(a) General Provisions.
(1) It shall be the duty of the Income Tax Superintendent to administer the Income Tax Ordinance of the City, to receive the tax imposed by the Income Tax Ordinance in the manner prescribed by the Income Tax Ordinance and to keep an accurate record thereof. The Superintendent shall report all monies received, on a daily basis, to the Director of Finance.
(2) It shall be the duty of the Superintendent to enforce payment of all taxes owing the City, to keep accurate records for a minimum of five years showing the amount due from each taxpayer and to show the dates and amounts of payments thereof.
(3) The Superintendent is charged with the responsibility to enforce the provisions of the Income Tax Ordinance and is empowered to adopt rules, policies, and procedures relating to any matter pertaining to the administration and enforcement of the Income Tax Ordinance.
A. Any taxpayer, employer or other interested party desiring a special ruling on any matter pertaining to the Income Tax Ordinance or these Rules and Regulations should submit to the Superintendent, in writing, all facts involved and the ruling sought.
B. Certain rules, policies, procedures and the like, as established by the Superintendent per the above empowerment may additionally require concurrence by the City Council or Income Tax Board of Appeals.
(4) The Superintendent has the authority to correct or adjust any return submitted when a correction or adjustment is necessary to accomplish the intent of the Income Tax Ordinance or these Rules and Regulations.
A. If, as a result of investigation and examination by the Superintendent, a return is found to be incorrect, the Superintendent is authorized to assess and collect any underpayment of tax withheld at the source or any underpayment of tax due from any taxpayer on earnings or net profits or both.
B. If, as a result of such investigation or examination it is found that an overpayment has been made, the Superintendent shall allow such overpayment as a credit against a subsequent year liability or refund that amount to the taxpayer.
(5) In the event that the Superintendent has obtained information indicating that a taxpayer may have an obligation to file a return or may have a tax obligation that was not shown on a return, the Superintendent is authorized to assess and collect the tax actually due with or without the formality of obtaining a return from the employer or taxpayer.
A. The Superintendent may prepare returns on behalf of an employer or taxpayer.
B. Whenever the Superintendent has been unable to secure information from a taxpayer or employer as to the taxable income for any year, the Superintendent may determine the amount of tax appearing to be due, together with any penalties, interest or fees, and assess the taxpayer or employer upon the basis of such determination. Such determination may be adjusted upon submission by the taxpayer of actual records from which the correct amount of tax due may be calculated.
(6) The Superintendent shall make electronic versions of the Income Tax Ordinance, these Rule and Regulations and Vandalia income tax returns available to the public through the Internet. Any amendments, supplements or changes to the Income Tax Ordinance or Rules and Regulations shall be made available on the Internet within 90 days of adoption of such amendment, supplement or change.
(b) Corrections and Assessments.
(1) Where a taxpayer or employer has failed to file a return or has filed a return which is incomplete or does not show the proper amount of tax due, the Superintendent may assess and collect any underpayment of tax withheld at the source or any underpayment of tax due from any taxpayer on earnings or net profits or both. In such case, the Superintendent shall issue a proposed assessment showing the amount of tax due together with any penalties, interest or fees that may be applicable.
A. Such proposed assessment shall be served in person or by mailing to the taxpayer's last known address. Proof of mailing furnished by the U.S. Post Office shall be presumptive proof of receipt by the addressee. A proposed assessment is not necessary in cases where a taxpayer or employer has filed a return indicating the amount of tax due but has failed to pay the tax shown to be due. In such instances, the Superintendent may proceed with enforcement provisions per the Income Tax Ordinance.
B. A taxpayer may, within 30 days after the date the proposed assessment was served or mailed, file a written appeal with the Superintendent. If no appeal is filed with 30 days, such proposed assessment shall become final. If the Superintendent receives such appeal, the taxpayer will be given an opportunity, within 30 days of receipt of such appeal, to a hearing with the Superintendent to discuss the proposed assessment and to present any facts relative to the assessment. The Superintendent may extend the date of the hearing upon good cause shown. After such hearing, the Superintendent shall withdraw, modify or reaffirm the assessment and it shall then become final.
(2) When a proposed assessment becomes final, notice of such final assessment shall be issued by the Superintendent and shall be served in the same manner as a proposed assessment.
A. A taxpayer shall have 30 days after the date a final assessment is served or mailed to file a written appeal with the Board of Tax Appeals. Such written notice of appeal shall be filed in a sealed envelope plainly marked "Appeal to Board of Tax Appeals" and mailed or delivered to the Superintendent, who shall, within five days after receipt, deliver such appeal to the Chairperson of the Board of Tax Appeals or, if the Chairperson is not available, to the Vice- Chairperson.
B. Within 30 days of notification from the Board of Tax Appeals that an appeal has been filed, the Superintendent shall provide the Board with a certified transcript of all actions, and the reasoning behind those actions, that were taken on the account prior to the final assessment being made. Such transcript shall be open to review by the taxpayer and the taxpayer's counsel.
(3) When the Board of Appeals grants a hearing on a final assessment, both the Superintendent and the taxpayer may present evidence relating to such assessment. The Board of Appeals may affirm, reverse or modify the final assessment and shall furnish a copy of the decision to the Superintendent and to the taxpayer. The taxpayer's copy of the decision shall be served in the same manner as the proposed and final assessments.
(c) Installment Plans. The Superintendent is authorized to arrange for payment of unpaid taxes, interest and penalties on a schedule of installment payments when the taxpayer has shown that due to certain hardship conditions a timely full payment of the amount due cannot be made.
(1) Such authorization for an installment plan shall not be granted until all proper and complete returns are filed and all amounts owed are established and all other payment options have, in the judgment of the Superintendent, been fully explored and eliminated.
(2) Installment plans shall not exceed a period of six months unless, in the judgment of the Superintendent, and with exceptional hardship conditions proven by the taxpayer, it is in the best interest of the City to grant provisions for an extended payment plan.
(3) When a delinquent balance due encompasses more than one tax year, any payments received shall first be applied to the oldest year tax balance due until the tax for that year is paid in full before applying payments to any other year or to penalties, interest or fees.
(4) Failure to make any installment plan payment when due shall cause the total unpaid amount, including all penalties, interest and fees, to become due and payable on demand and to become subject to all enforcement provisions of the Income Tax Ordinance.
(d) Investigative Authority.
(1) The Income Tax Superintendent or any designated employee of the Income Tax Office is authorized to examine the books, papers, records and other documents, including Federal, State and other city income tax returns, of any employer or taxpayer or person or entity subject to the City income tax, or whom the Superintendent believes is subject to the tax, for the purpose of verifying the accuracy of any return made, or if no return was made, to ascertain the tax due under the provisions of the Income Tax Ordinance. Every such employer, supposed employer, taxpayer, supposed taxpayer, person or entity is required, within ten days following the written request from the Superintendent, to furnish to the Superintendent or duly authorized employee, the means, facilities and opportunity for making inspections and investigations of books, papers, records and other documents that may relate, in the judgment of the Superintendent, to City income tax.
(2) The Superintendent, or any person empowered to act in the Superintendent's capacity, is authorized to examine any person reasonably believed to have knowledge of the facts to appear before the Superintendent and to examine such person, under oath, concerning any income or profit which was, or should have been, returned for taxation, or any transaction tending to affect such income.
A. The Superintendent may issue subpoenas, if necessary, for attendance, whether the examination is to be at the income tax office or at the office of the taxpayer or other designated location, of all persons whether as parties or witnesses, whenever it is believed that such persons may have knowledge of such income or profits or other pertinent information or transaction that may affect income or profit. Individuals may be so ordered whether or not such individuals have custody of actual books and records of the taxpayer or employer or entity being investigated.
B. The Superintendent is specifically authorized to order the appearance of the local manager or representative of any taxpayer or employer or entity.
(3) Persons required to attend any hearings shall be notified not less than ten days prior to the time of the hearing. The notice shall show the time and place of the hearing and what books, papers, records or other documents or information is to be made available.
(4) The notice or subpoena shall be served by the Superintendent, or duly authorized agent, by delivering it to the person named in the notice, or by leaving the notice at the person's usual residence or place of business, or by mailing it to such usual residence or place of business by certified mail, return receipt requested.
(5) Refusal by any taxpayer, employer or other person or entity subject to or presumed to be subject to the tax, or having knowledge of or presumed to have knowledge of pertinent tax information, to appear before the Superintendent or to produce books, papers, records and other documents, as ordered by the Superintendent shall be deemed to be in violation of the Income Tax Ordinance. Such refusal by any taxpayer or employer or entity or other person to appear, or to produce books, papers, records or other documents or information as ordered by the Superintendent, constitutes a misdemeanor punishable by fine or imprisonment or both, as prescribed by the Income Tax Ordinance.
(6) Every taxpayer and employer subject to the tax is required to keep such records as will enable the filing of true, complete and accurate City income tax returns whether of taxes payable upon earnings or net profits or both or of taxes withheld at the source. Such records are to be maintained and preserved for a period of not less than five years after the close of the calendar or fiscal year to which the records relate or five years after the date the final return is filed and paid or the withholding taxes are remitted, whichever is later.
(e) Confidentiality. Any information gained as a result of any returns, investigations, verifications or hearings before the Superintendent as required or authorized by the Income Tax Ordinance, shall be confidential and no disclosure thereof shall be made except for official purposes or as ordered by a court of competent jurisdiction.
(1) The Superintendent may furnish copies of returns filed and other required information to examiners of the State of Ohio in connection with their duties of auditing political subdivisions.
(2) Nothing in these Rules and Regulations shall be construed as giving authority to any elected or administrative official or employee of the City, other than those of the Income Tax Division, for access to tax returns or other information in connection therewith that is filed with the Income Tax Division.
(3) Dissemination of information by the Superintendent of a general statistical nature, including but not limited to reports of total amounts collected, number of returns filed and the like, is not prohibited.
(Ord. 67-28. Passed 12-4-67; Ord. 02-24. Passed 12-23-02.)