Income Tax Department » Village Income Tax Ordinance 2004-35
Village Income Tax Ordinance 2004-35
AN ORDINANCE levying a tax to provide funds for the purpose of general municipal operations, maintenance of equipment, new equipment, extension, enlargement and improvement of municipal services and facilities and capital improvements, on all income, salaries, qualifying wages, commissions and other compensation earned or received by residents of the Village of Hicksville; on all income, salaries, qualifying wages, commissions and other compensation earned or received by non-residents of the Village of Hicksville for work done or services performed or rendered in the Village of Hicksville; on the net profits earned on all businesses, professions or other activities conducted by residents of the Village of Hicksville; on the net profits earned on all businesses, professions or other activities conducted in the Village of Hicksville by non-residents, and on the net profits earned by all corporations doing business in the Village of Hicksville as the result of work done or services performed or rendered in the Village of Hicksville; requiring the filing of returns and furnishing of information by employers and all those subject to said tax; imposing on employers the duty of collecting the tax at the source and paying the same to the Village of Hicksville; providing for the administration, collection and enforcement of said tax; declaring violation thereof to be a misdemeanor and imposing penalties therefor; and declaring an emergency.
SECTION 1. 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” - 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.
"ASSOCIATION" - A partnership, limited partnership, limited liability company (including a single-owner LLC), chapter S corporation as defined in the federal tax code, 26 U.S.C. 1361, or any other form of unincorporated enterprise, owned by one (1) or more persons.
“Board of Review” - The Board created by and constituted as provided in Section 14 of this ordinance.
"BUSINESS" - An enterprise, activity, profession or undertaking of any nature conducted for profit or ordinarily conducted for profit, whether by an individual, partnership, limited partnership, corporation, association 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, 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 income, qualifying wages, salary, commission or other type of compensation or other income in the service and under the control of an employer.
"EMPLOYER" - An individual, partnership, limited partnership, association, corporation, governmental body, unit or agency, or any other entity, whether or not organized for profit, who or that employs one (1) or more persons on a salary, wage, commission or other compensation or other income basis.
“Fiscal Year” - An accounting period of twelve (12) months or less ending on any date other than December 31st.
“GENERIC FORM” - 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 regular information required on the Village of Hicksville’s regular tax return, estimated payment forms, and refund forms, and are in a similar format that will allow processing of the generic forms without altering the Village of Hicksville’s procedures for processing forms.
“Gross Receipts” - The total 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 Hicksville.
(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 Hicksville.
(C) The portion attributable to the city 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 Hicksville.
"NET PROFITS" - For taxable years prior to 2004, the net gain from the operation of a business, profession or enterprise after provision for all ordinary and necessary expenses either paid or accrued in accordance with the accounting system (i.e., either cash or accrual) used by the taxpayer for federal income tax purposes without deduction of taxes imposed by this ordinance, and Federal and State and other taxes based on income, and in case of an association, without deduction of salaries paid to partners and other owners; and as otherwise adjusted to the requirements of this ordinance and the rules & regulations promulgated by the Tax Administrator.
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. (For taxable years 2004 and later, see “adjusted federal taxable income”.)
"NON-RESIDENT" - An individual domiciled outside the Village of Hicksville.
"Nonresident unincorporated business entity" - An unincorporated business entity not having a place of business within the Village.
"OTHER ENTITY" - Any agency, association, authority, body, commission, organization or person not previously named or defined in this section including, but not limited to, any governmental agency, authority, body, or commission. The singular shall include the plural and the masculine shall include the feminine and the neuter.
"PERSON" - Every natural person, partnership, limited partnership, corporation, fiduciary or association. Whenever used in any clause prescribing and imposing a penalty, the term "person" as applied to any association, 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 occupied and used by the taxpayer in carrying on any business activity individually or through one or more of his regular employees regularly in attendance.
“QUALIFYING WAGE” - 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 of Hicksville. This definition is effective January 1, 2004, for taxable years 2004 and later.
"RESIDENT" - An individual domiciled in the Village of Hicksville.
"Resident unincorporated business entity" - An unincorporated business entity having a place of business within the village.
“tax Administrator” – The Clerk-Treasurer or the individual, whether appointed or elected, designated to administer and enforce the provisions of the ordinance.
"Taxable income" - Income minus the deductions and credits allowed by this ordinance. (See “Income” definition.)
"Taxable year" - the calendar year, or the fiscal year upon the basis of which the net profits are to be computed under this chapter 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.
"Taxpayer" - a person, whether an individual, partnership, association, or any corporation or other entity, required hereunder to file a return or pay a tax.
A. To provide funds for the purpose of general municipal operations, maintenance of equipment, new extension, enlargement and improvement of municipal services and facilities and capital improvements of the Village of Hicksville, an annual tax, as provided in Ordinance No. 657, passed January 18, 1971 and as subsequently amended from time to time, tax shall be imposed on and after March 1, 1971, at the rate of one per cent (1%) per annum upon the following:
- On all income, salaries, qualifying wages, commissions, and other compensation earned or received on and after March 1, 1971, by residents of the Village of Hicksville. For further clarification “income” includes, but is not limited to, lottery, gambling and sports winnings, and games of chance, and no deductions shall be allowed against income from these sources. However, if the taxpayer is considered a professional gambler for federal income tax purposes, related deductions as permitted by the Internal Revenue Code shall be allowed against gambling and sports winnings.
- On all income, salaries, qualifying wages, commissions and other compensation earned or received on and after March 1, 1971, by non-residents of the Village of Hicksville for work done or services performed or rendered in the Village of Hicksville.
- On the distributive shares of net profits attributable to Hicksville, earned on and after March 1, 1971, of all resident and non-resident unincorporated businesses, professions and other entities derived from sales made, work done or services rendered or performed and business or other activities conducted in the Village of Hicksville. On behalf of each owner, partner, or shareholder, the tax due on the distributive shares shall be collected and remitted by the resident and non-resident unincorporated businesses, professions and other entities in accordance with the provisions of this ordinance and the rules and regulations.
- On the portion of the distributive share of the net profits earned or received on and after March 1, 1971, of an individual, partner, shareholder or owner of a resident unincorporated business entity with net profits attributable to Hicksville and for which tax due Hicksville was not collected and/or remitted by such unincorporated business entity.
- On the portion of the distributive share of the net profits earned on and after March 1, 1971, of a resident individual, partner or owner of a nonresident unincorporated business entity not attributable to Hicksville and not levied against such unincorporated business entity.
- Effective for tax years 2004 and later, the distributive share of income paid to an S corporation shareholder shall be taxable in the following manner:
a. If no portion of the net profits of the S corporation are allocated or apportioned to the State of Ohio, the distributive share is taxable only to the extent that it represents wages or net earnings from self-employment.
b. If any portion of the net profits of the S corporation are allocated or apportioned to the State of Ohio, the full amount of the distributive share is taxable.
- On the net profits earned or received on and after March 1 1971, of all corporations derived from sales made, work done or services performed or rendered and business or other activities conducted in the Village of Hicksville.
- The portion of the net profits attributable to the Village of Hicksville of a taxpayer conducting a business profession or other activity both within and without the boundaries of the Village of Hicksville shall be determined as provided in Section 718.02 of the revised Code of Ohio and in accordance with the Rules and Regulations adopted by the Council of the Village of Hicksville pursuant to this Ordinance.
- Any association, corporation, or other entity which is exempt from Federal tax on income by reason of its religious, charitable, educational, scientific, or other purpose, shall nevertheless be subject to tax on income from activities unrelated to the purpose for which the association, corporation, or other entity has been granted exemption from federal income tax. Such taxable income shall include, but not be limited to, rental income, and the association, corporation, or other entity is required to file declarations and final returns and remit the tax levied by the Village of Hicksville on such income. (See Section 4, paragraphs 4 and 5, for exemptions.)
- For purposes of calculating net profits attributable to the Village of Hicksville, amounts representing loss carry forward shall be excluded.
B. Net profit from a business or profession conducted both within and without the boundaries of the Village of Hicksville shall be considered as having a taxable situs in the Village of Hicksville for purposes of income taxation in the same proportion as the average ratio of:
- 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 of Hicksville during the taxable period to the average original cost of all of the real and tangible personal property owned or used by the taxpayer in the business or profession during the same period, wherever situated. As used in the preceding paragraph, real property shall include property rented or leased by the taxpayer and the value of such property shall be determined by multiplying the annual rental thereon by eight.
- Wages, salaries and other compensation paid during the taxable period to persons employed in the business or profession for services performed in the Village of Hicksville 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 for taxable years 2004 and later.
- Gross receipts of the business or profession from sales made and services performed during the taxable period in the Village of Hicksville to gross receipts of the business or profession during the same period from sales and services, wherever made or performed.
In the event that the foregoing apportionment formula does not produce an equitable result another basis may, under uniform regulations, be substituted so as to produce such result.
- All sales of tangible personal property which is delivered within the Village of Hicksville regardless of where title passes if shipped or delivered from a stock of goods within such village.
- All sales of tangible personal property which is delivered within the Village of Hicksville regardless of where title passes even though transported from a point outside such village if the taxpayer is regularly engaged through its own employees in the solicitation or promotion of sales within the Village of Hicksville and the sales result from such solicitation or promotion.
- All sales of tangible personal property which is shipped from a place within the Village of Hicksville to purchasers outside such 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.
- 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 of Hicksville. However, once the affiliated group has elected to file a consolidated return or a separate return with the Village of Hicksville, the affiliated group may not change their method of filing in any subsequent tax year without written approval from the Village of Hicksville.
- 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 of Hicksville constituting a portion only of its total business, the Tax Administrator shall require such additional information as he may deem necessary to ascertain whether net profits are properly allocated to the Village of Hicksville. If the Tax Administrator finds net profits are not properly allocated to the Village of Hicksville, 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 appropriate to produce a fair and property allocation of net profits to the Village of Hicksville.
SECTION 3. EFFECTIVE DATE
Said tax shall be levied, collected and paid with respect to salaries, wages, commissions, other compensation and other income earned or received on and after March 1, 1971, and with respect to the net profit of businesses, professions and other activities earned or received on and after March 1, 1971. Provided, however, that where the fiscal year of the business, profession or other activity differs from the calendar year, the tax shall be applied to that part of the net profit for the fiscal year as shall be earned on and after March 1, 1971, to the close of the taxpayer's fiscal year; thereafter the taxpayer shall report on its fiscal year basis.
1. Military pay or allowances of members of the Armed Forces of the United States and of members of their reserve components, including the National Guard, and the Peace Corps.
2. Poor relief, pensions, social security, unemployment compensation, and disability benefits received from private industry or local, state or Federal governments, or from charitable, religious or educational organizations.
3. Dues, contributions and similar payments received by charitable, religious, educational or literary organizations or labor unions, lodges and similar organizations.
4. Receipts by bona fide charitable, religious and educational organizations and associations, when those receipts are from casual entertainment, amusements, sports events and health and welfare activities conducted by bona fide charitable, religious and educational organizations and associations.
5. 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.
6. Unemployment insurance benefits, welfare benefits, workers’ compensation, child support, alimony, and pensions paid as a result of retirement.
7. 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.
8. 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.
9. Gains from involuntary conversions, cancellation of indebtedness, interest on Federal obligations, items of income already taxed by the State of Ohio, and income of a decedent's estate during the period of administration (except such income from the operation of a business).
10. Expenses reported in accordance with federal guidelines for Federal Form 2106, subject to audit and approval by the Village of Hicksville income tax office.
11. Earnings and income of all persons under eighteen (18) years of age, whether residents or non-residents.
12. Income of full-time college students. Rescinded per Ordinance 2010-04 dated 07/06/10 effective beginning with tax year 2010.
13. 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.
14. Income, salaries, 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.
15. 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.
A. Each person 18 years of age or older who is or was a resident of the Village of Hicksville, Ohio at any time during a taxable year, whether or not a tax is due thereon, shall make and file a return on or before April 15 of each year. 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 Tax Administrator on a form or forms furnished or obtainable upon request from the Tax Administrator or on other forms deemed acceptable by the Tax Administrator, setting forth:
- The aggregate amounts of income, salaries, wages, commissions, and other compensation earned or received, credits to which the taxpayer is entitled, and gross receipts from any business, profession, or other activity, less allowable expenses.
- The amount of the tax imposed by this Ordinance on such income and net profits.
- Such other pertinent statements, information returns or other information as the Tax 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.
C. The Village of Hicksville Income Tax Department shall accept a generic form of its annual income tax return if the generic form once completed and filed contains all of the information required to be submitted with the Village of Hicksville’s prescribed returns, reports or documents, and if the taxpayer or preparer of the return filing the generic form otherwise complies with the rules or ordinances of the Village of Hicksville governing the filing of returns, reports or documents.
D. The Tax Administrator may grant an extension for filing of the annual return upon the request of the taxpayer for a period not to exceed six (6) months, or one (1) month beyond any extension requested or granted by the Internal Revenue Service for the filing of the Federal Income 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. 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. The extension request may be made by filing a copy of the taxpayer’s request for a federal filing extension, or by filing a written request. The Tax Administrator may deny the extension if the taxpayer’s income tax account with the Village of Hicksville is delinquent in any way. The Tax Administrator may require a tentative return accompanied by payment of the amount of tax shown to be due thereon by the date return is normally due.
- The taxpayer making a return shall, at the time of the filing thereof, pay to the Tax Administrator the amount of taxes shown as due thereon; provided, however, that where any portion of the tax so due shall have been deducted at the source pursuant to the provisions of Section 6 of this ordinance, or where any portion of said tax shall have been paid by the taxpayer pursuant to the provisions of Section 8 of this ordinance, or where an income tax has been paid to another municipality pursuant to the provisions of Section 7 hereof, credit for the amount so paid in accordance with Sections 6, 7, and 8 hereof shall be deducted from the amount shown to be due and only the balance, if any, shall be due and payable at the time of filing said return.
- A taxpayer who has overpaid the amount of tax to which the Village of Hicksville is entitled under the provisions of this ordinance may have such overpayment applied against any subsequent liability hereunder or, at his election indicated on the return, such overpayment (or part thereof) shall be refunded. However, no additional taxes or refunds of less than five dollars ($5.00) shall be collected or refunded. (See Section 12C and D)
- Where necessary, an amended return must be filed in order to report additional income and pay any additional tax due, or claim a refund of tax overpaid, subject to the requirements and/or limitations contained in Sections 12 and 7. Such amended returns shall be on a form obtainable on request from the Tax Administrator. A taxpayer may not change the method of accounting (i.e., cash or accrual) or apportionment of net profits after the due date for filing the original return.
- Within three (3) months from the final determination of any federal, State, or municipal income tax liability affecting the taxpayer’s Village of Hicksville tax liability, such taxpayer shall make and file an amended Village of Hicksville return showing income subject to the Village of Hicksville tax based upon such final determination of federal, State, or municipal income tax liability, and pay any additional tax shown due thereof or make claim for refund of any overpayment.
G. Retirees, and individuals on permanent disability, having no taxable income shall be exempt from this filing requirement. This exemption from filing shall be in effect until such time that the retiree receives taxable income for municipal income tax purposes, at which time the retiree shall be required to comply with the provisions of this Section.
I. Resident taxpayers who are full-time college students at the end of the taxable year shall not be required to file a tax return. Rescinded per Ordinance 2010-05 dated 07/06/10 effective beginning with tax year 2010.
A. In accordance with the ordinance and the Rules and Regulations, each employer within or doing business with the Village of Hicksville shall deduct at the time of the payment of such salary, qualifying wage, commission, income, or other compensation, the tax of one (1%) percent of the gross salaries, qualifying wages, commissions, income or other compensation, due by the said employer to said employee and shall, on or before the last day of the month following the close of each calendar quarter make a return and pay to the Tax Administrator the amount of taxes so deducted. Said returns shall be on a form or forms prescribed by or acceptable to the Tax Administrator and shall be subject to the rules and regulations prescribed therefore by the Tax Administrator. Such employer shall be liable for the payment of the tax required to be deducted and withheld, whether or not such taxes have in fact been withheld.
B. Such employer in collecting said tax shall be deemed to hold the same, until payment is made by such employer to the Village of Hicksville as a Trustee for the benefit of the Village of Hicksville, and any such tax collected by such employer from his employees, shall until the same is paid to the Village of Hicksville, be deemed a trust fund in the hands of such employer.
C. On or before January 31 of each year during which this ordinance is in effect, each employer shall file a withholding return setting forth the names, addresses, and social security numbers of all employees from whose compensation the tax was withheld during the preceding calendar year and the amount of tax withheld from his employees and such other information as may be required by the tax Administrator.
D. 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.
E. An individual, association, corporation or other entity engaged in the business of construction work and who will perform construction work in the Village of Hicksville shall obtain a tax account number, issued by the Income Tax Department, prior to beginning construction work. The Income Tax Department shall also issue a Certificate of Registration which the contractor shall file with the Building Inspector. Failure to possess a valid Certificate shall be cause for suspension of work by the Building Inspector and/or the Income Tax Department prior to the construction work commencing and/or during the performance of the construction work. Proof of possession of a valid Certificate shall be necessary to commence or resume suspended construction work. The Certificate of Registration may be revoked by the Income Tax Department for failure by the contractor to remain current in the filing of required tax documents, and for failure to remain current in the required payment of taxes.
SECTION 7. CREDIT FOR TAX PAID TO OTHER MUNICIPALITIES
Every individual taxpayer who resides in the Village of Hicksville but who receives net profits, income, salaries, qualifying wages, commissions or other personal service compensation, for work done, or services performed or rendered outside of said village, if it be made to appear that he has paid a municipal income tax on such net profits, income, salaries, qualifying wages, commissions or other compensation 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 the tax assessed by this Ordinance on such net profit, income, salary, qualifying wages, commissions or compensation earned in such other municipality or municipalities where such tax is paid.
AN ORDINANCE ADOPTING SECTION 181.071 REGARDING THE TAX CREDIT FOR FULL TIME COLLEGE STUDENTS.
WHEREAS, the Council of the Village of Hicksville, Ohio, had previously established rules and regulations for the collection of income tax in the Village;
WHEREAS, the Council of the Village of Hicksville, Ohio, desires to require all resident tax payers who are full time college students to file a tax return and further desires to give all full time college students a tax credit towards their income tax liability;
NOW, THEREFORE, BE IT ORDAINED by the Council of the Village of Hicksville, Ohio:
SECTION 1: The following shall be added to the Codified Ordinances of the Village ofHicksville, Ohio, as Section 181.071:
181.071 CREDIT FOR FULL TIME COLLEGE STUDENTS.
- Every individual tax payer who resides in the Village and provides substantial proof that he or she is a full-time college student shall be given a credit of up to $50.00 on his or her first $5,000.00 of taxable income. This credit will only apply if there is tax liability after the individual receives credit for any taxes paid to other municipalities. Refunds will be issued only on the first $5,000.00 of income subject to withholding for the Village of Hicksville.
SECTION 2: This Ordinance shall take effect and be in full force from and after the earliest period allowed by law. Effective beginning with tax year 2010.
A. Every person who anticipates any taxable income which is not subject to Section 6 hereof, or who engages in any business, profession, enterprise or activity subject to the tax imposed by Section 2 hereof 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 of Hicksville, in accordance with Section 6 hereof, such person need not file a declaration.
- Such declaration shall be filed on or before April 15th of each year during the life of this ordinance, 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 of Hicksville 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.
- Those taxpayers reporting on a fiscal year basis shall file a declaration within one hundred five days after the beginning of each fiscal year or period. Such declaration shall be filed upon a form furnished by, or obtainable from the tax Administrator.
- In accordance with the provisions of Section 7 hereof, credit may be taken for tax to be paid to or to be withheld and remitted to another taxing municipality.
- The original declaration (or any subsequent amendment thereof) may be increased or decreased on or before any subsequent quarterly payment date and provided for herein.
D. Effective January 1, 2003, such declaration of estimated tax to be paid the Village of Hicksville by taxpayers who are individuals shall be accompanied by a payment of at least one-fourth (1/4) of 90% of the estimated annual tax 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.
E. Effective January 1, 2003, such declaration of estimated tax to be paid to the Village of Hicksville 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 estimated payments shall be due on the fifteenth day of the sixth, ninth, and twelfth months of the taxable year, respectively.
A. It shall be the duty of the Clerk-Treasurer to receive the tax imposed by this Ordinance in the manner prescribed herein from the taxpayers; to keep an accurate record thereof; and to report all monies so received. All cashiers handling tax monies shall be subject directly to the Clerk-Treasurer and shall give daily accountings to the Clerk-Treasurer.
B. It shall be the duty of the Clerk-Treasurer to enforce payment of all taxes owing the Village of Hicksville, to keep accurate records for a minimum of six (6) 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. Said Clerk-Treasurer is hereby charged with the enforcement of the provisions of this Ordinance and to enforce the rules and regulations of the Council of the Village of Hicksville, Ohio, relating to any matter or thing pertaining to the collection of Village income taxes and the administration and enforcement of the provisions of this Ordinance, including provisions for the examination and correction of returns and payments. 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 Clerk-Treasurer may determine the amount of tax appearing to be due the Village of Hicksville 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. Such assessment shall be collected in accordance with the rules and regulations.
E. Subject to the consent of the Board of Review or pursuant to regulations approved by the Council of the Village, the Clerk-Treasurer shall have the power to compromise any interest or penalty, or both, imposed by this Ordinance.
F. A Department of Taxation is hereby created within the office of the Clerk-Treasurer of the Village of Hicksville. Such Department of Taxation shall have such deputies, clerks and other employees as may be from time to time determined by the Council of the Village of Hicksville, and shall receive such salary as may be determined by Village Council. The Clerk-Treasurer shall recommend all appointments of personnel and purchase all equipment, supplies and material for the Department of Taxation subject to the approval of Council. The Department of Taxation shall be charged with the administration and operation of this Ordinance, under the direction of the Clerk-Treasurer. The Clerk-Treasurer shall prescribe the form and method of accounts and reports for said department, as well as the forms for taxpayer's returns and declarations, and shall be charged with the internal examination and audit all such accounts, and shall exhibit accurate records showing the amount received from each taxpayer, and the date of said receipt. The Clerk-Treasurer shall also make written report to Council annually of all monies collected hereunder during the preceding year.
G. If authorized by the Clerk-Treasurer, any and all functions of the Clerk-Treasurer specified in this Section may be conducted by the agent or employee designated by the Clerk-Treasurer to perform the responsibilities of Tax Administrator.
A. The Clerk-Treasurer or his duly authorized agent or employee, is hereby authorized to examine the books, papers and records of any employer, or of any taxpayer or person subject to the tax, or believed to be subject to the provisions of this Ordinance, for the purpose of verifying the accuracy of any return made, or, if no return was made, to ascertain the tax due. Every such employer, supposed employer, taxpayer or supposed taxpayer, is hereby directed and required to furnish to the Clerk-Treasurer or his duly authorized agent or employee, within ten (10) calendar days following a written request by the Clerk-Treasurer or his duly authorized agent or employee, the means, facilities, and opportunity for making such examination and investigations as are hereby authorized.
B. The Clerk-Treasurer or his duly authorized agent or employee, is hereby authorized to examine any person, employer or employee under oath, concerning any income which was or should have been returned for taxation, and for this purpose may compel the production of books, Federal and State income tax records, papers and records and the attendance of all persons before him whether as parties or witnesses, wherever he believes such persons have knowledge of such income.
C. The refusal to produce books, papers, records and Federal and 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 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 any order or subpoena of the Clerk-Treasurer authorized hereby shall be deemed a violation of this Ordinance, punishable as provided in Section 13 hereof.
D. Tax returns, investigations, hearings and all audit papers and information connected therewith are confidential and shall be carefully preserved so that they shall not be available for inspection by anyone other than the proper agents of the Village of Hicksville for official purposes.
E. Any information gained as the result of the filing of any tax returns, investigations, hearings or verifications required or authorized by this Ordinance shall be confidential, except for official tax purposes and except in accordance with proper judicial order. Any person divulging such information shall upon conviction thereof be deemed guilty of a misdemeanor and shall be subject to a fine or penalty of not more than five hundred dollars ($500.00) or imprisoned for not more than six (6) months, or both. Each disclosure shall constitute a separate offense. In addition to the above penalties, any employee of the Village of Hicksville who violates the provisions of this Section relative to disclosures of confidential information shall be immediately dismissed from the service of the Village.
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 become due shall bear interest at the rate of 0.5% per month or fraction of a month thereof.
- Failure to pay taxes due (other than taxes withheld): One and one half percent (1.5%) per month or fraction of a month thereof.
- Failure to remit taxes withheld from employees: Five percent (5%) per month or fraction of a month thereof.
- Failure to make or timely file a declaration of estimated payments (if required by Section 8 to do so), or failure to make payments on the declaration: $25. In addition, a penalty of one and one-half percent (1.5%) and interest of one-half percent (0.5%) shall be assessed on late payments from the time the payment was due until the payment was made.
C. A penalty shall not be assessed on an additional tax assessment made by the Clerk-Treasurer or his duly authorized agent or employee when a return has been filed in good faith, and the tax paid thereof within the time prescribed by the Clerk-Treasurer or his duly authorized agent or employee. In the absence of fraud, neither penalty or interest shall be assessed on any additional tax assessment resulting form a Federal audit, providing an amended return is filed and the additional taxes paid within the three (3) months after final determination of the Federal tax liability.
A. All taxes imposed by Section 2 shall be collectible, together with any interest and penalties thereon, by suit. Except in the case of fraud, omission of twenty-five percent (25%) 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. In those cases in which the Commissioner of Internal Revenue 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 Superintendent 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. Should it appear that any taxpayer has paid more than the amount of the tax to which the Village of Hicksville is entitled under the provisions of this Ordinance a refund of the amount so overpaid shall be made, provided a proper claim for refund of such overpayment of tax has been filed by the taxpayer, or same may be applied toward the declaration of tax due for the ensuing year. Claims for refunds shall be made on forms prescribed by and obtainable from the Clerk-Treasurer or his duly authorized agent or employee. All applications for refunds shall be made within three (3) years after the tax was due or the return was filed, whichever is later. However, the following shall apply regarding refunds of tax withheld from non-qualified deferred compensation plans (NDCP):
- 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.
- 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.
- 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.
D. Income tax that has been deposited with the Village of Hicksville, but should have been deposited with another municipality, is allowable by the Village of Hicksville as a refund but is subject to the three-year limitation on refunds. Income tax that should have been deposited with the Village of Hicksville, but was deposited with another municipality, shall be subject to recovery by the Village of Hicksville. The Village of Hicksville will allow a non-refundable credit for any amount owed the Village of Hicksville 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 of Hicksville’s tax rate. If the Village of Hicksville’s tax rate is higher, the tax representing the net difference of the rates is also subject to collection by the Village of Hicksville.
A. The following shall be considered violations of this Ordinance:
- Failing, neglecting or refusing to make any return or declaration required by this Ordinance; or
- Making any incomplete, false or fraudulent return; or
- Failing, neglecting or refusing to pay the tax, penalties or interest imposed by this Ordinance; or
- Failing, neglecting or refusing to withhold the tax from employees or to remit such withholding to the Clerk-Treasurer or the Tax Administrator; or
- Refusing to permit the Clerk-Treasurer or any duly authorized agent or employee to examine books, records and papers and Federal and State income tax returns relating to the income or net profits of a taxpayer; or
- Failing to appear before the Clerk-Treasurer or any duly authorized agent or employee and to produce books, records, Federal and State income tax returns and papers relating to the income or net profits of a taxpayer under order or subpoena of the Clerk-Treasurer; or
- Refusing to disclose to the Clerk-Treasurer or any duly authorized agent or employee any information with respect to the income or net profits of a taxpayer; or
- Failing to comply with the provisions of this Ordinance or any order or subpoena of the Clerk-Treasurer authorized hereby; or
- Attempting to do anything whatever to avoid the payment of the whole or any part of the tax, penalties or interest imposed by this Ordinance.
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 from making any information return or declaration, from filing such form, or from paying the tax.
E. Any person who issues or transfers a check or other negotiable instrument for the payment of any tax due pursuant to this Ordinance, which is subsequently dishonored, shall be charged a bad check penalty of $20.00.
A. There is hereby created a Board of Review, consisting of the Village Solicitor, the Mayor and the Chairman of the Finance Committee. The members of the Board of Review shall serve without pay.
C. All hearings of the Board shall be conducted privately and the provisions of Section 10 of the Ordinance with reference to the confidential character of information required to be disclosed by the Ordinance shall apply to such matters as may be heard before the Board of Review on appeal.
D. Any person dissatisfied with any ruling or decision of the Clerk-Treasurer which is made under the authority conferred by the Ordinance and the Rules and Regulations related thereto may appeal therefrom to the Board of Review within thirty (30) days from the announcement of such ruling or decision by the Clerk-Treasurer, provided the taxpayer making the appeal has filed with the Village of Hicksville the required return or other documents concerning the obligation at issue. The appeal shall be in writing and shall state why the decision should be deemed incorrect or unlawful. The Board of Review 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.
E. Any person dissatisfied with any ruling or decision of the Board of Review may appeal therefrom to a court of competent jurisdiction within thirty (30) days from the announcement of such 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.
- Such part thereof as shall be necessary to defray all costs of collecting the taxes and the cost of administering and enforcing the provisions thereof.
- Not more than fifty percent (50%) of the net available income tax receipts received annually may be used to defray operating expenses of the Village.
- At least fifty percent (50%) of net available income tax receipts received annually shall be set aside and used for capital improvements for the Village including, but not limited to, development and construction of storm sewers and street improvements; for public buildings, parks and playgrounds; and for equipment necessary for the police, fire, street, traffic and safety departments.
SECTION 16. APPLICABILITY
This Ordinance shall not apply to any person, firm, corporation, or to any property as to whom or which it is beyond the power of the Village Council of the Village of Hicksville to impose the tax herein provided for.
SECTION 17. SAVINGS CLAUSE
If any sentence, clause, section or part of this Ordinance, or any tax against any individual or any of the several groups specified herein, is found to be unconstitutional, illegal or invalid, such unconstitutionality, illegality or invalidity shall affect only such sentence, clause, section or part of this Ordinance and shall not affect or impair any of the remaining provisions, sentences, clauses, sections or other parts of this Ordinance. It is hereby declared to be the intention of the Council of the Village of Hicksville 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. EFFECTIVE PERIOD
This Ordinance shall continue effective as written and as from time amended until such time as it is repealed by the Village Council, or the statutory authority for said Income Tax terminated by act of the Ohio State Legislature or by amendment to the Ohio Constitution: provided, however, that the electors of the Village may authorize imposition of an additional 1/4 of 1 percent tax in the manner provided by law - such additional tax if enacted shall not in any way revoke the 1% tax enacted hereunder even if such additional 1/4 of 1 percent tax shall have a definite expiration date or actually expire or be repealed: insofar as regards the collection of taxes levied within the period in which this Ordinance is in force and effect. Said Ordinance shall be deemed to continue in full force and effect regardless of the manner or mode of the termination until any and all actions or proceedings for collecting any tax levied hereunder or enforcing any penalty or other provisions of said Ordinance are concerned, until any and all suits or prosecutions for the collection of said taxes or punishment of violators of this Ordinance have been fully terminated.
A. For the purposes on this section, “tenant” means:
- If there is a written lease or rental agreement, the person or persons who signs the written lease or rental agreement with the property owner.
- If there is an oral lease or rental agreement, the person or persons with whom the property owner enters into the oral lease or rental agreement.
B. The Tax Administrator shall have the responsibility to issue periodic Tenant Up-Date Requests to owners of rental or leased residential, commercial or industrial property. Within thirty days of the issuance of the request the property owner shall notify the Tax Administrator of its accuracy and note any changes in tenants, including the dates that tenants moved in or out of the property and shall also update the Tax Administrator as to any rental properties which have sold or purchased. The periodic requests may be issued once per quarter.
D. A penalty of $25 shall be imposed for each instance of non-compliance with the provisions of this Section. The initial report shall be submitted not later than six months following the date this Section became effective.
SECTION 20. CONFLICTS
All ordinances and resolutions and parts thereof that are in conflict with any of the provisions enacted by this Ordinance are hereby repealed upon the effective date of this Ordinance.
SECTION 21. PUBLICATION
Pursuant to Ohio R. C. 731.21, the Clerk-Treasurer shall cause to be published, in the manner required by Ohio R. C. 731.21 and 731.22, a notice of the enactment of this Ordinance, containing the title of this Ordinance, and a summary of the new matter.
Passed in Council this ____ day of ________, 2004.
President of Council
Attest: Diane CollinsClerk/Treasurer