(A)   Authority to levy tax.
      (1)   The tax on income and the withholding tax established by this Chapter 110 are authorized by Article XVIII, § 3 of the Ohio Constitution, The tax on income and the withholding tax established by this Chapter 110 are deemed to be levied in accordance with, and to be consistent with, the provisions and limitations of R.C. Ch. 718. This chapter is deemed to incorporate the provisions of R.C. Ch. 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.
   (B)   Purposes of tax; rate.
      (1)   Actual purpose of the tax is to provide funds for the purposes of general municipal operations, maintenance, new equipment, extension and enlargement of municipal services and facilities, capital improvements of the city and economic development.
      (2)   Rate of tax: 0.5% starting April 16, 1976, increasing to 1.0% after April 1, 1983, increasing to 1.25% on October 1,1988, increasing to 1.45% on January 1, 2008, increasing to 1.95% on January 1, 2016. Income tax rate is 1.95%.
   (C)   Allocation of funds. An annual tax shall be imposed at the following rates as follows:
      (1)   On and after April 16, 1976, through March 31, 1983, at the rate of 0.5% per annum and at the rate of 1% per annum on and after April 1, 1983, for the purposes specified in § 110.01.
      (2)   On and after October 1, 1988, an additional 0.25% per annum for capital improvement purposes.
      (3)   On and after January 1, 2008, an additional 0.20% per annum for the construction of new police and fire buildings, acquisition of property related to the construction of new police and fire buildings, and the purchase and installation of such devices, fixtures, equipment and appurtenances related thereto as are necessary for the function of said new police and fire buildings. This 0.20% per annum income tax shall terminate 18 years from January 1, 2008, or on the date when any obligations issued by the city to finance the aforementioned improvements have been completely retired, whichever date is earlier. All purchases and acquisitions of devices, fixtures, equipment and appurtenances related thereto for the aforementioned improvements shall be completed within one year after the receipt of the occupancy permit for the new police and fire building(s).
      (4)   On or after January 1, 2106, an additional 0.5% on income tax for the purpose of maintaining and operation of cemeteries, maintaining fire protection, police protection, detention facilities, emergency medical services, general construction, reconstruction, resurfacing and repairing streets roads and bridges and economic development (4% of this 0.5%) for a period of 20 years beginning January 1, 2016.
   (D)   Statement of procedural history; state mandated changes to municipal income tax.
      (1)   Significant and wide-ranging amendments to R.C. Ch. 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. Ch. 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 12-2015 effective January 1, 2016, comprehensively amends Chapter 110 in accordance with the provisions of R.C. Ch. 718 to allow the municipality to continue the income tax and withholding tax administration and collection efforts on behalf of the municipality.
('73 Code, §191.01) (Ord. 6-76, passed 4-9-76; Am. Ord. 57-2004, passed 9-8-04; Am. Ord. 2015-2, passed 9-23-15; Am. Ord. 12-2015, passed 10-14-15)
Statutory reference:
   Authority for tax on income and withholding tax, see R.C. § 718.04