2016 City Tax Ordinance 15-74 Effective January , 2016
2015 and Prior Years
INCOME TAX RULES AND REGULATIONS
Section I of the Ordinance deals only with the purposes for which the tax collected will be used.
As used in these rules and regulations, the following words shall have the meaning ascribed to them in this article, except as and if the context clearly indicates or requires a different meaning.
ASSOCIATION means a partnership, limited partnership or any other form of unincorporated enterprise owned by two or more persons.
BOARD OF REVIEW means the Board created by and constituted as provided in Section XIII of this Ordinance.
BUSINESS means an enterprise, venture, transaction, profession, trade or undertaking of any nature conducted for profit or ordinarily conducted for profit, whether by an individual, co-partnership, association, corporation, or other entity.
CORPORATION means a corporation, joint stock association or joint stock company organized under the laws of the United States, the State of Ohio or any other state, territory or foreign country or dependency.
S CORPORATION means a corporation that has made an election under Subchapter S of Chapter 1 of Subtitle A of the Internal Revenue Code for its’ taxable year.
EMPLOYEE means one who works for wages, salary, director’s fees, commission or other types of compensation in the service of an employer. Any person upon whom an employer is required to withhold for either federal income or social security or on whose account payments are made under the Ohio Workmen's Compensation law shall prima facie be an employee.
EMPLOYER means an individual, partnership, co partnership, limited partnership, association, corporation, governmental body, agency, board, bureau, department, sub-division or unit or any other entity, who or that employs one or more persons on a salary, wage, commission or other compensation basis whether or not such employer is engaged in business.
FISCAL YEAR means an accounting period of twelve (12) months or less ending on any day other than December 31st. Only fiscal years accepted by the Internal Revenue Service for federal income tax purposes may be used for Bellefontaine tax purposes.
GROSS RECEIPTS means total earned income from any source whatsoever.
LIMITED LIABILITY COMPANY means a limited liability company formed under Chapter 1705 of the Ohio Revised Code or under the laws of another state.
NET PROFITS means the net gain from the operation of a business, profession or enterprise after provision for all costs and expenses incurred in the conduct thereof either paid or credited in accordance with the accounting system used and without deduction of taxes imposed by this Ordinance or federal taxes based on income or individual retirement deductions.
NON-RESIDENT means an individual domiciled outside the City of Bellefontaine, Ohio.
NON-RESIDENT UNICORPORATED BUSINESS ENTITY means an unincorporated business entity not having an office or a place of business within the City of Bellefontaine, Ohio.
OWNER means a partner of a partnership, a shareholder of an S Corporation, a member of a Limited Liability Company, or other distributive or proportionate ownership shares of other pass-through entities.
PASS THROUGH ENTITY means a partnership, S Corporation, Limited Liability Company or any other class of entity that the income or profits from which are given pass-through treatment under the Internal Revenue Code.
INCOME FROM A PASS-THROUGH ENTITY means partnership income of partners, distributive shares of shareholders of an S Corporation, membership interests of members of a limited Liability company, or other distributive or proportionate ownership shares of other pass-through entities
PERSON means every natural person, co-partnership, limited partnership, fiduciary, association or corporation or other entity. Whenever used in a clause prescribing and imposing a penalty, the term "person" as applied to any unincorporated entity shall mean the partners or members thereof and as applied to a corporation, the officers thereof', and in the case of any unincorporated entity or corporation not having any partner, member or officer within the City of Bellefontaine, any employee or agent of such unincorporated entity or corporation who can be found within the corporate limits of the City of Bellefontaine, Ohio.
PLACE OF BUSINESS means any bona fide office (other than a mere statuary office), factory, warehouse, or other space that is occupied and used by the taxpayer in carrying on any business activity individually or through one or more of his regular employees regularly in attendance.
RESIDENT means an individual domiciled in the City of Bellefontaine, Ohio, or any person who maintains a usual place of abode within the City of Bellefontaine, Ohio.
RESIDENT UNINCORPORATED BUSINESS ENTITY means an unincorporated business entity having an office or place of business within the City of Bellefontaine, Ohio.
SUPERINTENDENT OF TAXATION AND REVENUES means the Superintendent of Taxation and Revenues in the City of Bellefontaine or the person executing the duties of the aforesaid Superintendent.
TAXABLE INCOME means wages salaries, director’s fees, commissions and all deferred compensation paid by an employer or employers before any deduction and/or the net profits from-the operation of a business, profession or other enterprise or activity adjusted in accordance with the provisions of the Ordinance and these Regulations.
TAXPAYER means an individual, association, corporation, co-partnership, limited partnership or other entity required hereunder to file a return and/or to pay a tax.
In all definitions and these regulations, the singular shall include the plural and the masculine shall include the feminine and the neuter.
IMPOSITION OF TAX
1. Resident Employee:
A request to change the method of allocation must be made in writing before the end of the taxable year.
1. Separate Accounting Method.2. Business Allocation Percentage Method.3. Substitute Method:
LEVY, COLLECTION, AND PAYMENT OF TAX
A. The tax imposed by Section III, paragraphs A-1 and A-2 of the Ordinance shall be levied, collected and paid with respect to gross salaries, wages, bonuses, incentive payments, commissions fees, and other compensation earned during the effective period of the Ordinance.
B. The Tax imposed by Section III, paragraphs A-3, A-4 and A-5 of the Ordinance, with respect to the net profits of trades, businesses, professions, enterprises, undertakings and other activities is on the net profits earned during the effective period of the Ordinance.
C. The Internal Revenue Service is not intended to and shall not pre-empt any municipal and/or City income tax ordinance and/or regulations thereunder.
RETURN AND PAYMENT OF THE TAX
A. Date and Requirement for Filing:
1. On or before April 15th of the year following the effective date of the Ordinance and each year thereafter, every person subject to the provisions of Section III, paragraphs A thru 5c inclusive, of the Ordinance shall, except as hereinafter provided, make and file with the Superintendent of Taxation and Revenues a return on a form prescribed by and obtainable, upon request, from the Superintendent or Taxation and Revenues whether or not a tax be due.
2. If the return is made for a fiscal year or any period less than a year, said return shall be made within four (4) months from the end of such fiscal year or other period.
3. Every person subject to the provisions of Section III of the Ordinance shall, except as hereinafter provided, file a return setting forth the aggregate amount of gross salaries, wages, commissions and other personal service compensation, net profits from business or other activities, including the rental from real and personal property; and other income taxable under the Ordinance, received for the period covered by the return and such other pertinent facts and information in detail as the Superintendent of Taxation and Revenues may require.
4. Where an employee's entire earnings for the tax period are paid by an employer or employers, and the 1 1/3 per cent (1.333%) tax thereon has in each instance been withheld and deducted by the employer or employers from the gross amount of the entire earnings of such employee-taxpayer, and where the employer of such employee has filed a report or return in which such employee's entire and only earnings are reported to the Superintendent. of Taxation and Revenues, and where such employee has no taxable income other than such earnings and the tax so withheld has been paid to the Superintendent of Taxation and Revenues, such employee must still file a return.
5. An employee who is permitted to deduct business expenses from gross wages, salaries or commissions must file a return in order to claim such deductions even though all or part of such wages, salaries or commissions are subject to withholding. A copy of the federal form relating to business travel expenses must also be filed in order to claim such deductions. Schedule A deductions are not allowed.
6. Any taxpayer and/or City resident who received taxable income under the Ordinance must file a return.
7. Any taxpayer having income, wages or other compensation for which a return must be filed, and also having net profits from a business covering the same or different period, is required to file only one return. Said return must, however, be in accordance with the provisions of Section V of the Ordinance.
8. Trustees of active trusts are required to file returns and pay the tax on the taxable income thereof.
9. Except as provided herein, the tax is on the partnership or association as an entity, whether resident or non-resident, and a return is required disclosing the net profits allocable to the City and the tax paid thereon. However, any resident partner or resident member of an unincorporated entity is required to make a return and pay the tax in accordance with Article III of these regulations.
10. A husband and wife may file a joint return in accordance with the provisions of Section V of the Ordinance.
B. Information Required and Reconciliation with Federal Returns:
1. In returns filed hereunder, there shall be set forth the amount of gross salaries, wages, bonuses, incentive payments, commissions, fees and other compensation subject to the tax earned from each employer, taxable net profits and other pertinent information as the Superintendent of Taxation and Revenues may require.
2. Where figures of total income, total deductions and net profit are included, as shown by a federal return, any items of income which are not subject to the City of Bellefontaine tax and unallowable expenses shall be eliminated in determining net income subject to the City of Bellefontaine tax. The fact that any taxpayer is not required to file a federal tax return does not relieve him from filing a City tax return.
3. If a change in federal income tax liability, made by the Federal Internal Revenue Service, or by a judicial decision, results in an additional amount of tax payable to the City, a report of such change shall be filed by the taxpayer within three (3) months after receipt of the final notice from the Federal Internal Revenue Service or, Final Court decision.
4. If a change in Federal income tax liability results in a reduction of taxes owed and paid to the City, a claim for refund shall be filed with the Superintendent of Taxation and Revenues as prescribed in Section XI of the Ordinance.
A request for an extension of filing a Bellefontaine City tax return shall be based on the following rules as determined in the Ohio Revised Code:D. Payment with Return.E. Amended Returns.
COLLECTION OF TAX AT SOURCE
A. Duty of Withholding.
1. Except as otherwise provided herein, it is the duty of each employer within or doing business within the City of Bellefontaine who employs one or more persons whether as an employee, officer, director or otherwise, to deduct each time any compensation is paid the tax of 1 1/3 per cent (1.333%) from:2. All employers within or doing business within Bellefontaine are required to make the collections and deductions specified in this Article, regardless of the fact that the services on account of which any particular deduction is required, as to residents of Bellefontaine, were performed outside the City of Bellefontaine.
3. Employers who do not maintain a permanent office or place of business in the City of Bellefontaine, but who are subject to tax on net profits attributable to Bellefontaine under the method of allocation provided for in the Ordinance, are considered to be employers within Bellefontaine and subject to the requirements of withholding.
4. $150.00 Deminimus Rule5. The mere fact that the tax is not withheld will not relieve the employee of the responsibility of filing a return and paying the tax on the compensation paid. If the employer has withheld the tax and failed to pay the tax withheld to the Superintendent of Taxation and Revenues, the employee is not liable for the tax so withheld.
6. Commissions and fees paid to professional men, brokers and others who are independent contractors, and not employees of the payor, are not subject to withholding or collection of the tax at the source. Such taxpayers must in all instances file a declaration and return and pay the tax pursuant to the provisions of the Ordinance and Article V and VII of those regulations.
7. Where a non-resident receives compensation for personal services rendered or performed partly within Bellefontaine, the employer shall deduct, withhold and remit the tax on that portion of the compensation which is earned within Bellefontaine in accordance with the following rules of apportionment:8. An employer shall withhold the tax on the full amount of any advances made to any employee on account of commissions.
9. An employer required to withhold the tax on compensation paid to an employee shall, in determining the amount on which the tax is to be withheld, ignore any amount allowed and paid to the employee for expenses necessarily and actually incurred by the employee in the actual performance of his services provided such expenses are incurred in earning compensation, including commissions, and are not deducted as a business expense by the employee under Article III of these regulations.
10. An employer whose records show that an employee is a non-resident of Bellefontaine, and has no knowledge to the contrary, shall be relieved of the responsibility of withholding the tax on personal service compensation paid to such employee for services rendered or work done outside Bellefontaine by such employee. Provided, however, that such employer must withhold the tax on all personal service compensation paid such employee after the Superintendent of Taxation and Revenues notifies said employer in writing that such employee is a resident of Bellefontaine. All employees are required to notify the employer of any change of residence and the date thereof.
11. A Bellefontaine employer, required to withhold the tax from a resident of Bellefontaine for work done or services performed in another municipality, and who does so withhold and remit to such other municipality, shall be relieved from the requirements of withholding the Bellefontaine tax from such resident of Bellefontaine except where the rate of tax for such other municipality is less than the, rate of tax imposed by the Bellefontaine income tax Ordinance. In such case, the employer shall withhold and remit the difference to Bellefontaine.
12. No contract or contractor registration shall be approved or accepted by or on behalf of the City of Bellefontaine or shall be legally binding or valid unless such contract or contractor registration contains the following provision: all employers, contractors and/or subcontractors who do work in the City of Bellefontaine shall register with the Department of Taxation before any permit is issued by the Engineering Department. Said employer, contractor and/or subcontractor shall present to the Department of Taxation a list of all employees, subcontractors, and/or contractors or others who will or may do work for them. Any person who violates this section shall be subject to a fine of $25.00 per day for each and every day they remain in violation.
1. The deductions from gross salaries, wages and other compensation required to be made by employers are to begin with the compensations earned on and after the effective date of the Ordinance. The employer (in addition to any return required to be filed with respect to his own earnings or net profits) shall, on or before the last day of the month following each quarterly period, make a return and pay to the Superintendent of Taxation and Revenues the tax withheld or deducted with respect to compensation paid all of his employees subject to the tax under the Ordinance. The first quarterly return and payment required to be made on account of such deductions shall be made, filed and paid no later than April 30, 1972. The return required to be filed under this article shall be made on a form furnished by or obtainable on request from the Superintendent of Taxation and Revenues.2. If more than the amount of tax required to be deducted by the Ordinance is withheld from any employees pay, such excess may be refunded by the employer or the Superintendent of Taxation and Revenues, depending upon the circumstances and the time when the overwithholding is determined as follows:
A. Requirement of Filing:
1. A declaration of estimated tax shall be filed by every taxpayer who may reasonably be expected to have taxable income, the tax on which is not or will not be withheld by an employer or employers. Where required, such declaration shall be filed within four (4) months after the beginning of the taxable year.
2. Computing his declaration of estimated tax for the current year. In the event a taxpayer has not previously been required to file a return, a declaration of estimated tax on anticipated income shall be filed in good faith.
B. Date of Filing:
1. A person or other entity conducting a business not previously subject to the tax, or whose employer does not withhold the tax, shall file declaration within four (4) months after the date he becomes subject to the tax.
2. Those taxpayers having a fiscal year or period differing from the calendar year shall file a declaration within four (4) months after the start of each fiscal year or period.
C. Form for Filing:
1. Such declaration shall be filed upon a form or forms furnished by or obtainable upon request from the Superintendent of Taxation. Provided, however, credit shall he taken for the City of Bellefontaine tax to be withheld from any portion of such income. In accordance with the provisions of Section XVI of the Ordinance, credit may be taken for the tax to be paid or withheld and remitted to another taxing municipality.
2. Generic Forms:3. The original estimate of tax liability or any subsequent amendment thereof may be increased or decreased by filing an amended declaration on or before any quarterly payment date as set forth in Article VII E. Such amendment may be made on the regular declaration form or on the back of any quarterly notice form.
E. Dates of Payments:
1. The estimated tax may he paid in full with the declaration or in equal installments on or before April 15th, June 15th, September 15th and January 15th.
2. The declaration must be accompanied by at least one installment of the estimated tax shown due thereon.
3. In the event an amended declaration has been filed, the unpaid balance shown due thereon shall be paid in equal installments over the remaining payment dates.
F. Tax Returns Required:
1. The filing, of a declaration does not relieve the taxpayer of the necessity of filing a tax, return even though there is no charge in the declared tax liability. A tax return must be filed to obtain a refund of any overpayment of over five dollars ($5.00)
DUTIES OF THE SUPERINTENDENT OF TAXATION AND REVENUES
A. Collection of Tax and Retention of Records:
1. It shall be the duty of the Superintendent of Taxation and Revenues to receive the tax imposed by the ordinance in the manner prescribed herein from the taxpayers; to keep an accurate record thereof, and to report all monies so received.
2. It shall be the duty of the Superintendent of Taxation and Revenues to collect payment of all taxes owing the City of Bellefontaine, to keep accurate records for a minimum of four (4) years showing the amount due from each taxpayer required to file a Declaration and/or make any return, including taxes withheld and to show the dates and amounts of payments thereof.
3. Subject to the approval of the Board of Review, to adopt and promulgate, and to enforce, rules and regulations relating to any matter or thing pertaining to the administration and the enforcement of the provisions of the Ordinance, including provisions for the re-examination and correction of returns and payments.
4. Any taxpayer or employer desiring a special ruling on any matter pertaining to the Ordinance or these rules and regulations, should submit to the Superintendent of Taxation and Revenues in writing all the facts involved and the ruling sought.
5. These regulations, together with all amendments and supplements hereto and all changes herein, will be on file at the office of the Superintendent of Taxation and Revenues and with the Clerk of Council and will be open to public inspection.
B. Enforcement Provisions:
1. The Superintendent of Taxation and Revenues is charged with the administration and enforcement of the provisions of the Ordinance and is subject to the approval of the Board of Review, empowered to adopt., promulgate, and enforce rules and regulations relating to any matter or thing pertaining to the administration and enforcement of the Ordinance. The Superintendent of Taxation and Revenues has the authority to correct or adjust any return submitted, when a correction or adjustment is necessary to accomplish the intent of the ordinance.
2. Any taxpayer or employer desiring a special ruling on any matter pertaining to the ordinance or these rules and regulations, should submit to the Superintendent of Taxation and Revenues in writing all the facts involved and the ruling sought.
3. These regulations, together with all amendments and supplements hereto and all changes herein, will be on file at the office of the Superintendent of Taxation and Revenues and will be open to public inspection.
4. The Superintendent of Taxation and Revenues is authorized to arrange for the payment of unpaid taxes, interest and penalties on a schedule of installment payments, when the taxpayer has proved to the Superintendent of Taxation and Revenues that, due to certain hardship conditions, he is unable to pay the full amount of the tax due. Such authorization shall not be granted until proper returns are filed by the taxpayer for all amounts owed by him under the ordinance and shall not exceed a period in excess of six (6) months. All such installment and/or deferred payments authorized by the Superintendent of Taxation shall bear interest at the rate of 18% per annum or 1½ % per month of the total liability owing with a minimum charge of one dollar ($ 1.00) per month.
5. Failure to make any deferred payment when due, shall cause the total unpaid amount, including penalty and interest, to become payable on demand and the provisions of Section XI and XII of this ordinance shall apply.
6. The Superintendent of Taxation and Revenues is authorized to limit the number of free copies of any and all tax forms distributed by the City Department of Taxation to individuals, accountants and other tax preparers and said Superintendent of Taxation and Revenues is further authorized to charge the City's actual cost of any and all said forms for distribution after the initial free number of forms is distributed.
C. Estimation of Tax by Superintendent of Taxation and Revenues:
1. Whenever the Superintendent of Taxation and Revenues has been unable to secure information from the taxpayer as to his taxable income for any year, he may determine the amount of tax appearing to be due and assess the taxpayer upon the basis of such determination, together with the interest and penalties as prescribed in Section X of the ordinance.
2. Such determination of tax may be adjusted upon submission by the taxpayer of actual records from which his tax may be computed.
D. The Superintendent of Taxation and Revenue Shall have the power to compromise any interest or penalty, or both, imposed by Section X of the ordinance.
EXAMINATION OF BOOKS AND RECORDS, INFORMATION SO OBTAINED CONFIDENTIAL: PENALTY
A. Investigations by Superintendent of Taxation and Revenues:
1. The Superintendent of Taxation and Revenues or his duly authorized agent, is authorized to examine the books, papers, records and federal income tax returns of any employer, taxpayer or person subject to the tax, or whom the Superintendent of Taxation and Revenues believes is subject to the provisions of the Ordinance, for the purpose of verifying the accuracy of any return trade; or, if no return was made, to ascertain the tax due under the Ordinance.
2. An employer or taxpayer shall furnish within ten (10) days following, a written request by the Superintendent of Taxation and Revenues, or his duly authorized agent, the means, facilities and opportunity for making examinations and investigations authorized by the Ordinance.
B. Subpoena of Records and Persons:
1. The Superintendent of Taxation and Revenues, or any person acting in his capacity, is authorized to examine any person, under oath, concerning any income which was, or should have been, returned for taxation. or any transaction tending to affect such income. The Superintendent of Taxation and Revenues may compel the production of books, papers, records and the attendance of all persons before him whether as parties or witnesses whenever he believes such persons have knowledge of the facts concerning any supposed income or supposed transaction of the taxpayer.
2. The Superintendent of Taxation and Revenues may order the appearance before him, or his duly authorized agent, of any party whom he believes to have any knowledge of a taxpayer's income or withholdings, or any information pertaining to the taxpayer under investigation, whether or not the individual so ordered has actual custody of the records of the taxpayer being investigated. The Superintendent of Taxation and Revenues is specifically authorized to order the appearance of the local manager or representative of any taxpayer.
3. Persons required to attend any hearings shall be notified not less than ten (10) days prior to the time of the hearing. The notice shall show the time and place of the hearing and what books, papers or records the witness is to make available at such hearing.
4. The notice shall be served by the Superintendent of Taxation and Revenues, or his duly authorized agent, by delivering it to the person named personally, or by leaving the notice at his usual place of business or residence, or by mailing it to the person by Registered mail, return receipt requested, addressed to his usual place of business or residence.
C. Penalty for Non-Compliance
1. Refusal by any employer, supposed employer, taxpayer, or supposed taxpayer, or the refusal of any such person to appear before the Superintendent of Taxation and Revenues or his duly authorized agent, to submit to such examination and to produce the records requested constitutes a misdemeanor of the first degree punishable by a fine of not more than One Thousand Dollars ($1,000.00) or imprisonment of not more than six (6) months, or both, as prescribed by Section XII of the Ordinance.
D. Confidential Nature of Examinations:
1. Any information gained as a result of any returns, investigations, verifications or hearings before the Superintendent of Taxation and Revenues or the board, required by the Ordinance or authorized by these rules and regulations shall be confidential and no disclosure thereof shall be made except for tax purposes or as ordered by a court of competent jurisdiction. Any person divulging such information shall be guilty of a misdemeanor punishable by a fine of not more than five hundred dollars ($500.00) or imprisonment for not more than six (6) months, or both.
E. Retention of Records:
1. All employers and taxpayers are required to keep such records as will enable the filing of true and accurate returns whether of taxes withheld at the source or of taxes payable upon earnings or net profits or both. Such records shall be preserved for a period of not less than four (4) years from the date the tax return is filed and paid or the withholding taxes are paid.
INTEREST AND PENALTIES
1. All taxes imposed by the Ordinance remaining unpaid after they become due shall bear interest in addition to the amount of the unpaid tax, at the rate of eighteen per cent (18%) per annum.
2. There shall be a four and one half per cent (4.5%) interest charge on any late estimated payments of taxes imposed by the Ordinance.
1. In addition to the interest provided herein, penalties for non-payment of tax monies required to be withheld by employers under the provision of the Ordinance are hereby imposed as follows:
1. All taxpayers who receive taxable income under the Ordinance and/or City residents, are required to file a tax return even though they have no tax liability and shall pay a late filing fee of twenty five dollars ($25.00) if said return is filed between April 16th and July 15th, and fifty dollars ($50.00) if said return is filed July 16th and after.
1. No penalty shall be assessed on any additional tax assessment made by the Superintendent of Taxation and Revenue, when a return has been filed in good faith and the tax paid thereon within the time prescribed herein; and further that neither penalty nor interest shall be assessed on any additional tax assessment resulting from a federal audit, providing an amended return is filed and the additional tax is paid within three (3) months after final determination of the federal tax liability. Upon recommendation of the Superintendent of Taxation and Revenues, the Board of Review may abate penalty or interest or both, or upon an appeal from the refusal of the Superintendent of Taxation and Revenues to recommend abatement of penalty and interest, the Board of Review may nevertheless abate penalty and interest.
COLLECTION OF UNPAID TAXES AND REFUNDS
A. Unpaid Sums - A Civil Debt:
1. All taxes imposed by this Ordinance shall be collectible, together with any interest and penalties thereon, a debt due the City from the taxpayer and are recoverable as are other debts by civil suit. Employers who are required under Section VI of the Ordinance, to withhold and remit the taxes required to he withheld at the source, and who fail to withhold and/or remit, become liable to the City in a civil action to enforce the payment of the debt created by such failure.
2. Except in the case of fraud or omission of a substantial portion of income subject to this tax, an additional assessment shall not be made after three years from the time of payment of any tax due hereunder, provided, however, in those cases in which the Commissioner of Internal Revenue and the taxpayer have executed a waiver of the Federal Statute of Limitations, the period within which an additional assessment may be made by the Superintendent of Taxation and Revenues shall he one (1) year from the time of the final determination of the federal tax liability.
B. Refunds and Overpayments:
1. Taxes erroneously paid shall not be refunded unless a claim for a refund is made within three years from the date on which such payment was made or the return was due, or three months after the final determination of the federal tax liability, whichever is later.
2. No refunds shall be made to any taxpayer until he has complied with all provisions of the Ordinance and has furnished all information required by the Superintendent of 'Taxation and Revenues.
3. Overpayments will either be refunded or credited to the taxpayer's current year's liability. Overpayments will he applied to any previous year's taxes, in the order such taxes became due; or to the taxpayer's current tax liability.
4. Where the total amount due or refund claimed for a tax year is less than five dollars ($5.00) such amount shall not be collected or refunded.
5. Interest to be paid on late refunds will be determined by the following: The Department of Taxation has ninety (90) days from the date the tax return is due before any interest will be paid. In the event of any communication between the taxpayer and The Department of Taxation, it will be ninety (90) days from the date of communication. This communication must be in writing.
6. No refunds will be allowed to out of City residents for vacation days, sick days, personal days, holidays or any other days off that are paid.
VIOLATIONS AND PENALTIES
A. Any person who shall:
1. Fail, neglect or refuse to make any return or declaration required by this Ordinance; or
2. Make any incomplete, false or fraudulent return; or
3. Fail, neglect or refuse to pay the tax, penalties or interest imposed by the Ordinance; or
4. Fail, neglect or refuse to withhold the tax from his employees or remit such withholding to the Superintendent of Taxation and Revenues; or
5. Refuse to permit the Superintendent of Taxation and Revenues or his duly authorized agent or employee to examine his books, records, papers and copies of Federal Income Tax returns relating to the income or net profits of a taxpayer; or
6. Fail to appear before the Superintendent of Taxation and Revenues and to produce his books, records, papers or copies of Federal income tax returns relating to the income or net profits of a taxpayer upon order or subpoena of the Superintendent of Taxation and Revenues; or
7. Refuse to disclose to the Superintendent of Taxation and Revenues any information with respect to the income or net profits of a taxpayer; or
8. Fail to comply with provisions of the Ordinance or any order or subpoena of the Superintendent of Taxation and Revenues authorized hereby; or
9. Give to an employer false information as to his true name, correct address, or fail to promptly notify an employer of any change in resident address and date thereof; or
10. Attempt to do anything whatever to avoid the payment of the whole or any part of the tax, penalties or interest imposed by this Ordinance.
11. Fail to register - Shall be guilty of a misdemeanor and shall be fined not more than one hundred dollars ($100.00) for the first offense and shall be fined not more than five hundred dollars ($500.00) or imprisoned for not more than sixty days, or both, for a second or subsequent offense.
1. Violations are punishable by a fine of not more than One Thousand Dollars ($1,000.00) or imprisonment of not more than six (6) months, or both.
2. Prosecutions hereunder must be commenced in accordance with Chapter 718 of the Ohio Revised Code.
C. Failure to Receive Forms - Not a Defense:
The failure of any employer or person to receive or procure a return, declaration or other required form shall not excuse him from making any information return, declaration or return, from filing such form, or from paying the tax.
BOARD OF REVIEW
A Board of Review, consisting of the City Solicitor, who is the Chairman, and two representative Citizens of the City of Bellefontaine, who is appointed by the Mayor, for a term of 4 years, subject to approval of Council, is hereby created. A majority of the members of the Board shall constitute a quorum. The Board shall adopt its own procedural rules and shall keep a record of its transactions. Any hearing by the Board may be conducted privately and the provisions of Section IX hereof with reference to the confidential character of information required to be disclosed by the Ordnance shall apply to such matters as may be heard before the Board on appeal.
All rules and regulations and amendments or changes thereto, which are adopted by the Superintendent of Taxation and Revenues under the authority conferred by the Ordinance, must be approved by the Board of Review before the same become effective. The Board shall hear and pass on appeals from any ruling or decision of the Superintendent of Taxation and Revenues, and at the request of the taxpayer or Superintendent of Taxation and Revenues, is empowered to substitute alternate methods of allocation.
1. An appeal from a ruling of the Superintendent of Taxation and Revenues by a taxpayer or employer is effected by filing a notice of appeal with the Board within three (3) months after the announcement of the Superintendent's ruling or decision from which the appeal is taken.
2. The Board, by a majority vote, may affirm or reverse, in whole or in part any such ruling or decision of the Superintendent of Taxation and Revenues.
3. Hearings before the Board shall be private unless the taxpayer requests a public hearing.
ALLOCATION OF FUNDS
SEE SECTION XIV OF THE ORDINANCE
EXCLUSIONS FROM TAX
The following items are to be excluded from income subject to tax under this Ordinance:
1. Poor relief, unemployment insurance benefits, old age pensions or similar payments, including disability benefits received from local, state or federal governments, or charitable organizations, religious or educational.
2. Proceeds of insurance, annuities, workmans' compensation insurance, social security benefits, pensions, compensation for damages for personal injuries and like reimbursement, not including damages for loss of profits.
3. Compensation for damages to property by way of insurance or otherwise:
4. Interest and dividends from intangible property.
5. Military pay and allowances received as a member of the armed forces including National Guard and Reserves the United States.
6. Personal earnings of students attending a high school. If a student graduates or leaves high school, a refund shall only be allowed on the portion of wages earned while attending a high school. All wages earned after leaving or graduating from high school shall be fully taxable.
7. Gains from involuntary conversions, cancellations of indebtedness, and income of' a decedent's estate during the period of administration (except such income from the operation of a business).
8. Capital gains as described for federal income tax purposes.
9. Any association or organization falling in the category of charitable, educational, religious, labor unions, trade or professional associations or other type of non-profit organizations which is exempt from the payment of real estate taxes.
10. Parsonage Allowance
11. Intangible income.
12. Compensation paid to any working for the Board of Elections, unless said person has been paid compensation of one thousand dollars (1,000), that person shall be taxed.
ARTICLE XV (1)
DEDUCTION FOR ALIMONY PAID
There shall be a deduction allowed and taxpayers may take a deduction that is paid to a separated or divorced spouse whether by cash payments, insurance policies, endowments or annuity contracts and individuals claiming a deduction must have sufficient records to support said deduction. These records include: (1) a copy of the divorce decree, separate maintenance decree or other written document that specifies the basis for payments: (2) the current name and address of the separated or divorced spouse to whom payments were made; and (3) cancelled checks or receipt, to verify that payments were actually made. If alimony payments were not made directly, the taxpayer must be able to furnish documentation, such as insurance policies, endowment or annuity contracts showing the source of payment.
CREDIT FOR TAX PAID IN ANOTHER MUNICIPALITY
1.Where a resident of Bellefontaine is subject to a municipal income tax in another municipality he shall not pay a total municipal income tax on the same income greater than the tax imposed at the higher rate.
B. Credits to Residents:
Resident individuals of Bellefontaine who are required to pay and do pay, a tax to another municipality on gross salaries, wages, commissions or other compensation for work done or services performed in such other municipality, or on net profits from businesses, professions or other activities conducted in such other municipality, may claim a credit of the amount of tax paid by them or on their behalf to such other municipality but only to the extent of the tax imposed by the Ordinance on such compensation or net profits.
C. Method of Applying for Credit:
1. No credit will be given unless the taxpayer claims such on his tax return, and presents such evidence of the payment of a similar tax to another municipality, as the Superintendent of Taxation and Revenues may require.
2. A statement satisfactory to the Superintendent of Taxation and Revenues from the taxing authority of the municipality to which the taxes are paid that a Bellefontaine resident or his employer is paying the tax shall be considered as fulfilling the requirement of this article.
TO WHOM THIS ORDINANCE SHALL APPLY, NO REGULATION AS THIS SECTION PERTAINS TO THE LEGALITY OF THE ORDINANCE AND NOT TO ITS ADMINISTRATION.
DEPARTMENT OF TAXATION
SEE SECTION XVIII OF THE ORDINANCE
DURATION OR ORDINANCE
A. Authority to Collect after Termination of Ordinance:
1. This Ordinance shall continue to he effective insofar as the levy of taxes is concerned through December 31, 1971, and insofar as the collection of taxes levied in the aforesaid period and actions or proceeding, for collection of any tax so levied or enforcing any provisions of this Ordinance are concerned, and shall continue effective until all of said taxes levied in the aforesaid period are fully paid and any and all suits and transactions for the collection of said taxes or for the punishment of violations of this Ordinance shall have been fully terminated, subject, however, to the provisions of Section XI of the Ordinance hereof with respect to the limitation of time within which an additional assessment shall be made.
2. Provided, however, that annual returns for the year ending December 31, 1971, shall be filed on or before April 30, 1972, and any tax shown due thereon for the year ending December 31, 1971, which is unpaid and collected under the provisions of Section VI and/or Section VII of the Ordinance hereof shall he paid on said date except in those cases in which the time for filing returns and/or payment of the tax due has been extended in accordance with Section V of the Ordinance hereof.
SEE SECTION XX OF THE ORDINANCE
Approved: December 8, 1971
BOARD OF REVIEW: City Solicitor, Chairman
Two Representative Citizens