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(A) In the event the tax payment required under § 115.03 is less than an amount sufficient to yield an annual license tax calculated at two percent (2%) of net income, equal to or in excess of the minimum license taxes set forth below, then the tax provided by the occupational license tax ordinance applicable to the licensee’s trade, occupation or profession shall apply and be charged as a minimum license tax hereunder.
(B) Except as otherwise required or exempt herein, the minimum license taxes provided by the occupational license tax ordinance are $50 per year for all business types, or $25 for three (3) days for agents, representatives, or solicitors taking or soliciting orders or making sales.
(C) If the tax shown on a taxpayer’s return for any tax period exceeds the minimum license tax paid, the taxpayer shall be credited with the amount of minimum license tax paid. Only minimum license taxes paid during and for the tax year for which the return is being filed can be claimed as a credit.
(D) The Tax Administrator has been authorized to collect the category of each business based on the North American Industry Classification System (NAICS) for internal tracking purposes.
(Ord. 0-2008-002, passed 1-14-08; Am. Ord. 0-2011-026, passed 9-12-11; Am. Ord. 0-2012-006, passed 2-27-12; Am. Ord. 0-2013-028, passed 9-23-13; Am. Ord. O-2019-22, passed 8-12-19; Am. Ord. O-2021-22, passed 10-11-21)
Penalty, see § 115.99
(A) General contractors must pay in advance at the time of issuance of a job permit/building permit a minimum license tax in the amount of one quarter of one percent (0.25%) of the total contract consideration stated in the contract or agreement for labor, services or materials agreed to be provided by the contractor, his or her employees, subcontractors, agents, and the like, including amendments, change orders or additions thereto.
(B) No minimum license tax will be due from any contractor whose taxes or compensation is included as a part of a general contractor’s total contract consideration. The contractor will be required to file a net profits license tax return and to withhold occupational license tax from any employees performing work in the city.
(C) In the event that any contractor’s tax or compensation is not included as part of the general contractor’s total contract consideration for which a minimum license tax has been paid, the contractor’s total contract consideration will be subject to the minimum license tax, and will be payable by the contractor.
(D) Property owners (“owner”) who act as general contractor on their construction projects must pay the minimum license tax on the total estimated cost of construction before they will be issued a building permit. As the owner contracts with others to perform parts of the construction, those contractors will be required to pay the minimum license tax on the contract that they receive. It is the owner’s responsibility to inform each contractor that they are liable for the minimum license tax. Each subcontract will be considered a general contract for the purpose of the minimum license tax. The owner should obtain the contractor’s city license number, name, address, and taxpayer identification number (TIN) and maintain a record of all contractors and the total compensation paid. When construction is completed, the record of contractors is submitted to the city, and if all the contractors have paid the required minimum license tax as described above, the owner will be refunded the minimum license tax. If all contractors have not paid the required minimum license tax, the minimum license tax will be retained to the extent that the minimum has not been collected on the total cost of construction.
(E) Minimum license tax paid by contractors may be claimed as a credit against tax due on the contractor’s net profits return. Contractors may, at their option, apply minimums on a contract by contract basis, thus allowing them to carry a portion minimum tax paid in one (1) year to subsequent years as the contract is completed. When a contract is completed all minimums remaining will be applied in that tax year. The contractor must apply minimum tax based on the percentage of completion of each contract and on appropriate forms supplied by the Occupational Tax Administrator. No refund shall be made if the minimum tax exceeds the license tax calculated on the net profits return.
(Ord. 0-2008-002, passed 1-14-08; Am. Ord. 0-2015-013, passed 10-1-15) Penalty, see § 115.99
(A) Delinquent payments hereunder shall incur interest in an amount equal to one percent (1%) per month from the time the tax was due until the tax is paid to the city. A fraction of a month is counted an entire month.
(B) A business entity subject to tax on net profits may be subject to a penalty equal to five percent (5%) of the tax due for each month or fraction thereof if the business entity:
(1) Fails to file any return or report on or before the due date prescribed for filing or as extended by the city; or
(2) Fails to pay the tax computed on the return or report on or before the due date prescribed for payment or fails to pay 75% or greater of the tax due on the return as a estimated tax pursuant to § 115.07(A). For underestimated taxes paid for an extension, the penalty will be accessed upon the difference of the estimated tax paid and the tax computed on the return.
(3) An additional five percent (5%) penalty will be assessed for each additional thirty (30) day period or fraction thereof for which a business entity subject to tax on net profits fails to comply with (B)(1) or (2). The total penalty levied pursuant to this subsection shall not exceed twenty- five percent (25%) of the total tax due; however, the penalty shall not be less than twenty five dollars ($25.00). For example, if a return is due on April 15th, on April 16th a five percent (5%) penalty will be assessed, not prorated daily. On May 17th, another five percent (5%) penalty will be assessed and so on for a maximum penalty imposed of twenty-five percent (25%) of the total tax due.
(C) Every employer who fails to file a return or pay the tax on or before the time prescribed under § 115.05 may be subject to a penalty in amount equal to five percent (5%) of the tax due for each month or fraction thereof. An additional five percent (5%) penalty will be assessed for each additional thirty (30) day period or fraction thereof for an employer who fails to file a return or pay the tax on or before the time prescribed in § 115.05 (see example in (B)(3) for calculation. The total penalty levied pursuant to this subsection shall not exceed twenty-five percent (25%) of the total tax due; however, the penalty shall not be less than twenty-five dollars ($25.00).
(D) In addition to the penalties prescribed in this section, any business entity or employer shall pay, as part of the tax, an amount equal to twelve percent (12%) per annum simple interest on the tax shown due, but not previously paid, from the time the tax was due until the tax is paid to the city. A fraction of a month is counted as an entire month.
(E) Every tax imposed by this chapter, and all increases, interest, and penalties thereon, shall become, from the time the tax is due and payable, a personal debt of the taxpayer to the city.
(F) The city may enforce the collection of the occupational tax due under § 115.03 and any fees, penalties, and interest as provided in divisions (B) through (E) by civil action in a court of appropriate jurisdiction. To the extent authorized by law, the city shall be entitled to recover all court costs and reasonable attorney fees incurred by it in enforcing any provision of this chapter.
(G) In addition to the penalties prescribed in this section, any business entity or employer who willfully fails to make a return or willfully makes a false return, or who willfully fails to pay taxes owing or collected, with the intent to evade payment of the tax or amount collected, or any part thereof, shall be guilty of a Class A misdemeanor.
(H) Any person who willfully aids or assists in, or procures, counsels, or advises the preparation or presentation under, or in connection with, any matter arising under this chapter of a return, affidavit, claim, or other document, which is fraudulent or is false as to any material matter, whether or not the falsity or fraud is with the knowledge or consent of the person authorized or required to present the return, affidavit, claim, or document, shall be guilty of a Class A misdemeanor.
(I) A return for the purpose of this section shall mean and include any return, declaration, or form prescribed by the city and required to be filed with the city by the provisions of this chapter, or by the rules of the city or by written request for information to the business entity by the city.
(J) Any person violating the provisions of § 115.11 by intentionally inspecting confidential taxpayer information without authorization, shall be fined not more than five hundred dollars ($500.00) or imprisoned for not longer than six (6) months, or both.
(K) Any person violating the provisions of § 115.11 by divulging confidential taxpayer information shall be fined not more than one thousand dollars ($1,000.00) or imprisoned for not more than one (1) year, or both. This chapter shall be effective for the 2010 tax year for those taxpayer filing requests for extensions for the 2010 tax year and thereafter.
(L) Any person presenting for payment a credit card, check or draft for payment of the taxes set forth in this section and the payment is dishonored, returned for non-sufficient funds (NSF) or charged back to the city account for any reason shall be charged a fee of fifty dollars ($50.00) in addition to any other penalties, fees or interest provided for herein. Any payment to the city which is dishonored, returned for non-sufficient funds (NSF) or charged back to the city account for any reason shall be treated as if payment had not been received and penalties and interest for non-payment provided for herein shall be charged.
(M) Amnesty program.
(1) A taxpayer amnesty, waiver, or forgiveness of penalties and interest is established under this section for failure to file any return or report on or before the due date prescribed for filing or as extended by the city, or failure to pay the tax computed on the return or report on or before the due date prescribed for payment, shall be granted by the Occupational Tax Administrator subject to the following prerequisites, requirements, and conditions.
(a) The taxpayer to be eligible for the amnesty program must have a current occupational taxpayer account with the city for a period of two (2) years prior to the date of the amnesty request and in good standing during that two (2) year period.
(b) For a three (3) year period prior to the amnesty request (two (2) years if the taxpayer has not been a licensed city business for three (3) years preceding the request), the taxpayer must have been in good standing with the Occupational Tax Department and shall not have been delinquent in the payment of taxes or filing of reports or returns, or assessed late filing penalties.
(c) The taxpayer must make an amnesty request in writing to the Occupational Tax Office for amnesty within thirty (30) days of the due date prescribed for the filing of the return or report or as extended by the city, or the failure to pay the tax computed on the return or report for which amnesty is requested. The amnesty request, along with the other required documents and payment provided for hereunder, must be received by the Tax Office no later than thirty (30) days of the due date prescribed for the filing of the return or report, or as extended by the city, or the failure to pay the tax computed on the return or report for which amnesty is requested no later than the posted close of business for City Hall. If the thirtieth day falls on a weekend, holiday, or other day in which City Hall is closed, then the due date will be the close of business the following day in which City Hall is open. For the purpose of an amnesty request, the postmark shall not be accepted as satisfying the filing deadline.
(d) The taxpayer’s failure to file any return(s) or report(s), or failure to pay the taxes computed on the return or report for which amnesty is requested shall not have exceeded more than thirty (30) days from the original due date.
(e) The amnesty request shall be accompanied with the required return(s) or report(s) and all required tax payments in full. No partial payments shall be accepted with an amnesty request. In the event that the taxpayer should submit payment of a credit card, check, or draft for payment of the taxes set forth in this section, and the payment is dishonored, returned for non-sufficient funds (NSF), or charged back to the city account for any reason, the amnesty request shall be revoked and penalties and interest assessed as of the original due date.
(f) An amnesty request shall not be requested or granted more than one (1) time during any three (3) year period. The one time request provided for herein may include more than one (1) tax report/return (such as employee wage withholding report and net profit returns) if the amnesty request is for the same due date.
(2) The Occupational Tax Office shall maintain with its taxpayer records, a list of all amnesty requests for a period of five (5) years after the date of the granting of amnesty.
(3) Amnesty provided for hereunder shall not be applicable to any other requirements provided for under Chapter 115.
(Ord. 0-2008-002, passed 1-14-08; Am. Ord. 0-2009-27, passed 12-14-09; Am. Ord. 0-2010-026, passed 11-8-10; Am. Ord. 0-2011-004, passed 1-26-11; Am. Ord. 0-2012-003, passed 2-27-12; Am. Ord. O-2019-18, passed 7-8-19; Am. Ord. O-2020-11, passed 9-28-20; Am. Ord. O-2022-01, passed 1-24-22)