Income Tax

INCOME TAX ORDINANCE

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CONTENTS:

§ 38.01 PURPOSE
§ 38.02 DEFINITIONS
§ 38.03 IMPOSITION OF TAX
§ 38.04 EFFECTIVE PERIOD
§ 38.05 RETURN; PAYMENT OF TAX
§ 38.06 COLLECTION AT SOURCE
§ 38.07 DECLARATIONS
§ 38.08 DUTIES OF THE ADMINISTRATOR
§ 38.09 INVESTIGATIVE POWERS OF ADMINISTRATOR; CONFIDENTIALITY OF INFORMATION
§ 38.10 INTEREST AND PENALTIES
§ 38.11 COLLECTION OF UNPAID TAX; REFUND OF OVERPAYMENT
§ 38.12 BOARD OF REVIEW
§ 38.13 ALLOCATION OF FUNDS
§ 38.14 CREDIT FOR TAX PAID TO ANOTHER MUNICIPALITY
§ 38.15 COLLECTION OF TAX AFTER TERMINATION OF SUBCHAPTER
§ 38.16 VIOLATIONS
§ 38.17 SEVERABILITY


§38.01 PURPOSE.

To provide funds for the purposes of general municipal operation, maintenance, new equipment, extension and enlargement of municipal services and facilities and capital improvements of the Village of Oak Harbor, there shall be and there is hereby levied a tax on income, salaries, wages, commissions and other compensation, and on net profits as hereinafter provided. (Ord. 623, passed 11-16-71)

§38.02 DEFINITIONS.

For the purpose of this subchapter, the following definitions shall apply unless the context clearly indicates or requires a different meaning.

ADMINISTRATOR. The individual designated by this subchapter, appointed by the Mayor, approved by the Village Council, to administer and enforce the provisions of this subchapter.

ASSOCIATION. A partnership, limited partnership, limited liability company, Chapter S Corporation as defined in the federal tax code, 26 U.S.C. 1361, or any other form of unincorporated enterprise, owned by two or more persons.

BOARD OF REVIEW. The Board created by and constituted as provided in § 38.12.

BUSINESS. An enterprise, activity, profession, or undertaking of any nature conducted for profit or ordinarily conducted for profit, whether by an individual, partnership, association, corporation or any other entity.

CORPORATION. A corporation or joint stock association organized under the laws of the United States, the State of Ohio, or any other state, territory, or foreign country or dependency, but not including Chapter S Corporations.

DOMICILE. The permanent legal residence of a taxpayer. A taxpayer may have more than one residence but not more than one domicile.

EMPLOYEE.  One who works for wages, salary', commission or other type of compensation in the service of an employer.

EMPLOYER.  An individual, partnership, association, corporation, governmental body, unit or agency, or any other entity, whether or not organized for profit, who or that employs one or more persons on a salary, wage, commission or other compensation basis.

FISCAL YEAR.   An accounting period of 12 months or less ending on any day other than December 31.

GROSS RECEIPTS.  The revenue derived from sales, work done, or service rendered, before any deductions,-exceptions, or credits are claimed.

INCOME. Shall include all monies derived from any source whatsoever, including but not limited to:

(A) All salaries, wages, commissions., other compensation and other income from whatever source received by residents of the Village of Oak Harbor.

(B) All salaries, wages, commissions, other compensation and other income from whatsoever source received by nonresidents for work done or services performed or rendered or activities conducted in the Village of Oak Harbor.

(C)  The portion attributable to the Village of Oak Harbor of the net profits of all unincorporated businesses, associations, professions, corporations, or other entities, from sales made, work done, services performed or rendered, and business or other activities conducted in the Village of Oak Harbor.

NET PROFITS. A net gain from the operation of a business, profession, enterprise, or other activity after provisions for all ordinary and necessary expenses, either paid or accrued in accordance with the accounting system used by the taxpayer for federal income tax purposes, without deduction of taxes imposed by this subchapter, federal, state and other taxes based on income; and in the case of an association, without deduction of salaries paid to partners, and other owners; and otherwise adjusted to the requirements of this subchapter. Net profits shall include any amount or value received, realized, or recognized in a sale or other disposition of tangible personal property or real property used in business, in excess of book value

NON-RESIDENT. An individual domiciled outside the Village.

NON-RESIDENT UNINCORPORATED BUSINESS ENTITY. An unincorporated business entity not having an office or place of business within the Village.

PERSON. Every natural person, partnership, fiduciary, association or corporation. Whenever used in any 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 corporations, the officers thereof.

PLACE OF BUSINESS. Any bona fide office (other than a mere statutory office), factory, warehouse or other space which is regularly occupied and used by the taxpayer in carrying on any business activity individually or through one or more of his or her regular agents or employees regularly in attendance.

RESIDENT. An individual domiciled in the Village.

RESIDENT UNINCORPORATED BUSINESS ENTITY. An unincorporated business entity having an office or place of business within the Village.

TAXABLE INCOME. Income minus the deductions and credits allowed by this subchapter.

 TAXING MUNICIPALITY. Any municipal corporation or Joint Economic Development District levying a municipal or Joint Economic Development District income tax on income salaries, wages, commissions and other compensation earned or received by individuals, and on the net profits earned from the operation of a business, profession or other activity.

TAXABLE YEAR. The calendar year, or the fiscal year upon the basis of which tie net profits are to be computed under this subchapter, and, in the case of a return for the fractional part of a year, the period for which such return is required to be made.

TAXPAYER. A person, whether an individual, partnership, association, or any corporation or other entity, required hereunder to file a return or pay a tax. (Ord. 623, passed 11-16-71)

§38.03 IMPOSITION OF TAX.

(A) Imposition of tax. Subject to the provisions of § 38.17. an annual tax for the purposes specified in § 38.01 shall be imposed at the rate of 1% per annum upon the following:

(1) On all income, salaries, wages, commissions and other compensation and net profits from unincorporated business entities and professions earned or received during the effective period of this subchapter by residents of the Village.

(2) On all income, salaries, wages, commissions and other compensation earned or received during the effective period of this subchapter by non residents for work done or services performed or rendered in the Village.

(3)      (a) On the portion attributable to the Village of the net profits earned during the effective period of this subchapter of all resident unincorporated businesses, professions or other entities, derived from sales made, work done, services performed or rendered and business or other activities conducted in the Village.

(b) On the portion of the distributive share of the net profits earned during the effective period of this subchapter of a resident partner or owner of a resident unincorporated business entity not attributable to the Village and not levied against such unincorporated business entity; provided, however, that the liability of an individual partner or owner taxable hereunder on income attributable to another taxing municipality shall be subject to the provisions of § 38.14.

(4)      (a) On the portion attributable to the Village of the net profits earned during the effective period of this subchapter of all non-resident unincorporated businesses, professions or other entities, derived from sales made, work done, services performed or rendered and business or other activities conducted in the Village, whether or not such unincorporated business entity has an office or place of business in the Village.

            (b) On the portion of the distributive shares of the net profits earned during the effective period of this subchapter by a resident partner or owner of a non-resident unincorporated business entity not attributable to the Village and not levied against such unincorporated business entity; provided, however, that the liability of an individual partner or owner taxable hereunder on income attributable to another taxing municipality shall be subject to the provisions of § 38.14.

(5) On the portion attributable to the Village of the net profits earned during the effective period of this subchapter of all corporations derived from sales made, work done, services performed or rendered and business or other activities conducted in the Village, whether or not such corporations have an office or place of business in the Village.

(6) On the gross lottery winnings, in excess of $600 per year received by resident individuals on and after January 1, 2001, from a lottery commissioned, conducted, or administered by but not limited to, the State of Ohio, any other state, United States territory, government benefited multi-state lottery association or other similar agency.

(B) Determination of portion attributable to the Village. The portion of the net profits attributable to the Village of a taxpayer conducting a business, profession, or other activity both within and without the boundaries of the Village shall be determined as provided in R.C. § 718.02, and in accordance with the rules and regulations adopted by the Administrator pursuant to this subchapter.

(C)     Operating loss carry-forward.

(1) The portion of a net operating loss sustained in any taxable year subsequent to November 4, 1971 allocable to the Village may be applied against the portion of the profit of succeeding year(s) allocable to the Village, until exhausted but in no event for more than five taxable years. No portion of a net operating loss shall be carried back against net profits of any prior year.

(2) The portion of a net operating loss sustained shall be allocated to the Village in the same manner as provided herein for allocating net profits to the Village.

(3) The Administrator shall provide by rules and regulations the manner in which such net operating loss carry-forward shall be determined.

(D)      Consolidated returns.

(1) Any affiliated group which files a consolidated return for federal income tax purposes pursuant to Section 1501 of the Internal Revenue Code may file a consolidated return with the Village. However, once the affiliated group has elected to file a consolidated return or a separate return with the Village, the affiliated group may not change their method of filing in any subsequent tax year without written approval from the Tax Administrator.

  (2) In the case of a corporation that carried on transactions with its stockholders or with other corporations related by stock ownership, interlocking directorates, or some other method, or in case any person operates a division, branch, factory, office, laboratory or activity within the Village constituting a portion only of its total business, the Administrator shall require such additional information as he or she may deem necessary to ascertain whether net profits are properly allocated to the Village. If the Administrator finds net profits are not properly allocated to the Village by reason of transactions with stockholders or with other corporations related by stock ownership, interlocking directorates, or transactions with such division, branch, factory, office, laboratory or other activity or by some other method, he or she shall make such allocations as he or she deems appropriate to produce a fair and proper allocation of net profits to the Village.

(E)      Exceptions. The tax provided for herein shall not be levied on:

(1) Military pay or allowances of members of the Armed Forces of the United States and of members of their reserve components, including the Ohio National Guard;

(2) The gross income and gross receipts of religious, fraternal, charitable, scientific, literary, or educational institutions to the extent that such income is derived from tax exempt real estate, tax exempt tangible or intangible property, or tax exempt activities;

(3) Unemployment insurance benefits, welfare benefits, and pensions paid as a result of retirement.

(4) Proceeds of insurance paid by reason of death of the insured; retirement disability benefits, annuities, or gratuities not in the nature of compensation for services rendered from whatever source derived;

(5)  Parsonage allowance, to the extent of the rental allowance or rental value of a house provided as a part of an ordained minister's compensation;

(6)  Receipts from seasonal or casual entertainment, amusements, fund raising, sports events, and health and welfare activities when conducted by bona fide charitable, religious, or educational organizations and associations;

(7) Gains from involuntary conversion, cancellation of indebtedness, interest on federal obligations, items of income already taxed by the state from which the city is specifically prohibited from taxing, and income of a decedent's estate during the period of administration (except such income from the operation of a business);

(8) Expenses deductible in accordance with federal guidelines on federal form 2106, subject to audit and approval by the Tax Administrator;

(9) Compensation paid under Section 3501.28 or 3501.36 of the Revised Code to a person serving as a precinct election official, to the extent that such compensation does not exceed one thousand dollars annually;

(10) Gross income of any individual under the age of 16 on January 1 of the tax year in question

(11) Salaries, income, wages, commissions, other compensation, other income and net profits, the taxation of which is prohibited by the United States Constitution or any act of Congress limiting the power of the states or their political subdivisions to impose net income taxes on income derived from interstate commerce; and

(12) Salaries, wages, commissions, other compensation, other income and net profits, including interest and dividends as provided in 718.01 R.C., the taxation of which is prohibited by the Constitution of the State or any act of the Ohio General Assembly limiting the power of the city to impose net income taxes. (Old. 623, passed 11-16-71; Am. Ord. 4-91, passed 7-1-91; Am. Ord. 1-92, passed 2-18-92)

§ 38.04 EFFECTIVE PERIOD.

The tax shall be levied, collected and paid with respect to the income, salaries, wages, commissions and other compensation, and with respect to the net profits of persons, businesses, professions or other activities, earned from November 4, 1971, until repealed by the Village Council, and with respect to the tax of gross lottery winnings, for all gross lottery winnings received after January 1, 2001.(Ord. 623, passed 11-16-71)

§ 38.05 RETURN; PAYMENT OF TAX.

    (A) Unless otherwise exempted by the Tax Administrator, each taxpayer, except as herein provided, shall, whether or not a tax is due thereon, make and file a return on or before April 15 of the year following January 1, 2001, and on or before April 15 of each year thereafter. When the return is made for a fiscal year or other period different from the calendar year, the return shall be filed within 105 days from the end of such fiscal year or period.

(B) The return shall be filed with the Administrator on a form or forms furnished by or obtainable upon request from such Administrator or on other form deemed acceptable by the Administrator setting forth:

(1) The aggregate amounts of income, salaries, wages, commissions and other compensation earned or received and the gross receipts from business, profession receipts. Such gross receipts shall include only gross receipts earned or received during the year, or portion thereof, covered by the return and subject to the tax imposed by this subchapter;

(2) The amount of the tax imposed by this subchapter on such earnings and profits, the amount of tax imposed by this subchapter on income reported, .and any credits to which the taxpayer may be entitled under the provisions of §§ 38.0638.07 and 38.14;

(3) Such other pertinent statements, information returns, or other information as the Administrator may require;

(4) All individuals, businesses, employers, brokers or others doing business in the Village who engage persons, either on a commission basis, or as independent contractors, and are not subject to withholding, shall indicate the total amount of payments, commissions, and bonuses to such as are residents of the Village or do business in the Village, on the appropriate line of Schedule C of their Village income tax returns, supported by Form 1099 attached, providing the same information as is required on federal Form 1099.

(5) All contractors doing business in the Village shall indicate the total amount of payments to any subcontractor or contract employees who did business in or is a resident of the Village on the appropriate lines of Schedule C of their Village income tax returns, and shall attach a list which shall indicate names, addresses and amounts paid. In addition, the subcontractors shall be responsible for all income tax withholding requirements under this chapter.

(C) The Administrator may extend the time for filing of the annual return upon the request of the taxpayer for a period of not to exceed six months, or one month beyond any extension requested of or granted by the Internal Revenue Service for the filing of the federal income tax return. The Administrator may require a tentative return, accompanied by payment of the amount of tax shown to be due thereon by the date the return is normally due. No penalty or interest shall be assessed in those cases in which the return is filed and the final tax paid within the period as extended. The Administrator shall deny the extension if the taxpayer's income tax account with the Village is delinquent in any way.

(D) (1) The taxpayer making a return shall, at the time of the filing thereof, pay to the Administrator the balance of tax due, if any, after deducting the amount of Village income tax deducted or withheld at the source pursuant to § 38.06, such portion of the tax as has been paid on declaration by the taxpayer pursuant to § 38.07, and any credit allowable under the provisions of § 38.14.

       (2) Should the return, or the records of the Administrator, indicate an overpayment of the tax to which the Village is entitled under the provisions of this sub-chapter, such overpayment shall first be applied against any existing liability and the balance, if any, at the election of the taxpayer communicated to the Administrator, shall be refunded or transferred against any subsequent liability; provided, however, that overpayments of less than $5 need not be collected and shall not be refunded.

(E)  Amended returns.

(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 limitations contained in §§ 38.11 and 38.12. Such amended returns shall be on a form obtainable on request from the Administrator. 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 months from the final determination of any federal tax liability affecting the taxpayer's Village tax liability, such taxpayer shall make and file an amended Village return showing income subject to the Village tax based upon such final determination of federal tax liability, and pay any additional tax shown due thereon or make claim for refund of any overpayment.

    (F)  Any business, profession, association or corporation reporting a net loss is subject to the filing requirements of this ordinance. (Ord. 623, passed 11-16-71; Am. Ord. 633, passed 7-18-72) Penalty, see § 10.99

§ 38.06 COLLECTION AT SOURCE.

(A)  Each employer within or doing business within the Village who employs one or more persons on a salary, wage, commission or other compensation or other income basis shall, at the time of the payment thereof, deduct the tax of 1% from the gross salaries, wages, commissions or other compensation or other income due by the employer to the employees for the salaries, wages, commissions or other compensation or other income earned within the Village.

(B) Each such employer shall, on or before the last day of the month following each calendar quarter, make a return and remit to the Village the tax hereby required to be withheld. Such return shall be on a form prescribed to be acceptable to the Administrator and shall be subject to the rules and regulations prescribed therefore by the Administrator. Such employer shall be liable for the payment of tax required to be deducted and withheld whether or not such taxes have in fact been withheld.

(C) On or before January 31 following any calendar year, such employer shall fie with the Administrator an information return for each employee from whom Village income tax has been or should have been withheld, showing the name, address, and social security number of the employee, the total amount of compensation paid during the year and the amount of Village income tax withheld from such employee.

(D) Such employer in collecting the tax shall be deemed to hold the same, until payment is made by such employer to the Village, as a trustee for the benefit of the Village and any such tax collected by such employer from his or her employees shall, until the same is paid to the Village, be deemed a trust fund in the hands of such employer. (Ord. 623, passed 11-16-71; Am. Ord. 4-91, passed 7-1-91; Am. Ord. 1-92, passed 2-18-92) Penalty, see § 10.99

§38.07 DECLARATIONS.

(A) Every person who anticipates any taxable income which is not subject to § 38.06, or who engages in any business, profession, enterprise or activity subject to the tax imposed by § 38.03 shall file a declaration setting forth such estimated income or the estimated profit or loss from such business activity together with the estimated tax due thereon, if any; provided, however, if a person's income is wholly from wages from which the tax will be withheld and remitted to the Village in accordance with § 38.06, such person need not file a declaration.

(B) (1) Such declaration shall be filed on or before April 15 of each year during the life of this subchapter, except that no penalties or interest shall be assessed, for not filing a declaration, on any resident taxpayer who was not domiciled in the Village on the first day of January of the year in which they became subject to estimated payments, nor shall penalties or interest be assessed on estimated payments if the taxpayer has remitted an amount equal to one hundred percent of the previous year's tax liability, provided that the previous year reflected a twelve-month period.

        (2) Those taxpayers reporting on a fiscal year basis shall file a declaration within 105 days after the beginning of each fiscal year or period.

(C)   (1) Such declaration shall be filed upon a form furnished by or obtainable from the Administrator, or on other forms deemed acceptable by the administrator. Credit shall be taken for Village income tax to be withheld, if any, from any portion of such income. In addition, credit may be taken for tax payable to other taxing municipalities in accordance with § 38.14.

(2) The original declaration (or any subsequent amendment thereof) may be increased or decreased on or before any subsequent quarterly payment date as provided herein.

(D) The taxpayer making the declaration shall, at the time of filing thereof, pay to the Administrator at least one-fourth of 90% of the estimated annual tax due after deducting any portion of such tax to be deducted or withheld at the source pursuant to § 38.06, any credits allowable under the provisions of § 38.14, and any overpayment of previous year's tax liability which the taxpayer has not elected to have refunded. At least a similar amount shall be paid on or before the last day of the sixth, ninth, and twelfth months after the beginning of the taxpayer's taxable year; provided, that in case an amended declaration has been duly filed, or the taxpayer is subject to the tax for a portion of the year only, the unpaid balance shall be paid in equal installments on or before the remaining payment dates.

(E) Effective January 1, 2003, such declaration of estimated tax to be paid to the Village by corporations and associations shall be accompanied by a payment of at least one-fourth of 90% of the estimated annual tax and at least a similar amount shall be paid on or before June 15, September 15 and December 15. In the case of a fiscal year taxpayer the second, third, and fourth quarterly payments shall be due on the fifteenth day of the sixth, ninth, and twelfth months of the taxable year, respectively.

(F)      On or before 105 days following the end of the year for which such declaration or amended declaration was filed, an annual return shall be filed and any balance which may be due to the Village shall be paid therewith in accordance with the provisions of § 38.05. (Ord. 623, passed 11-16-71) Penalty, see § 10.99

§ 38.08 DUTIES OF THE ADMINISTRATOR.

(A) (1) It shall be the duty of the Administrator to receive the tax imposed by this subchapter 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 Administrator to enforce payment of all taxes owing the Village, to keep accurate records for a minimum of six years showing the amount due from each taxpayer required to file a declaration or make any return, including taxes withheld, and to show the dates and amounts of payments thereof.

(B) The Administrator is hereby charged with the enforcement of the provisions of this subchapter, and is hereby empowered, 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 collection of taxes and the administration and enforcement of the' provisions of this subchapter, including provisions for the re-examination and correction of returns.


(1) The Administrator 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 Administrator that, due to certain hardship conditions, he or she 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 or her under this subchapter.

(2) 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 §§ 38.1138.16 and 10.99 shall apply.

(C) In any case where a taxpayer has failed to file a return or has filed a return which does not show the proper amount of tax due, the Administrator may determine the amount of tax appearing to be due the Village from the taxpayer and shall send to such taxpayer a written statement showing the amount of tax so determined, together with interest and penalties thereon, if any.

(D)      Subject to the consent of the Board of Review or pursuant to regulation approved by the Board of Review, the Administrator shall have the power to compromise any interest or penalty, or both, imposed by § 38.10. (Ord. 623, passed 11-16-71)

§ 38.09 INVESTIGATIVE  POWERS OF ADMINISTRATOR;
CONFIDENTIALITY OF INFORMATION.

(A) The Administrator., or any authorized employee, is hereby authorized to examine the books, papers, records and federal income tax return of any employer or of any taxpayer or person subject to, or whom the Administrator believes is subject to the provisions of this subchapter, for the purpose of verifying the accuracy of any return made, or if no return was made, to ascertain the tax due under this subchapter. Every such employer, supposed employer, taxpayer, or supposed taxpayer is hereby directed and required to furnish upon written request by the Administrator, or his or her duly authorized agent or employee, the means, facilities, and opportunity for making such examinations and investigations as are hereby authorized.

(B) The Administrator is hereby authorized to order any person presumed to have knowledge of the facts to appear before the Administrator and may examine such person, under oath, concerning any income which was or should have been returned for taxation or any transaction tending to affect such income, and for this purpose may compel the production of books, papers, records and federal income tax returns and the attendance of all persons before him or her, whether as parties or witnesses, whenever he or she believes such persons have knowledge of such income or information pertinent to such inquiry.

(C)      The refusal to produce books, papers, records and federal income tax returns, or the refusal to submit to such examination, by any employer or person subject or presumed to be subject to the tax, or by any officer, agent or employee of a person subject to the tax or required to withhold tax, or the failure of any person to comply with the provisions of this section or with an order or subpoena of the Administrator authorized hereby shall be deemed a violation of this subchapter, punishable as provided in §10.99.

(D)      Any information gained as the result of any returns, investigations, hearings or verifications required or authorized by this subchapter shall be confidential, except for official tax purposes, or except in accordance with proper judicial order. The Administrator may furnish copies of returns filed under this chapter to the Internal Revenue Service and to the Tax Commissioner. Any person divulging such information in violation of this subchapter shall be subject to the penalty provisions of § 10.99. Each disclosure shall constitute a separate offense. In addition to the penalty provided in § 10.99, any employee of the Village who violates the provisions of this section relative to the disclosure of confidential information shall be guilty of an offense punishable by immediate dismissal.

(E)      Every taxpayer shall retain all records necessary to compute his or her tax liability for a period of six years from the date his or her return is filed, or the withholding taxes are paid. (Ord. 623, passed 11-16-71) Penalty, see § 10.99

§ 38.10 INTEREST AND PENALTIES.

(A)   All taxes imposed and all monies withheld or required to be withheld by employers under the provisions of this subchapter and remaining unpaid after they become due shall bear interest at the rate of 1 1/2 percent per month or fraction thereof.

(B)   In addition to interest as provided in division (A) of this section, penalties based on the unpaid tax are hereby imposed as follows:

(1)       For failure to file a Village income tax return when due, a late filing fee of $25; and

(2)      For failure to submit a return or pay taxes due., other than taxes withheld: 11/2 per cent per month plus $5 per month;

(3)     For failure to remit taxes withheld from employees: 5 per cent per month, plus $5 per month.

(C) A penalty shall not be assessed on an additional tax assessment made by the Administrator when a return has been filed in good faith and the tax paid thereon within the time prescribed by the Administrator; provided, that in the absence of fraud, neither penalty or 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 months after final determination of the federal tax liability.

                (D) Upon recommendation of the Administrator, the Board of Review may abate penalty or interest, or both, or upon an appeal from the refusal of the Administrator: to recommend abatement of penalty and interest, the Board may nevertheless abate penalty or interest, or both.

(Ord. 623, passed 11-16-71; Am. Ord. 646, passed 10-2-73; Am. Ord. 721, passed 8-4-81)

§ 38.11 COLLECTION OF UNPAID TAX; REFUND OF OVERPAYMENT.

          (A)      In addition to the provisions of § 38.16, all taxes imposed by this subchapter shall be collectible together with any interest and penalties thereon, by civil suit.   Except in the case of fraud, omission of 25% or more of income required to be reported, or failure to file a  return, an additional assessment shall not be made after three years from the time the return was due or filed, whichever is later.  In the case of fraud, omission of 25% or more of income subject to this tax, or failure to file a return, all additional assessments shall be made to recover municipal income taxes and penalties and interest thereon shall be brought within six (6) years after the tax was due or the return was filed, whichever is later. In those cases in which the Commissioner of InternalRevenue and the taxpayer have executed a waiver of the federal statute of limitation, the period within which an additional assessment may be made by the Administrator shall be one year from the time of the final determination of the federal tax liability.

           (B)    Those officers or employees having control or supervision of, or charged with, the responsibility of filing the return and making payments for a corporation or association shall be personally liable for failure to file the return or pay the taxes and penalties and interest due as required. The dissolution, bankruptcy, or reorganization of any employer does not discharge the officers' or employees' liability for a prior failure of such business to file a return or pay the taxes due.

           (C)    Taxes erroneously paid shall not be refunded unless a claim for refund is made within three years from the date which such payment was made or the return was due, or within three months after final determination of the federal tax liability, whichever is later.

            (D)   Amounts of less than $5 need not be collected and shall not be refunded. (Ord. 13-2001, passed 5-21-01)

§38.12 BOARD OF REVIEW.  

(A) A Board of Review, consisting of a chairperson and two other individuals, each to be appointed by the Mayor and approved by the Village Council, is hereby created. Each member shall be appointed for a term of six years. 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 shall be conducted privately and the provisions of § 38.09 hereof with reference to the confidential character of information required to be disclosed by this subchapter shall apply to such matters as may be heard before the Board on appeal.

(B) All rules and regulations and amendments or changes thereto, which are adopted by the Administrator under the authority conferred by this subchapter, must b approved by the Board of Review before the same becomes effective. The Board shall hear and pass on appeals from any ruling or decision of the Administrator, and at the request of the taxpayer or Administrator, is empowered to substitute alternate methods of allocation.

(C) Any person dissatisfied with any ruling or decision of the Administrator which is made under the authority conferred by this subchapter. and who has filed wit! the Village the required returns or other documents pertaining to the municipal income tax obligation at issue, may appeal there from to the Board of Review within 30 days from the announcement of such ruling or decision by the Administrator. The appeal shall be in writing and shall state why the decision should be deemed incorrect or unlawful. The Board shall., on hearing, have jurisdiction to affirm., reverse or modify any such ruling or decision, or any part thereof. Such hearing shall be scheduled within 45 days from the date of appeal. The Board's ruling must be made within 30 days from the date of the closing of the record, shall be in writing and filed with the Tax Administrator, and within 15 days of its decision shall send notice of its decision by ordinary mail to the taxpayer making the appeal. Any person dissatisfied with any ruling or decision of the Board may appeal there from to a court of competent jurisdiction by perfecting the appeal as required by state law within 30 days from the filing of such ruling or decision. (Ord. 623, passed 11-16-71)

§ 38.13 ALLOCATION OF FUNDS.

The funds collected under the provisions of this subchapter shall be applied for the following purposes:

(A)   Such part thereof as shall be deemed necessary to defray all costs of collecting the taxes levied by this subchapter and the costs of administering and enforcing the provisions thereof.

 (B)   The balance of the funds collected under this subchapter, after providing for the allocation of funds set forth in division (A) of this section, shall be used for purposes of general municipal operations, maintenance., new equipment, extension and enlargement of municipal services and facilities and capital improvements of the Village as provided by ordinances of the Village Council (Ord. 623, passed 11-16-71)

§ 38.14 CREDIT FOR TAX PAID TO ANOTHER MUNICIPALITY.

(A) Where a resident of the Village 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) Every individual taxpayer who resides in the Village who receives net profits, salaries, wages, commission or other personal service compensation or other income for work done or services performed or rendered outside of the Village, if it is made to appear that he has paid a municipal income tax on the same income taxable under this chapter to another municipality, shall be allowed a credit against the tax imposed by this chapter of the amount so paid by him or in his behalf to such other municipality. The credit shall not exceed the tax assessed by this chapter on such income earned in such other municipality or municipalities where such tax is paid.

(C)      A claim for refund or credit under this section shall be made in such manner as the Administrator may by regulation provide. (Am. Ord. 633, passed 7-18-72)

§ 38.15 COLLECTION OF TAX AFTER TERMINATION OF SUBCHAPTER.

(A) This subchapter shall continue effective insofar as the levy of taxes is concerned until revoked, and insofar as the collection of taxes levied hereunder and actions or proceedings for collecting any tax so levied or enforcing any provisions of this subchapter are concerned, it shall continue effective until all of such taxes levied in the aforesaid period are fully paid and any and all suits and prosecutions for the collection of such taxes or for the punishment of violations of this subchapter shall have been fully terminated, subject to the limitations contained in §§ 38.11 and 38.16hereof.

(B)      Annual returns due for all or any part of the last effective year of this subchapter shall be due on the date provided in §§ 38.05 and 38.07 as though the same were continuing. (Ord. 623, passed 11-16-71)

§38.16 VIOLATIONS.

(A)      No person shall:

(1)      Fail, neglect or refuse to make any return or declaration required by this subchapter;

(2)       Make any incomplete, false or fraudulent return;

(3)      Fail, neglect or refuse to pay the tax, penalties or interest imposed by this subchapter;

(4)      Fail, neglect or refuse to withhold the tax from his or her employees or remit such withholding to the Administrator;

(5)     Refuse to permit the Administrator or any duly authorized agent or employee to examine his or her books, records, papers, and federal income tax returns relating to the income or net profits of a taxpayer;

(6)    Fail to appear before the Administrator and to produce his or her books, records, papers or federal income tax returns relating to the income or net profits of a taxpayer upon an order or subpoena of the Administrator;

(7)    Refuse to disclose to the Administrator any information with respect to the income or net profits of a taxpayer;

(8)     Fail to comply with the provisions of this subchapter or any order or subpoena of the Administrator authorized hereby;

(9)    Give to an employer false information as to his or her true name, correct social security number and residence address, or fail to promptly notify an employer of any change in residence address and date thereof;

(10)  Fail to use ordinary diligence in maintaining proper records of employees' residence addresses, total wages paid, and Village income tax withheld, or to knowingly give the Administrator false information; or

(11)  Attempt to do anything whatsoever to avoid the payment of the whole or any part of the tax, penalties or interest imposed by this subchapter.

(B)  All prosecutions under this section must be commenced within the time limit as now or hereafter may be provided by applicable state law for the prosecution of violations of municipal income tax ordinances.

(C)  The failure of any employer or taxpayer or person to receive or procure a return, declaration or other required form shall not excuse him or her from making any information return, return or declaration, from filing such form, or from paying the tax!

(Ord. 623, passed 11-16-71) Penalty, see § 10.99

 §38.17 SEVERABILITY.

If any provisions of a section of this code or the application thereof to any person or circumstances is held invalid, the invalidity does not affect other provisions or applications of the section or related sections which can be given effect without the invalid provision or application, and to this end the provisions are severable.