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The Village, by ordinance, may grant a refundable or nonrefundable credit against its tax on income to a taxpayer for the purpose of fostering job retention in the Village. If a credit is granted under this section, it will be measured as a percentage of the income tax revenue the Village derives from the retained employees of the taxpayer, and may not be for a term exceeding 15 years. Before the Village passes an ordinance allowing such a credit, the Village and the taxpayer must enter into an agreement specifying all the conditions of the credit.
(Ord. 2015-6. Passed 11-17-15.)
(a) As used in this section:
(1) "Estimated taxes" means the amount a taxpayer reasonably estimates to be the taxpayer's income tax liability to the Village for the current taxable year.
(2) "Tax liability" means the total taxes due to the Village for the taxable year, after allowing any credit to which the taxpayer is entitled, and after applying any estimated tax payment, withholding payment, or credit from another taxable year.
(b) (1) Every taxpayer must make a declaration of estimated taxes for the current taxable year, on the form prescribed by the Tax Administrator, if the amount payable as estimated taxes is at least two hundred dollars ($200.00). For the purposes of this section:
A. Taxes withheld from qualifying wages will be considered as paid to the Village when such taxes were withheld in equal amounts on each payment date. If the taxpayer establishes the dates on which all amounts were actually withheld, the amounts withheld will be considered as paid on the dates on which the amounts were actually withheld.
B. An overpayment of tax applied as a credit to a subsequent taxable year is deemed to be paid on the date of the postmark stamped on the cover in which the payment is mailed or, if the payment is made by electronic funds transfer, the date the payment is submitted. As used in this division, "date of the postmark" means, in the event there is more than one date on the cover, the earliest date imprinted on the cover by the Postal Service.
C. A taxpayer having a taxable year of less than 12 months must make a declaration under rules prescribed by the Tax Administrator.
(2) Taxpayers filing joint returns must file joint declarations of estimated taxes.
(3) The declaration of estimated taxes must be filed on or before the date prescribed for the filing of municipal income tax returns under Section 891.101(g) or on or before the fifteenth day of the fourth month of the first taxable year after the taxpayer becomes subject to tax for the first time.
(4) Taxpayers reporting on a fiscal year basis must file a declaration on or before the fifteenth day of the fourth month after the beginning of each fiscal year or period.
(5) The original declaration or any subsequent amendment may be increased or decreased on or before any subsequent quarterly payment day as provided in this section.
(c) (1) The required portion of the tax liability for the taxable year that is payable through estimated taxes made payable to the Village or Tax Administrator, including the application of tax refunds to estimated taxes and withholding on or before the applicable payment date, is as follows:
A. On or before the fifteenth day of the fourth month after the beginning of the taxable year, 22.5% of the tax liability for the taxable year;
B. On or before the fifteenth day of the sixth month after the beginning of the taxable year, 45% of the tax liability for the taxable year;
C. On or before the fifteenth day of the ninth month after the beginning of the taxable year, 67.5% of the tax liability for the taxable year;
D. On or before the fifteenth day of the first month of the following taxable year, 90% of the tax liability for the taxable year.
(2) A taxpayer may amend a declaration under rules prescribed by the Tax Administrator, as provided in Section 891.20. When an amended declaration has been filed, the unpaid balance shown due on the amended declaration must be paid in equal installments on or before the remaining payment dates. The amended declaration must be filed on the next applicable due date as outlined in (c)(1)A. through D. of this section.
(3) On or before the fifteenth day of the fourth month of the year following that for which the declaration or amended declaration was filed, an annual return is required to be filed and any balance which may be due must be paid with the return in accordance with Section 891.101.
A. For taxpayers who are individuals, or who are not individuals and are reporting and filing on a calendar year basis, the annual tax return is due on the same date as the filing of the Federal tax return, unless extended pursuant to Ohio R.C. 5747.08(G).
B. For taxpayers who are not individuals, and are reporting and filing on a fiscal year basis or any period other than a calendar year, the annual return is due on the fifteenth day of the fourth month following the end of the taxable year or period.
(4) An amended declaration is required whenever the taxpayer's estimated tax liability changes during the taxable year. A change in estimated tax liability may either increase or decrease the estimated tax liability for the taxable year.
(d) (1) In the case of any underpayment of any portion of a tax liability, a penalty and interest may be imposed pursuant to Section 891.11 of this chapter upon the amount of underpayment for the period of underpayment, unless the underpayment is due to reasonable cause as described in division (e) of this section. The amount of the underpayment shall be determined as follows:
A. For the first payment of estimated taxes each year, 22.5% of the tax liability, less the amount of taxes paid by the date prescribed for that payment;
B. For the second payment of estimated taxes each year, 45% of the tax liability, less the amount of taxes paid by the date prescribed for that payment;
C. For the third payment of estimated taxes each year, 67.5% of the tax liability, less the amount of taxes paid by the date prescribed for that payment;
D. For the fourth payment of estimated taxes each year, 90% of the tax liability, less the amount of taxes paid by the date prescribed for that payment.
(2) The period of the underpayment shall run from the day the estimated payment was required to be made to the date on which the payment is made. For purposes of this section, a payment of estimated taxes on or before any payment date shall be considered a payment of any previous underpayment only to the extent the payment of estimated taxes exceeds the amount of the payment presently required to be paid to avoid any penalty.
(e) An underpayment of any portion of tax liability determined under division (d) of this section will be deemed to be due to reasonable cause and the penalty imposed by this section will not be added to the taxes for the taxable year if any of the following apply:
(1) The amount of estimated taxes that were paid equals at least 90% of the tax liability for the current taxable year, determined by annualizing the income received during the year up to the end of the month immediately preceding the month in which the payment is due.
(2) The amount of estimated taxes that were paid equals at least 100% of the tax liability shown on the return of the taxpayer for the preceding taxable year, provided that the immediately preceding taxable year reflected a period of 12 months and the taxpayer filed a return with the Village under Section 891.101 for that year.
(3) The taxpayer is an individual who resides in the Village but was not domiciled there on the first day of January of the calendar year that includes the first day of the taxable year.
(f) The Tax Administrator may waive the requirement for filing a declaration of estimated taxes for any class of taxpayers after finding that the waiver is reasonable and proper in view of administrative costs and other factors.
(Ord. 2015-6. Passed 11-17-15; Ord. 2018-1. Passed 1-16-18.)
(a) Where a resident of the Village is subject to a municipal income tax in another municipality, that resident may not be required to pay a total municipal income tax on the same income greater than the tax imposed at the higher rate.
(b) Every individual taxpayer who resides in the Village but who receives net profits, salaries, wages, commissions, or other personal service compensation for work done outside the Village, if it is made to appear that the taxpayer has paid a municipal income tax on the same income taxable under this chapter to another municipality, will be allowed a credit against the tax imposed by this chapter of the amount so paid by the taxpayer or on the taxpayer's behalf to such other municipality. The credit may not exceed the tax assessed by this chapter on such income earned in such other municipality or municipalities where that tax is paid.
(c) A claim for refund or credit under this section shall be made as provided elsewhere in this chapter.
(Ord. 2015-6. Passed 11-17-15.)
(a) As used in this section:
(1) "Nonqualified deferred compensation plan" means a compensation plan described in Section 3121(v)(2)(C) of the Internal Revenue Code.
(2) A. Except as provided in division (a)(2)B. of this section, "qualifying loss" means the excess, if any, of the total amount of compensation the payment of which is deferred pursuant to a nonqualified deferred compensation plan over the total amount of income the taxpayer has recognized for Federal income tax purposes for all taxable years on a cumulative basis as compensation with respect to the taxpayer's receipt of money and property attributable to distributions in connection with the nonqualified deferred compensation plan.
B. If, for one or more taxable years, the taxpayer has not paid to one or more municipal corporations income tax imposed on the entire amount of compensation the payment of which is deferred pursuant to a nonqualified deferred compensation plan, then the "qualifying loss" is the product of the amount resulting from the calculation described in division (a)(2)A. of this section computed without regard to division (a)(2)B. of this section and a fraction the numerator of which is the portion of such compensation on which the taxpayer has paid income tax to one or more municipal corporations and the denominator of which is the total amount of compensation the payment of which is deferred pursuant to a nonqualified deferred compensation plan.
C. With respect to a nonqualified deferred compensation plan, the taxpayer sustains a qualifying loss only in the taxable year in which the taxpayer receives the final distribution of money and property pursuant to that nonqualified deferred compensation plan.
(3) "Qualifying tax rate" means the applicable tax rate for the taxable year for the which the taxpayer paid income tax to a municipal corporation with respect to any portion of the total amount of compensation the payment of which is deferred pursuant to a nonqualified deferred compensation plan. If different tax rates applied for different taxable years, then the "qualifying tax rate" is a weighted average of those different tax rates. The weighted average will be based upon the tax paid to the municipal corporation each year with respect to the nonqualified deferred compensation plan.
(b) (1) Except as provided in division (d) of this section, a refundable credit is allowed against the income tax imposed by the Village for each qualifying loss sustained by a taxpayer during the taxable year. The amount of the credit will be equal to the product of the qualifying loss and the qualifying tax rate.
(2) A taxpayer may claim the credit allowed under this section from each municipal corporation, including the Village to which the taxpayer paid municipal income tax with respect to the nonqualified deferred compensation plan in one or more taxable years.
(3) If a taxpayer has paid tax to more than one municipal corporation with respect to the nonqualified deferred compensation plan, the amount of the credit that a taxpayer may claim from each municipal corporation will be calculated on the basis of each municipal corporation's proportionate share of the total municipal corporation income tax paid by the taxpayer to all municipal corporations with respect to the nonqualified deferred compensation plan.
(4) In no case may the amount of the credit allowed under this section exceed the cumulative income tax that a taxpayer has paid to a municipal corporation for all taxable years with respect to the nonqualified deferred compensation plan.
(c) (1) For purposes of this section, municipal income tax that has been withheld with respect to a nonqualified deferred compensation plan will be considered to have been paid by the taxpayer with respect to the nonqualified deferred compensation plan.
(2) Any municipal income tax that has been refunded or otherwise credited for the benefit of the taxpayer with respect to a nonqualified deferred compensation plan will not be considered to have been paid to the municipal corporation by the taxpayer.
(d) The credit allowed under this section is allowed only to the extent the taxpayer's qualifying loss is attributable to:
(1) The insolvency or bankruptcy of the employer who had established the nonqualified deferred compensation plan; or
(2) The employee's failure or inability to satisfy all of the employer's terms and conditions necessary to receive the nonqualified deferred compensation.
(Ord. 2015-6. Passed 11-17-15.)
The Village will grant a credit against its tax on income to a resident of the Village who works in a joint economic development zone created under Ohio R.C. 715.691 or a joint economic development district created under Ohio R.C. 715.71, or 715.72 to the same extent that it grants a credit against its tax on income to its residents who are employed in another municipal corporation, pursuant to Section 891.091. This credit is not applicable to residents of the Village working in the Village of Walton Hills - Sagamore Hills Township Joint Economic Development District or any other joint economic development district in which the Village is a partner or participant, as such joint economic development districts are considered part of the Village for purposes of this chapter, thus not subjecting residents of the Village to multiple municipal income taxes on said income.
(Ord. 2015-6. Passed 11-17-15.)
(a) Income tax that has been deposited or paid to the Village, but should have been deposited or paid to another municipal corporation, is allowable by the Village as a refund, but is subject to the three-year limitation on refunds as provided in Section 891.106.
(b) Income tax that should have been deposited or paid to the Village, but was deposited or paid to another municipal corporation, is subject to collection and recovery by the Village. To the extent a refund of such tax or withholding is barred by the limitation on refunds as provided in Section 891.106, the Village will allow a non-refundable credit equal to the tax or withholding paid to the other municipality against the income tax the Village claims is due. If the Village's tax rate is higher, the tax representing the net difference of the tax rates is also subject to collection by the Village, along with any penalty and interest accruing during the period of nonpayment.
(c) No carry-forward of credit will be permitted when the overpayment is beyond the three-year limitation for refunding of same as provided in Section 891.106.
(d) Nothing in this section requires the Village to allow credit for tax paid to another municipal corporation if the Village has reduced credit for tax paid to another municipal corporation. Section 891.091 regarding any limitation on credit shall prevail.
(Ord. 2015-6. Passed 11-17-15.)
(a) (1) A. An annual Village municipal income tax return must be completed and filed by every taxpayer for any taxable year for which the taxpayer is subject to the tax, regardless of whether or not income tax is due.
B. Any person who has no income taxable by the Village need not file an annual return and shall be considered exempt. Any person who has exempt income must certify on a form to be prescribed by the Tax Administrator that such person's income is exempt and declare the nature of the exemption. The person that is exempt, and thereafter begins receiving income subject to taxation by the Village, must inform the Tax Administrator, in writing, within 30 days of beginning to receive such income.
(2) The Tax Administrator will accept on behalf of all nonresident and resident individual taxpayers a return filed by an employer, agent of an employer, or other payer located in the Village under Section 891.061(c) when the nonresident or resident individual taxpayer's sole income subject to the tax is the qualifying wages reported by the employer, agent of an employer, or other payer, and no additional tax is due to the Village.
(3) All resident individual taxpayers, who turn 18 years of age during the tax year or are older than 18, are required to file an annual municipal income tax return with the Village, regardless of income or liability.
(b) If an individual is deceased, any return or notice required of that individual must be completed and filed by that decedent's executor, administrator, or other person charged with the property of that decedent.
(c) If an individual is unable to complete and file a return or notice required by the Village in accordance with this chapter, the return or notice required of that individual must be completed and filed by the individual's duly authorized agent, guardian, conservator, fiduciary, or other person charged with the care of the person or property of that individual. Such duly authorized agent, guardian, conservator, fiduciary, or other person charged with the care of the person or property of that individual must provide, with the filing of the return, appropriate documentation to support that such representative is authorized to file a return or notice on behalf of the taxpayer. This notice shall include any legally binding authorizations, and contact information including name, address, and phone number of the duly authorized agent, guardian, conservator, fiduciary, or other person.
(d) Returns or notices required of an estate or a trust shall be completed and filed by the fiduciary of the estate or trust. Such fiduciary shall provide, with the filing of the return, appropriate documentation to support that they are authorized to file a return or notice on behalf of the taxpayer. This notice must include any legally binding authorizations, and contact information, including name, address, and phone number of the fiduciary.
(e) Spouses may file a joint return.
(f) (1) Each return required to be filed under this section must contain the signature of the taxpayer or the taxpayer's duly authorized agent and of the person who prepared the return for the taxpayer, and must include the taxpayer's social security number or taxpayer identification number. Each return must be verified by a declaration under penalty of perjury.
(2) A taxpayer who is an individual is required to include, with each annual return, amended return, or request for refund required under this section, copies of only the following documents: all of the taxpayer's Internal Revenue Service Form W-2, "Wage and Tax Statements," including all information reported on the taxpayer's Federal W-2, as well as taxable wages reported or withheld for any municipal corporation; the taxpayer's Internal Revenue Service Form 1040; and, with respect to an amended tax return or refund request, any other documentation necessary to support the refund request or the adjustments made in the amended return. An individual taxpayer who files the annual return required by this section electronically is not required to provide paper copies of any of the foregoing to the Tax Administrator unless the Tax Administrator requests such copies after the return has been filed.
(3) A taxpayer that is not an individual is required to include, with each annual net profit return, amended net profit return, or request for refund required under this section, copies of only the following documents: the taxpayer's Internal Revenue Service Form 1041, Form 1065, Form 1120, Form 1120-REIT, Form 1120F, or Form 1120S, and, with respect to an amended tax return or refund request, any other documentation necessary to support the refund request or the adjustments made in the amended return.
(4) A taxpayer that is not an individual and that files an annual net profit return electronically through the Ohio Business Gateway or in some other manner shall either mail the documents required under this division to the Tax Administrator at the time of filing or, if electronic submission is available, submit the documents electronically through the Ohio Business Gateway or a portal provided by the Village.
(5) After a taxpayer files a tax return, the Tax Administrator will request, and the taxpayer must provide, any information, statements, or documents required by the Village to determine and verify the taxpayer's municipal income tax liability. The requirements imposed under division (f) of this section apply regardless of whether the taxpayer files on a generic form or on a form prescribed by the Tax Administrator.
(6) Any other documentation, including schedules, other municipal income tax returns, or other supporting documentation necessary to verify credits, income, losses, or other pertinent factors on the return must also be included to avoid delay in processing, or disallowance by the Tax Administrator of undocumented credits or losses.
(g) (1) A. Except as otherwise provided in this chapter, each individual income tax return required to be filed under this section shall be completed and filed as required by the Tax Administrator on or before the date prescribed for the filing of State individual income tax returns under Ohio R.C. 5747.08(G). The taxpayer shall complete and file the return or notice on forms prescribed by the Tax Administrator or on generic forms, together with remittance made payable to the Village.
B. Except as otherwise provided in this chapter, each annual net profit income tax return required to be filed under this section by a taxpayer that is not an individual must be completed and filed as required by the Tax Administrator on or before the fifteenth day of the fourth month following the end of the taxpayer's taxable year or period. The taxpayer must complete and file the return or notice on forms prescribed by the Tax Administrator or on generic forms, together with remittance made payable to the Village.
C. In the case of individual income tax return required to be filed by an individual, and net profit income tax return required to be filed by a taxpayer who is not an individual, no remittance is required if the amount shown to be due is ten dollars ($10.00) or less.
(2) If the Tax Administrator considers it necessary in order to ensure the payment of the tax imposed by the Village in accordance with this chapter, the Tax Administrator may require taxpayers to file returns and make payments otherwise than as provided in this section, including taxpayers not otherwise required to file annual returns.
(h) (1) For taxable years beginning after 2015, the Village shall not require a taxpayer to remit tax with respect to net profits if the amount due is ten dollars ($10.00) or less.
(2) Any taxpayer not required to remit tax to the Village for a taxable year pursuant to division (h)(1) of this section is required to file with the Village an annual net profit return under divisions (f)(3) and (4) of this section.
(i) (1) The date of the postmark on the cover of any report, claim, statement, or other document required to be filed, or any payment required to be made, to or with the Tax Administrator or the Village, will be deemed the date of delivery or payment. “The date of postmark” means, in the event there is more than one date on the cover, the earliest date imprinted on the cover by the Postal Service.
(2) If a payment is made by electronic funds transfer, the payment is considered to be made when the payment is credited to an account designated by the Tax Administrator for the receipt of tax payments, except that, when a payment made by electronic funds transfer is delayed due to circumstances not under the control of the taxpayer, the payment is considered to be made when the taxpayer submitted the payment. For purposes of this section, “submitted the payment” means the date which the taxpayer has designated for the delivery of payment, which may or may not be the same date as the date the payment was initiated by the taxpayer.
(j) The amounts withheld for the Village by an employer, the agent of an employer, or other payer as described in Section 891.061 will be allowed to the recipient of the compensation as credits against payment of the tax imposed on the recipient unless the amounts withheld were not remitted to the Village and the recipient colluded with the employer, agent, or other payer in connection with the failure to remit the amounts withheld.
(k) Each return required by the Village to be filed in accordance with this section will include a box that the taxpayer may check to authorize another person, including a tax return preparer who prepared the return, to communicate with the Tax Administrator about matters pertaining to the return. The return or instructions accompanying the return will state that by checking the box the taxpayer authorizes the Tax Administrator to contact the preparer or other person concerning questions that arise during the examination or other review of the return and authorizes the preparer or other person only to provide the Tax Administrator with information that is missing from the return, to contact the Tax Administrator for information about the examination or other review of the return or the status of the taxpayer's refund or payments, and to respond to notices about mathematical errors, offsets, or return preparation that the taxpayer has received from the Tax Administrator and has shown to the preparer or other person. Authorization by the taxpayer of another person to communicate with the Tax Administrator about matters pertaining to the return does not preclude the Tax Administrator from contacting the taxpayer regarding such matters.
(l) The Tax Administrator will accept for filing a generic form of any income tax return, report, or document required by the Village in accordance with this chapter, provided that the generic form, once completed and filed, contains all of the information required by ordinances, resolutions, or rules adopted by the Village under this chapter, and provided that the taxpayer or tax return preparer filing the generic form otherwise complies with the provisions of this chapter governing the filing of returns, reports, or documents.
(m) When income tax returns, reports, or other documents require the signature of a tax return preparer, the Tax Administrator will accept a facsimile of such a signature in lieu of a manual signature.
(n) (1) As used in this division, "worksite location" has the same meaning as in Section 891.062.
(2) A person may notify the Tax Administrator that the person does not expect to be a taxpayer with respect to the Village for a taxable year if both of the following conditions apply:
A. The person was required to file a tax return with the Village for the immediately preceding taxable year because the person performed services at a worksite location within the Village, and the person has filed all appropriate and required returns and remitted all applicable income tax and withholding payments as provided by this chapter. The Tax Administrator is not required to accept an affidavit from a taxpayer who has not complied with the provisions of this chapter.
B. The person no longer provides services in the Village, and does not expect to be subject to the Village's income tax for the taxable year. The person must provide the notice in a signed affidavit that briefly explains the person's circumstances, including the location of the previous worksite location and the last date on which the person performed services or made any sales within the Village. The affidavit also must include the following statement: "The affiant has no plans to perform any services within the Village, make any sales in the Village, or otherwise become subject to the tax levied by the Village during the taxable year. If the affiant does become subject to the tax levied by the Village for the taxable year, the affiant agrees to be considered a taxpayer and to properly register as a taxpayer with the Village, if such a registration is required by the Village's resolutions, ordinances, or rules." The person must sign the affidavit under penalty of perjury.
C. If a person submits an affidavit described in division (n)(2) of this section, the Tax Administrator shall not require the person to file any tax return for the taxable year unless the Tax Administrator possesses information that conflicts with the affidavit or if the circumstances described in the affidavit change, or the taxpayer has engaged in activity which results in work being performed, services provided, sales made, or other activity that results in municipal taxable income reportable to the Village in the taxable year. It is the responsibility of the taxpayer to comply with the provisions of this chapter relating to the reporting and filing of municipal taxable income on an annual municipal income tax return, even if an affidavit has been filed with the Tax Administrator for the taxable year. Nothing in division (n) of this section prohibits the Tax Administrator from performing an audit of the person.
(o) If a payment under this chapter is made by electronic funds transfer, the payment shall be considered to be made on the date of the timestamp assigned by the first electronic system receiving that payment.
(Ord. 2015-6. Passed 11-17-15; Ord. 2016-16. Passed 12-20-16.)
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