City of Bellefontaine Tax Ordinance 15-74
Effective January 2016
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INCOME TAX RULES AND REGULATIONS - 2015 AND PRIOR YEARS
ARTICLE I
Section I of the Ordinance deals only with the purposes for which the tax collected will be used.
ARTICLE II
DEFINITIONS
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.
ARTICLE III
IMPOSITION OF TAX
A. Base
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:
a. The net profits allocable to Bellefontaine from business, professional or other activities conducted in Bellefontaine by corporations or unincorporated entities (whether resident or non-resident) may be determined from the records of the taxpayer if taxpayer has bona fide records which disclose with reasonable accuracy what portion of his net profits is attributable to that part of his activities conducted within Bellefontaine.
b. If the books and records of the taxpayer are used as the basis for apportioning net profits rather than the business allocation formula, a statement must accompany the return explaining the manner in which such apportionment is made in sufficient detail to enable the Superintendent of Taxation and Revenues to determine whether the net profits attributable to Bellefontaine are apportioned with reasonable accuracy.
c. In determining the income allocable to Bellefontaine from the books and records of a taxpayer an adjustment may be made for the contributions made to the production of such income by headquarters activities of the taxpayer, whether such headquarters is within or without Bellefontaine.
a. PROPERTY: Ascertain the percentage which the average net book value of real and tangible personal property, including leasehold improvements, owned or used in the business and situated within Bellefontaine is of the average net book value of all real and tangible personal property, including leasehold improvements, owned or used in the business wherever situated, during the period covered by the return.b. PAYROLL: Ascertain the percentage which the total wages, salaries, commissions and other compensation of employees within Bellefontaine is of the total wages, salaries, commission and other compensation of all the taxpayer's employees within and without Bellefontaine during the period covered by the return.c. SALES: Ascertain the percentage which the gross receipts of the taxpayer derived from sales made and services rendered in Bellefontaine is of the total gross receipts wherever derived during the period covered by the return.d. Adding together the percentages determined in accordance with sub paragraphs a, h, c, or such of the aforesaid percentages as shall be applicable to the particular taxpayers business and dividing the total so obtained by the number of percentages used in deriving said total.
a. In the event a just and equitable result cannot be obtained under the formula or separate accounting method provided for, the Board of Review, upon application of the taxpayer or the Superintendent of Taxation and Revenues, shall have the authority to substitute factors or methods calculated to effect a fair and proper allocation.
b. Application to substitute other factors in the formula or to use a different method to allocate net profits must be made in writing before the end of the taxable year and shall state the specific grounds on which the substitution of factors or use of a different method is requested and the relief sought to be obtained. A copy thereof shall be served at the time of filing upon the taxpayer or Superintendent of Taxation and Revenues as the case may lie. No specific form will be followed in making such application. Once a taxpayer has filed under a substitute method, he must continue to so file until given permission to change by the Board or Review.
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.
ARTICLE V
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.
C. Extensions:
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:
ARTICLE VII
DECLARATIONS
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)
ARTICLE VIII
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.
ARTICLE IX
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.
ARTICLE X
INTEREST AND PENALTIES
A. Interest:
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.
B. Penalties:
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.
D. Exceptions:
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.
ARTICLE XI
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.
ARTICLE XII
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.
B. Prosecution:
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.
ARTICLE XIII
BOARD OF REVIEW
A. Composition:
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.
B. Duties:
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.
C. Appeals:
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.
ARTICLE XIV
ALLOCATION OF FUNDS
SEE SECTION XIV OF THE ORDINANCE
ARTICLE XV
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.
ARTICLE XVI
CREDIT FOR TAX PAID IN ANOTHER MUNICIPALITY
A. Limitation:
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.
ARTICLE XVII
TO WHOM THIS ORDINANCE SHALL APPLY, NO REGULATION AS THIS SECTION PERTAINS TO THE LEGALITY OF THE ORDINANCE AND NOT TO ITS ADMINISTRATION.
ARTICLE XVIII
DEPARTMENT OF TAXATION
SEE SECTION XVIII OF THE ORDINANCE
ARTICLE XIX
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.
ARTICLE XX
SEE SECTION XX OF THE ORDINANCE
Approved: December 8, 1971
BOARD OF REVIEW: City Solicitor, Chairman
De Graham
Two Representative Citizens
Tax Administrator
Section I of the Ordinance deals only with the purposes for which the tax collected will be used.
ARTICLE II
DEFINITIONS
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.
ARTICLE III
IMPOSITION OF TAX
A. Base
1. Resident Employee:
a. In the case of residents of the City of Bellefontaine an annual tax of (1.333%) is imposed on all salaries, wages, director’s fees, commissions and other compensation earned on and after, January 1, 1972. For the purpose of determining the tax on the earnings of resident taxpayers, taxed under this subsection 1 of Section III of the Ordinance, the source of the earnings and the place or places in or at which the services were rendered are immaterial. All such earnings wherever earned or paid are taxable.
b. The following are items which are subject to the tax:c. Where compensation is paid or received in property, its fair market value at the time of receipt, shall he subject to the tax and to withholding. Board, lodging and similar items received by an employee in lieu of additional cash compensation shall he included in earnings at their fair market value.
1. Salaries, bonuses or incentive payments earned by an individual whether directly or through an agent and whether in cash or in property, for services rendered on and after January 1, 1972.3. Fees, unless fees are properly includible as part of the net profits or a trade, business, profession or enterprise regularly carried on by an unincorporated entity owned or partly owned by said individual and such net profits are subject to the tax under Section 111, paragraph A:3 of the Ordinance.
4. Other Compensation, including tips, bonuses or gifts of any type, and including compensation paid to domestic servants, casual employees and other type of employees.
5. Payments made by an employer or by any third party on behalf of an employer, such as an insurance company, to an employee (during periods of absence from work are taxable when paid and that the tax rate in effect at the time of payment, regardless of the fact that such payments may he labeled as sick leave or sick pay, vacation pay, terminal pay, supplemental unemployment, etc.
6. Accrued benefits made to employees by an employer and paid by the employer to the employee upon retirement or termination of employment, such as: accrued sick pay, accrued vacation pay, accrued annual leave, longevity pay, etc. are taxable.
7. Director's fees, executor's fees, and guardian's fee.
8. Alimony received, whether it be by cash payments, insurance policies, endowments or annuity contracts.
.01 As an officer, director or employee of a corporation (including charitable and other non-profit corporations) joint stock association or joint stock company.
.02 As an employee (as distinguished from a partner or member) of a partnership, limited partnership, or any other form of unincorporated enterprise owned by one or more persons.
.03 As an employee (as distinguished from the proprietor) of a business trade or profession conducted by an individual owner.
.04 As an officer or employee (whether elected, appointed or commissioned) of a governmental administration, agency, arm, authority, board, body, branch, bureau, department, division, sub-division, section or unit of the United States Government or any of its agencies; or of the State of Ohio or any of its political sub-divisions or agencies thereof; or any foreign country or dependency except as provided in Section III of the Ordinance.
.05 All employees of any other entity or person, whether based upon hourly, daily, weekly, semi-monthly, monthly, annual, unit of production or piece work rates; and whether paid by an individual partnership, co-partnership, association, corporation (including charitable and other non-profit corporations), governmental administration, agency, authority, board, body, branch, bureau, department, division, sub-division, section or unit or any other entity.
.06 Accrued benefits made to employees by an employer and paid by the employer to the employee upon retirement or termination of employment such as: accrued sick pay, accrued vacation pay, accrued annual leave, longevity pay, severance pay, etc. are taxable.
2. Commissions earned by a taxpayer, whether directly or through an agent and whether in cash or in property for services rendered during the effective period of the Ordinance regardless of how computed or by whom or wheresoever paid.
.01 if amounts received as a drawing account exceed the commissions earned and the excess is not subject to the demand of the employer for repayment, the tax is payable on the amounts received as a drawing account.
.02 Amount, received from an employer for expenses and used us such by the individual receiving them are not deemed to be compensation if the employer deducts such expenses or advances as such from his gross income for the purpose of determining his net profits taxable under federal law, and the employee is not required to include such receipts as income on his federal income tax return.
.03 If such commissions are included in the net, earnings of the trade, business, profession, enterprise or activity carried on by an unincorporated entity of which the individual receiving such commission is owner or part owner and therefore subject to the tax under paragraphs A-l, A-4 of Section III of the Ordinance, they shall not be taxed under Section III paragraph A-1.
2. Non-Resident Employee:3. Imposition of Tax on Net Profits or Resident Unincorporated Businesses:4. Imposition of Tax on Net Profits of Non-Resident Unincorporated Businesses:5. Imposition of Tax on Net Profits of Corporations.6. Amplification:
In amplification of the definition contained in Article II of these regulations but not in limitation thereof, the following additional information respecting net business profits is furnished.7. Rentals from Real Property.8. Patents and Copyrights.- a. In the case of individuals who are not residents of the City of Bellefontaine, there is imposed under Section III, paragraph .A-2 of the Ordinance. an annual tax of 1 1/3 per cent (1.333%) on all salaries, wages, directors fees, commissions and other compensation earned during the effective period of the Ordinance for work done or services performed or rendered within the City of Bellefontaine, whether such compensation or remunerations is received or earned directly or through an agent and whether paid in cash or in property. The location of the place from which payment is made is immaterial.
b. The items subject to tax under Section 111, paragraph A-2 of the Ordinance are the same as those listed and defined in Article III. For the methods of computing the extent of such work or services performed within the City of Bellefontaine, in cases involving compensation for personal services partly within and partly without the City of Bellefontaine, see Article VI.
a1. In the case of resident unincorporated businesses, professions, enterprises, undertakings or other entities conducted, operated, engaged in, prosecuted or carried on, irrespective of whether such taxpayer has an office or
place of business in the City of Bellefontaine, there is imposed an annual tax of 1 1/3 per cent (1.333%) on the net profits earned, accrued or received during the effective period of the Ordinance attributable to the City of Bellefontaine, under the formula or separate accounting method provided for in Section III of the Ordinance, derived from sales made, work done or services performed or rendered and business or other activities conducted in the City of Bellefontaine.
a2. The tax imposed on resident associations or other unincorporated entities owned by two or more persons is upon the entities rather than the individual members or owners thereof but the tax imposed on an unincorporated resident entity owned by one person is upon the individual owner.
a3. The tax imposed by Section III, paragraph A-3a of the Ordinance is imposed on all resident unincorporated entities having net profits attributable to the City of Bellefontaine under the method of allocation provided for in the Ordinance, regardless of where the owner or owners of such resident unincorporated business entity reside.
a4. Resident unincorporated entities owned by two or more persons all of whom are residents of Bellefontaine shall disregard the method of allocation provided for in the Ordinance and pay the tax on their entire net profits thereof. In such case, the tax paid by the entity shall constitute all tax due from the owners or members of the entity for their distributive share of such net profits; however, an additional return shall be required from any such member or owner having taxable income other than the distributive share of the net profits from the entity.
b. Imposition of Tax on Resident's Distributive Share of Profits of a Resident Unincorporated Business Entity, Not Attributable to Bellefontaine.
1. A resident individual who is sole owner of a resident unincorporated entity shall disregard the business allocation formula and pay the tax on the entire net profits of his resident unincorporated business entity.
2. In the case of a resident individual partner or part owner of a resident unincorporated business entity there is imposed an annual tax of 1 1/3 per cent (1.333%) on such individual's share of net profits earned, accrued or received during the effective period of the Ordinance not attributable to Bellefontaine, under the method of allocation provided for in Section III of the Ordinance, and not taxed against the entity.
a 1. In the case of non-resident unincorporated businesses, professions, enterprises, undertakings or other activities conducted, operated, engaged in, prosecuted or carried on, there is imposed an annual tax of 1 1/3 per cent (1.333%) on the net profits earned, accrued or received during the effective period of the Ordinance attributable to Bellefontaine, under the formula or separate accounting method provided for in the Ordinance.
a 2. The tax imposed on non-resident unincorporated entities owned by two or more persons is upon the entities rather than the individual members or owners thereof.
a 3. Non-resident unincorporated entities owned by two or more persons all of whom are residents of Bellefontaine may elect to disregard the method of allocation provided for in the Ordinance and pay the tax on the entire net profits. In such case, the tax paid by the entity shall constitute all tax due from the owners, or members of the entity for their distributive share of the net profits, however, a return shall be required from such owner or member having taxable income other than the distributive share of the net profit from the entity.
b. Imposition of Tax on Resident's Share Profits of a Non-Residents Unincorporated Business Entity Not Attributable to Bellefontaine.
1. A resident individual who is sole owner of a non-resident unincorporated business entity shall disregard the business allocation formula and pay the tax on the entire net profits of his unincorporated entity.
2. In the case of a resident individual partner or part owner of a nonresident unincorporated entity, there is imposed an annual tax of 1 1/3 per cent (1.333%) on such individual's distributive share of net profits earned, accrued or received during the effective period of the Ordinance not attributable to the City under the method of allocation provided for in Section III of the Ordinance and not taxed against the entity.
b. In determining whether a corporation is conducting a business or other activity in Bellefontaine, the provisions of Article III, Allocation of Business Profits, of these regulations shall be applicable.
c. Corporations which are required by the provisions of Section 5727.38 to 5727.41 inclusive, of the Revised Code of Ohio, to pay an excise tax in any taxable year as defined by the Ordinance, may exclude that part of their gross receipts upon which the excise tax is paid. In such cases, expenses incurred in the production of such gross receipts shall not be deducted in computing net profits subject to the tax imposed by the Ordinance.
d. All Subchapter S Corporations will be given the option of paying the tax by and from the corporation or in the alternative, if the net profits of said paid corporation are passed on to the shareholders of said Subchaper S Corporation, the shareholders shall pay the tax on their respective share of distribution and the corporation shall file an information only tax return.
a. NET PROFITSb. GROSS RECEIPTSc. Expenses
1. Net Profits as used in the Ordinance and these regulations means net profits derived from any business, profession or other activity or undertaking carried on for profit or normally carried on for profit.
2. Net Profits as disclosed on any return filed pursuant to the provisions of the Ordinance shall be computed by the same accounting method used in reporting net income to the Federal Internal Revenue Service (providing such method does not conflict with any provisions of the Ordinance). Net profits, shown on returns filed pursuant to the Ordinance must be reconciled with the income reported to the Federal Internal Revenue Service.
1. Gross Receipts shall include but not be limited to income in the form of commissions, fees, rentals from real and tangible personal property, and other compensation for work or services performed or rendered as well as income from sales of stock in trade.
2. From gross receipts there shall be deducted allowable expenses to arrive at the net profit subject to tax.
1. All ordinary and necessary expenses of doing business, including reasonable compensation paid employees, shall be allowed but no deduction may be claimed for salary or withdrawal of a proprietor or of partners, members or other owners of an unincorporated business or enterprise.
.01 If not claimed as part of the cost of goods sold or elsewhere in the return filed, there may be claimed and allowed a reasonable deduction for depreciation, depletion, obsolescense, losses resulting from theft or casualty, not compensated for by insurance or otherwise of property used in the trade or business, but the amount may not exceed that recognized for the purpose of the federal income tax. Provided, however, that loss on the sale, exchange or other disposition or depreciable property or real estate, used in the taxpayer's business shall not be allowed as a deductible expense.
.02 Current amortization of emergency facilities under the provisions of the Internal Revenue Code, if recognized as such for federal income tax purposes, may be included as an expense deduction hereunder.
.03 Where depreciable property is voluntarily destroyed, only the cost of such demolition and the undepreciated balance thereof will be allowed as an expense in the year of such demolition, to the extent allowable for federal income tax purposes.
.04 Bad debts in a reasonable amount may be allowed in the year ascertained worthless and charged off, or at the discretion of the Superintendent of Taxation and Revenues (if the reserve method is used), a reasonable addition to the reserve may be claimed, but in no event shall the amount exceed the amount allowable for federal income tax purposes.
.05 Only taxes directly connected with the business may be claimed as a deduction. If for any reason the income from property is not subject to the tax, then taxes on and other expenses of said property are not deductible. In any event, the following taxes are not deductible from income: (1) the tax under the Ordinance; (2) federal or other taxes based on income; (3) gift, estate or inheritance taxes; and (4) taxes for local benefits or improvements to property which tend to appreciate the value thereof.
.06 Capital gains and losses from sale, exchange or other disposition of property shall not be taken into consideration in arriving at net profits earned.
.07 In general, non-taxable income and expenses incurred in connection therewith are not to be considered in determining net profits. Income from intangibles, by way of dividends, interest and the like, shall not be included if such income is subject to taxation under the intangible personal property laws of the State of Ohio or is specifically exempt from taxation under said law.
.08 If the taxpayer reports income that is non-taxable under the Ordinance and such amounts are deducted in order to reconcile the city return with the taxpayer's federal return, expenses attributable to this non-taxable income shall not be allowed as a deduction from the remaining taxable income. In the absence of records showing the actual expenses attributable to such non-taxable income, the minimum shall be deemed to be the greater of either (1) all interest expenses up to an amount equal to the amount of the non-taxable income, but limited to 50% of interest expenses, or (2) 5%( of the non-taxable income. (Note: Non-taxable income given capital gain treatment on the federal return, from which attributable expenses were already deducted, is not subject to the foregoing.)
EXAMPLE: Corporation X has taxable income per their federal tax return of $1,600,000. They have interest, dividends and royalties which are non-taxable to the City totaling $3,700,000. They have non-deductible items of $990,000 and interest expense on their federal return of $4,900,000.
Calculation of tax without item .08 above- Taxable income per federal return
$1,600,000
Minus non-taxable items
($3,700,000)
Plus non-deductible items
$990,000
Adjusted income
($1,110,000)
Tax Due
NONE - Calculation of tax with item .08 above:
Taxable income per federal return
$1,600,000
Minus non-taxable items
($3,700,000)
Plus non-deductible items
(50% of 4,900,000 = $2,450,000)
($2,450,000 + $990,000 = $3,440,000)
$3,440,000
Adjusted income
$1,340,000
8.2% allocable to Bellefontaine
$109,880
Tax Due
$1,465
.09 Payments made to individual retirement plans are not allowable as business expense deductions.
.10 Expenses incurred while attending education courses may not be deducted from wages.
.11 Contributions are deductible by corporations only in an amount not exceeding five percent (5%) of the income subject to the tax imposed by this Ordinance. Contributions in excess of the five percent (5%) limit may not be carried forward or backward to a different taxable year.
.12 Self employment tax is not an allowable deduction.
.13 Home office expense is only allowed if all work is done in the home. For work performed in the City, no expenses are allowed.
.14 Alimony received may be offset against rental or business income. It may not be offset against W-2 income.
- Taxable income per federal return
b. Rentals received by a taxpayer engaged in the business of buying and selling real estate shall be considered as part of business income.
c. Real property, as the term is used in this regulation, shall include commercial property, residential property, farm property, and any and all other types of real estate.
d. In determining the taxable income from rentals, the deductible expenses shall be of the same nature, extent and amount as are allowed by the Internal Revenue Service for federal income tax purposes.
e. Residents of Bellefontaine are subject to taxation upon the net income from rentals (to the extent above specified), regardless of the location of the real property owned.
f. Non-Residents of Bellefontaine are subject to such taxation only if real property is situated within the City of Bellefontaine.
g. Corporations owning or managing real estate are taxable only on that portion of income derived from property located in the City of Bellefontaine.
h. However, all provisions herein regarding rentals from real property shall be subject to the provision that any excess losses by any taxpayer resulting from the rental, ownership, management or operation of the real estate from which such rentals are derived, shall not be able to be offset against any income of said taxpayer that is subject to withholding under the terms and regulations of the Bellefontaine Municipal Income Tax Ordinance.
i. On or before October 1, 1991, and on or before the 1st day of October of each year thereafter, all landlords who rent property in the City of Bellefontaine, Ohio, must submit an up-to-date list of all their tenants to the Bellefontaine Superintendent of Taxation. Any person who violates this section shall be subject to a fine of $25.00 for each and every day they remain in violation and will be subject to all other methods of collection procedures.
a. Income from patents or copyrights is not to be included in net profits subject to the tax if the income from such patents or copyrights is subject to the state intangible tax. Conversely, such a state intangible tax is not deductible in determining city tax. Such items shall be clearly disclosed on an attachment to be filed with the city tax return.
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:
a. The net profits allocable to Bellefontaine from business, professional or other activities conducted in Bellefontaine by corporations or unincorporated entities (whether resident or non-resident) may be determined from the records of the taxpayer if taxpayer has bona fide records which disclose with reasonable accuracy what portion of his net profits is attributable to that part of his activities conducted within Bellefontaine.
b. If the books and records of the taxpayer are used as the basis for apportioning net profits rather than the business allocation formula, a statement must accompany the return explaining the manner in which such apportionment is made in sufficient detail to enable the Superintendent of Taxation and Revenues to determine whether the net profits attributable to Bellefontaine are apportioned with reasonable accuracy.
c. In determining the income allocable to Bellefontaine from the books and records of a taxpayer an adjustment may be made for the contributions made to the production of such income by headquarters activities of the taxpayer, whether such headquarters is within or without Bellefontaine.
a. PROPERTY: Ascertain the percentage which the average net book value of real and tangible personal property, including leasehold improvements, owned or used in the business and situated within Bellefontaine is of the average net book value of all real and tangible personal property, including leasehold improvements, owned or used in the business wherever situated, during the period covered by the return.b. PAYROLL: Ascertain the percentage which the total wages, salaries, commissions and other compensation of employees within Bellefontaine is of the total wages, salaries, commission and other compensation of all the taxpayer's employees within and without Bellefontaine during the period covered by the return.c. SALES: Ascertain the percentage which the gross receipts of the taxpayer derived from sales made and services rendered in Bellefontaine is of the total gross receipts wherever derived during the period covered by the return.d. Adding together the percentages determined in accordance with sub paragraphs a, h, c, or such of the aforesaid percentages as shall be applicable to the particular taxpayers business and dividing the total so obtained by the number of percentages used in deriving said total.
a. In the event a just and equitable result cannot be obtained under the formula or separate accounting method provided for, the Board of Review, upon application of the taxpayer or the Superintendent of Taxation and Revenues, shall have the authority to substitute factors or methods calculated to effect a fair and proper allocation.
b. Application to substitute other factors in the formula or to use a different method to allocate net profits must be made in writing before the end of the taxable year and shall state the specific grounds on which the substitution of factors or use of a different method is requested and the relief sought to be obtained. A copy thereof shall be served at the time of filing upon the taxpayer or Superintendent of Taxation and Revenues as the case may lie. No specific form will be followed in making such application. Once a taxpayer has filed under a substitute method, he must continue to so file until given permission to change by the Board or Review.
- 1. The percentage of taxpayer's real and tangible personal property within Bellefontaine is determined by dividing the average net book value of such property within Bellefontaine (without deduction of any incumbrances) by the average net book value of all such property within and without Bellefontaine. In determining such percentage, property rented to the taxpayer as well as real and tangible personal property owned by taxpayer must be considered.
01. The net book value of real and tangible personal property rented by taxpayer shall be determined by multiplying gross annual rents payable by eight(8).
02. Gross rents means the actual sum of money or other consideration payable, directly or indirectly, by the taxpayer for the use or possession of property and includes:
1. Salaries and reasonable compensation paid owners or credited to the account of owners or partners during the period covered by the return are considered wages for the purpose of this computation.
2. Wages, salaries, and other compensation shall be computed on the cash or accrual basis in accordance with the method of accounting used in the computation of the entire net income of the taxpayer.
3. In the case of an employee who performs services both within and without Bellefontaine, the amount treated as compensation for services performed within the city shall be deemed to be:
.01 In the case of an employee whose compensation depends directly on the volume of business secured by him, such as a salesman on a commission basis, the amount received by him for the business attributable to his efforts within Bellefontaine.
.02 In the case of an employee whose compensation depends on other results achieved, the proportion of the total compensation received which the value of his services within Bellefontaine bears to the value of all his services; and
.03 In the case of an employee compensated on a time basis, the proportion of the total amount received by him which his working time within Bellefontaine is of his total working time.
1. The following shall be considered Bellefontaine sales:
.01 All sales made through retail stores located within Bellefontaine to purchasers within or without Bellefontaine except such of said sales to purchasers outside Bellefontaine that are directly attributable to regular solicitations made outside Bellefontaine personally by taxpayer's employees.
.02 All sales of tangible personal property delivered to purchasers within Bellefontaine if shipped or delivered from an office, store, warehouse, factory, or place of storage located within Bellefontaine.
.03 All sales of tangible personal property delivered to purchasers within Bellefontaine even though transported from a point outside Bellefontaine if the taxpayer is regularly engaged through its own employees in the solicitation or promotion of sales within Bellefontaine and the sale is directly or indirectly the result of such solicitation.
.04 All sales of tangible personal property shipped from an office, store, warehouse, factory or place of storage within Bellefontaine to purchasers outside Bellefontaine if the taxpayer is not, through its own employees regularly engaged in the solicitation or promotion of sales at the place of delivery.
.05 Charges for work done or services performed incident to a sale, whether or not included in the price of the property shall be considered gross receipts from such sale.
.06 In the application of the foregoing subparagraphs a carrier shall be considered the agent of the seller, regardless of the F.O.B. point or other conditions of the sale; and the place at which orders are accepted or contracts legally consummated shall be immaterial. Solicitation of customers outside Bellefontaine by mail or phone from an office, or place of business within Bellefontaine shall not be considered a solicitation of sales outside Bellefontaine.- .001 Any amount payable for the use or possession of real and tangible personal property or any part thereof, whether designated as a fixed sum of money or as a percentage of sales profits or otherwise:
.002 Any amount payable as additional rent or lieu of rent such as interest, taxes, insurance, repairs, or other amounts required to be paid by the terms of a lease or other arrangement.
- .001 Any amount payable for the use or possession of real and tangible personal property or any part thereof, whether designated as a fixed sum of money or as a percentage of sales profits or otherwise:
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.
ARTICLE V
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.
C. Extensions:
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.
1. A copy of the federal extension must be received in the office or postmarked no later than April 15th of any tax year requested. If this is not received in this timely manner, the extension MAY be honored but all interest and penalties will apply. There will be no exceptions to this rule of interest and penalties.
2. If the taxpayer owes any tax from previous years, the extension will not be approved.
3. If the taxpayer has not filed any and all previous years, the extension will not be approved.
4. Any additional extensions, after the original has been approved, must be received in the office or postmarked, by the date the original extension was approved, for example; The original extension was approved for August 15th, so the additional extension must be filed by August 15th.
5. Any extension will only be approved for the date of the federal extension. Any additional time will not be accepted.
1. The taxpayer making a return shall, at the time of the filing thereof, pay to the Superintendent of Taxation and Revenues the amount of taxes shown as due thereon; provided, however, that where any portion of the tax so due shall have been deducted at the source pursuant to the provisions of Section VI of the Ordinance, or where any portion of said tax shall have been paid by the taxpayer pursuant to the provisions of Section VII of the Ordinance, or where an income tax has been paid to anther municipality, credit for the amount so paid in accordance with Section XVI hereof, shall be deducted from the amount shown to be due and only the balance, if any, shall be due and payable at the time of filing said return.
2. A taxpayer who has overpaid the amount of tax to which the City is entitled under the provisions of the Ordinance may have such overpayment applied against any subsequent liability, or at his election indicated on the return, such overpayment (or part thereof) shall be refunded, provided that no additional taxes or refunds of less thin five dollars ($5.00) shall be collected or refunded.
1. Where necessary an amended return must be filed in order to report additional income and pay any additional tax due, or claim a refund of tax overpaid, subject to the requirements and/or limitations contained in Sections XI and XII of the Ordinance. Such amended return shall be on a form obtainable, upon request, from the Superintendent of Taxation and Revenues. A taxpayer may not change the method of accounting or apportionment of net profits after the due date for filing the original return.
2. Within three (3) months from the final determination of any Federal tax liability affecting taxpayer's Bellefontaine tax liability, such taxpayer shall make and file an amended Bellefontaine tax return showing income subject to the tax based upon such final determination of Federal tax liability, and pay any additional tax shown due thereon.
3. Amended returns per Ohio Revised Code. Allowed to go back to the beginning of when tax due if never filed or if a fraudulent return was filed. Seven years for regular amended.
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.
b. The Gross amount of all salaries, wages, bonuses, fees, incentive payment, commissions, 401(K), deferred compensation, sick pay, and all miscellaneous compensation, etc., before any payroll deductions, paid to non-residents, if earned from a Bellefontaine, Ohio employer.
a. A non-resident employer, agent of such employer, or other payer not situated in Bellefontaine shall not be required to withhold Bellefontaine income tax from remuneration paid to employees of the employer until the collective tax liability of the employees initially exceeds $150.00
b. Independent contractors of a non-resident employer shall be deemed employees for work performed in Bellefontaine on behalf of the employer, and are subject to the collective tax liability provision as if they were employees.
c. When the collective tax liability exceeds $150.00 the employer is required to begin withholding the appropriate income tax for Bellefontaine on behalf of all employees performing work in Bellefontaine. This tax shall be remitted to Bellefontaine.
d. Once the collective tax liability has exceeded $150.00 the employer must withhold income tax for Bellefontaine, for work performed in Bellefontaine, for the remainder of that calendar year and for subsequent years, even if the tax liability in subsequent years does not exceed $150.00. However, if the tax liability for each of three (3) consecutive years (subsequent to that year in which the employer became liable for withholding the income tax) does not exceed $150.00 the employer will be considered as not having performed work in Bellefontaine in regard to further tax liability, and will again be subject to the $150.00 Deminimus Rule as explained in the first paragraph on this section.
a. If the non-resident is a salesman, agent or other employee whose compensation depends on the volume of business transacted or chiefly effected by him, the deducting and withholding shall attach to the portion of the entire compensation which the volume of business transacted or chiefly effected by the employee within Bellefontaine bears to the total volume of business transacted by him.
b. The deducting and withholding of personal service compensation of other non-resident employees, including officers of corporations, shall attach to the proportion of the personal service compensation of such employee which the total number of his working hours within Bellefontaine is of the total number of working hours.
c. The fact that non-resident employees are subject to call at any time does not permit the allocation of pay for time worked within Bellefontaine on a seven-day week basis. The percentage of time worked in Bellefontaine will be computed on the basis of a forty-hour week unless the employer notifies the Superintendent of Taxation and Revenues that a greater or lesser number of hours per week is worked.
d. The occasional entry into Bellefontaine of a non-resident employee who performs the duties for which he is employed primarily outside Bellefontaine, shall not be deemed to take such employee out of the class of those rendering their services entirely outside Bellefontaine.
e. Twelve (12) Day Occasional Entry Rulef. Refund calculation forms will be used to figure actual refund due. Company time and expense logs and legible W-2 forms must also be submitted. No refund will be allowed without all the above listed forms.
1. A non-resident individual who works in Bellefontaine twelve (12) or fewer days per year shall be considered an occasional entrant, and shall not be subject to Bellefontaine's municipal income tax for those twelve (12) days.
2. For purposes of the twelve (12) day calculation, any portion of a day worked in Bellefontaine shall be counted as one day worked in Bellefontaine, whether it is an hour or eight (8) hours.
3. This rule is limited to individuals only. It does not apply to businesses or corporations.
4. Beginning with the thirteenth (13th) day, the employer of said individual shall begin withholding Bellefontaine income tax from remuneration paid by the employer to the individual, and shall remit the withheld tax to Bellefontaine.
5. If the individual is self-employed, it shall be the responsibility of the individual to remit the appropriate income tax to the City of Bellefontaine.
6. If two (2) or more individuals of the same employer (even if they are independent contractors of the employer) perform work in Bellefontaine related to the service for which the employer has been engaged, the individuals shall not be subject to the twelve (12) day occasional entry rule, but rather to the withholding rules that apply to the $150.00 deminimus amounts. (See Article VI, Collection of Tax At Source.)
7. The twelve (12) day occasional entry rule does not apply to entertainers or professional athletes, their employees or individuals who perform services on their behalf, or to promoters and booking agents of such entertainment events or sporting events.a. The gross amount of all salaries, wages, bonuses, fees, incentive payments, commissions, 401K, deferred compensation, sick pay and all miscellaneous compensation, etc., before any payroll deductions, paid to residents of the City? of Bellefontaine, regardless of the place of employment. The City shall have the right to demand in writing all copies of "cafeteria plans".
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. If tax liability exceeds $100.00 per month, employer shall be required to file and pay monthly. This shall be due on or before the 15th of the following month.
a. Current Employees;b. Former Employees:c. Non-Residents Employed Outside the City:d. Insufficient Withholding:- 1. If the overwithholding is discovered in the same period, the employer shall make the necessary adjustment directly with the employee and the amount to be reported on the W-1 as withheld shall be the corrected amount.
2. If the overwithholding is discovered in a subsequent period of the calendar year the employer may make proper adjustment with the employee. In such case the W-1 for the period in which the adjustment is made shall indicate the total amount actually withheld, the amount of adjustment deducted therefrom, and the corrected amount reported on the W-1;
3. If the overwithholding is discovered in the following year, the employer should notify the Superintendent of Taxation and Revenues of such overwithholding and the circumstances thereof. Upon proper verification from the employer, the Superintendent of Taxation and Revenues shall refund to the employee the amount of such excess withholding;
1. In case too much has been withheld from an employee who is no longer employed by the employer, the employer shall notify the Superintendent of Taxation and Revenues of the amount and circumstances of such overwithholding and the Superintendent of Taxation and Revenues shall then refund to the employee the amount of such excess withholding; or
2. If the error is discovered by the employee, such employee shall file a claim with the Superintendent of Taxation and Revenues and, upon verification thereof by the employer, the Superintendent of Taxation and Revenues shall then refund to the employee the amount of such excess withholding.
3. Refunds will not be made unless claimed within three (3) years after the year for which the tax was withheld. Amounts of less than five dollars ($5.00) shall not be refunded.
1. Where an employer has withheld the tax from all gross wages, salaries, commissions or other compensation of a non-resident of Bellefontaine and such non-resident has been employed outside of Bellefontaine for all or part of the time, such employee shall file a claim with the Superintendent of Taxation and Revenues covering such erroneous withholding arid the Superintendent of Taxation and Revenues shall, upon verification thereof by the employer, refund to the employee the amount of such excess withholding.
1. If less than the amount of tax required to be deducted is withheld from an employee, such deficiency shall be withheld from subsequent gross wages, salaries, commissions or other compensation. However, if the employee-employer relationship has terminated, the employer shall notify the Superintendent of Taxation and Revenues of such deficiency and the reason therefor.
2. Every employer is deemed to be a trustee for the City of Bellefontaine in collecting and holding the tax required under the Ordinance to be withheld and the funds so collected by such withholding are deemed to be trust funds.
3. Every such employer required to deduct and withhold the tax at the source is liable directly to the City of Bellefontaine for payment of such tax whether actually collected from such employee or not.
4. On or before the 31st of January, following any calendar year in which such deductions have been made by the employer such employer shall file with the Superintendent of Taxation and Revenues, in the form prescribed and furnished on request from the Superintendent of Taxation and Revenues; an information return for each employee from whom Bellefontaine income tax has been withheld, the whole amount of compensation paid said employee during the year and the amount of Bellefontaine income tax withheld from such employee (Federal W2 and No. 1099 forms).
5. In addition to such Information returns, and at the time the same are filed, such employer shall file with the Superintendent of Taxation and Revenues, Form WR to enable the Superintendent of Taxation and Revenues to reconcile the sum total of compensation paid and taxes withheld as disclosed by information return W-2 and prior returns and remittances made pursuant to the Ordinance. Computer lists will not be accepted.
6. On or before February 28th of each year, all employers are required to submit copies of all 1099s issued.
- 1. If the overwithholding is discovered in the same period, the employer shall make the necessary adjustment directly with the employee and the amount to be reported on the W-1 as withheld shall be the corrected amount.
ARTICLE VII
DECLARATIONS
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.
- a. The City of Bellefontaine accepts generic forms for all estimated payments and for Bellefontaine's annual tax returns. HOWEVER, to be acceptable, the generic forms must contain all the information required on the tax forms supplied by the City of Bellefontaine and must be in a similar format that will allow processing of the generic forms without changing Bellefontaine's existing procedures for processing said forms.
b. Determination as to whether a generic form meets the above criteria shall be the sole determination of the Bellefontaine Tax Administrator.
c. Information needed on generic forms consists partly of the correct amount of estimated payments, account numbers, dates of birth and Social Security numbers.
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)
ARTICLE VIII
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.
ARTICLE IX
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.
ARTICLE X
INTEREST AND PENALTIES
A. Interest:
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.
B. Penalties:
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:
- a. In the case of any taxpayer whom such taxes are imposed, the penalty shall be twenty-five dollars ($25.00) if paid between April 16th and July 15th, and fifty dollars ($50.00) if paid July 16th and after.
b. In the case of any employer required to withhold taxes from employees under the provision of this Ordinance, the interest shall be four and one half per cent (4.5%) on all quarterly withholding employers and one and one half per cent (1.5%) on all monthly withholding employers. Penalty shall always be twenty-five dollars ($25.00) per withholding period, quarterly or monthly.
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.
D. Exceptions:
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.
ARTICLE XI
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.
ARTICLE XII
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.
B. Prosecution:
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.
ARTICLE XIII
BOARD OF REVIEW
A. Composition:
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.
B. Duties:
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.
C. Appeals:
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.
ARTICLE XIV
ALLOCATION OF FUNDS
SEE SECTION XIV OF THE ORDINANCE
ARTICLE XV
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.
ARTICLE XVI
CREDIT FOR TAX PAID IN ANOTHER MUNICIPALITY
A. Limitation:
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.
ARTICLE XVII
TO WHOM THIS ORDINANCE SHALL APPLY, NO REGULATION AS THIS SECTION PERTAINS TO THE LEGALITY OF THE ORDINANCE AND NOT TO ITS ADMINISTRATION.
ARTICLE XVIII
DEPARTMENT OF TAXATION
SEE SECTION XVIII OF THE ORDINANCE
ARTICLE XIX
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.
ARTICLE XX
SEE SECTION XX OF THE ORDINANCE
Approved: December 8, 1971
BOARD OF REVIEW: City Solicitor, Chairman
De Graham
Two Representative Citizens
Tax Administrator
