VILLAGE OF MARIEMONT, OHIO (Mariemont tax ordinance – details) ORDINANCE NO. O-17-03 ORDINANCE ENACTING TAX AND REPEALING ORDINANCE O-17-71 AND ALL SUBSEQUENT AMENDMENTS AND MODIFICATIONS THERETO; AND TO DECLARE EMERGENCY WHEREAS, the Village of Mariemont Income Tax Ordinance was originally enacted in 1971 and several amendments have thereafter been enacted; and WHEREAS, in the opinion of the Tax Administrator and the Village Solicitor, the original Ordinance and subsequent amendments and changes in the law need to be recodified into one comprehensive Tax Ordinance. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE VILLAGE OF MARIEMONT, STATE OF OHIO, TWO THIRDS OF THE MEMBERS DULY ELECTED THERETO CONCURRING: SECTION I. Ordinance No. 0-17-71 and subsequent amendments and modifications thereto are hereby repealed by this Ordinance. Provided, however, that any and all tax, interest and penalties generated in connection herewith shall remain in full force and effect. SECTION II. The Tax Ordinance hereafter set forth is hereby adopted: SECTION 1. PURPOSE . To provide funds for the purposes of general municipal operations, there is hereby levied a tax on income, qualifying wages, commissions, and other compensation, and on net profits as hereinafter provided. SECTION 2. DEFINITIONS. As used in this ordinance, the following words shall have the meaning ascribed to them in this section, except as and if the context clearly indicates or requires a different meaning. “ADJUSTED FEDERAL TAXABLE INCOME” means A “C” corporation’s federal taxable income before net operating losses and special deductions as determined under the Internal Revenue Code, but including subsequent adjustments from required additions and deductions. Pass-through entities must compute “Adjusted Federal Taxable Income” as if the pass-through entity was a “C” corporation. This definition does not apply to any taxpayer required to file a return under Ohio Revised Code (ORC) section 5745.03 or to the net profit from a sole proprietorship. This definition is effective for tax years beginning on or after January 1, 2004. "Administrator" - The individual designated by the ordinance, appointed to administer and enforce the provisions of the ordinance. "Association" means a partnership, limited partnership, limited liability company, or any other form of unincorporated enterprise, owned by one or more persons. "Board of Review" means the Board created by and constituted as provided in Section 14. "Business" means 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, including but not limited to the renting or leasing of property, real, personal, or mixed. "Corporation" means a corporation, Sub-S 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. "Day" means a full day or any fractional part of a day. "Domicile" means the place where a taxpayer has his true, fixed, and permanent legal residence. A taxpayer may have more than one residence but not more than one domicile. Factors to be considered when determining domicile include, but are not limited to: registration of vehicles; current driver's license; address on Federal and State income tax returns; address of voter's registration; attendance at schools by taxpayer's family; county of taxpayer's estate if deceased. "Employee" means one who works for income, wages, salary, commission or other type of compensation in the service and under the control of an employer. "Employer" means an individual, partnership, association, corporation, governmental body, unit or agency, or any other entity, whether or not organized for profit, who or which employs one or more persons on an income, salary, wage, commission or other compensation basis. "Fiduciary" means a guardian, trustee, executor, administrator, or any other person acting in any fiduciary capacity for any individual, trust, or estate. "Fiscal year" means an accounting period of twelve months ending on any day other than December 31. “Generic Form" means an electronic or paper form designed for reporting estimated municipal income taxes, and/or annual municipal income tax liability, and/or separate requests for refunds that contain all the information required on Mariemont’s regular tax return and estimated payment forms, and are in a similar format that will allow processing of the generic forms without altering the Village’s procedures for processing forms. "Gross receipts" means the total revenue derived from sales, work done, or service rendered. “Income” means all monies, subject to limitations imposed by ORC 718, derived from any source whatsoever, including but not limited to: (A) All income, qualifying wages, commissions, other compensation and other income from whatever source received by residents of the Village. (B) All income, qualifying 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. (C) The portion attributable to the Village 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. "Net Profits" - (See “Adjusted Federal Taxable Income”). "Nonresident" means an individual domiciled outside the Village. "Nonresident unincorporated business entity" means an unincorporated business entity not having any office or place of business within the Village. "Pension" means income earned or received as a result of retirement from employment from an IRS qualified retirement plan and which is generally, although not exclusively, reported to the taxpayer by the payor on a Form 1099-R or similar form. "Person" means 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 a corporation, the officers thereof. "Place of business" means any bona fide office, other than a mere statutory office, factory, warehouse or other space which is occupied and used by the taxpayer in carrying on any business activity individually or through one or more of his employees or agents. “Qualifying wage” means wages as defined in Section 3121(a) of the Internal Revenue Code, without regard to any wage limitations, but including subsequent adjustments from required additions and deductions. “Qualifying wage” represents employees’ income from which municipal tax shall be deducted by the employer, and any wages not considered a part of “qualifying wage” shall not be taxed by the Village. This definition is effective January 1, 2004. "Resident" means an individual domiciled in the Village. "Resident unincorporated business entity" means an unincorporated business entity having an office or place of business within the Village. "Taxable Year" means the calendar year, or the fiscal year ending during such calendar year, upon the basis of which the net profits are to be computed under this ordinance and, in the case of a return for a fractional part of a year, the period for which such return is required to be made. Unless another accounting period is approved by the Administrator, the taxable year of an individual shall be a calendar year. Also, a month is considered to be a full month or any fractional part thereof. "Taxpayer" means a person, whether an individual, partnership, association or any corporation or other entity, subject to the tax imposed by this ordinance or required hereunder to file a return or pay a tax. "Village" means the Village of Mariemont, Hamilton County, Ohio. The singular shall include the plural, and the masculine shall include the feminine and the neuter. SECTION 3. IMPOSITION OF TAX. Subject to the provisions of Section 17 of this ordinance, an annual tax for the purposes specified in Section 1 hereof, is hereby imposed at the rate of one and one-quarter percent (1 1/4%) per year upon the following: A. On all income, qualifying wages, commissions and other compensation earned or received during the effective period of this ordinance by residents of the Village. B. On all income, qualifying wages, commissions and other compensation earned or received during the effective period of this ordinance by nonresidents for work done or services performed or rendered in the Village. C. On the portion attributable to the Village of the net profits earned during the effective period of this ordinance, of all resident unincorporated businesses, professions and other entities, derived from sales made, work done or services performed or rendered and business or other activities conducted in the Village. D. On the portion of the distributive share of the net profits earned during the effective period of this ordinance 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. E On the portion attributable to the Village of the net profits earned during the effective period of this ordinance of all nonresident unincorporated businesses, professions or other entities, derived from sales made, work done or services performed or rendered and business or other activities conducted in the Village whether or not such person, unincorporated business entity, profession or other entity has an office or place of business in the Village. F. On the portion attributed to the Village of the net profits earned during the effective period of this ordinance of all corporations derived from sales made, work done or 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. G. On gross income derived anywhere from gaming, wagering, lotteries, or schemes of chance by residents of the Village. H. On covenants not to compete and on cancellation of indebtedness to the extent includible on the taxpayer's federal tax return. I. Net profit. Net profit from a business or profession conducted both within and without the boundaries of the Village shall be considered as having a taxable situs in the Village for purposes of this tax in the same proportion as the average ratio of: 1. The average original cost of the real and tangible personal property owned or used by the taxpayer in the business or profession in the Village during the taxable period to the average original cost of all the real and tangible personal property owned or used by the taxpayer in the business or profession during the same period, wherever situated. Real property includes property rented or leased by the taxpayer and the value of such property shall be determined by multiplying the annual rental thereupon by eight. 2. Wages, salaries, and other compensation paid during the taxable period to persons employed in the business or profession for services performed in the Village to wages, salaries, and other compensation paid during the same period to persons employed in the business or profession, wherever their services are performed. Wages, salaries, and other compensation shall be included to the extent that they represent qualifying wages. 3. Gross receipts of the business or profession from sales made and services performed during the taxable period in the Village to gross receipts of the business or profession during the same period from sales and services, wherever made or performed. If the foregoing apportionment formula does not produce an equitable result, another basis may be substituted, under uniform regulation, so as to produce an equitable result. J. As used in this Section 3I, “SALES MADE IN THE VILLAGE” means: 1. All sales of tangible personal property which is delivered within the Village regardless of where title passes if it is shipped or delivered from a stock of goods within the Village. 2. All sales of tangible personal property which is delivered within the Village regardless of where title passes even though transported from a point outside the Village if the taxpayer is regularly engaged through its own employees in the solicitation or promotion of sales as the place where delivery is made. 3. All sales of tangible personal property which is shipped from a place within the Village to purchasers outside the Village regardless of where title passes if the taxpayer is not, through its own employees, regularly engaged in the solicitation or promotion of sales at the place where delivery is made. K. Operating loss carry forward. 1. The portion of a net operating loss sustained in any taxable year subsequent to August 1, 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 (5) 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. L. A husband and wife may, for any tax year, elect to file separate or joint returns. However, a loss from the business activity of one spouse may not be used to reduce the taxable income of the other spouse. Also, a loss from the operation of a business, including rental losses, may not be used to offset the income on a taxpayer's W-2 Form. M. Consolidated returns. 1. Filing of consolidated returns may be permitted or required in accordance with Rules and Regulations prescribed by the Administrator. 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 Village. 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 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 activity or by some other method, he shall make such allocation as he deems appropriated to produce a fair and proper allocation of net profits to the Village. 3. No return shall be considered to have been submitted unless it clearly sets forth the income and expenses attributable to this municipality alone. N. Expenses Not Deductible 1. No deduction for health insurance premiums paid by self-employed taxpayers as permitted by IRS is permitted for the Village. 2. No deduction for self-employment tax paid by self-employed taxpayers as permitted by IRS is permitted for the Village. 3. No deduction for contributions to IRA or Keogh plans made by taxpayers as permitted by IRS is permitted for the Village. SECTION 4. EXEMPTIONS - SOURCE OF INCOME NOT TAXED. The tax provided for herein shall not be levied on the following: Military pay or allowance of members of the armed forces of the United States and of members of their reserve components, including the National Guard. The income 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 and only to the extent that the said income is exempt from federal income tax. C. Social Security benefits, unemployment insurance benefits except for supplemental unemployment benefits, IRS qualified retirement plan or similar payments, disability benefits received from local, state or Federal governments or charitable religious or educational organizations. The disability benefits excludable must be a permanent nature as determined by a physician or government entity. D. Proceeds of insurance paid by reason of death of the insured, pensions, including industrial pensions, disability benefits paid for total and permanent disability, annuities or gratuities not in the nature of compensation for services rendered from whatever source derived. E. Receipts by bona fide charitable, religious and educational organizations and associations, when those receipts are from seasonal or casual entertainment, amusement, sports events and health and welfare activities when any such are conducted by bona fide charitable, religious or educational organizations and associations and only to the extent that the said income is exempt from Federal Income Tax. F. Alimony received. G. Compensation for personal injuries or for damages to property by way of insurance or otherwise, but this exclusion does not apply to compensation paid for lost salaries or wages. H. Interest, dividends and other revenue from intangible property as set forth in O.R.C. 718.01. I. Income, qualifying wages, and other compensation earned or received by employees under the age of 18 years. J. Compensation paid to a precinct election official, to the extent that such compensation does not exceed $1,000 annually. K. 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. L. Income, qualifying wages, commissions and other compensation 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. M. Income, qualifying wages, commissions and other compensations and net profits, the taxation of which is prohibited by the Constitution of the Sate of Ohio or any act of the Ohio General Assembly limiting the power of a municipality to impose net income taxes. N. The amount of unreimbursed employee business expenses (2106 expenses) which the employee deducted as an itemized deduction before reduction by 2% of the employee's AGI on his federal tax return. Taxpayer must furnish a copy of the form 2106 and Schedule "A" of form 1040 as filed with IRS. This deduction must be allocated first to the municipality where the employment occurred. O. 1. Compensation paid to a nonresident individual for personal services performed within the Village if the personal services are performed during twelve (12) or fewer days during the calendar year. A day is a full day or any fractional part of a day. 2. Compensation paid to a nonresident employee by a nonresident employer for work or services performed in the Village if the services or work is performed during twelve (12) or fewer days during the calendar year and further provided that the individual's employer is located outside of the Village and the individual pays tax on the compensation to the municipal corporation in which the employer's principal place of business is located and no portion of the tax paid is refunded to the individual. The foregoing two paragraphs do not apply to professional entertainers, professional athletes, promoters of professional entertainment or sporting events and their employees. P. Moving expenses deducted by the taxpayer on the Federal Tax Return. (A copy of page 1 of the taxpayer's form 1040 must be submitted along with the IRS form 3903.) SECTION 5. EFFECTIVE DATE. The tax shall be levied, collected and paid with respect to the income, qualifying wages, commissions and other compensation, and with respect to the net profits of persons, businesses, professions, or other activities, as defined in this ordinance, earned or received on and after January 1, 1971. SECTION 6. ANNUAL TAX RETURN AND PAYMENT OF TAX DUE. A. Except as otherwise herein provided, each taxpayer or person 18 years of age or older, who engages in business as hereinbefore defined, or whose income, wages, salaries, commissions or other compensation are subject to the tax imposed by this ordinance, shall, whether or not a tax is due thereon, make and file a return on or before April 15th of each year with the Administrator. When the return is made for a fiscal year or other period different from the calendar year, the return shall be filed within four months from the end of such fiscal year or other period. Any person otherwise subject to the tax who is registered with the Village as being retired with no earned income, shall be exempt from filing an annual tax return at the discretion of the Administrator. B. A husband and wife may, for any tax year, elect to file separate or joint returns. However, a loss from the business activity of one spouse may not be used to reduce the taxable income of the other spouse. Also, a loss from the operation of a business, including rental losses, may not be used to offset the income on a taxpayer's W-2 Form. C. The Administrator is hereby authorized to provide by regulation, subject to the approval of the Board of Review, that the W-2 form furnished by an employer or employers, for a nonresident employee showing the full amount of tax deducted by such employer or employers from the income, qualifying wages or commissions or other compensation, as required by Section 7 and paid to the Village, or other municipality or state, imposing a tax equal to or greater than the Mariemont income tax, on the same taxable income, shall be accepted as the return required of a nonresident employee under this ordinance, whose sole income subject to the tax or taxes under this ordinance is such salary, wages, commissions or other compensation. D. Such return shall be filed with the Administrator on a form or forms furnished by or obtainable from the Administrator or on a generic form, setting forth: 1. The aggregate amounts of income, qualifying wages, commissions and other compensation earned or received. 2. Gross receipts from such business less allowable expenses incurred in the acquisition of such gross receipts to arrive at a net profit. 3. The amount of the tax imposed by this ordinance thereon; 4. Any credits to which the taxpayer may be entitled under the provisions of Sections 7 Tax Withheld By Employer, 8 Estimated Tax Payments and 16 Tax Paid To Another Municipality; and 5. Such other pertinent statements, information returns or other information as the Administrator may require, including but not limited to copies of all W-2 forms, 1099 Miscellaneous Income Forms, page one of form 1040, Page One and Two of Form 1120, 1120S (including (K-1), 2106, 1065, Schedule C (including cost of goods manufactured and/or sold), Schedule E, schedule F and any other Federal Schedules if applicable. E. The taxpayer making a return required hereunder shall, at the time of the filing thereof, pay to the Administrator the balance of the tax, due, if it exceeds $4.99. 1. 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 ordinance, such overpayment shall be first applied against any existing tax liability, penalties, or interest, and the balance, if any, at the election of the taxpayer communicated to the Administrator, shall be refunded or applied against any subsequent liability hereunder; provided that an overpayment of less than five dollars ($5.00) shall not be refunded but may be carried forward to a subsequent tax year. 2. Where necessary, an amended return shall be filed in order to report additional income and pay any additional tax due, or claim a return of tax overpaid, subject to the requirements and/or limitations contained in Sections 12 and 16. Such amended return 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 annual return. 3. Within three months from the final determination of any Federal tax liability affecting the taxpayer's Mariemont tax liability, such taxpayer shall make and file an amended Mariemont return showing income subject to the Mariemont tax based upon such final determination of Federal tax liability, and pay any additional tax shown due thereon or make claim for return of any overpayment. F. The officer or employee of such employer having control or supervision or charged with the responsibility of filing the return and making the payment, shall be personally liable for failure to file the return or pay the tax, penalties, or interest due as required herein. The dissolution, bankruptcy or reorganization of any such employer does not discharge an officer's or employee's liability for a prior failure of such business to file a return or pay taxes, penalties, or interest due. G. The Tax Return is considered received: (1) if mailed, on the date postmarked by the United States Postal Service or (2) on the date delivered without mailing to the Village Tax Office. H. Extension of time for filing returns. Taxpayers granted extensions of time for filing their federal income tax returns may have an extension for filing their Mariemont Tax Return provided that a copy of the federal extension is filed with the Administrator on or before the original due date of the Mariemont Tax Return. For tax years prior to 2004 the extended date for filing the Mariemont return will be the same as the extended date for the federal return regardless of the original due date of the tax return. For taxable year 2004 the extended due date shall be the last day of the month following the month to which the due date of the federal income tax return has been extended. The tax administrator may deny the extension if the taxpayer’s income tax account with the Village is delinquent in any way. For taxable years subsequent to 2004 the extended due date shall be the last day of the month to which the due date of the federal income tax return has been extended. Statutory interest of one-half percent (1/2%) per month or fraction thereof will be charged from the original due date of the return until date of actual payment. The extension is for extending the due date of the tax return and does not extend the time for paying any tax due. If a taxpayer wishes to extend the time for filing the Mariemont tax return to a date other than that provided in the above paragraph, the taxpayer must file such a request in writing to the Administrator prior to the due date of the automatic extension. The extension may be granted by the Administrator upon terms and conditions set forth by him or her. A taxpayer's extension request may be denied if the taxpayer is delinquent in the filing of any tax returns or payments of any taxes, penalties, or interest due. The granting of an extension does not extend the time for paying the tax, it only extends the time for filing the tax return. I. The failure of any taxpayer to receive or procure a return, declaration or other required form shall not excuse the taxpayer from filing such forms or from paying the tax due. J. Payments received for taxes due shall be allocated first to penalties due, then to interest due, and then to taxes due. K. The Administrator is authorized but is not required 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 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. L. Within thirty (30) days after a new tenant occupies rental property of any kind within the Village the owner of such rental property shall file with the Tax Administrator a report showing the name, address, and telephone number, if available, of each such tenant. Within thirty (30) days after a tenant vacates rental property located within the Village, the owner of such vacated rental property shall file with the Tax Administrator a report showing the days of vacation from the rental property and identifying each such vacating tenant along with a forwarding address. As used herein, the term "rental property" shall include houses, apartments, rooms, stores, and any other real property rented, leased or demised to a tenant or lessee. Violation of this ordinance shall be an offense punishable by a fine of up to $100.00. SECTION 7. COLLECTION AT SOURCE - WITHHOLDING BY EMPLOYER. A. Each employer within or doing business within the Village who employs one or more persons on a salary, wage, commission, income, or other compensation basis shall, at the time of the payment thereof, deduct the tax of one and one-quarter percent (1 1/4%) from the income, qualifying wages, commissions, income, or other compensation earned or received by residents regardless of where such compensation was earned, and shall deduct the tax of one and one-quarter percent (1 1/4%) from the income, qualifying wages, commissions, income, or other compensation earned or received within the Village by nonresidents thereof. B. Each such employer shall, on or before the last day of the month following the close of each calendar quarter, make a return and remit the tax hereby required to be withheld to the Administrator. However, any employer who, in a prior year, deducted tax in the amount of $2,400.00 or deducted $200 per month in the current calendar year, is required to make a return and remit the tax withheld on or before the 15th day of the month following the close of the preceding month to the Administrator. Such return shall be on a form or forms prescribed by or 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 taxes hereby required to be deducted and withheld, whether or not such taxes have in fact been so deducted and withheld. C. Such employer in collecting such 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 its employees shall, until the same is paid to the Village, be deemed a trust fund in the hands of such employer. D. On or before February 28 following any calendar year, such employer shall file with the Administrator an annual reconciliation return along with an information return for such employee from whom Mariemont 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 municipal income tax withheld from the employee with the municipality for which said tax was withheld identified. The information return shall also include all of the information required to be reported by the employer to IRS on a W-2 form. At the time of filing the annual reconciliation return the employer shall pay over any amounts deducted or which should have been deducted during the preceding year but which was not remitted. The annual reconciliation form shall be obtained from the Administrator. E. All individuals, businesses, employers, brokers or others who are required under the Internal Revenue Code to furnish forms 1099 to IRS for individuals or businesses to whom or which they have non-employee compensation shall furnish copies of the said form 1099's to the Administrator or in lieu thereof, a list containing the same information as required by IRS on the 1099's on or before the due date for such forms 1099's as established by IRS. Failure to provide the foregoing information may result in any deduction for payment by the taxpayer taken on the taxpayer's return to be disallowed. F Every employer shall retain all records necessary to compute withholding taxes due Mariemont for a period of five years from the date the Reconciliation Form, W-2 Forms, and 1099 forms are filed. G. All returns and forms required to be filed by an employer are considered received: (1) if mailed, on the date postmarked by the United States Postal Service or (2) on the date delivered without mailing by the taxpayer to the Village Tax Office. H. The failure of any employer to receive or procure a return, or other required form shall not excuse the employer from preparing any information return, withholding tax returns or from filing such forms or from paying the tax due. I. All employers that provide any contractual service within the Village, and who employ subcontractors in conjunction with that service, shall provide the Village the names and addresses of the subcontractors. The subcontractors shall be responsible for all income tax withholding requirements under this ordinance. J. Payments received for withholding taxes due shall be applied first to penalties due, then to interest due, and then to taxes due. SECTION 8. DECLARATIONS - ESTIMATED TAX PAYMENTS. Every person who anticipates any taxable income which is not subject to Section 7 or who engages in any business, profession enterprise and activity subject to the tax imposed by Section 3, shall file a declaration setting forth such estimated income or the estimated profit or loss from such business activity if the net estimated tax due after the deduction for allowable credits is $100.00 or more. 1. Such declaration shall be filed on or before April 15th of each year during the life of this ordinance, or before the 15th day of the fourth month from the date in which the taxpayer becomes subject to tax for the first time. (See Section 8A6) 2. Those taxpayers reporting on a fiscal year basis shall file a declaration before the 15th day of the fourth month after the beginning of each fiscal year or period. 3. Such declaration shall be filed upon a form furnished by, or obtainable from, the Administrator, or on a generic form approved by the Administrator. Credit may be taken for Mariemont income tax to be withheld, if any, from any portion of such income. In addition, credit may be taken for tax paid to other municipalities in accordance with the provisions of Section 16. 4. The original declaration, or any subsequent amendment thereof, may be increased or decreased on or before any subsequent payment date provided for herein. 5. Due dates for estimated payments. (a) Estimated tax to be paid the Village by taxpayers who are individuals shall be accompanied by a payment of at least one-fourth (1/4) of the estimated tax required to be paid by this Section, and at least a similar amount shall be paid on or before July 31st and October 31st of the taxable year, and January 31st of following year. Provided, however, that in case an amended declaration has been filed, the unpaid balance shown due thereon shall be paid in equal installments on or before the remaining payment dates. (b) 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 15th. In the case of a fiscal year taxpayer the second, third, and fourth quarterly estimated payments shall be due on the fifteenth day of the sixth, ninth, and twelfth months of the taxable year, respectively. Provided, however, that in case an amended declaration has been filed, the unpaid balance shown due thereon shall be paid in equal installments on or before the remaining payment dates. 6. 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 in 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. B. On or before the 15th day of the fourth month of the year following that for which such declaration or amended declaration was filed, an annual return shall be filed and any balance which may be due Mariemont shall be paid therewith in accordance with the provisions of Section 6. C. If a taxpayer’s total tax payments made in accordance with this section including any credits available to the taxpayer per Sections 7 and 16 do not equal at least 90% (ninety percent) of the taxpayers current years annual tax liability or 100% (one hundred percent) of the taxpayers annual tax liability for the immediately preceding tax year, then interest shall be assessed. SECTION 9. DUTIES OF THE ADMINISTRATOR. It shall be the duty of the Administrator to: A. Collect and receive the tax imposed by this ordinance in the manner prescribed herein, to keep accurate records thereof and to record daily all moneys so received. B. Enforce payment of all taxes due the Village hereunder, to keep accurate records for a period of not less than six 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. C. The Administrator is hereby charged with the enforcement of the provisions of this ordinance, and is hereby empowered, subject to the approval of the Board of Review, to adopt, promulgate and enforce rules and regulations relating to any matter or thing pertaining to the administration and enforcement of the provisions of this ordinance, including provision for the re-examination and correction of returns. Taxpayers are hereby required to comply with said rules and regulations. D. 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 by certified mail a written statement showing the amount of tax, if any, so determined together with interest and penalties thereon. Such determination may be modified or amended based upon information or data subsequently secured by or made available to the Administrator. If the taxpayer fails to respond to the assessment within 30 days, the tax, penalties, and interest assessed shall become due and payable and collectible as are other unpaid taxes. E. Subject to the consent of the Board of Review or pursuant to regulation approved by the said Board, the Administrator shall have the power to compromise any interest or penalty, or both, imposed by Section 11 of this ordinance. F. If the Administrator issues a decision or opinion to a taxpayer regarding a tax obligation that is subject to appeal, the Administrator shall notify the taxpayer of the taxpayer's right to appeal the decision and of the manner in which the appeal can be made. SECTION 10. INVESTIGATIVE POWERS OF ADMINISTRATOR; PENALTY FOR DIVULGING CONFIDENTIAL INFORMATION. The Administrator, or any employee of the Village designated by the Administrator, is hereby authorized to examine the books, papers, records, and Federal or State income tax returns of any employer or of any taxpayer or person subject to the tax for the purpose of verifying the accuracy of any return made, or, if no return was made, to ascertain the tax due under this ordinance. Every such employer, supposed employer, taxpayer or supposed taxpayer is hereby directed, and required to furnish within ten (10) calendar days following a written request by the Administrator, or his duly authorized agent or employee, the means, facilities and opportunity for making such examination and investigations as are hereby authorized. B. The Administrator is hereby authorized to order any person deemed by the Administrator to have knowledge or information pertinent to the tax liability of any taxpayer to appear before him or her 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 or State income tax returns and the attendance of all persons before him or her whether as parties or witnesses, whenever he believes such persons have knowledge of such income or information pertinent to such inquiry. C. The refusal to produce books, papers, records and Federal or State 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 ordinance, punishable as provided in Section 13. D. Any information gained from, or as the result of, any declarations, returns, investigations, reports, hearings or verifications required or authorized by this ordinance shall be confidential, except for official purposes, which includes the exchange of information with other tax authorities or in accordance with proper judicial order. Any such person divulging such information in violation of this ordinance shall be subject to prosecution as provided in Section 13. Each disclosure shall constitute a separate offense. In addition, information may be released by the Administrator in accordance with and upon the execution by a taxpayer of a waiver and consent form or authorization form which form or forms shall be furnished by the Administrator. In addition to the penalty provided in Section 13 any employee of the Village who violates the provisions hereof relative to the disclosure of confidential information shall be subject to immediate dismissal. E. Every taxpayer shall maintain, and retain for a period of five years after the date a declaration or return is due or withholding taxes paid, all records necessary to exhibit and compute his liability for taxes due or to be withheld under the provisions of this ordinance. SECTION 11. INTEREST AND PENALTIES. A. All taxes imposed and moneys withheld or required to be withheld by employers under the provisions of this ordinance and remaining unpaid after they have become due shall bear interest, in addition to the amount of the unpaid tax or withholdings, at the rate of one percent (1%) per month. B. In addition to interest as provided in subsection A hereof, penalties based on the unpaid tax are hereby imposed as follows: 1. For failure to pay taxes due, other than taxes withheld; one percent (1%) per month. 2. For failure to remit taxes withheld from employees; three percent (3%) per month. 3. For failure to file a tax return by the date due, including due dates extended as set forth at Section 6.G there shall be due a penalty of twenty-five dollars ($25.00) in addition to all other penalties and interest, even if no tax is due. C. The penalty provided in this section 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 nor, in the absence of fraud, shall either penalty or interest 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 the final determination of the Federal tax liability, whichever is later. 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 or interest, the Board of Review may nevertheless abate penalty or interest, or both. SECTION 12. COLLECTION OF UNPAID TAXES BY CIVIL LITIGATION; REFUNDS OF OVERPAYMENTS. A. All taxes imposed by this ordinance shall be collectible, together with any interest and penalties thereon, by suit, as other debts of like amount are recoverable. Except in the case of fraud, omission of twenty-five percent or more of income subject to this tax, 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 and all prosecutions 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. 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 Administrator shall be one year from the time of the final determination of the Federal tax liability. B. Taxes erroneously paid shall not be refunded unless a claim for refund is made within three years from the date on 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. However, the following shall apply regarding refunds of tax withheld from non-qualified deferred compensation plans (NDCP): 1. A taxpayer may be eligible for a refund if the taxpayer has suffered a loss from a NDCP. The loss will be considered sustained only in the taxable year in which the taxpayer receives the final distribution of money and property pursuant to the NDCP. Full loss is sustained if no distribution of money and property will be made by the NDCP. 2. A taxpayer who receives income as a result of payments from a NDCP, and that income is less than the amount of income deferred to the NDCP and upon which municipal tax was withheld, then a refund will be issued on the amount representing the difference between the deferred income that was taxed and the income received from the NDCP. If different tax rates applied to the tax years in which deferrals, a weighted average of the different tax rates will be used to compute the refund amount. 3. Refunds shall be allowed only if the loss is attributable to the bankruptcy of the employer who had established the NDCP, or the employee’s failure or inability to satisfy all of the employer’s terms and conditions necessary to receive the nonqualified compensation. C. Income tax that has been deposited with the Village, but should have been deposited with another municipality, is allowable by the Village as a refund but is subject to the three-year limitation on refunds. Income tax that should have been deposited with the Village, but was deposited with another municipality, shall be subject to recovery by the Village. The Village will allow a non-refundable credit for any amount owed the Village that is in excess of the amount to be refunded by the other municipality, as long as the tax rate of the other municipality is the same or higher than the Village tax rate. If the Village tax rate is higher, the tax representing the net difference of the rates is also subject to collection by the Village. D. Amounts less than five dollars ($5.00) shall not be refundable. SECTION 13. VIOLATIONS - CRIMINAL PROSECUTIONS. Any person or taxpayer who or which: A. Fails, neglects or refuses to make any return, information return or declaration required by this ordinance; or B. Makes any false or fraudulent return; or knowingly makes any incomplete return; or C. Fails, neglects or refuses to pay the tax, penalties or interest imposed by this ordinance; or D. Fails, neglects or refuses to withhold the tax from his employees or to remit such withholding to the Administrator; or E. Refuses to permit the Administrator or any duly authorized agent or employee to examine his books, records, papers and Federal income tax returns relating to the income or net profits of a taxpayer; or F. Fails to appear before the Administrator and to produce his books, records, papers or Federal income tax returns relating to the income or net profits of a taxpayer upon order or subpoena of the Administrator; or G. Refuses to disclose to the Administrator any information with respect to the income or net profits of a taxpayer; or H. Fails to comply with the provisions of this ordinance or any order or subpoena of the Administrator authorized hereby; or I. Gives to an employer false information as to his true name, correct Social Security number, or residence address, or fails to promptly notify an employer of any change in his residence address and the date thereof; or J. Fails to use ordinary diligence in maintaining proper records of employees' residence addresses, total wages paid and Village tax withheld or knowingly gives false or misleading information to the Administrator; or Attempts to do anything whatever to avoid payment of the whole or any part of the tax, penalties or interest imposed by this ordinance; or L. Fails, neglects or refuses to complete and return to the Administrator any tax form whose purpose is to determine if a resident must file a Village tax return; Shall be guilty of a misdemeanor of the first degree and shall be fined not more than one thousand dollars ($1,000.00) or imprisoned not more than six (6) months or both, for each offense. M. The failure of any employer, taxpayer or person to receive or procure a return, declaration or other required form shall not excuse him from making any return, information return or declaration, from filing such form or from paying the tax. SECTION 14. BOARD OF REVIEW. A. A Board of Review, consisting of a chairman and two other individuals, each to be appointed by the Mayor and approved by 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 10 with reference to the confidential character of information required to be disclosed by this ordinance shall apply to such matters as may be heard before the Board. B. All rules and regulations and amendments or changes thereto, which are adopted by the Administrator under the authority conferred by this ordinance, must be 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 taxpayer dissatisfied with any ruling or decision of the Administrator which was made under the authority conferred by this ordinance and who has filed the required returns or other documents pertaining to the contested issue may appeal therefrom to the Board of Review within thirty (30) calendar days from the issuance 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 must schedule a hearing within forty-five (45) calendar days of receiving the appeal unless the taxpayer expressly waives the hearing and chooses instead to let the Board render its decision on the writings submitted by the Administrator and the taxpayer. If the taxpayer does not waive the hearing, the taxpayer is entitled to appear before the Board and bring with him or her representation of his or her choosing. The Board must issue a written decision within ninety (90) days after the final hearing and send a notice of its decision by ordinary mail to the taxpayer within 15 days after issuing the decision. A hearing held in accordance with this Section is not a meeting of a public body subject to ORC 121.22. D. Any person dissatisfied with any ruling or decision of the Board of Review may appeal therefrom to a court of competent jurisdiction as provided by law within thirty (30) calendar days from the date of the Board's ruling or decision. For matters relating to tax years beginning on or after January 1, 2004, any ruling or decision of the Board of Appeal may be appealed to a court of competent jurisdiction or to the State Board of Tax Appeals. SECTION 15. USE OF FUNDS. Funds shall be allocated to the General Fund and the Capital Improvement Fund as may be determined by Council. SECTION 16. CREDIT FOR TAX PAID TO ANOTHER MUNICIPALITY. A. Credits and limitations thereof. Every individual taxpayer who resides in the Village who received net profits, income, qualifying wages, commissions, or other personal service compensation for work done or services performed or rendered outside of the Village, if it be made to appear that he has paid a municipal income tax on the same income taxable under this ordinance to another municipality, shall be allowed a credit against the tax imposed by this ordinance of the amount so paid by him or in his behalf to such other municipality. The credit shall not exceed one percent (1%) on such income earned in such other municipality or municipalities where such tax is paid. B. The credits provided for shall not be allowed unless the same are claimed in a timely return or form acceptable to, and filed with the Administrator. In the event a taxpayer fails, neglects or refuses to file such timely return or form, he shall not be entitled to such credit and shall be liable for the full amount of tax assessed by this ordinance, together with such interest and penalties, both civil and criminal, as are prescribed in this ordinance. C. No credit shall be given for any tax paid to a school district or a county. SECTION 17. SAVINGS CLAUSE. If any sentence, clause, section or part of this ordinance, or any tax against any individual of any of the several groups specified herein, is found to be unconstitutional, illegal or invalid, such unconstitutionality, illegality or invalidity shall affect only such clause, sentence, section or part of this ordinance and shall not affect or impair any of the remaining provisions, sentences, clauses, sections or parts of this ordinance. It is hereby declared to be the intention of Council that this ordinance would have been adopted had such unconstitutional, illegal or invalid sentence, clause, section or part thereof not been included herein. SECTION 18. COLLECTION OF TAX AFTER TERMINATION OF ORDINANCE. This Ordinance shall continue effective insofar as the levy of taxes is concerned for an indefinite period, provided however, that annual returns for the year ending December 31, 2003, shall be filed on or before April 15, 2004. This ordinance and all prior ordinances shall continue to be effective until all taxes, penalties and interest due under the said ordinances are fully paid and all tax returns due are filed, and any and all civil litigation and criminal prosecutions for the collection of said taxes have been fully consummated. Annual returns due for all or any part of the last effective year of this ordinance shall be due on the date provided in Section 6 and Section 7 of this ordinance as though the same were continuing. SECTION III. This Ordinance is hereby declared to be an emergency measure necessary for the preservation of the public peace, health and safety and shall go into immediate effect. The reason for said emergency is that said changes must be in effect for the beginning of the new tax year, January 1, 2004. Passed: November 24, 2003. Dan Policastro, Mayor ATTEST: S.L. Bahler, Clerk I, S. L. Bahler, Clerk of Council of the Village of Mariemont, Ohio, do hereby certify that there is no newspaper printed in said municipality and that publication of the foregoing Ordinance was duly made by posting true copies thereof at five of the most public places in said corporation as determined by the Council, as follows: the Concourse, Miami Bluff and Flintpoint Way; the Tennis Court property, on the east side of Plainville Road between Maple and Chestnut Streets; the site of the Municipal Building. Wooster Pike and Crystal Springs Road; the northeast corner of the intersection of Rembold and Miami Road inside the enclosure; the northwest corner of the Old Town Center, intersection of Chestnut and Oak Streets; each for a period of fifteen days commencing on the 24th day of November, 2003. S. L. Bahler, Clerk Check MailCompose Search MailSearch the Web