890.03 RATE OF TAX AND INCOME TAXABLE.

The purpose of this chapter is to provide additional funds for the discharge of general Municipal functions of the Village, including, without limitation, for managing the safety needs of the Village, for street and sewer maintenance, for building maintenance, repair and construction, for existing recreational needs, and for staffing requirements, in the furtherance of which purposes there shall be, and there is hereby, levied a tax on all salaries, wages, commissions and other compensation, and on net profits, all as hereinafter defined and provided for.

(Ord. 1969-6. Passed 3-18-69; Ord. 2002-08. Passed 3-19-02; Ord. 2007-23. Passed 6-19-07.)

890.02 DEFINITIONS.

(a) “Adjusted Federal taxable income” means a C Corporation’s Federal taxable income before net operating losses and special deductions as determined under the Internal Revenue Code, but including subsequent adjustments from required additions and deductions. Pass-through entities must compute “adjusted Federal taxable income” as if the pass-through entity was a C Corporation. This definition does not apply to any taxpayer required to file a return under Ohio R.C. 5745.03 or to the net profit from a sole proprietorship. This definition is effective for tax years beginning on or after January 1, 2004.

(b) "Administrator" means the individual appointed by the Mayor subject to approval of Council, to administer and enforce the provisions of this chapter.

(c) "Association" means any partnership, limited partnership, limited liability company, or any other form of unincorporated enterprise, owned by two or more persons.

(d) "Board of Review" means the Board created by and constituted as provided in Section 890.14.

(e) "Business" means any enterprise, activity, profession or undertaking of any nature conducted for profit or ordinarily conducted for profit, whether by an individual, partnership, association, corporation or any other entity, excluding, however, all nonprofit corporations which are exempt from the payment of Federal income tax.

(f) "Corporation" means a corporation or joint stock association organized under the laws of the United States, the State of Ohio or any other state, territory or foreign country or dependency.

(g) “Domicile” means the permanent legal residence of a taxpayer. A taxpayer may have more than one residence but not more than one domicile.

(h) "Employee" means one who works for income, qualifying wages, commission or other type of compensation in the service of and under the control of an employer.

(i) "Employer" means an individual, partnership, association, corporation, government body, unit or agency, or any other entity, whether or not organized for profit, who or which employs one or more persons on an income, qualifying wage, commission or other basis of compensation.

(j) "Fiscal year" means an accounting period of 12 months or less ending on any day other than December 31.

(k) “Generic form” means an electronic or paper form designed for reporting estimated municipal income taxes, and/or annual municipal income tax liability, and/or separate requests for refunds that contain all the information required on the Village’s regular tax return and estimated payment forms, and are in a similar format that will allow processing of the generic forms without altering the Village’s procedures for processing forms.

(l) "Gross receipts" means the total revenue derived from sales, work, done, or services rendered.

(m) “Income” means all monies and compensation in any form, subject to limitations imposed by Ohio R.C. 718 and exemptions listed in Section 890.03(e), derived from any source whatsoever, including but not limited to:

(1) All income, qualifying wages, commissions and other compensation from whatever source received by residents of the Village.

(2) All income, qualifying wages, commissions and other compensation from whatsoever source received by nonresidents for work done or services performed or rendered or activities conducted in the Village.

(3) The portion attributable to the Village of the net profits of all businesses, associations, professions, corporations, or other entities, from sales made, work done, services performed or rendered, and business or other activities conducted in the Village.

(n) “Joint Economic Development District” means a district created under Ohio R.C. 715.70 through 715.83, as amended from time to time.

(o) "Manager" means any of an employer's officers, responsible persons, employees having control or supervision, and employees charged with the responsibility of filing a return, paying taxes and otherwise complying with this chapter.

(p) "Net profits" means, for taxable years prior to 2004, a net gain from the operation of a business, profession, enterprise or other activity after provision for all ordinary and necessary expenses either paid or accrued, in accordance with the accounting system (i.e. cash or accrual) used by the taxpayer for Federal income tax purposes without deduction of taxes imposed by this chapter, and also Federal, State and other taxes based on income, and in the case of an association, without deduction of salaries paid to partners and other owners. For taxable years 2004 and later, see “adjusted Federal taxable income.”

(q) "Nonresident" means an individual domiciled outside the Village.

(r) "Nonresident unincorporated business entity" means an unincorporated business entity not having an office or place of business within the Village.

(s) “Pass-through entity” means a partnership, S Corporation, limited liability company, or any other class of entity the income or profits from which are given pass-through treatment under the Internal Revenue Code. Unless otherwise specified, for purposes of this chapter the tax treatment for pass-throughs is the same as “association.”

(t) "Person" means every natural person, partnership, fiduciary, association or corporation. Whenever used in any clause prescribing and imposing a penalty, the term "person", as applied to any unincorporated entity, shall mean the partners or members thereof, and as applied to corporations, the officers thereof.

(u) "Place of business" means any bona fide office (other than a mere statutory office), factory, warehouse or other space which is occupied and used by the taxpayer in carrying on any business activity individually or through one or more of his regular employees regularly in attendance.

(v) “Qualifying wage” means wages as defined in Section 3121(a) of the Internal Revenue Code, without regard to any wage limitations, but including subsequent adjustments from required additions and deductions. “Qualifying wage” represents employees’ income from which municipal tax shall be deducted by the employer, and any wages not considered a part of “qualified wage” shall not be taxed by a municipality. This definition is effective January 1, 2004, for taxable years 2004 and later.

(w) "Resident" means an individual domiciled in the Village.

(x) "Resident unincorporated business entity" means an unincorporated business entity having an office or place of business within the Village.

(y) "Taxable income" means income minus the deductions and credits allowed by this chapter. (See “income” definition.)

(z) "Taxable year" means the calendar year, or the fiscal year upon the basis of which the net profits are to be computed under this chapter, and, in the case of a return for a fractional part of a year, the period for which such return is required to be made.

(aa) "Taxpayer" means a person, whether an individual, partnership, association or any corporation or other entity, required hereunder to file a return or pay a tax.

(bb) “Village” means the Village of Walton Hills.

(Ord. 1968-15. Passed 6-18-68; Ord. 2007-23. Passed 6-19-07.)

890.03 RATE OF TAX AND INCOME TAXABLE.

(a) An annual tax for the purpose specified in Section 890.01 shall be imposed on and after July 1, 2013, at the rate of two and one-half percent per year upon the following:

(1) On all income, qualifying wages, commissions and other compensation earned and/or received on and after July 1, 2013, by residents of the Village.

A. For further clarification income taxable by the Village of Walton Hills shall include all income derived from prizes, awards, gambling, wagering, lotteries, sports winnings or other similar games of chance by residents or nonresidents of the Village within the Village in an amount in excess of ten thousand dollars ($10,000) or on the basis of activities conducted within the Village on or after July 1, 2012. If the taxpayer is considered a professional gambler for Federal income tax purposes, related deductions as permitted by the Internal Revenue Code shall be allowed against gambling and sports winnings, otherwise no such deductions shall be permitted.

(2) On all income, qualifying wages, commissions and other compensation earned and/or received on and after July 1, 2013, by nonresidents of the Village for work done or services performed or rendered within the Village. Separation pay, termination pay, reduction-in- force pay, and other compensation paid as a result of an employee leaving the service of an employer shall be allocable only to the Village;

A. The Village shall not, however, tax the compensation of a nonresident individual who will be deemed to be an occasional entrant for purposes of the following apply:

1. The compensation is paid for personal services performed by the individual in the Village on 12 or fewer days during the calendar year, in which case the individual shall be considered an occasional entrant for purposes of the Village’s income tax. A day is a full day or any fractional part of a day;

2. In the case of an individual who is an employee, the principal place of business of the individual’s employer is located outside the Village and the individual pays tax on compensation described in Section 890.03(b) to the Municipality, if any, in which the employer’s principal place of business is located, and no portion of that tax is refunded to the individual; and

3. The individual is not a professional entertainer or professional athlete, the promoter of a professional entertainment or sports event, or an employee of such a promoter, all as may be reasonably defined by the Village.

B. Beginning with the thirteenth day an individual deemed to have been an occasional entrant to the Village performs services within the Village, the employer of said individual shall begin withholding the Village income tax from remuneration paid by the employer to the individual, and shall remit the withheld income tax to the Village in accordance with the requirements of this chapter. Since the individual can no longer be considered to have been an occasional entrant, the employer is further required to remit taxes on income earned within the Village by the individual for the first 12 days.

C. If the individual is self-employed, it shall be the responsibility of the individual to remit the appropriate income tax to the Village.

(3) A. On the portion attributable to the Village of the net profits earned on and after July 1, 2013, of all resident unincorporated business entities or professions or other activities, derived from sales made, work done, services performed or rendered and business or other activities conducted in the Village;

B. On the portion of the distributive share of the net profits earned and/or received on and after July 1, 2013, of a resident partner or owner of a resident unincorporated business entity not attributable to the Village and not levied against such unincorporated business entity by the Village;

(4) A. On the portion attributable to the Village of the net profits earned on or after July 1, 2013, of all nonresident unincorporated business entities, professions or other activities derived from sales made, work done, services performed or rendered and business and other activities conducted in the Village, whether or not such unincorporated business entity has an office or place of business in the Village;

B. On the portion of the distributive share of the net profits earned and/or received on or after July 1, 2013, of a resident partner or owner of a nonresident unincorporated business entity not attributable to the Village and not levied against such unincorporated business entity by the Village;

C. On the portion attributable to the Village of the net profits earned on and after July 1, 2013, of all corporations derived from sales made, work done, services performed or rendered and business or other activities conducted in the Village, whether or not such corporations have an office or place of business in the Village;

(5) In accordance with a ballot issue approved by residents on November 4, 2003, the full amount of the distributive share of S Corporation shareholders is taxable; and

(6) On the portion attributable to the Village pursuant to the terms of this chapter and including income earned by a taxpayer from a royalty interest in the production of an oil or gas well, whether managed, extracted or operated by the taxpayer individually or through an agent or other representative. Such income shall be included in the computation of net profits from a business activity to the extent that such royalty interest constitutes a business activity of the taxpayer. Where the gross income received by a taxpayer from a royalty interest in the production of an oil or gas well in a taxable year exceeds three thousand dollars ($3,000), it shall be prima- facie evidence that the income was derived from a business activity of such taxpayer, and the net income from such royalty interest shall be subject to tax. If the income is three thousand dollars ($3,000) or less, the income shall be taxed as ordinary income.

(b) Net profits from a business or profession conducted both within and without the boundaries of the Village shall be considered as having a taxable situs in the Village for the purpose of income taxation in the same proportion as the average ratio of the factors in divisions (b)(1), (2), and (3) of this section:

(1) The average original cost of the real and tangible personal property owned or used by the taxpayer in the business or profession in the Village during the taxable period, to the average original cost of all the real and tangible personal property owned or used by the taxpayer in the business or profession during the same period, wherever situated. As used in this paragraph, real property shall include property rented or leased by the taxpayer and the value of such property shall be determined by multiplying the annual rental thereon by eight.

(2) Qualifying wages, commissions and other compensation paid during the taxable period to persons employed in the business or profession for services performed in the Village, to qualifying wages, commissions and other compensation paid during the same period to persons employed in the business or profession, wherever their services are performed.

(3) Gross receipts of the business or profession from sales made and services performed during the taxable period in the Village to gross receipts of the business or profession during the same period from sales and services, wherever made or performed.

(4) Add together the percentages determined in accordance with divisions (b)(1), (2) and (3) hereof, or such of the aforesaid percentages as are applicable to the particular taxpayer, and divide the total so obtained by the number of percentages used in deriving such total, in order to obtain the business allocation percentage referred to in division (a) hereof. A factor is applicable even though it may be allocable entirely in or outside the Village.

(5) In the event that the foregoing apportionment formula in divisions (b)(1), (2), and (3) of this section does not produce an equitable result, another basis (including the use of the books and records method) may, under uniform regulations, be substituted so as to produce such result.

(6) As used in division (b)(3), “sales made in the Village” means:

A. All sales of tangible personal property which is delivered within the Village, regardless of where title passes, if shipped or delivered from a stock of goods within the Village;

B. All sales of tangible personal property which is delivered within the Village, regardless of where title passes even though transported from a point outside the Village, if the taxpayer is regularly engaged through its own employees in the solicitation or promotion of sales within the Village and the sales result from such solicitation or promotion; and

C. All sales of tangible personal property which is shipped from a place within the Village to purchasers outside of the Village, regardless of where title passes, if the taxpayer is not, through its own employees, regularly engaged in the solicitation or promotion of sales at the place where delivery is made.

(c) (1) Rental income received by a taxpayer shall be included in the computation of net profits from business activities under divisions (a)(3) and (4) only if, and to the extent that, the rental, ownership, management or operations of the real estate from which such rentals are derived (whether so rented, managed or operated by a taxpayer individually or through agents or other representatives) constitutes a business activity of the taxpayer in whole or in part.

(2) Where the gross monthly rental of any and all real properties, regardless of number and value, aggregates in excess of two hundred fifty dollars ($250.00) per month, it shall be prima facie evidence that the rental, ownership, management or operation of such properties is a business activity of such taxpayer, and the net income of such rental property shall be subject to tax, provided that in the case of commercial property, the owner shall be considered engaged in a business activity when the rental is based on a fixed or fluctuating percentage of gross or net sales, receipts or profits of the lessee, whether or not such rental exceeds two hundred fifty dollars ($250.00) per month, provided, further, that in the case of farm property, the owner shall be considered engaged in a business activity when he or she shares in crops or when the rental is based on a percentage of the gross or net receipts derived from the farm, whether or not the gross income exceeds two hundred fifty dollars ($250.00) per month, and provided, further, that the person who operates a licensed rooming house shall be considered in business whether or not the gross income exceeds two hundred fifty dollars ($250.00) per month.

(3) Rental income of two hundred fifty dollars ($250.00) or less per month shall be taxable as ordinary income.

(d) Operating Loss Carry-Forward.

(1) The portion of a net operating loss sustained in any taxable year subsequent to July 1, 1968, allocable to the Village, may be applied against the portion of the profit of succeeding tax years allocable to the Village until exhausted, but in no event for more than five taxable years immediately following the year in which the loss occurred. No portion of a net operating loss may be carried back against net profits of any prior year.

(2) The portion of net operating loss sustained shall be allocated to the Village in the same manner as provided herein for allocating net profits to the Village.

(3) The Administrator shall provide by rules and regulations the manner in which such net operating loss carry-forward shall be determined.

(e) Exemptions (Sources of Income Not Taxed). The tax provided for in this chapter shall not be levied on the following:

(1) Military pay or allowance of active members of the Armed Forces of the United States and of members of their reserve components, including the National Guard.

(2) Poor relief, unemployment insurance benefits, old age pensions or similar payments, including disability benefits received from local, State or Federal governments or charitable, religious or educational organizations.

(3) Proceeds of insurance paid by reason of the death of the insured, pensions, disability benefits, annuities or gratuities not in the nature of compensation for services rendered from whatever source derived.

(4) The income of religious, fraternal, charitable, scientific, literary or educational institutions to the extent that such income is derived from tax exempt real estate, tax exempt tangible or intangible property or tax exempt activities.

(5) Receipts by bona fide charitable, religious and educational organizations and associations, when those receipts are from seasonal or casual entertainment, amusements, sports events and health and welfare activities, when any such are conducted by bona fide charitable, religious or educational organizations and associations.

(6) Alimony received.

(7) Personal earnings of any natural person under 18 years of age.

(8) Compensation for personal injuries or for damages to property by way of insurance or otherwise, but this exclusion does not apply to compensation paid for lost salaries or wages or to compensation from punitive damages.

(9) Parsonage allowance, to the extent of the rental allowance or rental value of a house provided as a part of an ordained clergy’s compensation. The clergy must be duly ordained, commissioned, or licensed by a religious body constituting a religious denomination, and must have authority to perform all sacraments of the religious body.

(10) Compensation paid to a precinct election official, to the extent that such compensation does not exceed one thousand dollars ($1,000) annually.

(11) For taxpayers filing itemized Federal returns, tax shall not be levied on expenses reported in accordance with Federal guidelines for Federal Form 2106, subject to audit and approval by the income tax office.

(12) Interest, dividends and other revenue from intangible property.

(13) Gains from involuntary conversion, cancellation of indebtedness, interest on Federal obligations, items of income already taxed by the State of Ohio which the Village is specifically prohibited from taxing, and income of a decedent's estate during the period of administration (except such income from the operation of a business).

(14) Income, qualifying wages, commissions and other compensation and net profits, the taxation of which is prohibited by the United States Constitution or any act of Congress limiting the power of the states or their political subdivisions to impose net income taxes on income derived from interstate commerce.

(15) Income, qualifying wages, commissions and other compensation and net profits, the taxation of which is prohibited by the Constitution of the State of Ohio or any act of the Ohio General Assembly limiting the power of the Village to impose net income taxes.

(Ord. 1985-23. Passed 8-5-85; Ord. 2002-8. Passed 3-19-2002; Ord. 2007-23. Passed 6-19-07; Ord. 2012-16. Passed 6-19-12; Ord. 2012-30. Passed 5-7-13 by voters; Ord. 2015-6. passed 11-17-15.)

890.04 EFFECTIVE PERIOD.

The tax referred to in Section 890.03 shall be levied, collected and paid with respect to the income, salaries, wages, commissions and other compensation, and with respect to the net profits of businesses, professions or other activities, earned on and after July 1, 2013. Effective January 1, 2004, “wages” shall be defined as “qualifying wages”.

(Ord. 1969-6. Passed 3-18-69; Ord. 2002-8. Passed 3-19-2002; Ord. 2007-23. Passed 6-19-07; Ord. 2012-30. Passed 5-7-13 by voters.)

890.05 RETURN AND PAYMENT OF TAX.

(a) Each taxpayer shall, whether or not a tax is due thereon, make and file a return on or before April 15 of the year following the effective date of this chapter and on or before April 15 of each year thereafter. When the return is made for a fiscal year or other period different from the calendar year, the return shall be filed on or before the fifteenth day of the fourth month from the end of such fiscal year or period.

(b) Any person who has no income need not file an annual return. Any person who has exempt income must file a return and declare to the Administrator the nature of his or her exemption. Any person who has taxable income must file a tax return with the Administrator.

(c) The return shall be filed with the Administrator on a form or forms furnished by or obtainable upon request from such Administrator, or on an acceptable generic form as defined in this chapter, setting forth:

(1) The aggregate amounts of income, qualifying wages, commissions and other compensation earned and/or received and gross receipts from business, profession or other activity, less allowable expenses incurred in the acquisition of such gross receipts earned during the preceding year and subject to such tax;

(2) The amount of the tax imposed by this chapter on such earnings and profits; and

(3) Such other pertinent statements, information, returns or other information as the Administrator may require, including but not limited to copies of all W-2 forms, 1099 miscellaneous income forms, page one of Form 1040 (and page two if expenses are claimed of Federal Form 2106), page one and two of Form 1120, 1120s (including (K-1), 2106, 1065, Schedule C (including cost of goods manufactured and/or sold), Schedule E, Schedule F and any other Federal schedules, if applicable.

(d) Extensions.

(1) The Administrator may extend the time for filing of the annual return upon the request of the taxpayer for a period not to exceed six months, or one month beyond any extension requested of or granted by the Internal Revenue Service for the filing of the Federal Income Tax Return. However, for taxable years 2004 and later, the extended due date for individuals shall be the last day of the month following the month to which Federal income tax due date has been extended. For businesses, if the extension is filed through the Ohio business gateway, the extended due date shall be the last day of the month to which the due date of the Federal income tax return has been extended. If not filed through the Ohio business gateway the extended due date shall be the last day of the month following the month to which the due date of the Federal Income Tax Return has been extended.

(2) The Tax Administrator may deny the extension if the taxpayer fails to file the request timely, fails to file a copy of the Federal extension request, or if the taxpayer’s income tax account with the municipality is delinquent in any way.

(3) The Administrator may require a tentative return, accompanied by payment of the amount of tax shown to be due thereon, by the date the return is normally due. No penalty or interest shall be assessed in those cases in which the return is filed and the final tax paid within the period as extended.

(e) The taxpayer making a return shall, at the time of the filing thereof, pay to the Administrator the amount of taxes shown as due thereon, provided, however, that:

(1) Where any portion of the tax so due has been deducted at the source pursuant to the provisions of Section 890.06, or where any portion of such tax has been paid by the taxpayer pursuant to the provisions of Section 890.07, or where an income tax has been paid on the same income to another municipality, credit for the amount so deducted or paid, or credit to the extent provided for in Section 890.13, shall be deducted from the amount shown to be due and only the balance, if any, shall be due and payable at the time of filing the return.

(2) A taxpayer who has overpaid the amount of tax to which the Village is entitled under the provisions of this chapter may have such overpayment applied against any subsequent liability hereunder or, at his or her election, indicated on the return, such overpayment (or part thereof), shall be refunded, provided that no additional taxes or refunds of less than one dollar ($1.00) shall be collected or refunded.

(f) Consolidated Returns.

(1) Any affiliated group which files a consolidated return for Federal income tax purposes pursuant to Section 1501 of the Internal Revenue Code may file a consolidated return with the municipality.

(2) In the case of a corporation that carried on transactions with its stockholders or with other corporations related by stock ownership, interlocking directorates or some other method, or in case any person operates a division, branch, factory, office, laboratory or activity within the Village constituting a portion only of its total business, the Administrator shall require such additional information as he or she may deem necessary to ascertain whether net profits are properly allocated to the Village. If the Administrator finds that net profits are not properly allocated to the Village by reason of transactions with stockholders or with other corporations related by stock ownership, interlocking directorates or transactions with such division, branch, factory, office, laboratory or activity or by some other method, he or she shall make such allocation as he or she deems appropriate to produce a fair and proper allocation of net profits to the Village.

(g) Amended Returns.

(1) Where necessary, a taxpayer must file an amended return in order to report additional income and pay any additional tax due, or claim a refund of tax overpaid, subject to the requirements, limitations, or both, contained in Sections 890.09 and 890.13. Such amended return shall be on a form obtainable on request from the Administrator. A taxpayer may not change the method of accounting (i.e., cash or accrual) or apportionment of net profits after the due date for filing the original return.

(2) Within three months from the final determination of any Federal tax liability affecting the taxpayer's Village tax liability, such taxpayer shall make and file an amended Village return showing income subject to the Village tax based upon such final determination of Federal tax liability, and pay any additional tax shown due thereon or make claim for refund of any overpayment.

(h) Any business, profession, association or corporation reporting a net loss is subject to the filing requirements of this chapter.

(i) Losses from the operation of a business or profession cannot be used to reduce wages from employment or other employment compensation.

(j) The officer or employee of such employer having control or supervision or charged with the responsibility of filing the return and making the payment shall be personally liable for failure to file the return or pay the tax, penalties, or interest due as required herein. The dissolution, bankruptcy or reorganization of any such employer does not discharge an officer's or employee's liability for a prior failure of such business to file the return or pay taxes, penalties, or interest due.

(Ord. 2007-23. Passed 6-19-07.)

890.06 COLLECTION AT SOURCE.

(a) Each employer within or doing business within the Village shall deduct, at the time of the payment of such income, qualifying wages, commission or other compensation, the tax rate as established in Section 890.03 per year of the income, qualifying wages, commissions or other compensation due by such employer to such employee and shall, on or before the twentieth day of each month, make a return and pay to the Administrator the amount of taxes so deducted during the previous month. However, if the amount of the tax so deducted by any employer averaged less than one hundred dollars ($100.00) per month in the previous 12-month tax year, the employer may defer the filing of a return and payment of the amount deducted until the twentieth day of the month following the end of the calendar quarter for which taxes have been withheld. Such approval for quarterly filings and payments may be withdrawn by the Administrator when it is in the best interest of the Village to do so.

(b) The returns shall be on a form or forms prescribed by or acceptable to the Administrator and shall be subject to the rules and regulations prescribed therefor by the Administrator. Such employer shall be liable for the payment of the tax required to be deducted and withheld whether or not such taxes have, in fact, been withheld.

(c) Such employer in collecting the tax shall be deemed to hold the same until payment is made by such employer to the Village as a trustee for the benefit of the Village, and any such tax collected by such employer from his employees shall, until the same is paid to the Village, be deemed a trust fund in the hands of such employer.

(d) No person shall be required to withhold the tax on wages or other compensation paid domestic servants employed by him exclusively in or about such person's residence, even though such residence is in the Village, but such employee shall be subject to all of the requirements of this chapter.

(e) On or before February 28 of each year, beginning with the year 1986, each employer shall file a withholding return setting forth the names, addresses, and social security numbers of all employees from whose compensation the tax was withheld during the preceding calendar year, the amount of tax withheld from his or her employees and such other information as may be required by the Administrator. All payments not subject to withholding shall be reported on a form required by the Administrator.

(f) On or before February 28 of each year all individuals, businesses, employers, brokers or other who engage persons, either on a fee or commission basis or as independent contractors and not employees (those who are not subject to withholding) must provide the Village with copies of all 1099 miscellaneous income forms and/or a list of names, addresses, social security numbers or Federal identification numbers and a total amount of earnings, payments, bonuses, commissions and/or fees paid to each person.

(g) All employers that provide any contractual service within the Village, and who employ subcontractors in conjunction with that service shall, prior to commencement of the service, provide the Village the names, addresses, and Federal identification numbers of the subcontractors. The subcontractors shall be responsible for all income tax employer requirements under this chapter.

(h) The officer or employee having control or supervision, or charged with the responsibility of withholding the tax, filing the return and/or making the payment, shall be personally liable for the failure to file the return or pay the tax due as required herein. The dissolution, bankruptcy, or reorganization of any such employer does not discharge an officer's or employee's liability for a prior failure of such business to file a return or pay taxes due.

(Ord. 2007-23. Passed 6-19-07; Ord. 2009-32. Passed 1-5-10.)

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