(A) The tax on income and the withholding tax established by this Chapter 94 are authorized by Article XVIII, § 3 of the Ohio Constitution. The tax on income and the withholding tax established by this Chapter 94 are deemed to be levied in accordance with, and to be consistent with, the provisions and limitations of R.C. Chapter 718. This chapter is deemed to incorporate the provisions of R.C. Chapter 718.
(B) 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.
(A) To provide funds for the purpose of general municipal operations, maintenance, new equipment, extension and enlargement of municipal services and facilities and permanent improvements of the city and the discharge of principal, and the payment of interest thereon, of obligations for permanent improvements both before and after the date of this chapter, there is levied a tax on salaries, wages, commissions and other compensation, and on net profits as hereinafter provided.
(B) Rate of tax. An annual tax, for the purposes specified in this chapter, shall be levied at the rate of 2.0% per annum.
(Am. Ord. 16-2019, passed 5-15-19)
The allocation of the receipts from the city earnings tax shall be as follows:
(1) All receipts shall be placed first in the general fund;
(2) All operating expenses and refunds associated with the city earnings tax shall be paid from the general fund.
Further allocation shall be made by the City Council on an annual basis depending upon the needs of the city, apparent from time to time.
(A) Significant and wide-ranging amendments to R.C. Chapter 718 were enacted by Am Sub HB 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 R.C. Chapter 718 in order to have the authority to impose, enforce, administer and collect a municipal income tax.
(B) As mandated by H.B. 5, municipal income tax Ordinance 26-2015, effective January 1, 2016, comprehensively amends Chapter 94A in accordance with the provisions of 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. 26-2015, passed 11-18-15)
Statutory reference:
Authority for tax on income and withholding tax, see R.C. § 718.04