(a) Authority to Levy. 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 on income and the withholding tax established by this Chapter are deemed to be levied in accordance with, and to be consistent with, the provisions and limitations of ORC Chapter 718. This Chapter is adopted with the intent to conform to ORC Chapter 718. and is deemed to incorporate the provisions of ORC Chapter 718.
(b) Purpose. To provide funds for the purposes of capital improvements, general municipal operations, maintenance, new equipment, extension and enlargement of municipal services and facilities of the City, there shall be and is hereby levied an annual municipal income tax on income, qualifying wages, commissions and other compensation, and on net profits as provided in this Chapter 881.
(c) Rate of Tax. The rate of tax on income and the withholding tax established by this Chapter shall be two and one-quarter percent (2.25%), and shall continue at that rate until amended or repealed, as established by Ordinance 10-27, which was approved by the voters on November 2, 2010, and became effective on January 1, 2011. The tax is levied at a uniform rate on all persons residing in or earning or receiving income in the City of Xenia. The tax is levied on income, qualifying wages, commissions and other compensation, and on net profits as provided in Section 881.03 of this Chapter and other sections as they may apply.
(d) Applicability.
(1) Chapter 881., and corresponding changes to ORC Chapter 718. apply to municipal taxable years beginning on or after January 1, 2016. All provisions of this Chapter 881. apply to taxable years beginning 2016 and succeeding taxable years.
(2) Enactment of this Chapter 881. does not repeal the existing sections of Chapter 880. for any taxable year prior to 2016. For municipal taxable years beginning before January 1, 2016, the City shall continue to administer, audit and enforce the income tax of the City under Chapter 880., ORC Chapter 718., and ordinances and resolutions of the City as those ORC Chapters, ordinances and resolutions existed before January 1, 2016.
(e) Allocation of Funds. The funds collected under the provisions of this Chapter shall be allocated in such manner as prescribed by ordinances and policies adopted by the City Council.
(Source: ORC 718.04)
(Ord. 15-33. Adopted 07/23/15; Ord. 2018-08. Adopted 02/22/18; Ord. 2020-10. Adopted 04/23/20)