May 18, 2006
INCOME TAX RESOLUTION FOR THE TOLEDO-MAUMEE-MONCLOVA
JOINT ECONOMIC DEVELOPMENT ZONE BOARD
To provide funds for the purposes allowed by Section 715.69 of the Ohio Revised Code, and pursuant to that certain Contract for a Joint Economic Development Zone (“JEDZ”) between the City of Toledo, the City of Maumee, and the Board of Trustees of Monclova Township, there shall be, and is hereby, levied within the geographical boundaries of the JEDZ a tax on qualifying wages, commissions, severance pay and other compensation, and on net profits, from any transaction, venture or activity whether permanent, temporary or nonrecurring in character, as hereinafter provided.
As used in this chapter, 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:
(a) “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, adjusted as follows:
(1) Deduct intangible income to the extent included in federal taxable income. The deduction shall be allowed regardless of whether the intangible income relates to assets used in a trade or business or assets held for the production of income.
(2) Add an amount equal to five percent (5%) of intangible income deducted under division (a)(1) of this section, but excluding that portion of intangible income directly related to the sale, exchange, or other disposition of property described in section 1221 of the Internal Revenue Code.
(3) Add any losses allowed as a deduction in the computation of federal taxable income if the losses directly relate the sale, exchange, or other disposition of an asset described in section 1221 or 1231 of the Internal Revenue to Code including section 4797.
(4)(A) Except as provided in division (a)(4)(B) of this section, deduct income and gain included in federal taxable income to the extent the income and gain directly relate to the sale, exchange, or other disposition of an asset described in section 1221 or 1231 of the Internal Revenue Code including section 4797.
(B) Division (a)(4)(A) of this section does not apply to the extent the income or gain is income or gain described in section 1245 or 1250 of the Internal Revenue Code.
(5) Add taxes on or measured by income allowed as a deduction in the computation of federal taxable income.
(6) In the case of a real estate investment trust and regulated investment company, add all amounts with respect to dividends to, distributions to, or amounts set aside for or credited to the benefit of investors and allowed as a deduction in the computation of federal taxable income.
(7) If the taxpayer is not a C corporation and is not an individual, the taxpayer shall compute adjusted federal taxable income as if the taxpayer were a C corporation, except:
(A) Guaranteed payments and other similar amounts paid or accrued to a partner, former partner, member, or former member shall not be allowed as a deductible expense; and
(B) Amounts paid or accrued to a qualified self-employed retirement plan with respect to an owner or owner-employee of the taxpayer, amounts paid or accrued to or for health insurance for an owner or owner-employee, and amounts paid or accrued to or for life insurance for an owner or owner-employee shall not be allowed as a deduction.
Nothing in division (a)(1) of this section shall be construed as allowing the taxpayer to add or deduct any amount more than once or shall be construed as allowing any taxpayer to deduct any amount paid to or accrued for purposes of federal self-employment tax.
Nothing in this chapter shall be construed as limiting or removing the ability of any municipal corporation to administer, audit, and enforce the provisions of its municipal income tax.
(b) "Association" means a
partnership, limited partnership, limited liability company, or any other form
of unincorporated enterprise, owned by two or more persons
(c) "Board of Review" means the Board created by and constituted as provided in Section 100.12.
(d) "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.
(e) "Commissioner of
Taxation” or "Commissioner" means the person so designated by the entity
administering the JEDZ or the person executing the duties of the aforesaid
(f) "Corporation" means a
corporation or joint stock association organized under the laws of the United
States, the State of Ohio or any other state, territory or foreign country or
(g) "Employee" means one who works for qualifying wages, commission or other type of compensation in the service of an employer and whose qualifying wages, or commissions are subject to withholding of federal income tax, Social Security Tax, and/or Medicare Tax.
(h) "Employer" means an individual, partnership, association, corporation, governmental body, unit or agency, or any other entity, whether or not organized for profit, who or that employs one or more persons on a salary, wage, commission or other compensation basis.
(i) "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. Filing
on a 52/53 week period will be defined as the month end nearest to the end of
that filing period.
“Generic form” means an electronic or paper form designed for reporting
estimated municipal income taxes and annual municipal income tax liability or
for filing a refund claim that is not prescribed by a particular municipal
corporation for the reporting of that municipal corporation’s tax on
receipts" means the total income from any source whatsoever.
“Income from a pass-through entity” means partnership income of partner,
membership interests of members of a limited liability company, distributive
shares of shareholders of an S corporation, or other distributive or
proportionate ownership shares of income from other pass-through entities.
“Intangible income” means income of any of the following types: income yield, interest, capital gains,
dividends, or other income arising from the ownership, sale, exchange, or other
disposition of intangible property including, but not limited to, investments,
deposits, money, or credits as those terms are defined in Chapter 5701. of the
Ohio Revised Code, and patents, copyrights, trademarks, tradenames, investments
in real estate investment trusts, investments in regulated investment companies,
and appreciation on deferred compensation. “Intangible income” does not include
prizes, awards, or other income associated with any lottery winnings or other
similar games of chance.
Economic Development District” and “Cooperative Economic Development Area” means
districts created under the Ohio Revised Code sections 715.691.
(p) “Limited liability company” means a
limited liability company formed under Chapter 1705 of the Ohio Revised Code or
under the laws of another state.
profit” for a taxpayer other than an individual means adjusted federal taxable
income and “net profit” for a taxpayer who is an individual means the
individual’s profit, other than amounts described in division (F) of section
100.03, required to be reported on Internal Revenue Code schedule C, schedule
E, or schedule F for individual taxpayers.
“Nonqualified deferred compensation plan” means a compensation plan
described in section 3121(v)(2)(C) of the Internal Revenue Code.
"Nonresident" means an individual domiciled outside the JEDZ.
"Nonresident unincorporated business entity" means an unincorporated
business entity not having an office or place of business within the JEDZ.
(u) "Office" see "place of business".
(v) "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 payer on a Form 1099-R or similar form.
(w) “Person” includes individuals, firms, companies, business trusts, estates, trusts, partnerships, limited liability companies, associations, corporations, governmental entities, and any other entity.
(x) "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 agents or employees.
(y) “Qualifying wages” means wages, as defined in
section 3121(a) of the Internal Revenue Code, without regard to any wage
limitations, adjusted in accordance with section 718.03(A) of the Ohio Revised
(z) "Reciprocity credit" means the credit granted by a
municipality to its residents and to nonresidents whose city of residence grants
a similar credit to nonresidents thereof.
(aa) “Resolution” means this income tax resolution adopted by the JEDZ Board.
(bb) “Resident” unincorporated business entity" means an unincorporated business entity having an office or place of business within the JEDZ.
(cc) “Qualifying wages, and other compensation” means the total compensation paid to an individual in cash or in kind on an hourly, daily, weekly, monthly, annual, or other basis, including, but not limited to the following: severance or termination pay; wage continuation payments made as a result of early retirement or employment termination; wage continuation payments made as a result of sickness or temporary disability and whether paid by the recipient's employer or by a third party; vacation or holiday pay; tips or gratuities received; group term insurance premiums paid on an employee's behalf; employee contributions to tax sheltered annuities, non-qualified pension plans, or into employer or third party trusts or pension plans as permitted by IRS and which may be excludable from wages for federal tax purposes; ordinary income portion of stock options or employee stock purchase plans; supplemental unemployment benefits (SUB Pay); strike pay; jury duty pay; employer or employee contributions or amounts credited to non-qualified pension plans or deferred compensation plans at the time of deferral and to the extent subject to Medicare tax; working conditions fringe benefits subject to tax by IRS; guardian, executor, conservator, trustee, or administrator fees; bonuses; ordinary income portion of lump sum distributions which become subject to federal tax because the recipient did not roll over the distribution within the time required by IRS.
(dd) "Taxable year"
means the calendar year, or the fiscal year upon the basis of which the net
profits are to be computed under this Resolution and, in the case of a return
for a fractional part of a year, the period for which such return is made.
(ee) "Taxpayer" means a person, whether an individual, partnership, association or any corporation or other entity, subject to the tax imposed by this Resolution or required here-under to file a return or pay a tax. The singular shall include the plural, and the masculine shall include the feminine and the neuter.
100.03 Imposition of Tax
(a) An annual tax for the purposes specified in Section 100.01 shall be imposed on and after April 1, 2004, at the rate of one and one-half percent (1-1/2%) per annum upon the following:
(1) On all qualifying wages, commissions, severance pay other compensation as defined in Section 100.02(cc) earned or received and from net profits from unincorporated business entities and professions and from any transaction, venture or activity whether permanent, temporary or nonrecurring in character, earned or received on and after April 1, 2004, by businesses located within the JEDZ and employees of those businesses.
(2) On the portion attributable to the JEDZ area of the net profits earned on and after April 1, 2004, of all 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 JEDZ area. Section 100.03(a)(4) applies to corporations.
(3) On the portion of the distributive share of the net profits earned on and after April 1, 2004, of a partner or owner of a resident unincorporated business entity not attributable to the JEDZ area and not levied against such unincorporated business entity.
(4) On the portion attributed to the JEDZ area of the net profits earned during the effective period of this Resolution of all corporations derived from sales made, work done or services performed or rendered and business or other activities conducted in the JEDZ area whether or not such corporations have an office or place of business in the JEDZ area.
(5) On the income of employees and businesses within the JEDZ area associated with covenants not to compete to the extent subject to IRS tax.
(6) Rents received by the taxpayer are to be included to the extent that the rental, ownership, management or operation of the real estate, equipment from which such rentals are derived (whether so rented, managed or operated by taxpayer individually or through agents or other representatives) constitutes a business activity of the taxpayer while or in part of the JEDZ.
(b) The portion of the adjusted federal net income or net profits attributable to the JEDZ area of a taxpayer conducting a business, profession or other activity both within and without the boundaries of the JEDZ area shall be determined as provided in Ohio R.C. 718.02 which is reprinted at the end of the Resolution and in accordance with the rules and regulations adopted by the Commissioner pursuant to this Resolution.
(c) If a person subject to the tax imposed by this Resolution operates a business or businesses (including rental) in another taxing jurisdiction in Ohio and the business or businesses incur a loss, the amount of the loss is deemed primarily subject to the taxing jurisdiction of the other taxing jurisdiction and may not be used to reduce the taxpayer’s JEDZ tax base.
(d) Operating Loss Carry Forward
(1) The portion of a net operating loss sustained in any taxable year subsequent to April 1, 2004, allocable to the JEDZ area may be applied against the portion of the profit of succeeding year(s) allocable to the JEDZ area, until exhausted but in no event for more than five taxable years. No portion of a net operating loss shall be carried back against net profits of any prior year.
(2) For the purposes of subsection (d)(1) hereof, the portion of a net operating loss sustained shall be allocated to the JEDA area in the same manner as provided herein for allocating net profits to the JEDZ area.
(3) The Commissioner of Taxation shall provide by rules and regulations the manner in which such operating loss carry-forward shall be determined.
(e) Consolidated Returns
(1) Filing of consolidated returns may be permitted or required in accordance with rules and regulations prescribed by the Commissioner of Taxation.
(2) In the case of a corporation that carriers 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 JEDZ area constituting a portion only of its total business, the Commissioner of Taxation shall require such additional information as the Commissioner deems necessary to ascertain whether net profits are properly allocated to the JEDZ area. If the Commissioner finds net profits are not properly allocated to the JEDZ area 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, the Commissioner shall make such allocation as he or she deems appropriate to produce a fair and proper allocation of net profits to the JEDZ area.
(f) Business Losses.
Operating losses from business or professional activity may not be used to reduce W-2 income subject to the tax. Such operating losses may be used against other sources of business or professional income subject to the tax.
(g) Exemptions; Sources of Income Not Taxed
The following sources of income shall not be subject to the tax imposed by the Resolution:
(1) Pay or allowance of active members of the armed forces of the United States because of active duty service or 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
(2) Poor relief, 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 of a permanent nature as determined by a physician or government entity.
(3) Proceeds of insurance paid by reason of death of the insured, pensions, including industrial pensions which are qualified by IRS and paid as a result of retirement; disability benefits paid for total and permanent disability, annuities or gratuities not in the nature of compensation for services rendered from whatever source derived.
(4) Receipts from seasonal or casual entertainment, amusement, sports events and health and welfare activities when any such activities 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.
(6) 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.
(7) Interest, dividends and other revenue from intangible property as set forth in Ohio R.C. 718.01.
(8) Payments made to election workers.
(9) 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.
(10) Qualifying wages, commissions and other compensation and net profits, the taxation of which is prohibited by the Constitution of the State of Ohio or any act of the Ohio General Assembly limiting the power of JEDZ Board to impose net income taxes.
(11) The amount of unreimbursed employee business expenses (2106 Expenses) which the employee deducted as an itemized deduction on his or her federal tax return. Taxpayer must furnish a copy of the form 2106 and Schedule “A” of form 1040 as filed with IRS.
(12) Compensation paid to a person for personal services (self-employment) performed within the JEDZ area if the personal services are performed during twelve or fewer days during the calendar year.
(13) Compensation paid to an individual who is an employee for work done or services performed in the JEDZ area if the services or work are performed during twelve or fewer days during the calendar year and further provided that the individual’s employer is located outside of the JEDZ area and the individual pays tax on the compensation to another taxing jurisdiction in which the employer’s principal place of business is located and no portion of the tax paid is refunded to the individual.
(14) The foregoing subsections 11, 12 and 13 do not apply to professional entertainers, professional athletes, promoters of professional entertainment or sporting events, and the employees of any of the above.
(15) For purposes of applying this section, a day is one calendar day or any fractional part thereof.
(16) Over-the-Road Drivers and other similarly situated employees reporting to a terminal, warehouse, or office in a taxing community must have a minimum of 20% of qualifying wages withheld and allocated to the taxing community where the terminal, warehouse or office is located.
(h) Certain Expenses Not Deductible.
(1) No deduction for health insurance premiums paid by self-employed taxpayers as permitted by IRS is permitted for the JEDZ area.
(2) No deduction for self-employment tax paid by self-employed taxpayers as permitted by IRS is permitted for the JEDZ area.
(3) No deduction for contributions to IRA or Keogh plans made by taxpayers as permitted by IRS is permitted for the JEDZ area.
100.04 Effective Date
The tax shall be levied, collected and paid with respect to the salaries, wages, commissions and other compensation, and with respect to the net profits of persons, businesses, professions or other activities, as defined in this Resolution, earned or received on and after April 1, 2004.
100.05 Annual Return and Payment of Tax
(a) Except as otherwise herein provided, each taxpayer or person who engages in business as hereinbefore defined, or whose qualifying wages, commissions and other compensation, as defined in this Resolution, is subject to the tax imposed by this Resolution, shall, whether or not a tax be due thereon, make and file a return on or before April 15th, of each year during the life of this Resolution, with the Commissioner of Taxation. When the return is made for a fiscal year or other period different from the calendar year, the return shall be filed before the fifteenth day of the fourth month from the end of such fiscal year or other period.
(b) The return shall be filed with the Commissioner on a form or forms furnished by or obtained upon request from such Commissioner setting forth for the period indicated thereon:
(1) A. The aggregate amount of qualifying wages, commissions and other compensation earned or received; and
B. The gross income from a business, profession or other activity less allowable expenses incurred in the acquisition of such gross income to arrive at a net profit;
C. Such income shall include only income earned or received during the year, or portion thereof, covered by the return and subject to the tax imposed by this Resolution.
(2) A. The amount of tax imposed by this Resolution on income reported:
B. Any estimated payments or credits to which the taxpayer may be entitled under the provisions of this Resolution; and
(3) Such other pertinent statements, information returns, or other data and information as the Commissioner may require.
(c) The taxpayer making a return shall, at the time of filing thereof, pay to the Commissioner the balance of tax due, if it exceeds four dollars and ninety-nine cents ($4.99), after deducting:
A. The amount of JEDZ income tax deducted or withheld at the source pursuant to Section 100.06; and
B. Such portion of the tax as has been paid on declaration by the taxpayer pursuant to Section 100.07.
(d) Should the return, or the records of the Commissioner, indicate an overpayment of the tax to which the JEDZ Board is entitled under the provisions of this Resolution, such overpayment shall first be applied against any existing liability of the taxpayer and the balance, if any, at the election of the taxpayer communicated to the Commissioner, shall be refunded or transferred against any subsequent liability; provided that overpayments of less than five dollars ($5.00) shall not be refunded.
(e) Every taxpayer shall retain all records necessary to compute the correct tax liability for a period of five (5) years from the date the return is filed.
(f) Amended Returns
(1) Where necessary, an amended return shall 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 Section 100.11. Such amended returns shall be on a form obtainable on request from the Commissioner. A taxpayer may not change the method of accounting or apportionment of net profits after the due date for filing the original return.
(2) Within (3) three months from the final determination of any federal tax liability affecting the taxpayer's JEDZ tax liability, such taxpayer shall make and file an amended JEDZ return showing income subject to the JEDZ tax based upon such final determination of federal tax liability, and pay any additional tax shown due thereon or make claim for refund of any overpayment.
(g) 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 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 due.
(h) A tax return is considered filed if mailed, on the date postmarked by the United States Postal Service or on the date delivered without mailing to the City of MaumeeTax Office which is hereby designated to be the JEDZ Tax Office.
(i) Extension of Time for Filing Returns
(1) Taxpayers granted extensions of time for filing their federal income tax returns may have an extension for filing their JEDZ Tax Return provided that a copy of the federal extension is filed with the Commissioner on or before the original due date of the JEDZ Tax Return.
(2) The extended date for filing the JEDZ tax return 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. Statutory interest will be charged from the original due date of the return until date of actual payment.
(3) If a taxpayer wishes to extend the time for filing the JEDZ tax return to a date other than that provided by the automatic federal extension, the taxpayer must file such a request in writing to the Commissioner prior to the due date of the automatic extension. The Commissioner may grant the extension upon such terms the Commission finds to be reasonable.
(4) A taxpayer’s extension request may be denied if the taxpayer is delinquent in the filing of any tax returns or payments of taxes, penalties, or interest due.
(5) The granting of an extension does not extend the time for paying a tax, it only extends the time for filing the return.
(6) 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.
100.06 COLLECTION AT SOURCE; TAXES WITHHELD BY EMPLOYER
(a) Each employer within or doing business within the JEDZ area who employs one or more persons within the JEDZ area on a qualifying wage, commission, severance pay or other compensation basis shall, at the time of payment thereof, deduct the tax of one and one-half percent (1-1/2%) from the gross qualifying wages, commissions, severance pay or other compensation earned or received by such employee for the purpose of transmitting the tax to the Commissioner.
(b) Each such employer shall, on or before the last day of the month following each calendar quarter, make a return and remit to the JEDZ Board the tax hereby required to be withheld; provided, however, each such employer who deducts such taxes in the amount of three hundred dollars ($300.00) or more per month shall remit to the JEDZ Board on or before the fifteenth day of the succeeding month the taxes so deducted monthly, each such employer who deducts such taxes in the amount of one thousand dollars ($1,000) or more per month shall remit to the JEDZ Board by electronic transfer on or before the fifteenth day of the succeeding month the taxes so deducted. See Section 100.06(l). Such return shall be on a form or forms prescribed by or acceptable to the Commissioner of Taxation and shall be subject to the rules and regulations prescribed by the Commissioner. 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.
(c) Such employer in collecting such tax shall be deemed to hold the same, until payment is made by such employer to the JEDZ Board, as a trustee for the benefit of the JEDZ Board and any such tax collected by such employer from his employees shall, until the same is paid to the JEDZ Board, be deemed a trust fund in the hands of such employer.
(d) 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 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 due.
(e) On or before February 28 following any calendar year, such employer shall file with the Commissioner an annual reconciliation return along with an information return for such employee from whom JEDZ 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 JEDZ income tax withheld from the employee. The information return shall also include all of the information required to be reported by the employer to the 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 were not remitted. The annual reconciliation form shall be obtained from the Commissioner.
(f) All individuals, businesses, employers, brokers or others who are required under the Internal Revenue Code to furnish forms 1099 to the 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 Commissioner or in lieu thereof, a list containing the same information as required by IRS on the 1099s on or before the due date for such form 1099 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.
(g) Every employer shall retain all records necessary to compute withholding taxes due the JEDZ Board for a period of five years from the date the Reconciliation Form, W-2 Forms, and 1099 Forms are filed.
(h) All returns and forms required to be filed by an employer are considered filed on the date postmarked by the United States Postal Service or on the date delivered without mailing by the taxpayer to the JEDZ Tax Office.
(i) 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.
(j) Payments received for withholding taxes due shall be applied first to penalties due, then to interest due, and then to taxes due.
(l) Any employer may elect to make payment by electronic fund transfer upon availability. Payment of taxes by electronic transfer does not affect an employer’s obligation to file returns as required under this section. The Commissioner of Taxation may adopt rules governing the format for filing returns under this section by employers who remit undeposited taxes by electronic funds transfer.
100.07 DECLARATIONS; ESTIMATED TAX PAYMENTS
(a) Every person who anticipates any taxable income which is not subject to Section 100.06, or who engages in any business, profession, enterprise and activity subject to the tax imposed by Section 100.03 shall file a declaration setting forth such estimated income or the estimated profit or loss from such business activity together with the estimated tax due thereon, if any.
(b) (1) Such declaration shall be filed on or before April 15 of each year during the life of this Resolution, or before the fifteenth day of the fourth month from the date in which the taxpayer becomes subject to tax for the first time.
(2) Those taxpayers reporting on a fiscal year basis shall file a declaration before the fifteenth 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 Commissioner of Taxation. Credit may be taken for JEDZ income tax to be withheld, if any, from any portion of such income.
(4) The original declaration, or any subsequent amendment thereof, may be increased or decreased on or before any subsequent quarterly payment date as provided for herein.
(5) The taxpayer making the declaration shall, at the time of the filing thereof, pay to the Commissioner at least one-fourth of the estimated annual tax due after deducting:
A. Any portion of such tax to be deducted or withheld at the source pursuant to Section 100.06; and
B. Any overpayment of previous year's tax liability which the taxpayer has not elected to have refunded.
At least a similar amount shall be paid on or before the fifteenth day of the sixth, ninth and twelfth months that are for non-individuals, for individuals a similar amount shall paid on or before the last day of the seventh, tenth and thirteenth month after the beginning of the taxpayer's taxable year, provided that in case an amended declaration has been duly filed, or the taxpayer is taxable for a portion of the year only, the unpaid balance shall be paid in equal installments on or before the remaining payment dates.
(c) On or before the fifteenth 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 shall be paid therewith in accordance with the provisions of Section100.05.
(d) Notwithstanding any provision or requirement of this Resolution to the contrary, if a taxpayer engages in business or proposes to engage in business in the JEDZ area for a period of less than three months or if the Commissioner determines that the taxpayer will engage in business in the JEDZ area less than three months, the Commissioner may require any such taxpayer to file a declaration and/or a return within such time as the Commissioner may reasonably fix and to pay or secure the payment of any tax due or to become due and/or any tax withheld or required to be withheld during the period of engagement in business as estimated by the Commissioner.
(e) The date or dates fixed by the Commissioner for the filing of declarations and/or for payments or security for payments of taxes pursuant to this subsection shall be in lieu of the dates for such filing or payment specified for taxpayers generally in this Resolution.
100.08 COMMISSIONER OF TAXATION; DUTIES
(a) It shall be the duty of the Commissioner of Taxation to receive the tax imposed by this Resolution in the manner prescribed herein from the taxpayers; to keep an accurate record thereof; and to report all moneys so received.
(b) It shall be the duty of the Commissioner to enforce payment of all taxes owing the JEDZ Board, to keep accurate records for a minimum of five 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 amount of payments thereof.
(c) The Commissioner is hereby charged with the enforcement of the provisions of this Resolution, and is hereby empowered, subject to the approval of the Board of Review, to adopt and promulgate and to enforce rules and regulations relating to any matter or thing pertaining to the collection of taxes and the administration and enforcement of the provisions of this Resolution, including provisions for the re-examination and correction of returns.
(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 Commissioner may assess the amount of tax appearing to be due the JEDZ Board from the taxpayer and shall send to such taxpayer by certified mail a written statement showing the amount of tax so determined, together with interest and penalties thereon. If the taxpayer fails to respond to the assessment within thirty days the tax penalties and interest assessed shall become due and payable and collectible as are other unpaid taxes.
(e) If the Commissioner issues a decision or opinion to a taxpayer regarding a tax obligation that is subject to appeal, the Commissioner shall notify the taxpayer of the taxpayer’s right to appeal the decision and of the manner in which the appeal can be made.
100.09 INVESTIGATIVE POWERS; CONFIDENTIAL INFORMATION
(a) The Commissioner of Taxation, or any authorized employee 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 or whom the Commissioner believes is subject to the provisions of this Resolution, for the purpose of verifying the accuracy of any return made, or, if no return was made, to ascertain the tax due under this Resolution. Every such employer, supposed employer, taxpayer or supposed taxpayer, is hereby directed and required to furnish upon written request by the Commissioner, or the Commissioner’s duly authorized agent or employee, the means, facilities and opportunity for making such examinations and investigations as are hereby authorized.
(b) The Commissioner is hereby authorized to order any person presumed to have knowledge of the facts to appear before him and may examine such person, under oath, concerning any income which was or should have been returned for taxation hereunder or any transaction tending to affect such income, and for this purpose may compel the production of books, papers, records, and federal and state income tax returns and the attendance of all persons before him, 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/or 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 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 Commissioner authorized hereby shall be deemed a violation of this Resolution, punishable as provided in Section 100.99. In addition to any interest and penalties as set forth below at Section 100.10, the sum of ten dollars ($10.00) shall be charged upon a subpoena being issued.
(d) Any information gained as a result of any returns, investigations, hearings or verifications required or authorized by this Resolution shall be confidential except for official purposes which includes the exchange of information with other tax authorities, or except in accordance with proper judicial order. Any person divulging such information in violation of this Resolution, shall, upon conviction thereof, be deemed guilty of a third degree misdemeanor. Each disclosure shall constitute a separate offense.
100.10 INTEREST AND PENALTIES
(a) All taxes imposed and all moneys withheld or required to be withheld by employers under provisions of this Resolution and remaining unpaid after they become due shall bear interest at the rate of one percent (1%) per month or fraction thereof.
(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 or fraction thereof.
(2) For failure to remit taxes withheld from employees; three percent (3%) per month or fraction thereof.
(c) In addition to interest and penalties, if any, as set forth above, penalties for failure to file a return are hereby imposed as follows:
(1) Ten dollars ($10.00) for the first thirty days for failure to file a return within the time specified by this chapter.
(2) An additional five dollars ($5.00) for failure to file a return for each thirty- day period thereafter.
(d) Upon recommendation of the Commissioner of Taxation, the Board of Review may abate penalty or interest, or both, or upon an appeal from the refusal of the Commissioner to recommend abatement of penalty and interest, the Board may nevertheless abate penalty or interest, or both.
100.11 COLLECTION OF UNPAID TAXES; REFUNDS OF OVERPAYMENTS
(a) All taxes imposed by this Resolution shall be collectible, together with any interest and penalties thereon, by suit, as other debts of like amount are recoverable. Such suit shall be brought within three years after the tax was due or the return was filed, whichever is later in accordance with Ohio R.C. 718.12A.
(b) Claims for refund shall be made in writing within the time limitation provided in subsection (a) hereof in accordance with Ohio R.C. 718.12C. Amounts less than five dollars ($5.00) shall not be refundable.
(c) Prosecutions for an offense made punishable under this Resolution shall be commenced within three (3) years after the commission of the offense, provided that in the case of fraud, failure to file a return, or the omission of twenty-five percent (25%) or more of the compensation or net profits required to be reported, prosecutions may be commenced within six (6) years after the commission of the offense in accordance with Ohio R.C. 718.12B.
100.12 BOARD OF REVIEW
(a) A Board of Review, consisting of three members to be appointed by the Board of Directors of the JEDZ, 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 100.09 with reference to the confidential character of information required to be disclosed by this Resolution shall apply to such matters as may be heard before the Board. The Board’s records are not open to public inspection nor are the meetings subject to the State open meetings law.
(b) All rules and regulations and amendments or changes thereto, which are adopted by the Commissioner of Taxation under the authority conferred by this Resolution, shall be approved by the Board before the same becomes effective. The Board shall hear and pass on appeals from any ruling or decision of the Commissioner, and, at the request of the taxpayer or Commissioner, it is empowered to substitute alternate methods of allocation. The Board shall, on hearing, have jurisdiction to affirm, reverse or modify any such ruling or decision, or any part thereof.
(c) Any taxpayer dissatisfied with any ruling or decision of the Commissioner which was made under the authority conferred by this Resolution and who has filed the required returns or other documents pertaining to the contested issue may appeal therefrom in writing to the Board within thirty calendar days from the issuance of such ruling or decision by the Commissioner. The appeal must state the alleged errors in the Commissioner’s ruling or decision. The Board must schedule a hearing within forty-five calendar days of receiving the appeal unless the taxpayer expressly waives the hearing and chooses instead to permit the Board to render its decision on the writings submitted by the taxpayer and the Commissioner. If the taxpayer does not waive the hearing, the taxpayer is entitled to appear before the Board and bring representation of his or her choosing. The Board must issue its written decision within ninety calendar days after the final hearing and send notice of its decision by ordinary mail to the taxpayer within fifteen calendar days after issuing the decision.
(d) The taxpayer or the Commissioner of Taxation may appeal the Board’s decision as provided in section 5717.011 of the Ohio Revised Code.
100.13 COLLECTION OF TAX AFTER TERMINATION OF CHAPTER
(a) This Resolution shall continue effective insofar as the levy of taxes is concerned until regulated according to law, and insofar as the collection of taxes levied hereunder and actions or proceedings for collecting any tax so levied or enforcing any provisions of this Resolution are concerned, it shall continue effective until all of such taxes levied in the aforesaid period are fully paid and any and all suits and prosecutions for the collection of such taxes or for the punishment of violations of this Resolution shall have been fully terminated, subject to the limitations contained in Sections 100.11 and100.99.
(b) Annual returns due for all or any part of the last effective year of this Resolution shall be due on the date provided in Sections 100.05 and 100.06 as though the same were continuing.
100.14 SAVINGS CLAUSE
(a) If any provision, sentence, clause, section, or part of this Resolution is found to be unconstitutional, illegal, or invalid, such unconstitutionality, illegality, or invalidity shall affect only that particular sentence, clause, section, or part of this Resolution. It is hereby declared to be the intention of the JEDZ Board that this Resolution would have been adopted had such unconstitutional, illegal, or invalid provision, sentence, clause, section, or part thereof not been included herein.
(b) This tax Resolution, andall subsequent tax resolutions, shall continue to be effective insofar as the collection of taxes levied thereunder until all said taxes, and all penalties and interest thereon, are fully paid, and any and all suits and prosecutions for the collection of said taxes, penalties, and interest, or for the punishment or violation of said resolutions shall have been fully terminated.
Any person will be guilty of a misdemeanor of the first degree, for each offense who shall:
(a) Fail, neglect or refuse to make any return or declaration required by the Resolution; or
(b) Make any incomplete, false or fraudulent return; or
(c) Fail, neglect or refuse to pay the tax, penalties or interest imposed by the Resolution; or
(d) Fail, neglect or refuse to withhold the tax from employees or remit such withholding to the Commissioner of Taxation; or
(e) Refuse to permit the Commissioner or any duly authorized agent or employee to examine his books, records, papers and federal and state income tax returns relating to the income or net profits of a taxpayer; or
(f) Fail to appear before the Commissioner and to produce his books, records, papers or federal and state income tax returns relating to the income or net profits of a taxpayer upon order or subpoena of the Commissioner; or
(g) Refuse to disclose to the Commissioner any information with respect to the income or net profits of a taxpayer; or
(h) Fail to comply with the provisions of this chapter or any order or subpoena of the Commissioner authorized hereby; or
(i) Give to an employer false information as to the person’s true name, correct social security number and residence address, or fail to promptly notify an employer of any change in residence address and date thereof; or
(j) Fail to use ordinary diligence in maintaining proper records of employees' residence addresses, total wages paid and the JEDZ tax withheld, or to knowingly give the Commissioner false information; or
(k) Attempt to do anything whatever to avoid the payment of the whole or any part of the tax, penalties or interest imposed by this Resolution.
OHIO REVISED CODE SECTION 718.02
This section does not apply to taxpayers that are subject to and required to file reports under Chapter 5745. of the Revised Code.
(A) Except as otherwise provided in division (D) of this section, net profit from a business or profession conducted both within and without the boundaries of a municipal corporation shall be considered as having a taxable status in such municipal corporation for purposes of municipal income taxation in the same proportion as the average ratio of the following :
(1) The average original cost of the real and tangible personal property owned or used bythe taxpayer in the business or profession in such municipal corporation 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;
(2) Wages, salaries, and other compensation paid during the taxable period to persons employed in the business or profession for services performed in such municipal corporation to wages, salaries, and other compensation paid during the same period to persons employed in the business or profession, wherever their services are performed, excluding compensation that is not taxable by the municipal corporation under section 718.011 of the Revised Code;
(3) Gross receipts of the business or profession from sales made and services performed during the taxable period in such municipal corporation 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, anotherbasis may be substituted, under uniform regulations, so as to produce an equitable result.
(B) As used in division (A) of this section, "sales made in a municipal corporation" mean:
(1) All sales of tangible personal property delivered within such municipal corporation regardless of where title passes if shipped or delivered from a stock of goods within such municipal corporation;
(2) All sales of tangible personal property delivered within such municipal corporation regardless of where title passes even though transported from a point outside such municipal corporation if the taxpayer is regularly engaged through its own employees in the solicitation or promotion of sales within such municipal corporation and the sales result from such solicitation or promotion;
(3) All sales of tangible personal property shipped from a place within such municipal corporation to purchasers outside such municipal corporation 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.
(C) Except as otherwise provided in division (D) of this section, net profit from rental activity not constituting a business or profession shall be subject to tax only by the municipal corporation in which the property generating the net profit is located.
(D) This section does not
apply to individuals who are residents of the municipal corporation and, except
as otherwise provided in section 718.01 of the Revised Code, a municipal
corporation may impose a tax on all income earned by residents of the municipal
corporation to the extent allowed by the United States Constitution.