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(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)
(a) Administrative Powers of the Tax Administrator. Nothing in this Chapter shall limit the authority of the Tax Administrator to perform any of the following duties and functions, unless the performance of such duties or functions is expressly limited by a provision of the Ohio Revised Code, the City Charter, the Xenia City Code, or other City ordinance:
(1) Exercise all powers whatsoever of an inquisitorial nature as provided by this Chapter or other law including, the right to inspect books, accounts, records, memorandums and federal and state income tax returns; to examine persons under oath; to issue orders or subpoenas for the production of books, accounts, papers, records, documents and testimony; to take depositions; to apply to a court for attachment proceedings as for contempt; to approve vouchers for the fees of officers and witnesses; and to administer oaths. The powers referred to in this division shall be exercised by the Tax Administrator only in connection with the performance of the duties respectively assigned to the Tax Administrator under the Charter, this Chapter, or other ordinance or resolution adopted in accordance with this Chapter.
(2) Appoint agents and prescribe their powers and duties.
(3) Confer and meet with officers of other municipal corporations and states and officers of the United States on any matters pertaining to their respective official duties, as provided by this Chapter or other law.
(4) Exercise the authority provided by this Chapter or other law, including orders from bankruptcy courts, relative to remitting or refunding taxes, including penalties and interest thereon, illegally or erroneously imposed or collected or for any other reason overpaid, and, in addition, the Tax Administrator may investigate any claim of overpayment and make a written statement of the Tax Administrator's findings and, if the Tax Administrator finds that there has been an overpayment, approve and issue a refund payable to the taxpayer, the taxpayer's assigns or legal representative as provided in this Chapter.
(5) Exercise the authority provided by this Chapter or other law relative to consenting to the compromise and settlement of tax claims.
(6) Exercise the authority provided by this Chapter or other law relative to the use of alternative apportionment methods by taxpayers in accordance with Section 881.03(e)(1) - (7) of this Chapter.
(7) Make all tax findings, determinations, computations, Assessments and orders the Tax Administrator is by this Chapter or other law authorized and required to make and, pursuant to the time limitations provided by this Chapter or other law, on the Tax Administrator's own motion, review, redetermine or correct any tax findings, determinations, computations, or orders the Tax Administrator has made, but the Tax Administrator shall not review, redetermine or correct any tax finding, determination, computation, or order which the Tax Administrator has made as to which an appeal has been filed with the Board of Tax Review or other appropriate tribunal, unless such appeal or application is withdrawn by the appellant or applicant, is dismissed, or is otherwise final.
(8) Destroy any or all returns or other tax documents in the manner authorized by this Chapter or other law.
(9) Enter into an agreement with a taxpayer to simplify the withholding obligations described in Section 881.04(a) of this Chapter.
(Source: ORC 718.24)
(b) Verification of Accuracy of Returns and Determinations of Liability.
(1) The Tax Administrator, or any authorized agent or employee thereof, may examine the books, papers, records and federal and state income tax returns of any employer, taxpayer or other person that is subject to, or that the Tax Administrator believes is subject to, the provisions of this Chapter for the purpose of verifying the accuracy of any return made or, if no return was filed, to ascertain the tax due under this Chapter. Upon written request by the Tax Administrator, or a duly authorized agent or employee thereof, every employer, taxpayer, or other person subject to this division (b) is required to furnish the opportunity for the Tax Administrator, or any authorized agent or employee, to investigate and examine such books, papers, records and/or federal and state income tax returns at a reasonable time and place designated in the request.
(2) The records and other documents of any taxpayer, employer or other person that is subject to, or that a Tax Administrator believes is subject to, the provisions of this Chapter shall be open to the Tax Administrator's inspection during business hours and shall be preserved for a period of six (6) years following the end of the taxable year to which the records or documents relate, unless the Tax Administrator, in writing, consents to their destruction within that period or by order requires that they be kept longer. The Tax Administrator may require any person, by notice served on that person, to keep such records as the Tax Administrator determines necessary to show whether or not that person is liable and the extent of such liability for the income tax levied by the City or for the withholding of such tax.
(3) The Tax Administrator may examine, under oath, any person that the Tax Administrator reasonably believes has knowledge concerning any income that was or would have been returned for taxation or any transaction tending to affect such income. The Tax Administrator may, for this purpose, compel any such person to attend a hearing or examination and to produce any books, papers, records and/or federal and state income tax returns in such person's possession or control. The person may be assisted or represented by an attorney, accountant, bookkeeper, or other tax practitioner at any such hearing or examination. This division does not authorize the practice of law by a person who is not an attorney.
(4) No person issued written notice by the Tax Administrator compelling attendance at a hearing or examination or the production of books, papers, records and/or federal and state income tax returns under this division (b) shall fail to comply.
(Source: ORC 718.23)
(c) Identifying Information.
(1) Nothing in this Chapter prohibits the Tax Administrator from requiring any person filing a tax document with the Tax Administrator to provide identifying information, which may include the person's social security number, federal employer identification number or other identification number requested by the Tax Administrator. A person required by the Tax Administrator to provide identifying information that has experienced any change with respect to that information shall notify the Tax Administrator of the change before, or upon, filing the next tax document requiring the identifying information.
(2) When transmitting or otherwise making use of a tax document that contains a person's social security number, the Tax Administrator shall take all reasonable measures necessary to ensure that the number is not capable of being viewed by the general public including, when necessary, masking the number so that it is not discernible by the general public. The Tax Administrator shall not put a person's social security number on the outside of any material mailed to the person.
(3) A. If the Tax Administrator makes a request for identifying information and the Tax Administrator does not receive valid identifying information within thirty (30) days of making the request, nothing in this Chapter prohibits the Tax Administrator from imposing a penalty upon the person to whom the request was directed pursuant to Section 881.18 of this Chapter, in addition to any applicable penalty described in Section 881.99 of this Chapter.
B. If a person required by the Tax Administrator to provide identifying information does not notify the Tax Administrator of a change with respect to that information as required under division (c)(1) of this section within thirty (30) days after filing the next tax document requiring such identifying information, nothing in this Chapter prohibits the Tax Administrator from imposing a penalty pursuant to Section 881.18 of this Chapter.
C. The penalties provided for under divisions (c)(2)A. and B. of this section may be billed and imposed in the same manner as the tax or fee with respect to which the identifying information is sought and are in addition to any applicable criminal penalties described in Section 881.99 of this Chapter for a violation of 881.17 of this Chapter and any other penalties that may be imposed by the Tax Administrator under this Chapter or other applicable law.
(Source: ORC 718.26)
(d) Contingency Pay. No person hired or retained by the Tax Administrator to examine or inspect a taxpayer's books shall be paid on a contingency basis.
(Source: ORC 718.31)
(e) Inclusion of Contact Information. All of the Tax Administrator's written correspondence to a taxpayer or other person shall include the name and contact information of an individual designated to receive inquiries regarding the correspondence when any of the following apply:
(1) The City has a population greater than thirty thousand (30,000) according to the most recent decennial census.
(2) The Tax Administrator charged with the administration of the tax is described in either division (tt)B. or (tt)C. of Section 881.02 of this Chapter.
The designated individual may be the Tax Administrator or an employee of the Tax Administrator.
(Source: ORC 718.39)
(Ord. 2020-10. Adopted 04/23/20; Ord. 2023-31. Adopted 11/21/23)
(a) Definition. An "opinion of the Tax Administrator" means an opinion issued under this section with respect to prospective City income tax liability; it does not include ordinary correspondence of the Tax Administrator.
(b) Taxpayer's Request for an Opinion of the Tax Administrator. A taxpayer may submit a written request for an opinion of the Tax Administrator as to whether or how certain income, source of income, or a certain activity or transaction will be taxed, in accordance with the Rules and Regulations. The written response of the Tax Administrator shall be an "opinion of the Tax Administrator" and shall bind the Tax Administrator, in accordance with divisions (c), (g), and (h) of this section, provided all of the following conditions are satisfied:
(1) The taxpayer's request fully and accurately describes the specific facts or circumstance relevant to a determination of the taxability of the income, source of income, activity, or transaction and, if an activity or transaction, all parties involved in the activity or transaction are clearly identified by name, location, or other pertinent facts.
(2) The request relates to a tax imposed by the City in accordance with this Chapter.
(3) The Tax Administrator's response is signed by the Tax Administrator and designated as an "opinion of the Tax Administrator."
(c) Effect of Opinion of the Tax Administrator. An opinion of the Tax Administrator shall remain in effect and shall protect the taxpayer for whom the opinion was prepared and who reasonably relies on it from liability for any taxes, penalty, or interest otherwise chargeable on the activity or transaction specifically held by the Tax Administrator's opinion to be taxable in a particular manner or not to be subject to taxation for any taxable years that may be specified in the opinion, or until the earliest of the following dates:
(1) The effective date of a written revocation by the Tax Administrator sent to the taxpayer by certified mail, return receipt requested. The effective date of the revocation shall be the taxpayer's date of receipt or one (1) year after the issuance of the opinion, whichever is later.
(2) The effective date of any amendment or enactment of a relevant section of the Ohio Revised Code, uncodified state law, or this Chapter that would substantially change the analysis and conclusion of the opinion of the Tax Administrator.
(3) The date on which a court issues an opinion establishing or changing relevant case law with respect to the Ohio Revised Code, uncodified state law, or this Chapter.
(4) If the opinion of the tax administrator was based on the interpretation of federal law, the effective date of any change in the relevant federal statutes or regulations, or the date on which a court issues an opinion establishing or changing relevant case law with respect to federal statutes or regulations.
(5) The effective date of any change in the taxpayer's material facts or circumstances.
(6) The effective date of the expiration of the opinion, if specified in the opinion.
(d) Effect of Taxpayer Misrepresentation on Opinion of the Tax Administrator. A taxpayer is not relieved of tax liability for any activity or transaction related to a request for an opinion that contained any misrepresentation or omission of one or more material facts. If the taxpayer knowingly has misrepresented the pertinent facts or omitted material facts with intent to defraud the City in order to obtain a more favorable opinion, the taxpayer may be in violation of Section 881.17
of this Chapter.
(e) Required Statement. If the Tax Administrator provides written advice under this section, the opinion shall include a statement that:
(1) The tax consequences stated in the opinion may be subject to change for any of the reasons stated in division (c) of this section.
(2) It is the duty of the taxpayer to be aware of such changes.
(f) Right of the Tax Administrator to Refuse to Issue Opinion. The Tax Administrator may refuse to offer an opinion on any request received under this section. Such refusal is not subject to appeal.
(g) Binding Only to Taxpayer Who Requested Opinion.
(1) This section binds the Tax Administrator only with respect to opinions of the Tax Administrator issued on or after January 1, 2016.
(2) An opinion of the Tax Administrator binds the Tax Administrator only with respect to the taxpayer for whom the opinion was prepared and does not bind the Tax Administrator of any other municipal corporation.
(h) Availability of Opinions. The Tax Administrator shall make available the text of all opinions issued under this section, except those opinions prepared for a taxpayer who has requested that the text of the opinion remain confidential. In no event shall the text of an opinion be made available until the Tax Administrator has removed all information that identifies the taxpayer and any other parties involved in the activity or transaction.
(i) No Appeals. An opinion of the Tax Administrator issued under this section is not subject to appeal.
(Source: ORC 718.38)
(Ord. 2020-10. Adopted 04/23/20; Ord. 2023-31. Adopted 11/21/23)
(a) Board of Tax Review.
(1) The Board of Tax Review shall consist of three (3) members.
A. Two (2) members shall be appointed by City Council and may not be employees of, elected officials of or contractors with the City at any time during their term or in the five (5) years immediately preceding the date of appointment.
B. One (1) member shall be appointed by the City Manager. This member may be an employee of the City but may not be the Director of Finance or equivalent officer, or the Tax Administrator or other similar official or an employee directly involved in City tax matters, or any direct subordinate thereof.
(2) The term for members of the Board of Tax Review appointed by City Council shall be two (2) years. There is no limit on the number of terms that a member may serve should the member be reappointed by City Council. The Board member appointed by the City Manager shall serve at the discretion of the City Manager.
(3) Members of the Board of Tax Review appointed by City Council may be removed by City Council by majority vote for malfeasance, misfeasance, or nonfeasance in office. To remove such a member, City Council must give the member a copy of the charges against the member and afford the member an opportunity to be publicly heard in person or by counsel in the member's own defense upon not less than ten days' notice. The decision by City Council on the charges is final and not appealable.
(4) A member of the Board who, for any reason, ceases to meet the qualifications for the position prescribed by this section shall resign immediately by operation of law.
(5) A vacancy in an unexpired term shall be filled in the same manner as the original appointment within sixty (60) days of when the vacancy was created. Any member appointed to fill a vacancy occurring prior to the expiration of the term for which the member's predecessor was appointed shall hold office for the remainder of such term. No vacancy on the Board shall impair the power and authority of the remaining members to exercise all the powers of the Board.
(6) If a member is temporarily unable to serve on the Board due to a conflict of interest, illness, absence or similar reason, City Council or the City Manager, whichever appointed the member shall appoint another individual to temporarily serve on the Board in the member's place. This appointment of such individual shall be subject to the same requirements and limitations as are applicable to the appointment of the member temporarily unable to serve.
(7) No member of the Board of Tax Review shall receive compensation, fee, or reimbursement of expenses for service on the Board.
(b) Notice of Right to Appeal an Assessment. Whenever the Tax Administrator issues an Assessment regarding an underpayment of municipal income tax or denies a refund claim, the Tax Administrator shall notify the taxpayer in writing at the same time of the taxpayer's right to appeal the Assessment or denial, the manner in which the taxpayer may appeal the Assessment or denial, and the address to which the appeal should be directed, and to whom the appeal should be directed.
(c) Appeal. Any person who has been issued an Assessment may appeal the assessment to the Board of Review by filing a request with the Board. The request shall be in writing, shall specify the reason or reasons why the Assessment should be deemed incorrect or unlawful and shall be filed within sixty (60) days after the taxpayer receives the Assessment.
(d) Hearing. The Board of Tax Review shall schedule a hearing to be held within sixty (60) days after receiving an appeal of an Assessment under division (c) of this section unless the taxpayer requests additional time to prepare or waives a hearing. If the taxpayer does not waive the hearing, the taxpayer may appear before the Board and may be represented by an attorney at law, certified public accountant or other representative. The Board may allow a hearing to be continued as jointly agreed to by the parties. In such a case, the hearing must be completed within one hundred twenty (120) days after the first day of the hearing, unless the parties agree otherwise.
(e) Determination by the Board of Review. The Board of Review may affirm, reverse or modify the Tax Administrator's Assessment or any part of that Assessment. The Board shall issue a final determination on the appeal within ninety (90) days after the Board's final hearing on the appeal, and shall send a copy of its final determination, by ordinary mail, to all of the parties to the appeal within fifteen (15) days after issuing the final determination. The taxpayer or the Tax Administrator may appeal the Board's final determination as provided in ORC 5717.011.
(Source: ORC 718.11(A) – (E))
(f) Rules and Regulations of the Board of Review.
(1) The Local Board of Tax Review created pursuant to this section shall adopt rules governing its procedures, including a schedule of related costs, and shall keep a record of its transactions. The rules governing the Local Board of Tax Review procedures shall be in writing and may be amended as needed by the Board.
(2) Records of transactions of the Board are not public records available for inspection under ORC 149.43. For this reason, any documentation, copies of returns or reports, final determinations or working papers for each case must be maintained in a secure location under the control of the Tax Administrator. No member of the Board of Tax Review may remove such documentation, copies of returns or reports, final determinations or working papers from the hearing.
(3) Hearings requested by a taxpayer before the Board of Tax Review created pursuant to this section are not meetings of a public body subject to ORC 121.22. For this reason, such hearings shall not be open to the public, and only those parties to the case may be present during the hearing.
(Statutory reference: ORC 718.11(F))
(Ord. 2020-10. Adopted 04/23/20; Ord. 2023-31. Adopted 11/21/23)
(a) Authority for Adoption. Nothing in this Chapter prohibits the City Council or the Tax Administrator, pursuant to authority granted to the Tax Administrator by resolution or ordinance, to adopt rules to administer the City's income tax in accordance with this Chapter. Such rules shall not conflict with or be inconsistent with any provision of this Chapter. All rules adopted under this section shall be published and posted on the City's website.
(Source: ORC 718.20)
(b) Adoption of RITA Rules and Regulations. The City hereby adopts the Regional Income Tax Agency (RITA) Rules & Regulations, including amendments that may be made from time to time, for use as the City's Income Tax Rules and Regulations. In the event of a conflict with any provision(s) of this Chapter and the Rules & Regulations, the provisions of this Chapter shall supersede. Until and if the contractual relationship between the City and RITA ceases, this division (b) shall supersede division (a) of this section regarding promulgation of rules and regulations by the Tax Administrator.
(c) Duty of Taxpayers. Taxpayers subject to the City's income tax are hereby required to comply not only with the requirements of this Chapter, but also to comply with the Rules and Regulations herein adopted.
(Ord. 15-33. Adopted 07/23/15; Ord. 15-61. Adopted 11/24/15; Ord. 2018-08. Adopted 02/22/18; Ord. 2020-10. Adopted 04/23/20)
(a) Roster of Tenants. All property owners of real property located in the City who rent or otherwise lease the same, or any part thereof, to any person for residential dwelling purposes, including apartments, rooms and other rental accommodations, and every owner of a mobile home park shall file with the Tax Administrator a semi-annual roster of the names and addresses of all persons residing in such rental, leased unit or premises, or mobile home park. Such semi-annual statement shall be filed on or before January 31st and July 31st of each year. In addition, every owner of one or more rental units, leased unit or premises, or mobile home park shall file a statement of any changes in the names or addresses on the last submitted semi-annual roster at the end of each month.
(b) Authority of Tax Administrator. The Tax Administrator may order the appearance before him or her, or his or her duly authorized agent, of any person whom the Tax Administrator believes to have any knowledge of the name, address and telephone number of any tenant of residential rental real property in the City. The Tax Administrator, or his or her duly authorized agent, is authorized to examine any person, under oath, concerning the name, address and telephone number of any tenant of residential real property located in the City. The Tax Administrator, or his or her duly authorized agent, may compel the production of papers and records and the attendance of all persons before him or her, whether as parties or witnesses, whenever he or she believes such person has knowledge of the name, address and telephone number of any tenant of residential real property in the City.
(c) Violations. Any property owner or person that violates one or more of the following shall be subject to Section 881.99 of this Chapter:
(1) Fails, refuses or neglects to timely file a written report required by division (a) hereof; or
(2) Makes an incomplete or intentionally false written report required by division (a) hereof; or
(3) Fails to appear before the Tax Administrator or any duly authorized agent and to produce and disclose any tenant information pursuant to any order or subpoena of the Tax Administrator as authorized in this section; or
(4) Fails to comply with the provisions of this section or any order or subpoena of the Tax Administrator.
(Ord. 2020-10. Adopted 04/23/20)
This Chapter shall not apply to any person, firm or corporation, or to any property as to whom or which it is beyond the power of the City's Council to impose the income tax herein provided for. Any sentence, clause, section or part of this Chapter or any tax against or exception granted any individual or any of the several groups of persons, or forms of income specified herein if found to be unconstitutional, illegal or invalid, such unconstitutionality, illegality or invalidity shall affect only such clause, sentence, section or part of this Chapter and shall not affect or impair any of the remaining provisions, sentences, clauses, sections or other parts of this Chapter. It is hereby declared to be the intention of Council that this chapter would have been adopted had such unconstitutional, illegal or invalid sentence, or part hereof, not been included therein.
(Ord. 2020-10. Adopted 04/23/20)
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