(A) Authority to levy tax.
(1) The tax on income and the withholding tax established by this section are authorized by Article XVIII, § 3 of the Ohio Constitution. The tax on income and the withholding tax established by this section 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.
(2) The tax is an annual tax levied on the income of every person or entity residing in or earning or receiving income or net profits in the village, and every person or entity earning or receiving income or net profits within Strasburg-Franklin Joint Economic Development District or any other joint economic development district to which the village becomes a party, and shall be measured by municipal taxable income. The village shall tax such income or net profits at a uniform rate. The tax is levied on municipal taxable income, as defined herein.
(B) Purposes of tax; rate.
(1) The purpose of the village income tax is to provide funds for the purposes of general municipal operations, maintenance, new equipment, extension and enlargement of municipal services and facilities, and capital improvements in and for the village.
(2) Subject to the provisions of this chapter, an annual tax for the purposes specified in division (B)(1) of this section shall be imposed on or after January 1, 2016, at the rate of 1.5% per annum upon the salaries, wages, commissions and other compensation earned on or after January 1, 2016 by residents of the village, and by non-residents for work done or services performed or rendered in the village, except as otherwise provided herein.
(C) Allocation of funds.
(1) The funds collected under the provisions of this chapter shall be deposited in a special fund known as a Income Tax Fund and said funds shall be disbursed in the following manner:
(a) Such part thereof as necessary to defray all costs of collecting the taxes and the cost of administering and enforcing the provisions thereof;
(b) Not more than 75% of the net available income tax received annually shall be deposited in the General Fund to defray operating expenses of the village;
(c) At least 15% of net available income tax received annually shall be deposited in the Permanent Improvement Fund to be used for capital improvements for the village; and
(d) At least 10% of net available income tax receipts received annually shall be deposited in the Park Fund for the village to defray operating expenses for Strasburg-Franklin Park.
(2) The funds collected from within the Strasburg-Franklin Joint Economic Development District shall be allocated and used strictly in accordance with the terms of the Strasburg-Franklin Joint Economic Development Contract. The village shall enter into a tax agreement for the administering, collection and enforcement of the village income and net profits tax from within the territory of said Joint Economic Development District.
(D) Statement of procedural history; state mandated changes to municipal income tax.
(1) Significant and wide-ranging amendments to R.C. Chapter 718 were enacted by 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 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 as mandated, effective January 1, 2016, this chapter is 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. O-35-2015, passed 12-16-2015; Ord. O-26-2018, passed - -2018)
Statutory reference:
Authority to tax income and without tax, see R.C. § 718.04