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(EDITOR’S NOTE: Former Section 171.154 was repealed by Ordinance 12652/16, passed May 11, 2016.)
(a) Purpose. The purpose of the Income Tax Incentive Program is to encourage economic growth within the City of Warren by focusing on business expansion efforts and new business recruitment to the City. The Income Tax Incentives Program for enterprises that are expanding or starting new businesses within the City consists of an Income Tax Rebate Program and a Net Profit Tax Credit Program. This program requires new employment and a minimum investment in real property.
(b) Definitions. For the purposes of this Section the following words shall have the meanings as described to them in this Section except as and if the context clearly indicates or requires a different meaning.
(1) "New employees" means new pennanent full-time (or full time equivalent) employees hired or employed by a qualifying enterprise within the first year of operations to perfonn work or render services within the City of Warren or transferred by the qualifying enterprise from another location into the City of Warren.
(2) "Qualifying Enterprise" means a sole proprietorship, partnership, corporation, limited liability company or other entity which starts or expands a business within the City and meets the minimum investment requirements of the Income Tax Incentive Program as delineated in subsetions (e) and (f) hereof.
(3) "Qualifying Investment” means investment in real property for business purposes, and/or the purchase of industrial equipment having a useful life of at least five (5) years.
(c) Formula. The percentage of compensation under the Income Tax Rebate Program and the Percentage of Credit under the Net Profit Credit Program shall be determined by applying the employment and investment formula as shown in the following table:
(1) Number of New Employees | (2) Amount of New Payroll | ||
3-5 | 1 | $0.00 - $75,000.00 | 0 |
6-10 | 2 | $75,001.00 - $100,000.00 | 3 |
11-20 | 3 | $150,001.00 - $400,000.00 | 6 |
21-30 | 4 | $400,001.00 - $800,000.00 | 9 |
31-50 | 5 | $800,001.00 - $1,400,000.00 | 12 |
Over 50 | 6 | Over $1,400,000 | 15 |
(3) Investment in Real Property Improvements | (4) Investment in Real Property Purchase | ||
$10,001.00 - $50,000.00 | 2 | $0.00 - $75,000.00 | 0 |
$50,001.00 - $150,000.00 | 4 | $75,001.00 - $150,000.00 | 1 |
$150,001.00 - $300,000.00 | 6 | $150,001.00 - $300,000.00 | 2 |
$300,001.00 - $600,000.00 | 8 | $300,001.00 - $600,000.00 | 3 |
$600,001.00 & Over | 10 | $600,001.00 & Over | 4 |
(5) Investment in New Equipment | |
$50,001.00 - $100,000.00 | 4 |
$100,001.00 - $200,000.00 | 6 |
$200,001.00 - $400,000.00 | 8 |
$400,001.00 - $700,000.00 | 10 |
Over $700,001.00 | 12 |
This formula adds points in accordance with the number of new employees, the amount of the new payroll, the amount of investment in real property improvements, the amount of investment in real property purchase, and the amount of investment in industrial equipment.
Eligibility Requirements
(1) Enterprises must locate or expand within the City of Warren corporate limits.
(2) Enterprises must create at least three (3) net new full-time jobs.
(3) Enterprises must make minimum new investment as stated.
(4) Enterprises must apply for the Income Tax Incentive Program prior to the starting or expansion of the business
(5) Enterprise must execute an Income Tax Incentive Program Agreement within sixty (60) days of starting or expanding the business.
(d) Income Tax Rebate Program. The City of Warren shall provide a yearly rebate payment to a qualifying enterprise based on the percentage, as determined by the formula in subsection (c) of the income tax withholding of new employees paid to the City of Warren for the proceeding calendar year. The term of the compensation shall be ten (10) years, with the rebate reduced by ten percent (10%) each subsequent year following year one. The tax rebate program requires a minimum of fifty thousand dollars ($50,000) of new investment in real property, real property improvements, or new industrial equipment.
For the purposes of this credit the income tax rebate shall and does mean only that portion of the payroll that is the direct result of the new employees hired in the City of Warren
(e) Net Profit Tax Credit Program. The City of Warren shall provide a yearly credit to a qualifying enterprise based on the percentage, as determined by the formula in subsection (c) of the net profit tax liability due to the City of Warren for the proceeding calendar or fiscal year. The term of the compensation shall be ten (10) years, with the rebate reduced by ten percent (10%) each subsequent year after year one. The net profit credit program requires a minimum of one hundred fifty thousand dollars ($150,000) of new investment in real property, real property improvements, or new equipment.
For the purposes of this credit the net profit tax liability shall and does mean only that portion of the net profit tax liability that is the direct result of the qualifying investment in the City of Warren.
(f) Term, Payment, and Credit.
(1) For purposes of determining the rebate, the term for the Income Tax Incentive Program shall be the first full calendar year after beginning operations and thereafter.
(2) For purposes of determining the credit, the term for the Net Profits Tax Credit Program shall be the first full calendar year or the fiscal year after beginning operations, and thereafter.
(g) Application/Agreement Process.
(1) Prior to making a qualifying investment within the City, the enterprise must submit a complete City of Warren Income Tax Incentive program application.
(2) The application must contain an estimate of new employees to be hired, estimated payroll, and proposed new investments within the City.
(3) After approval of the application by the Review Committee, a Program agreement shall be executed between the City of Warren and the applying enterprise.
(4) The Program agreement shall set forth the number of proposed new employees, estimated new payroll, and the proposed new qualifying investments.
Final formula numbers will be based on new jobs created in the first year of the agreement, total year-one payroll, and total year- one investments only. Qualifying enterprises who fail to maintain the year-one levels of employees and payroll throughout the term of the agreement may face termination from the program.
(h) Verification and Process Reports. For an enterprise to remain in the Income Tax Incentive program they shall cooperate with the Program Oversight Committee and the City Income Tax Administrator and provide not less than the following information:
(1) An annual progress report documenting the new employees and payroll at the City site.
(2) A copy of the enterprise's City and Federal Income Tax Return.
(3) Any other relevant information requested by the Review Committee or City Income Tax Administrator.
The City of Warren reserves the right to require an independent audit of the enterprise's employment, payroll, and tax records to verify reported amounts at the enterprise's expense.
(i) Review Committee.
(1) A Review Committee shall be formed and shall include the City Treasurer, City Income Tax Administrator, and an appointee of the Mayor.
(2) The Committee shall review all Program applications, authorize all Program Agreements, review annual progress reports, recommend continuation in the program or termination thereof, and adopt rules and regulations necessary for the administration of the program consistent with this section.
(j) Appeal Process. An Enterprise may appeal a decision of the Review Committee by filing a written request to the Income Tax Board of Review within thirty (30) days of the decision. (Ord. 13356/2024. Passed 7-24-24.)
If any sentence, clause, section or part of this chapter, or any tax against any individual or any of the several groups specified herein, is found to be unconstitutional, illegal or invalid, such unconstitutionality, illegality or invalidity shall affect only such clause, sentence, section or part of this chapter and shall not affect or impair any of the remaining provisions, sentences, clauses, sections or other parts of this chapter. It is hereby declared to be the intention of Council that this chapter would have been adopted had such unconstitutional, illegal or invalid sentence, clause, section or part thereof not been included herein.
(Ord. 9126/81. Passed 11-12-81.)
(a) Except where otherwise expressly provided within this chapter, this chapter shall be in effect insofar as the levy of taxes is concerned from and after January 1, 1982, and insofar as the collection of taxes levied in the aforesaid period and actions or proceedings for collecting any tax so levied or enforcing any provision of this chapter are concerned, it shall continue effective until all of such taxes levied in the aforesaid period are fully paid and any and all suits and prosecutions for the collection of such taxes or for the punishment of violations of this chapter shall have been fully terminated, subject to the limitations contained in Sections 171.11 and 171.12.
(b) Annual returns for the year ending 1981 shall be filed on or before April 15, 1982, and any tax shown due thereon for the year ending 1981 which was not paid and collected pursuant to any applicable previous ordinances of the City during 1981, or thereafter, shall be paid on such date, except in those cases in which the time for filing returns and/or payment of the tax due has been extended, and except for claims for reciprocity refunds properly assigned and collectible from another municipality.
(Ord. 9126/81. Passed 11-12-81.)
The provisions of this chapter shall not be construed as levying a tax upon the following:
(a) Funds received from local, state or Federal governments because of service in the armed forces of the United States by the person rendering such service or as a result of another person rendering such service.
(b) Poor relief, old age pensions or similar payment including disability benefits received from local, state or Federal governments, or charitable, religious or educational organizations.
(c) Pensions, disability benefits, annuities or gratuities from whatever source derived.
(d) Dues, contributions and similar payments received by charitable, religious, educational organizations or labor unions, trade associations or lodges.
(e) Receipts from casual sales and seasonal or casual entertainment, amusements and sport events and health and welfare activities conducted by bona fide charitable, religious and educational organizations.
(f) Personal earnings of all persons under sixteen years of age.
(Ord. 9126/81. Passed 11-12-81.)
(g) Through December 31, 2002, rental income grossing two hundred fifty dollars ($250.00) or less per month, unless conducted as a business or a portion of a business. Effective January 1, 2003, rental income grossing two hundred dollars ($200.00) or less per month, unless conducted as a business or a portion of a business. (Ord. 11641/02. Passed 12-23-02.)
(a) For the purposes of this section, “lessee”, “renter”, and “tenant” mean the party or parties who enter into a written or oral lease or rental agreement for real property with the owner, lessor or landlord of such property.
(b) Every owner, lessor or landlord shall notify the City Treasurer of every vacation of premises by any lessee, renter or tenant thereof. Such notification shall: be in writing; contain the name of the previous lessee, renter or landlord and, if known, the forwarding address of the previous lessee, renter or landlord; and be given within seven days after such vacation.
(c) Within seven days after obtaining a new lessee or renter or tenant, the owner, lessor or landlord thereof shall inform the City Treasurer, in writing, of the name of each lessee, renter or tenant thereof and the address of same.
(d) For purposes of this subsection, “contractor” means any person who enters into a written or oral contract or agreement to provide goods, services and/or labor within the corporate limits of the City. Each contractor, per contract or agreement, shall inform the City Treasurer, in writing, of the name and business address of each subcontractor of that contractor. Such notification shall occur within five days after the contractor/subcontractor relationship is established.
(Ord. 11396/00. Passed 4-12-00.)
(e) No taxpayer or person (including an occasional entrant or deminimus person) shall provide, for monetary consideration, any goods, services and/or labor within the City unless and until that taxpayer or person registers, in writing, with the Tax Administrator (for and on behalf of the City Treasurer). This subsection is applicable to, among others, the following enterprises: utilities, waterproofing, flooring, painting, decorating, landscaping, tree trimming, cable and satellite television installing (and like installing), subcontractors and contractors providing services for utilities, lawn care, exterminating, swimming pool maintenance, janitorial services, fire damage repairing and restoring, supplying of water (whether by container or bulk), water treatment and conditioning, insulating, restaurant and food supplying, and bulk food (dry and frozen) supplying or distributing.
For purposes of this subsection, such registration shall consist of the identification of the taxpayer’s or person’s: name, address, telephone number, tax identification number, and contact person. Such registration shall be updated upon the change of any provided information.
(Ord. 11515/01. Passed 12-12-01.)
Contract payments escrowed pursuant to Ohio R.C. 153.12 for those who contract with the City of Warren for the construction, reconstruction, improvement, enlargement, alteration, repair, painting or decoration of a public improvement shall, in addition to the other conditions applicable thereto, be held and disbursed subject to the applicable provisions of contract(s) relative to Warren City income taxes. No such retainages shall be released from escrow unless and until the contractor has satisfied all applicable contractual provisions relative to Warren City income taxes.
(Ord. 10895/96. Passed 3-27-96.)
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