(a) Definitions. As used in this section:
(1) "Applicable Law" means this Chapter, the resolutions, ordinances, codes, directives, instructions and rules adopted by the City and/or the Tax Administrator, provided such resolutions, ordinances, codes, directives, instructions and rules impose or directly or indirectly address the levy, payment, remittance or filing requirements of the City income tax.
(2) "Federal Short-Term Rate" means the rate of the average market yield on outstanding marketable obligations of the United States with remaining periods to maturity of three (3) years or less, as determined under Section 1274 of the Internal Revenue Code, for July of the current year.
(3) "Income Tax," "Estimated Income Tax," and "Withholding Tax" mean any income tax, estimated income tax and withholding tax imposed by the City pursuant to this Chapter or other applicable law, including at any time before January 1, 2016.
(4) "Interest Rate as described in division (a) of this section" means the federal short-term rate, rounded to the nearest whole number percent, plus five percent (5%). The rate shall apply for the calendar year next following the July of the year in which the federal short-term rate is determined in accordance with division (a)(2) of this section.
(5) "Return" includes any tax return, report, reconciliation, schedule and other document required to be filed with the Tax Administrator or the City by a taxpayer, employer, any agent of the employer or any other payer pursuant to this Chapter or other applicable law, including at any time before January 1, 2016.
(6) "Unpaid Estimated Income Tax" means estimated income tax due but not paid by the date the tax is required to be paid under this Chapter or other applicable law.
(7) "Unpaid Income Tax" means income tax due but not paid by the date the income tax is required to be paid under this Chapter or other applicable law.
(8) "Unpaid Withholding Tax" means withholding tax due but not paid by the date the withholding tax is required to be paid under this Chapter or other applicable law.
(9) "Withholding Tax" includes amounts an employer, any agent of an employer, or any other payer did not withhold in whole or in part from an employee's qualifying wages, but that the employer, employer's agent or other payer is required to withhold from an employee's qualifying wages under this Chapter or other applicable law.
(Source: ORC 718.27)
(b) Application of Section.
(1) This section shall apply to the following:
A. Any City income tax return required to be filed under this Chapter for taxable years beginning on or after January 1, 2016;
B. Income tax, estimated income tax and withholding tax required to be paid or remitted to the City on or after January 1, 2016, for taxable years beginning on or after January 1, 2016.
(2) This section does not apply to City income tax returns required to be filed or payments required to be made before January 1, 2016, regardless of the filing or payment date. Returns required to be filed or payments required to be made before January 1, 2016, but filed or paid after that date shall be subject to Chapter 880. of the Xenia City Code.
(c) Penalties and Interest. The City may impose on a taxpayer, employer, any agent of the employer, and other payer, and will attempt to collect, the interest amounts and penalties prescribed in this division (c) when the taxpayer, employer, any agent of the employer, or any other payer for any reason fails, in whole or in part, to make to the City timely and full payment or remittance of City income tax, estimated income tax or withholding tax or to file timely with the City any return required to be filed.
(1) Interest shall be imposed at the Interest Rate described in division (a) of this section, per annum, on all unpaid income tax, unpaid estimated income tax, and unpaid withholding tax.
(2) A. With respect to unpaid income tax and unpaid estimated income tax, the City may impose a penalty equal to fifteen percent (15%) of the amount not timely paid.
B. With respect to any unpaid withholding tax, the City may impose a penalty not exceeding fifty percent (50%) of the amount not timely paid.
(3) A. For tax years ending on or before December 31, 2022, with respect to returns other than estimated income tax returns, the City may impose a penalty of twenty-five dollars ($25) for each failure to timely file each return, regardless of the liability shown thereon for each month, or any fraction thereof, during which the return remains unfiled regardless of the liability shown thereon. The penalty shall not exceed a total of one hundred fifty dollars ($150) for each failure.
B. For tax years ending on or after January 1, 2023, with respect to returns other than estimated income tax returns, the City may impose a penalty not exceeding twenty-five dollars ($25) for each failure to timely file each return, regardless of the liability shown thereon, except that the City shall abate or refund the penalty assessed on a taxpayer's first failure to timely file a return after the taxpayer files that return.
(d) Limitations.
(1) With respect to the income taxes, estimated income taxes, withholding taxes, and returns, neither the City nor the Tax Administrator shall impose, seek to collect, or collect any penalty, amount of interest, charges, or additional fees not described in this Chapter.
(2) With respect to the income taxes, estimated income taxes, withholding taxes, and returns not described in division (a) of this section, nothing in this section requires the City to refund or credit any penalty, amount of interest, charges, or additional fees the City has properly imposed or collected before January 1, 2016.
(e) Authority of the Tax Administrator. Nothing in this section limits the authority of the City to abate or partially abate penalties or interest imposed under this section when the Tax Administrator determines, in the Tax Administrator's sole discretion, that such abatement is appropriate.
(f) Publication of Interest Rate. By the thirty-first (31st) day of October of each year, the City shall publish the Interest Rate described in division (a) of this section applicable to the next succeeding calendar year.
(g) Collection of Post-Judgment Collection Costs and Fees. The City may impose on the taxpayer, employer, any agent of the employer, or any other payer the City's post-judgment collection costs and fees, including attorney's fees.
(Source: 718.27)
(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)