(A) Authority to levy tax.
(1) The tax on income and the withholding tax established by this Chapter 39A are authorized by Article XVIII, § 3 of the Ohio Constitution. The tax on income and the withholding tax established by this Chapter 39A 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 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 at the rate of 1.72%.
(B) Purposes of tax; rate. To provide funds for the purposes of general municipal operations, maintenance, new equipment, extension and enlargement of municipal services and facilities and capital improvements of this municipality there shall be, and is hereby, levied a tax on salaries, wages, commissions, and other compensation, and on net profits as hereinafter provided.
(C) Allocation of funds. That all funds raised by the 1.72% tax rate will be used as follows: 1.00% will be placed in the General Fund; .50% will be used for the Street Department; .22% will be used for the Police and Fire Department and real property.
(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 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.
(2) As mandated by H.B. 5, municipal income tax Ordinance 2015-40, effective January 1, 2016, comprehensively amends Chapter 39 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. 15-09-027, passed 10-26-2015; Am. Ord. 15-12-038, passed 12-28-2015)
Statutory reference:
Authority for tax on income and withholding tax, see R.C. § 718.04