Per these Rules and Regulations, the completion and submission of a Business Income Tax Registration and/or Withholding Tax Registration is required.
(d) If a person submits a Request to Close a Business Account Affidavit the Tax Administrator shall not require the person to file any tax return for the taxable year unless the Tax Administrator possesses information that conflicts with the affidavit or if the circumstances described in the affidavit change. Nothing in ORC 718.05 (N) prohibits the Tax Administrator from performing an Audit of the person.
2. Date and requirement for filing direct returns:
(a) On or before the date prescribed by ORC 718, every person and business entity subject to City income tax shall, except as provided in the exceptions below, make and file with the Income Tax Division an annual return on the form provided by the City or a generic city income tax form whether or not tax is due. This process is also known as mandatory filing.
(b) If a return is made for a fiscal year or any period less than a year, the return shall be made by the 15th day of the fourth month following the end of such fiscal year or period.
(c) Partnerships:
.1 All resident partnerships will file a return. A complete Federal Form 1065 (U.S. Partnership Return of Income) must be included with the City return. Payment of any tax due will be paid by the partnership as an entity.
.2 Non resident partnerships having net profits attributable to the City, will file a return as stated above and adjusted to the requirements of the Ordinance and ORC 718, but shall pay the tax due as an entity.
.3 In the case of a resident individual partner or part owner of a non resident business, the partner's distributive share of net profits is reported with the individual return via Schedule K-1.
(d) Corporations will include with the City return, a copy of Federal Form 1120 (U.S. Corporate Income Tax Return) or 1120S (U.S. Small Business Corporation Income Tax Return), including Form 4797 (Supplemental Schedule of Gains and Losses), when applicable. In addition, when deducting that portion of the Ohio Corporation Franchise Tax based on net worth, a copy of the Ohio Corporation Franchise Tax Report (Form FT 1120) must be included to substantiate the deduction. In the case of a tax option corporation, a resident owner or part owner of a non-resident S Corporation, the owner's distributive share of net profits is reported with the individual's City return to the extent it is taxable to the Municipality.
(e) A City Income Tax Return shall not be considered as filed until it is received complete with all the above listed applicable Federal Schedules by the Income Tax Division. All incomplete returns shall be returned to the taxpayer. It shall be the responsibility of the taxpayer to file the completed return by the due date. Any payment submitted with the incomplete return will be applied to the taxpayer's account as an estimated payment.
(f) A business may file the required City Income Tax Return via the Ohio Business Gateway but the required supporting documentation for the return must either be mailed or faxed to the Income Tax Division or submitted via the Secure Email link on the City's website if available. The tax return will be not considered complete until the required supporting documentation is received by the Income Tax Division.
3. Election to file net profit taxes with the State of Ohio for tax years beginning on and after January 1, 2018:
(a) Businesses may elect to file municipal net profit tax with the State of Ohio.
.1 Any tax payer that is engaged in a business or profession in the City of New Carlisle may elect to be subject to the Ordinance sections of Chapter 881 that adopt ORC sections 718.80 through 718.95, in lieu of the remaining provisions set forth in Ordinance Chapter 881.
.2 The taxpayer shall make the initial election on or before the first day of the third month after the beginning of the taxpayer's taxable year by notifying the tax commissioner and the City of New Carlisle on a form prescribed by the Ohio Tax Commissioner.
.3 The Ohio Tax Commissioner shall serve as the sole administrator of the municipal net profit tax.
.4 The election applies to the taxable year in which the election is made and to each subsequent taxable year until the taxpayer notifies the Ohio Tax Commissioner and the City of New Carlisle of its termination of the election.
.5 Taxpayers who made such election may terminate the election, on a form prescribed by the Ohio Tax Commissioner on or before the first day of the third month of any taxable year.
.6 Upon timely and valid termination, the taxpayer is no longer subject to Ordinance sections of Chapter 881 that adopt ORC sections 718.80 through 718.95, and is instead subject to the remaining provisions set forth in Ordinance Chapter 881.
(b) Municipal filing of net profit taxes, instead of electing to file with the State of Ohio, is a condition precedent for any taxpayer that is engaged in business or profession in the City of New Carlisle to receive benefits from the City of New Carlisle's economic development incentive program.
.1 Upon election pursuant to Section 881.17.1 of the Codified Ordinances, a taxpayer who is engaged in business or profession in the City of New Carlisle immediately becomes ineligible to receive any benefit from the City of New Carlisle's economic development incentive program.
Note: Article VI was amended by adding Section 3 to comply with HB 49, passed June 29, 2017, pertaining to the authorization of State officials to collect and administer municipal net profits taxes should a tax payer that is engaged in a business or profession in the City of New Carlisle elect to be subject to the provisions of Section 881.17 of the Codified Ordinances that adopt ORC sections 718.80 through 718.95, in lieu of the remaining provisions set forth in Ordinance Chapter 881.