(A) To provide funds for the purposes of general municipal operations, purchase and maintenance of equipment, municipal services and facilities and capital improvements of Waterville, there shall be, and is hereby levied a tax on salaries, wages, commissions, and other compensation, and on net profits, from any transaction, venture or activity whether permanent, temporary or nonrecurring in character, as hereinafter provided.
(B) (1) The annual tax is levied at a rate of 2% per annum. The tax is levied at a uniform rate on all persons residing in or earning or receiving income in Waterville. The tax is levied on income, qualifying wages, commissions and other compensation, and on net profits as hereinafter provided in Section 172.03 of this Chapter 172 and other sections as they may apply.
(2) ALLOCATION OF FUNDS. The funds collected under the provisions of this chapter shall be applied for the following purposes and in the following order:
(a) Seventy-five percent of the gross income tax receipts received annually shall be paid into the General Fund and used to pay all costs of collecting the taxes levied by this chapter and the cost of administering and enforcing the provisions of this chapter and to pay the operating expenses of Waterville.
(b) Twenty-five percent of the gross income tax receipts shall be paid into the Capital Improvement Budget Fund and shall be set aside and used for capital improvements for Waterville, including, but not limited to, development, maintenance, or construction of sanitary sewers, storm sewers, and street improvements; for public parks, buildings, land, and playgrounds; and for equipment necessary for police, fire, public works, and other municipal departments and operations.
(C) The tax on income and the withholding tax established by this chapter are authorized by Article XVIII, Section 3 of the Ohio Constitution. The tax is levied in accordance with, and is intended to be consistent with, the provisions and limitations of Ohio Revised Code 718 (ORC 718) and is effective on and after January 1, 2016. Taxes levied, collected and paid with respect to salaries, wages, commissions, and other compensation, and with respect to the net profits of persons, businesses, professions, or other activities earned or received prior to January 1, 2016, shall comply with tax requirements defied in Chapter 171 of the Waterville Municipal Code of Ordinances. (Ord. 31-15. Passed 10-26-15.)