(A) To provide funds for the purposes of general municipal operations, maintenance, new equipment, extension and enlargement of municipal services and facilities and capital improvements, Orrville hereby levies an annual municipal income tax on income, qualifying wages, commissions and other compensation, and on net profits as hereinafter provided.
(B) (1) The annual tax is levied at a rate of 1% (One percent). The tax is levied at a uniform rate on all persons residing in or earning or receiving income in Orrville. The tax is levied on income, qualifying wages, commissions and other compensation, and on net profits as hereinafter provided in Section 181.03 of this chapter and other sections as they may apply.
(2) The funds collected under the provisions of this chapter shall be applied for the following purposes:
(a) Such part as necessary to defray all costs of operation and administration of the Department of Taxation including refunds of any taxes overpaid;
(b) The balance shall be allocated in accordance with ordinances adopted and approved by council;
(c) Not more than seventy percent (70%) of the net available income tax receipts received annually may be used to defray operating expenses of the City. At least thirty percent (30%) of net available income tax receipts received annually shall be set aside and used for capital improvements for the City.
(C) The tax on income and the withholding tax established by this Ordinance K-23 are authorized by Article XVIII, Section 3 of the Ohio Constitution. The tax is levied in accordance with, and is intended to be consistent with, the provisions and limitations of Ohio Revised Code 718 (ORC 718).
(Ord. K-23. Passed 11-20-23.)