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181.06 EXEMPTIONS.
The tax provided for herein shall not be levied on the following:
   (a)    Pay or allowance of active members of the Armed Forces of the United States, or the income of religious, fraternal, charitable, scientific, literary, or educational institutions to the extent that the income is derived from tax-exempt real estate, tax-exempt tangible or intangible property, of tax-exempt activities.
   (b)    Poor relief, unemployment insurance benefits, old age pensions, or similar payments, including disability benefits received from local, state, or federal governments, or charitable, religious, or educational organizations.
   (c)    Proceeds of insurance paid by reason of the death of the insured; pensions, disability benefits, annuities, or gratuities not in the nature of compensation for services rendered, from whatever source derived.
   (d)    Receipts from seasonal or casual entertainment, amusements, sports events, and health and welfare activities, when any such are conducted by bona fide charitable, religious, or educational organizations and associations.
   (e)   Alimony received.
   (f)    Personal earnings of any natural person under eighteen years of age.
   (g)    Compensation for personal injuries or for damages to property, by way of insurance or otherwise.
   (h)    Interest, dividends and other revenue from intangible property.
   (i)    Gains from involuntary conversion, cancellation of indebtedness, interest on federal obligations, items of income already taxed by this State which the Municipality is specifically prohibited from taxing, and income of a decedent's estate during the period of administration except the income from the operation of a business.
   (j)    Salaries, wages, commissions, and other compensation and net profits, the taxation of which is prohibited by the United States Constitution or any act of Congress limiting the power of the States or their political subdivisions to impose net income taxes on income derived from interstate commerce.
   (k)    Salaries, wages, commissions, and other compensation and net profits, the taxation of which is prohibited by the State constitution or any act of the Ohio General Assembly limiting the power of the Municipality to impose net income taxes.
(Ord. 1967-02. Passed 5-17-67.)
181.07 RETURN AND PAYMENT OF TAX.
   (a)    Each taxpayer shall, whether or not a tax be due thereon, make and file a return on or before April 30, of the year following the effective date of this chapter and on or before April 30, of each year thereafter. When the return is made for a fiscal year or other period different from the calendar year, the return shall be filed within four months from the end of that fiscal year or period.
   (b)    The return shall be filed with the administrator on forms furnished by or obtainable upon request from the administrator, setting forth:
      (1)    The aggregate amounts of salaries, wages, commissions, and other compensation earned, and gross income from businesses, professions, or other activities, less allowable expense incurred in the acquisition of the gross income earned during the preceding year and subject to the tax;
      (2)    The amount of the tax imposed by the section on the earnings and profits; and
      (3)    Such other pertinent statements, information returns, or other information as the administrator may require.
   (c)    The administrator may extend the time for filing of the annual return upon the request of the taxpayer, for a period of not to exceed six months, or one month beyond any extension requested of or granted by the Internal Revenue Service for the filing of the federal income tax return. The administrator may require as tentative return, accompanied by payment of the amount of tax shown to be due thereon by the date the return is due. No penalty or interest shall be assessed in those cases in which the return is filed and the final tax paid within the period as extended.
   (d)    (1)    Filing of consolidated returns may be permitted or required in accordance with rules and regulations prescribed by the administrator.
      (2)    In the case of a corporation that carried on transactions with its stockholders or with other corporations related by stock ownership, interlocking directorates, or some other method; or in case any person operates a division, branch, factory, office, laboratory, or activity within the Municipal limits constituting a portion only of its total business, the administrator shall require, such additional information as he may deem necessary to ascertain whether net profits are properly allocated to the Municipality. If the administrator finds that net profits are not properly allocated to the Municipality by reason of transactions with stockholders or with other corporations related by stock ownership, interlocking directorates, or transactions with the division, branch, factory, office, laboratory, or activity, or by some other method, he shall make the allocation as he deems appropriate to produce a fair and proper allocation of net profits to the Municipality.
   
   (e)    (1)    Where necessary, an amended return must be filed in order to report additional income and pay any additional tax due, or claim a refund of tax overpaid, subject to the requirements, limitations, or both, contained in Sections 181.10 and 181.11. The amended return shall be on a form obtainable on request from the administrator. A taxpayer may not change the method of accounting or apportionment of net profits after the due date for filing the original return.
      (2)    Within three months from the final determination of any federal tax liability affecting the taxpayer's Municipal tax liability, the taxpayer shall make and file an amended Municipal return showing income subject to the Municipal tax based upon the final determination of federal tax liability, and pay any additional tax shown due thereon or make claim for refund of any overpayment.
         (Ord. 1967-02. Passed 5-17-67.)
181.08 PAYMENT OF TAX.
   (a)    The taxpayer making a return shall, at the time of filing thereof, pay to the administrator the amount of taxes shown as due thereon; however, where:
      (1)    Any portion of the tax so due shall have been deducted at the source pursuant to the provisions of Section 181.09;
      (2)    Any portion of the tax shall have been paid by the taxpayer pursuant to the provisions of Section 181.10 (a); or
      (3)    An income tax has been paid on the same income to another Municipality, credit for the amount so deducted or paid, or credit to the extent provided for in Section 181.11 (c), shall be deducted from the amount shown to be due, and only the balance, if any, shall be due and payable at the time of filing the return.
   (b)    A taxpayer who has overpaid the amount of tax to which the Municipality is entitled under the provisions of this section may have this overpayment applied against any subsequent liability hereunder or, at his election, indicated on the return, the overpayment, or part thereof, shall be refunded, provided that no additional taxes or refunds of less than one dollar ($1.00) shall be collected or refunded.
(Ord. 1967-02. Passed 5- 17-67.)
181.09 COLLECTION AT SOURCE.
   (a)    In accordance with rules and regulations prescribed by the administrator, each employer within or doing business within the Municipality shall deduct, at the time of the payment of the salary, wages, commission, or other compensation, the tax of two and one-half percent (2½%) per annum of the gross salaries, wages, commissions, or other compensation due by the employer to the employee, and shall, on or before the last day of each month, make a return and pay to the administrator the amount of taxes so deducted during the previous month. However, if the amount of the tax so deducted by any employer in any one month is less than one hundred dollars ($100.00), the employer may defer the filing of a return and payment of the amount deducted until the last day of the month following the end of the calendar quarter in which that month occurred.
(Ord. 1992-18. Passed 3-18-92; Ord. 2009-38. Passed 8-5-09.)
   (b)    The returns shall be on a form or forms prescribed by or acceptable to the administrator and shall be subject to the rules and regulations prescribed therefor by the administrator. The employer shall be liable for the payment of the tax required to be deducted and withheld whether or not the taxes have, in fact, been withheld.
   (c)    The employer, in collecting the tax, shall be deemed to hold the same until payment is made by the employer to the Municipality as a trustee for the benefit of the Municipality, and any such tax collected by the employer from his employees shall, until the same is paid to the Municipality, be deemed a trust fund in the hands of the employer.
   (d)    No person shall be required to withhold the tax on wages or other compensation paid domestic servants employed by him exclusively in or about the person's residence, even though the residence is in the Municipal limits, but the employees shall be subject to all the requirements of this chapter.
   (e)    Manager's Obligation. 
      (1)    Every manger is deemed to be a trustee of the Municipality in collecting and holding the tax required under this chapter to be withheld and the funds so collected by such withholding are deemed to be trust funds. Every manager is liable directly to the Municipality for payment of such trust, whether actually collected by such employer or not. Any tax deducted and withheld is to be considered paid to the Municipality whether or not the employer actually remits the tax to the Municipality for purposes of determining employee payments or credits.
      (2)    All managers shall be personally liable to the extent of the tax, interest and penalty, jointly and severally, for failure to file the employer's return or to pay the employer's tax, interest and penalty as required under this chapter.
      (3)    No change in structure by an employer, including a fundamental change, discharges its managers from liability for the employee’s or manager's failure to remit funds held in trust, to file a tax return or to pay taxes.
(Ord. 1990-40. Passed 5-16-90.)
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