(a) Significant and wide-ranging amendments to R.C. Chapter 718 were enacted by Am Sub H.B. 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. Chapter 718 in order to have the authority to impose, enforce, administer and collect a municipal income tax.
(b) As mandated by the above amendments, the Village passed Ordinance No. 20-2015, effective January 1, 2016, which comprehensively amended Chapter 882 in accordance with the provisions of R.C. Chapter 718 to allow the Village to continue the income tax and withholding tax administration and collection efforts on behalf of the Village.
(c) Ordinance 20-2015, effective January 1, 2016, and corresponding changes to R.C. Chapter 718, apply to taxable years beginning on or after January 1, 2016. All provisions of this chapter apply to taxable years beginning 2016 and succeeding taxable years.
(d) House Bill 49, passed by the 132nd General Assembly, includes Section 803.100, purporting to require that municipalities, on or before January 31, 2018, adopt certain municipal income tax provisions to authorize state officials to collect and administer municipal net profit taxes. Section 803.100 of House Bill 49 references and relies upon R.C. § 718.04(A), which purports to make municipal income taxing authority conditional upon a municipality's adoption of code sections as dictated by the State.
(e) As mandated by the above amendments, the Village passed Ordinance 05- 2018 which amends Chapter 882 to adopt the required code sections to authorize State officials to collect and administer the net profit taxes due to the Village.
(Ord. 05-2018, passed 2-27-2018)