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(a) Mandatory Filing. Except as provided in division (a)(1) of this section, on or before the date prescribed by ORC Chapter 718., an annual City income tax return shall be completed and filed by every taxpayer for each taxable year for which the taxpayer is subject to the tax, whether or not a tax is due thereon.
(1) A. The Tax Administrator may accept on behalf of all nonresident individual taxpayers a return filed by an employer, agent of an employer, or other payer under Section 881.04 of this Chapter when the nonresident individual taxpayer's sole income subject to the tax is the qualifying wages reported by the employer, agent of an employer, or other payer, and no additional tax is due the City.
B. Retirees having no Municipal Taxable Income for the City income tax purposes may file with the Tax Administrator a written exemption from these filing requirements on a form prescribed by the Tax Administrator. The written exemption shall indicate the date of retirement and the entity from which retired. The exemption shall be in effect until such time as the retiree receives Municipal Taxable Income taxable to the City, at which time the retiree shall be required to comply with all applicable provisions of this Chapter.
C. The City shall not require a qualifying employee whose income consists exclusively of exempt income described in Section 881.02(l)(20) B. or C. to file a return under this section.
(2) If an individual is deceased, any return or notice required of that individual shall be completed and filed by that decedent's executor, administrator, or other person charged with the property of that decedent.
(3) If an individual is unable to complete and file a return or notice required by the City, the return or notice required of that individual shall be completed and filed by the individual's duly authorized agent, guardian, conservator, fiduciary, or other person charged with the care of the person or property of that individual.
(4) Returns or notices required of an estate or a trust shall be completed and filed by the fiduciary of the estate or trust.
(5) The City shall permit spouses to file a joint return.
(Source: ORC 718.05(A) - (E))
(6) As used in this division (a)(6), “worksite location” has the same meaning as in Section 881.04(b)(1).
A. A person may notify the Tax Administrator that the person does not expect to be a taxpayer subject to the City's income tax for a taxable year if both of the following apply:
(i) The person was required to file a tax return with the City for the immediately preceding taxable year because the person performed services at a worksite location within the City.
(ii) The person no longer provides services in the City and does not expect to be subject to the City income tax for the taxable year.
B. The person shall provide the notice in a signed affidavit that briefly explains the person's circumstances, including the location of the previous worksite location and the last date on which the person performed services or made any sales within the City. The affidavit shall also include the following statement: "The affiant has no plans to perform any services within the City, make any sales in the City, or otherwise become subject to the tax levied by the City during the taxable year. If the affiant does become subject to the tax levied by the City for the taxable year, the affiant agrees to be considered a taxpayer and to properly comply as a taxpayer with the City income tax ordinance and rules and regulations." The person shall sign the affidavit under penalty of perjury.
C. If a person submits an affidavit described in division (a)(6)B., the Tax Administrator shall not require the person to file a tax return for the taxable year unless the Tax Administrator possesses information that conflicts with the affidavit or if the circumstances described in the affidavit change.
D. Nothing in this division (a)(6) prohibits the Tax Administrator from performing an audit of the person.
(Source: ORC 718.05(N))
(b) Annual Return.
(1) Each return required to be filed under this Section shall contain the signature of the taxpayer or the taxpayer's duly authorized agent and of the person who prepared the return for the taxpayer. The return shall include the taxpayer's social security number or taxpayer identification number. Each return shall be verified by a declaration under penalty of perjury.
(2) The Tax Administrator shall require a taxpayer who is an individual to include, with each annual return, and amended return, or request for refund required under this section, copies of only the following documents: all of the taxpayer's Internal Revenue Service form W-2, "Wage and Tax Statements," including all information reported on the taxpayer's federal W-2, as well as taxable wages reported or withheld for any municipal corporation; the taxpayer's Internal Revenue Service form 1040; and, with respect to an amended tax return or refund request, any other documentation necessary to support the refund request or the adjustments made in the amended return. An individual taxpayer who files the annual return required by this section electronically is not required to provide paper copies of any of the foregoing to the Tax Administrator unless the Tax Administrator requests such copies after the return has been filed.
(3) The Tax Administrator may require a taxpayer that is not an individual to include, with each annual net profit return, amended net profit return, or request for refund required under this section, copies of only the following documents: the taxpayer's Internal Revenue Service form 1041, form 1065, form 1120, form 1120-REIT, form 1120F, or form 1120S, and, with respect to an amended tax return or refund request, any other documentation necessary to support the refund request or the adjustments made in the amended return.
A taxpayer that is not an individual and that files an annual net profit return electronically through the Ohio Business Gateway or in some other manner shall either mail the documents required under this division to the Tax Administrator at the time of filing or, if electronic submission is available, submit the documents electronically through the Ohio Business Gateway.
(4) After a taxpayer files a tax return, the Tax Administrator may request, and the taxpayer shall provide, any information, statements, or documents required by the City to determine and verify the taxpayer's municipal income tax liability. The requirements imposed under this division (b) apply regardless of whether the taxpayer files on a generic form or on a form prescribed by the Tax Administrator.
(Source: ORC 718.05(F))
(c) Filing Dates.
(1) A. Except as otherwise provided in this Chapter, each individual income tax return required to be filed under this section shall be completed and filed as required by the Tax Administrator on or before the date prescribed for the filing of state individual income tax returns under ORC 5747.08(G). The taxpayer shall complete and file the return or notice on forms prescribed by the Tax Administrator or on generic forms, together with remittance made payable to the City. No remittance is required if the net amount due is ten dollars ($10) or less.
B. Except as otherwise provided in this Chapter, each annual net profit return required to be filed under this section by a taxpayer that is not an individual shall be completed and filed as required by the Tax Administrator on or before the fifteenth day (15th) of the fourth (4th) month following the end of the taxpayer's taxable year. The taxpayer shall complete and file the return or notice on forms prescribed by the Tax Administrator or on generic forms, together with remittance made payable to the City. No remittance is required if the net amount due is ten dollars ($10) or less.
(2) A. Any taxpayer that has duly requested an automatic six- (6) month extension for filing the taxpayer's federal income tax return shall automatically receive an extension for the filing of the City's income tax return. The extended due date of the City's income tax return shall be the fifteenth (15th) day of the tenth (10th) month after the last day of the taxable year to which the return relates. For tax years ending on or after January 1, 2023, the extended due date of the City's income tax return for a taxpayer that is an individual shall remain the fifteenth (15th) day of the tenth (10th) month after the last day of the taxable year to which the return relates, and the extended due date of the City's income tax return for a taxpayer that is not an individual shall be the fifteenth (15th) day of the eleventh (11th) month after the last day of the taxable year to which the return relates. A copy of the federal extension request shall be included with the filing of the City's income tax return.
B. A taxpayer that has not requested or received a six- (6) month extension for filing the taxpayer's federal income tax return may submit a written request that the Tax Administrator grant the taxpayer a six- (6) month extension of the date for filing the taxpayer's the City income tax return. If the request is received by the Tax Administrator on or before the date the City income tax return is due, the Tax Administrator shall grant the taxpayer's requested extension.
C. An extension of time to file under this division (c)(2) is not an extension of the time to pay any tax due unless the Tax Administrator grants an extension of that date.
(3) If the State Tax Commissioner extends for all taxpayers the date for filing state income tax returns under ORC 5747.08(G), a taxpayer shall automatically receive an extension for the filing of the City's income tax return. The extended due date of the City's income tax return shall be the same as the extended due date of the state income tax return.
(4) If the Tax Administrator considers it necessary in order to ensure the payment of the tax imposed by the City in accordance with this Chapter, the Tax Administrator may require taxpayers to file returns and make payments otherwise than as provided in this division, including taxpayers not otherwise required to file annual returns.
(5) If a taxpayer receives an extension for the filing of the City's income tax return under division (c)(2), (c)(3) or (c)(4) of this section, the Tax Administrator shall not make any inquiry or send any notice to the taxpayer with regard to the return on or before the date the taxpayer files the return or on or before the extended due date to file the return, whichever occurs first. If the Tax Administrator violates this division (c)(5), the City shall reimburse the taxpayer for any reasonable costs incurred to respond to such inquiry or notice, up to one hundred fifty dollars ($150). Division (c)(5) of this section does not apply to an extension received under division (c)(2) of this section if the Tax Administrator has actual knowledge that the taxpayer failed to file for a federal extension as required to receive the extension under division (c)(2)A. of this section or failed to file for an extension under division (c)(2)B. of this section.
(6) To the extent that any provision in this division (c) conflicts with any provision in Section 881.05(g), the provisions in Section 881.05(g) prevail.
(Source: ORC 718.05(G))
(d) Remittance of Tax Due.
(1) For taxable years beginning after 2015, the City shall not require a taxpayer to remit tax with respect to net profits if the net amount due is ten dollars ($10) or less.
(2) Except as provided in division (d)(3), any taxpayer not required to remit tax to the City for a taxable year pursuant to division (d)(1) of this section shall file with the City an annual net profit return under division (b)(3) of this section.
(3) The City shall not require a person to file a net profit return under this section if the person's income consists exclusively of exempt income described in Section 881.02(l)(20)A.
(4) If any report, claim, statement, or other document required to be filed, or any payment required to be made, within a prescribed period or on or before a prescribed date under this Chapter is delivered after that period or that date by United States mail to the Tax Administrator or other municipal official with which the report, claim, statement, or other document is required to be filed, or to which the payment is required to be made, the date of the postmark stamped on the cover in which the report, claim, statement, or other document, or payment is mailed shall be deemed to be the date of delivery or the date of payment. "The date of postmark" means, in the event there is more than one date on the cover, the earliest date imprinted on the cover by the postal service.
(5) If a payment under this Chapter is made by electronic funds transfer, the payment shall be considered to be made on the date of the timestamp assigned by the first electronic system receiving the payment.
(6) Taxes withheld for the City by an employer, the agent of an employer, or other payer as described in Section 881.04 of this Chapter shall be allowed to the taxpayer as credits against payment of the tax imposed on the taxpayer by the City, uncles the amounts withheld are not remitted to the City and the recipient colluded with the employer, agent, or other payer in connection with the failure to remit the amounts withheld.
(Source: ORC 718.05(H) - (J))
(e) Duties of Tax Administrator.
(1) Each return required by the City to be filed in accordance with this division shall include a box that the taxpayer may check to authorize another person, including a tax return preparer who prepared the return, to communicate with the Tax Administrator about matters pertaining to the return. The return or instructions accompanying the return shall indicate that by checking the box the taxpayer authorizes the Tax Administrator to contact the preparer or other person concerning questions that arise during the examination or other review of the return and authorizes the preparer or other person only to provide the Tax Administrator with information that is missing from the return, to contact the Tax Administrator for information about the examination or other review of the return or the status of the taxpayer's refund or payments, and to respond to notices about mathematical errors, offsets, or return preparation that the taxpayer has received from the Tax Administrator and has shown to the preparer or other person.
(2) The Tax Administrator shall accept for filing a generic form of any income tax return, report, or document required by the City in accordance with this Chapter, provided that the generic form, once completed and filed, contains all of the information required by ordinance, resolution, or rules and regulations adopted by the City or the Tax Administrator, and provided that the taxpayer or tax return preparer filing the generic form otherwise complies with the provisions of this Chapter and of the City's ordinance, resolution, or rules and regulations governing the filing of returns, reports, or documents.
(3) When income tax returns, reports, or other documents require the signature of a tax return preparer, the Tax Administrator shall accept a facsimile of such a signature in lieu of a manual signature.
(Source: ORC 718.05(K) – (M))
(f) Filing Via Ohio Business Gateway.
(1) Any taxpayer subject to municipal income taxation with respect to the taxpayer's net profit from a business or profession may file the City's income tax return, estimated municipal income tax return, or extension for filing a municipal income tax return, and may make payment of amounts shown to be due on such returns, by using the Ohio Business Gateway.
(2) Any employer, agent of an employer, or other payer may report the amount of municipal income tax withheld from qualifying wages, and may make remittance of such amounts, by using the Ohio Business Gateway.
(3) Nothing in this section affects the due dates for filing employer withholding tax returns.
(4) The use of the Ohio Business Gateway by the City, taxpayers, or other persons pursuant to this section does not affect the legal rights of the City or taxpayers as otherwise permitted by law. The State of Ohio shall not be a party to the administration of the City's income taxes or to an appeal of a City income tax matter, except as otherwise specifically provided by law.
(5) Nothing in this section shall be construed as limiting or removing the authority of the City to administer, audit, and enforce the provisions of this Chapter.
(Source: ORC 718.051)
(g) Extension for Certain Members of the Military.
(1) Each member of the national guard of any state and each member of a reserve component of the Armed Forces of the United States called to active duty pursuant to an executive order issued by the president of the United States or an act of the Congress of the United States, and each civilian serving as support personnel in a combat zone or contingency operation in support of the U.S. Armed Forces, may apply to the Tax Administrator for both an extension of time for filing of the return and an extension of time for payment of taxes required by the City during the period of the member's or civilian's duty service, and for one hundred eighty (180) days thereafter. The application shall be filed on or before the one hundred eightieth (180th) day after the member's or civilian's duty terminates. An applicant shall provide such evidence as the Tax Administrator considers necessary to demonstrate eligibility for the extension.
(2) A. If the Tax Administrator ascertains that an applicant is qualified for an extension under this section, the Tax Administrator shall enter into a contract with the applicant for the payment of the tax in installments that begin on the one hundred eighty-first (181st) day after the applicant's active duty or service terminates. The Tax Administrator may prescribe such contract terms as the Tax Administrator considers appropriate.
B. If the Tax Administrator determines that an applicant is qualified for an extension under this section, the applicant shall neither be required to file any return, report, or other tax document nor be required to pay any tax otherwise due to the City before the one hundred eighty-first (181st) day after the applicant's active duty or service terminates.
C. Taxes paid pursuant to a contract entered into under division (g)(2)A. of this section are not delinquent. The Tax Administrator shall not require any payments of penalties or interest in connection with those taxes for the extension period.
(3) A. Nothing in this division denies to any person described in this division the application of divisions (g)(1) and (g)(2) of this section.
B. (i) A qualifying taxpayer who is eligible for an extension under the Internal Revenue Code shall receive both an extension of time in which to file any return, report, or other tax document and an extension of time in which to make any payment of taxes required by the City in accordance with this Chapter. The length of any extension granted under division (g)(3)B.(i) of this section shall be equal to the length of the corresponding extension that the taxpayer receives under the Internal Revenue Code. As used in this division, "qualifying taxpayer" means a member of the national guard or a member of a reserve component of the Armed Forces of the United States called to active duty pursuant to either an executive order issued by the president of the United States or an act of the Congress of the United States, or a civilian serving as support personnel in a combat zone or contingency operation in support of the U.S. Armed Forces.
(ii) Taxes whose payment is extended in accordance with division (g)(3)B.(i) of this section are not delinquent during the extension period. Such taxes become delinquent on the first day after the expiration of the extension period if the taxes are not paid prior to that date. The Tax Administrator shall not require any payment of penalties or interest in connection with those taxes for the extension period. The Tax Administrator shall not include any period of extension granted under division (g) of this section in calculating the penalty or interest due on any unpaid tax.
(4) For each taxable year to which division (g)(1), (g)(2) or (g)(3) of this section applies to a taxpayer, the provisions of divisions (g)(2) B. and C. of this section, as applicable, apply to the spouse of that taxpayer if the filing status of the spouse and the taxpayer is married filing jointly for that year.
(Source: ORC 718.052)
(h) Consolidated Municipal Income Tax Return.
(1) As used in this division:
A. "Affiliated group of corporations" means an affiliated group as defined in Section 1504 of the Internal Revenue Code, except that, if such a group includes at least one incumbent local exchange carrier that is primarily engaged in the business of providing local exchange telephone service in this state, the affiliated group shall not include any incumbent local exchange carrier that would otherwise be included in the group.
B. "Consolidated federal income tax return" means a consolidated return filed for federal income tax purposes pursuant to Section 1501 of the Internal Revenue Code.
C. "Consolidated federal taxable income" means the consolidated taxable income of an affiliated group of corporations, as computed for the purposes of filing a consolidated federal income tax return, before consideration of net operating losses or special deductions. "Consolidated federal taxable income" does not include income or loss of an incumbent local exchange carrier that is excluded from the affiliated group under division (h)(1)A. of this section.
D. "Incumbent local exchange carrier" has the same meaning as in ORC 4927.01.
E. "Local exchange telephone service" has the same meaning as in ORC 5727.01.
(2) A. For taxable years beginning on or after January 1, 2016, a taxpayer that is a member of an affiliated group of corporations may elect to file a consolidated municipal income tax return for a taxable year if at least one member of the affiliated group of corporations is subject to the City's income tax in that taxable year, and if the affiliated group of corporations filed a consolidated federal income tax return with respect to that taxable year. The election is binding for a five- (5) year period beginning with the first taxable year of the initial election unless a change in the reporting method is required under federal law. The election continues to be binding for each subsequent five- (5) year period unless the taxpayer elects to discontinue filing consolidated municipal income tax returns under division (h)(2)B. of this section or a taxpayer receives permission from the Tax Administrator. The Tax Administrator shall approve such a request for good cause shown.
B. An election to discontinue filing consolidated municipal income tax returns under this section must be made in the first year following the last year of a five- (5) year consolidated municipal income tax return election period in effect under division (h)(2)A. of this section. The election to discontinue filing a consolidated municipal income tax return is binding for a five- (5) year period beginning with the first taxable year of the election.
C. An election made under division (h)(2)A. or B. of this section is binding on all members of the affiliated group of corporations subject to a municipal income tax.
D. When a taxpayer makes the election allowed under ORC 718.80, a valid election made by a taxpayer under division (h)(2)A. or B. of this section is binding upon the Tax Commissioner for the remainder of the five- (5) year period.
E. When an election made under ORC 718.80 is terminated, a valid election made under ORC 718.86 is binding upon the Tax Administrator for the remainder of the five- (5) year period.
(3) A taxpayer that is a member of an affiliated group of corporations that filed a consolidated federal income tax return for a taxable year shall file a consolidated the City income tax return for that taxable year if the Tax Administrator determines, by a preponderance of the evidence, that intercompany transactions have not been conducted at arm's length and that there has been a distortive shifting of income or expenses with regard to allocation of net profits to the City. A taxpayer that is required to file a consolidated City income tax return for a taxable year shall file a consolidated City income tax return for all subsequent taxable years, unless the taxpayer requests and receives written permission from the Tax Administrator to file a separate return or a taxpayer has experienced a change in circumstances.
(4) A taxpayer shall prepare a consolidated City income tax return in the same manner as is required under the United States Department of the Treasury regulations that prescribe procedures for the preparation of the consolidated federal income tax return required to be filed by the common parent of the affiliated group of which the taxpayer is a member.
(5) A. Except as otherwise provided in divisions (h)(5)B., C. and D. of this section, corporations that file a consolidated municipal income tax return shall compute adjusted federal taxable income, as defined in Section 881.02, by substituting "consolidated federal taxable income" for "federal taxable income" wherever "federal taxable income" appears in that division and by substituting "an affiliated group of corporation's" for "a C corporation's" wherever "a C corporation's" appears in that division.
B. No corporation filing a consolidated City income tax return shall make any adjustment otherwise required under Section 881.02(a) to the extent that the item of income or deduction otherwise subject to the adjustment has been eliminated or consolidated in the computation of consolidated federal taxable income.
C. If the net profit or loss of a pass-through entity having at least eighty percent (80%) of the value of its ownership interest owned or controlled, directly or indirectly, by an affiliated group of corporations is included in that affiliated group's consolidated federal taxable income for a taxable year, the corporation filing a consolidated City income tax return shall do one of the following with respect to that pass-through entity's net profit or loss for that taxable year:
(i) Exclude the pass-through entity's net profit or loss from the consolidated federal taxable income of the affiliated group and, for the purpose of making the computations required in Section 881.05(h), exclude the property, payroll, and gross receipts of the pass-through entity in the computation of the affiliated group's net profit sitused to the City. If the entity's net profit or loss is so excluded, the entity shall be subject to taxation as a separate taxpayer on the basis of the entity's net profits that would otherwise be included in the consolidated federal taxable income of the affiliated group.
(ii) Include the pass-through entity's net profit or loss in the consolidated federal taxable income of the affiliated group and, for the purpose of making the computations required in Section 881.05(h), include the property, payroll, and gross receipts of the pass-through entity in the computation of the affiliated group's net profit sitused to the City. If the entity's net profit or loss is so included, the entity shall not be subject to taxation as a separate taxpayer on the basis of the entity's net profits that are included in the consolidated federal taxable income of the affiliated group.
D. If the net profit or loss of a pass-through entity having less than eighty percent (80%) of the value of its ownership interest owned or controlled, directly or indirectly, by an affiliated group of corporations is included in that affiliated group's consolidated federal taxable income for a taxable year, all of the following shall apply:
(i) The corporation filing the consolidated municipal income tax return shall exclude the pass-through entity's net profit or loss from the consolidated federal taxable income of the affiliated group and, for the purposes of making the computations required in Section 881.05(h), exclude the property, payroll, and gross receipts of the pass-through entity in the computation of the affiliated group's net profit sitused to the City;
(ii) The pass-through entity shall be subject to the City's income taxation as a separate taxpayer in accordance with this Chapter on the basis of the entity's net profits that would otherwise be included in the consolidated federal taxable income of the affiliated group.
(6) Corporations filing a consolidated City income tax return shall make the computations required under Section 881.05(h) by substituting "consolidated federal taxable income attributable to" for "net profit from" wherever "net profit from" appears in that section and by substituting "affiliated group of corporations" for "taxpayer" wherever "taxpayer" appears in that section.
(7) Each corporation filing a consolidated City income tax return is jointly and severally liable for any tax, interest, penalties, fines, charges, or other amounts imposed by the City in accordance with this Chapter on the corporation, an affiliated group of which the corporation is a member for any portion of the taxable year, or any one or more members of such an affiliated group.
(8) Corporations and their affiliates that made an election or entered into an agreement with the City before January 1, 2016, to file a consolidated or combined tax return with the City may continue to file consolidated or combined tax returns in accordance with such election or agreement for taxable years beginning on and after January 1, 2016.
(Source: ORC 718.06)
(Ord. 15-33. Adopted 07/23/15; Ord. 16-54. Adopted 11/22/16; Ord. 2018-08. Adopted 02/22/18; Ord. 2020-10. Adopted 04/23/20; Ord. 2023-31. Adopted 11/21/23)
(a) Credit for Income Tax Paid to Another Municipality.
(1) Every individual taxpayer domiciled in the City of Xenia who is required to and does pay, or has acknowledged liability for, a municipal tax to another municipality, on or measured by the same income, qualifying wages, commissions, net profits or other compensation taxable under this Chapter, may claim a nonrefundable credit upon satisfactory evidence of the tax paid to the other municipality. Subject to division (a)(2) of this section, the credit shall not exceed one hundred percent (100%) of the amount obtained by multiplying the income, qualifying wages, commissions, net profits or other compensation subject to tax in the other municipality by the lower of the tax rate in such other municipality or the rate of one and one-half percent (1.5%).
(2) If the amount of tax withheld or paid to the other municipality is less than the amount of tax required to be withheld or paid to the other municipality, then for the purposes of division (a)(1) of this section, "the income, qualifying wages, commissions, net profits or other compensation" subject to tax in the other municipality shall be limited to the amount computed by dividing the tax withheld or paid to the other municipality by the tax rate for that municipality.
(3) The City shall grant a credit against its tax on income to a resident of the City who works in a joint economic development zone created under ORC 715.691 or a joint economic development district (JEDD) created under ORC 715.70, 715.71 or 715.72 to the same extent that it grants a credit against its tax on income to residents who are employed in another municipality, with the exception of the Xenia Township - City of Xenia JEDD-1 tax. Credit for taxes paid to the Xenia Township - City of Xenia JEDD-1 shall not exceed two and one-quarter percent (2.25%) of the income taxed by the Xenia Township - City of Xenia JEDD-1.
(Statutory Reference: ORC 718.16)
(b) Credit for Tax Imposed After Time Allowed for a Refund Paid to Other Municipality.
(1) Subject to division (b)(2) of this section, income tax or withholding on income or wages that is due to the City but was paid to another municipality shall be subject to collection and recovery by the City. If City imposes the tax after the time period allowed for a refund of the tax or withholding from the other municipality to which it was paid, the City shall allow a nonrefundable credit against the tax or withholding the City claims is due with respect to such income or wages, equal to the tax or withholding paid to the other municipality.
(2) If the City's tax rate is less than the tax rate of the other municipality, then the nonrefundable credit described in division (b)(1) of this section shall be calculated using the City's tax rate. If the City's tax rate is greater than the tax rate of the other municipality, the tax due in excess of the nonrefundable credit is to be paid to the City, along with any penalty and interest that accrued during the period of nonpayment.
(Source: ORC 718.121)
(c) No Carryforward. Nothing in this section permits any credit carryforward.
(Ord. 15-33. Adopted 07/23/15; Ord. 2018-08. Adopted 02/22/18; Ord. 2020-10. Adopted 04/23/20; Ord. 2023-31. Adopted 11/21/23)
(a) Definitions. As used in this section:
(1) "Estimated taxes" means the amount that the taxpayer reasonably estimates to be the taxpayer's tax liability for the City's income tax for the current taxable year.
(2) "Tax liability" means the total taxes due to a City for the taxable year, after allowing any credit to which the taxpayer is entitled, and after applying any estimated tax payment, withholding payment or credit from another taxable year.
(b) Declaration of Estimated Taxes.
(1) Except as provided in division (f) of this section, every taxpayer shall make a declaration of estimated taxes for the current taxable year, on the form prescribed by the Tax Administrator, if the amount payable as estimated taxes is at least two hundred dollars ($200). For the purposes of this section:
A. City income taxes withheld from qualifying wages shall be considered as paid to the City in equal amounts on each payment date, unless the taxpayer establishes the dates on which all amounts were actually withheld, in which case they shall be considered as paid on the dates on which the amounts were actually withheld.
B. An overpayment of tax applied as a credit to a subsequent taxable year is deemed to be paid on the date of the postmark stamped on the cover in which the payment is mailed or, if the payment is made by electronic funds transfer, the date the payment is submitted. As used in this division, "date of the postmark" means, in the event there is more than one date on the cover, the earliest date imprinted on the cover by the postal service.
C. Taxes withheld by a casino operator, video lottery sales agent, or type B sports gaming proprietor under Section 881.04(c) of this Chapter are deemed to be paid to the City, if the taxes were withheld, on the date the taxes are withheld from the taxpayer's winnings.
(2) Except as provided in division (f) of this section, taxpayers filing joint returns shall file joint declarations of estimated taxes. A taxpayer may amend a declaration under rules prescribed by the Tax Administrator. Except as provided in division (f) of this section, a taxpayer having a taxable year of less than twelve (12) months shall make a declaration under rules prescribed by the Tax Administrator.
(3) The declaration of estimated taxes shall be filed on or before the date prescribed for the filing of municipal income tax returns under Section 881.05(c) of this Chapter or on or before the fifteenth (15th) day of the fourth (4th) month of the first taxable year after the taxpayer becomes subject to tax for the first time.
(4) Taxpayers reporting on a fiscal year basis shall file a declaration on or before the fifteenth (15th) day of the fourth (4th) month after the beginning of each fiscal year or period.
(5) The original declaration or any subsequent amendment may be increased or decreased on or before any subsequent quarterly payment day as provided in this section.
(c) Tax Liability.
(1) The required portion of the tax liability for the taxable year that shall be paid through estimated taxes made payable to the City or Tax Administrator, including the application of tax refunds to estimated taxes and withholding on or before the applicable payment date, shall be as follows:
A. On or before the fifteenth (15th) day of the fourth (4th) month after the beginning of the taxable year, twenty-two and one-half percent (22½%) of the tax liability for the taxable year;
B. On or before the fifteenth (15th) day of the sixth (6th) month after the beginning of the taxable year, forty-five percent (45%) of the tax liability for the taxable year;
C. On or before the fifteenth (15th) day of the ninth (9th) month after the beginning of the taxable year, sixty-seven and one-half percent (67½%) of the tax liability for the taxable year;
D. For an individual, on or before the fifteenth (15th) day of the first month of the following taxable year, ninety percent (90%) of the tax liability for the taxable year. For a person other than an individual, on or before the fifteenth (15th) day of the twelfth (12th) month of the taxable year, ninety percent (90%) of the tax liability for the taxable year.
(2) When an amended declaration has been filed, the unpaid balance shown due on the amended declaration shall be paid in equal installments on or before the remaining payment dates.
(3) On or before the fifteenth (15th) day of the fourth (4th) month of the year following that for which the declaration or amended declaration was filed, an annual return shall be filed and any balance which may be due shall be paid with the return in accordance with Section 881.05 of this Chapter.
(d) Underpayments.
(1) In the case of any underpayment of any portion of a tax liability, penalty and interest may be imposed pursuant to Section 881.18 of this Chapter upon the amount of underpayment for the period of underpayment, unless the underpayment is due to reasonable cause as described in division (e) of this section. The amount of the underpayment shall be determined as follows:
A. For the first payment of estimated taxes each year, twenty-two and one-half percent (22½%) of the tax liability, less the amount of taxes paid by the date prescribed for that payment;
B. For the second payment of estimated taxes each year, forty-five percent (45%) of the tax liability, less the amount of taxes paid by the date prescribed for that payment;
C. For the third payment of estimated taxes each year, sixty-seven and one-half percent (67½%) of the tax liability, less the amount of taxes paid by the date prescribed for that payment;
D. For the fourth payment of estimated taxes each year, ninety percent (90%) of the tax liability, less the amount of taxes paid by the date prescribed for that payment.
(2) The period of the underpayment shall run from the day the estimated payment was required to be made to the date on which the payment is made. For purposes of this section, a payment of estimated taxes on or before any payment date shall be considered a payment of any previous underpayment only to the extent the payment of estimated taxes exceeds the amount of the payment presently required to be paid to avoid any penalty.
(e) Exception to the Imposition of Penalty for Underpayments. An underpayment of any portion of tax liability determined under division (d) of this section shall be due to reasonable cause and the penalty imposed by this section shall not be added to the taxes for the taxable year if any of the following apply:
(1) The amount of estimated taxes that were paid equals at least ninety percent (90%) of the tax liability for the current taxable year, determined by annualizing the income received during the year up to the end of the month immediately preceding the month in which the payment is due.
(2) The amount of estimated taxes that were paid equals at least one hundred percent (100%) of the tax liability shown on the return of the taxpayer for the preceding taxable year, provided that the immediately preceding taxable year reflected a period of twelve (12) months and the taxpayer filed a return with the City under Section 881.05 of this Chapter for that year.
(3) The taxpayer is an individual who resides in the City but was not domiciled there on the first day of January of the calendar year that includes the first day of the taxable year.
(f) Authority of Tax Administrator. The Tax Administrator may waive the requirement for filing a declaration of estimated taxes for any class of taxpayers after finding that the waiver is reasonable and proper in view of administrative costs and other factors.
(Source: ORC 718.08)
(Ord. 2020-10. Adopted 04/23/20; Ord. 2023-31. Adopted 11/21/23)
A person may round to the nearest whole dollar all amounts the person is required to enter on any return, report, voucher, or other document required under this Chapter. Any fractional part of a dollar that equals or exceeds fifty cents ($0.50) shall be rounded to the next whole dollar, and any fractional part of a dollar that is less than fifty cents ($0.50) shall be dropped, rounding down to the nearest whole dollar. If a person chooses to round amounts entered on a document, the person shall round all amounts entered on the document.
(Source: ORC 718.25)
(Ord. 2020-10. Adopted 04/23/20)
(a) Definitions. As used in this section, "withholding tax" has the same meaning as in Section 881.18.
(b) Request for Refund. Upon receipt of a request for a refund, the Tax Administrator, in accordance with this section, shall refund to employers, agents of employers, other payers or taxpayers with respect to any income or withholding tax levied by the City:
(1) Overpayments of more than ten dollars ($10);
(2) Amounts paid erroneously if the refund requested exceeds ten dollars ($10).
(c) Filing Request.
(1) Except as otherwise provided in this Chapter, requests for refund shall be filed with the Tax Administrator, on the form prescribed by the Tax Administrator, within three (3) years after the tax was due or paid, whichever is later. The Tax Administrator may require the requestor to file with the request any documentation that substantiates the requestor's claim for a refund.
(2) On filing of the refund request, the Tax Administrator shall determine the amount of refund due and certify such amount to the Finance Director for payment. Except as provided in division (c)(3) of this section, the Tax Administrator shall issue an Assessment to any taxpayer whose request for refund is fully or partially denied. The Assessment shall state the amount of the refund that was denied, the reasons for the denial, and instructions for appealing the Assessment.
(3) If the Tax Administrator denies in whole or in part a refund request included within the taxpayer's originally filed annual income tax return, the Tax Administrator shall notify the taxpayer, in writing, of the amount of the refund that was denied, the reasons for the denial, and instructions for requesting an Assessment that may be appealed under Section 881.21 of this Chapter.
(d) Timely Filing. A request for a refund that is received after the last day for filing specified in division (c) of this section shall be considered to have been filed in a timely manner if any of the following situations exist:
(1) The request is delivered by the postal service, and the earliest postal service postmark on the cover in which the request is enclosed is not later than the last day for filing the request;
(2) The request is delivered by the postal service, the only postmark on the cover in which the request is enclosed was affixed by a private postal meter, the date of that postmark is not later than the last day for filing the request, and the request is received within seven days (7) of such last day;
(3) The request is delivered by the postal service, no postmark date was affixed to the cover in which the request is enclosed or the date of the postmark so affixed is not legible, and the request is received within seven (7) days of the last day for making the request.
(Source: ORC 718.19)
(e) Limitation. A claim for a refund shall be brought within the time limitations provided in this section.
(Source: ORC 719.12(C))
(f) Interest on Refunds. Interest shall be allowed and paid on any overpayment by a taxpayer of any City income tax obligation from the date of the overpayment until the date of the refund of the overpayment, except that if any overpayment is refunded within ninety (90) days after the final filing date of the annual City income tax return or ninety days (90) after the completed return is filed, whichever is later, no interest shall be allowed on the refund. For the purpose of computing the payment of interest on amounts overpaid, no amount of tax for any taxable year shall be considered to have been paid before the date on which the City income tax return on which the tax is reported is due, without regard to any extension of time for filing that return. Interest shall be paid at the interest rate described in Section 881.18
(a)(4) of this Chapter.
(Source: ORC 718.12(D))
(Ord. 15-33. Adopted 07/23/15; Ord. 2018-08. Adopted 02/22/18; Ord. 20-10. Adopted 04/23/20; Ord. 2023-31. Adopted 11/21/23)
(a) Time for Filing. Within sixty (60) days after the final determination of any federal or state tax liability affecting the taxpayer's City income tax liability, that taxpayer shall make and file an amended City return showing income subject to City income tax based upon such final determination of federal or state tax liability. The taxpayer shall pay any additional City income tax shown due thereon or make a claim for refund of any overpayment, unless the tax or overpayment is less than ten dollars ($10).
(Source: ORC 718.12(E))
(b) Amended Return. A taxpayer shall file an amended return with the Tax Administrator in such form as the Tax Administrator requires if any of the facts, figures, computations, or attachments required in the taxpayer's annual return to determine the tax due levied by the City in accordance with this Chapter must be altered as a result of an adjustment to the taxpayer's federal income tax return, whether initiated by the taxpayer or the Internal Revenue Service, and such alteration affects the taxpayer's tax liability under this Chapter. If a taxpayer intends to file an amended consolidated municipal income tax return, or to amend its type of return from a separate return to a consolidated return, based on the taxpayer's consolidated federal income tax return, the taxpayer shall notify the Tax Administrator before filing the amended return.
(c) Underpayment.
(1) In the case of an underpayment, the amended return shall be accompanied by payment of any combined additional tax due together with any penalty and interest thereon. If the combined tax shown to be due is ten dollars ($10) or less, no payment need be made. Except as provided in division (c)(2) of this section, the amended return shall not reopen those facts, figures, computations, or attachments from a previously filed return that are not affected, either directly or indirectly, by the adjustment to the taxpayer's federal or state income tax return unless the applicable statute of limitations for civil actions or prosecutions under Section 881.12 of this Chapter has not expired for a previously filed return.
(2) The additional tax to be paid shall not exceed the amount of tax that would be due if all facts, figures, computations, and attachments were reopened.
(d) Overpayment.
(1) In the case of an overpayment, a request for refund may be filed under this division within the period prescribed by division (a) of this section for filing the amended return even if it is filed beyond the period prescribed in that division if it otherwise conforms to the requirements of that division. If the amount of the refund is ten dollars ($10) or less, no refund need be paid by the City to the taxpayer. Except as set forth in division (d)(2) of this section, a request filed under this division shall claim refund of overpayments resulting from alterations to only those facts, figures, computations or attachments required in the taxpayer's annual income tax return that are affected, either directly or indirectly, by the adjustment to the taxpayer's federal or state income tax return and provided it is also filed within the time prescribed in Section 881.09 of this Chapter. Except as provided in division (d)(2) of this section, the request shall not reopen those facts, figures, computations, or attachments that are not affected, either directly or indirectly, by the adjustment to the taxpayer's federal or state income tax return.
(2) The amount to be refunded shall not exceed the amount of refund that would be due if all facts, figures, computations, and attachments were reopened.
(Source: ORC 718.41)
(Ord. 2020-10. Adopted 04/23/20; Ord. 2023-31. Adopted 11/21/23)
The Tax Administrator shall make electronic versions of any rules or ordinances governing the tax available to the public through the internet including, but not limited to, ordinances or rules governing the rate of tax; payment and withholding of taxes; filing any prescribed returns, reports, or other documents; dates for filing or paying taxes, including estimated taxes; penalties, interest, assessment, and other collection remedies; rights of taxpayers to appeal; procedures for filing appeals; and a summary of taxpayers' rights and responsibilities. The Tax Administrator shall make blanks of any prescribed returns, reports, or documents, and any instructions pertaining thereto, available to the public electronically through the internet. Electronic versions of rules, ordinances, blanks, and instructions shall be made available by posting them on the electronic site established by the State Tax Commissioner under ORC 5703.49 and, if the City or Tax Administrator maintains an electronic site for the posting of such documents that is accessible through the internet, by posting them on that electronic site. If the City or Tax Administrator establishes such an electronic site, the City shall incorporate an electronic link between that site and the site established pursuant to ORC 5703.49 and shall provide to the State Tax Commissioner the uniform resource locator of the site established pursuant to this division.
(Source: ORC 718.07)
(Ord. 2023-31. Adopted 11/21/23)
(a) Civil Actions.
(1) A. Civil actions to recover municipal income taxes and penalties and interest on municipal income taxes shall be brought within the later of:
(i) Three (3) years after the tax was due or the return was filed, whichever is later; or
(ii) One (1) year after the conclusion of the qualifying deferral period, if any.
B. The time limit described in division (a)(1)A. of this section may be extended at any time if both the Tax Administrator and the employer, agent of the employer, other payer or taxpayer consent in writing to the extension. Any extension shall also extend for the same period of time the time limit described in Section 881.09(e) of this Chapter.
(2) As used in this section, "qualifying deferral period" means a period of time beginning and ending as follows:
A. Beginning on the date a person who is aggrieved by an Assessment files with the Board of Tax Review the request described in Section 881.21 of this Chapter. That date shall not be affected by any subsequent decision, finding or holding by any administrative body or court that the Board of Tax Review with which the aggrieved person filed the request did not have jurisdiction to affirm, reverse or modify the Assessment or any part of that Assessment.
B. Ending the later of the sixtieth (60th) day after the date on which the final determination of the Board of Tax Review becomes final or, if any party appeals from the determination of the Board of Tax Review, the sixtieth (60th) day after the date on which the final determination of the Board of Tax Review is either ultimately affirmed in whole or in part or ultimately reversed and no further appeal of either that affirmation, in whole or in part, or that reversal is available or taken.
(Source: ORC 718.12(A))
(b) Criminal Actions. Prosecutions for an offense made punishable under this Chapter shall be commenced within three (3) years after the commission of the offense; provided, however, that in the case of fraud, failure to file a return or the omission of twenty-five percent (25%) or more of income required to be reported, prosecutions may be commenced within six (6) years after the commission of the offense.
(Source: ORC 718.12(B))
(c) Effect of Pending Appeal.
(1) Notwithstanding the fact that an appeal is pending, the petitioner may pay all or a portion of the Assessment that is the subject of the appeal. The acceptance of a payment by the City does not prejudice any claim for refund upon final determination of the appeal.
(2) If, upon final determination of the appeal, an error in the Assessment is corrected by the Tax Administrator, upon an appeal so filed or pursuant to a final determination of the Board of Tax Review, of the Ohio Board of Tax Appeals or any court to which the decision of the Ohio Board of Tax Appeals has been appealed, so that the amount due from the party assessed under the corrected assessment is less than the amount paid, there shall be issued to the appellant or to the appellant's assigns or legal representative a refund in the amount of the overpayment as provided by Section 881.09 of this Chapter, with interest on that amount as provided by 881.09(f).
(Source: ORC 718.12(F))
(d) Limitation on Civil Actions. No civil action to recover municipal income tax or related penalties or interest shall be brought during either of the following time periods:
(1) The period during which a taxpayer has a right to appeal the imposition of that tax or interest or those penalties;
(2) The period during which an appeal related to the imposition of that tax or interest or those penalties is pending.
(Source: ORC 718.12(G))
(Ord. 2020-10. Adopted 04/23/20; Ord. 2023-31. Adopted 11/21/23)
(a) Notice to Taxpayer. At or before the commencement of an audit, the Tax Administrator shall provide to the taxpayer a written description of the roles of the Tax Administrator and of the taxpayer during an audit and a statement of the taxpayer's rights, including any right to obtain a refund of an overpayment of tax. At or before the commencement of an audit, the Tax Administrator shall inform the taxpayer when the audit is considered to have commenced.
(b) Audit. Except in cases involving suspected criminal activity, the Tax Administrator shall conduct an audit of a taxpayer during regular business hours and after providing reasonable notice to the taxpayer. A taxpayer who is unable to comply with a proposed time for an audit on the grounds that the proposed time would cause inconvenience or hardship must offer reasonable alternative dates for the audit.
(c) Authorized Representative of the Taxpayer.
(1) At all stages of an audit by the Tax Administrator, a taxpayer is entitled to be assisted or represented by an attorney, accountant, bookkeeper, or other tax practitioner. The Tax Administrator shall prescribe a form by which a taxpayer may designate such a person to assist or represent the taxpayer in the conduct of any proceedings resulting from actions by the Tax Administrator. If a taxpayer has not submitted such a form, the Tax Administrator may accept other evidence, as the Tax Administrator considers appropriate, that a person is the authorized representative of a taxpayer.
(2) A taxpayer may refuse to answer any questions asked by Tax Administrator or other authorized person conducting an audit until the taxpayer has an opportunity to consult with the taxpayer's attorney, accountant, bookkeeper, or other tax practitioner. This division does not authorize the practice of law by a person who is not an attorney.
(d) Recording of Audit. A taxpayer may record, electronically or otherwise, the audit examination.
(e) Effect of Audit on Taxes Due. The failure of the Tax Administrator to comply with a provision of this section shall neither excuse a taxpayer from payment of any taxes owed by the taxpayer nor cure any procedural defect in a taxpayer's case.
(f) Effect of Audit on Penalties and Interest. If the Tax Administrator fails to substantially comply with the provisions of this section, the Tax Administrator, upon application by the taxpayer, shall excuse the taxpayer from penalties and interest arising from the audit.
(Source: ORC 718.36)
(Ord. 2020-10. Adopted 04/23/20)
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