MUNICIPALITY OF SEBRING
TITLE SEVEN – Taxation
Chap. 171. Income Tax
171.01 Purpose 171.12 Violations
171.02 Definitions 171.13 Board of Review
171.03 Imposition of Tax 171.14 Allocation of Funds
171.04 Effective Period 171.15 Credit for Tax Paid to
171.05 Return and Payment of Tax Another Municipality
171.06 Collection at Source 171.16 Severability
171.07 Declarations 171.17 Collection of Tax After
171.08 Duties of Administrator Termination of Ordinance
171.09 Investigative powers of the Administrator; 171.18 Duties of Owners of Rental
Divulging confidential information or Leased Property
171.10 Interest and Penalties 171.99 Penalty
171.11 Collection of Unpaid Taxes and Refunds of
To provide funds for the purposes of general municipal operations, maintenance, new
equipment and capital improvements of the Municipality of Sebring, there shall be and is
hereby levied a tax on income, salaries, QUALIFYING wages, commissions and other
compensation and on net profits as hereinafter provided in ordinance 865-65, passed 11-29-65,
and as subsequently amended from time to time.
As used in this chapter, the following words shall have the meaning ascribed to them in
this section, except as if and if the context clearly indicates or requires a different meaning.
(a) Administrator means the Finance Director or Deputy Finance Director or any other
competent person who may act as Administrator and shall enforce the provisions of
this chapter, after appointment by the Village Manager and upon approval by
ADJUSTED FEDERAL TAXABLE INCOME MEANS A “C”
CORPORATION’S FEDERAL TAXABLE INCOME BEFORE NET
OPERATING LOSSES AND SPECIAL DEDUCTIONS AS DETERMINED
UNDER THE INTERNAL REVENUE CODE, BUT INCLUDING
SUBSEQUENT ADJUSTMENTS FROM REQUIRED ADDITIONS AND
DEDUCTIONS. PASS-THROUGH ENTITIES MUST COMPUTE
“ADJUSTED FEDERAL TAXABLE INCOME” AS IF THE PASSTHROUGH
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,
(b) Association means a partnership, limited partnership, limited liability company,
Chapter S Corporation as defined in the federal tax code, 26 U.S.C. 1361, or any
other form of unincorporated enterprise owned by two or more persons.
(c) Board of Review means the Board created by and constituted as provided in Section
(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 activity.
(e) 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 dependency, but not including Chapter S Corporations.
(f) Domicile means the permanent legal residence of a taxpayer. A taxpayer may have
more than one residence but not more than one domicile.
(g) Employee means one who works for INCOME, wages, salary, commission or other
type of compensation in the service of an employer.
(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
(i) Fiscal year means an accounting period of twelve months or less ending on any day
other than December 31.
(j) Gross receipts means the revenue derived from sales, work done, or service
rendered, before any deductions, exceptions, or credits are claimed.
(k) 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 Municipality of Sebring.
(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 Municipality of Sebring.
(C) The portion attributable to the Municipality 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 Municipality of Sebring.
MUNICIPALITY MEANS THE VILLAGE OF SEBRING, OHIO.
(l) Net profits, FOR TAXABLE YEARS PRIOR TO 2004, means 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 used by the taxpayer for federal income tax purposes. 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”.)
(m) Nonresident means an individual domiciled outside the Municipality of Sebring.
(n) Nonresident unincorporated business entity means an unincorporated business
entity, not having an office or place of business within the Municipality of Sebring.
(o) Person means every natural person, partnership, fiduciary, association or
corporation. Whenever used in any clause prescribing and imposing a penalty, the
term “person”, as applied to any unincorporated entity, means the partners or
members thereof, and as applied to corporations, the officers thereof.
(p) Place of business means any bona fide office (other than a mere statutory office)
factory, warehouse or other space which is regularly occupied and used by the
taxpayer in carrying on any business activity individually or through on or more of
his regular employees regularly in attendance.
QUALIFYING WAGE” MEANS WAGES AS DEFINED IN SECTION
3121(A) OF THE INTERNAL REVENUE CODE, WITHOUT REGARD TO
ANY WAGE LIMITATIONS, BUT INCLUDING SUBSEQUENT
ADJUSTMENTS FROM REQUIRED ADDITIONS AND DEDUCTIONS.
“QUALIFYING WAGE” REPRESENTS EMPLOYEES’ INCOME FROM
WHICH MUNICIPAL TAX SHALL BE DEDUCTED BY THE EMPLOYER,
AND ANY WAGES NOT CONSIDERED A PART OF “QUALIFYING
WAGE” SHALL NOT BE TAXED BY THE MUNICIPALITY OF SEBRING.
THIS DEFINITION IS EFFECTIVE JANUARY 1, 2004, FOR TAXABLE
YEARS 2004 AND LATER.
(q) Resident means an individual domiciled in the Municipality of Sebring.
(r) Resident unincorporated business entity means an unincorporated business entity
having an office or place of business within the Municipality of Sebring.
(s) Taxable income means Income minus the deductions and credits allowed by this
(t) Taxable year means the calendar year, or the fiscal year upon the basis of which the
net profits are to be computed under this chapter and, in case of a return for
fractional part of a year, the period for which such return is required to be made.
(u) Taxpayer means a person, whether an individual, partnership, association or any
corporation, organization, or other entity, required hereunder to file a return or pay a
(v)The singular shall include the plural, and the masculine shall include the feminine and the
171.03 IMPOSITION OF TAX
Subject to the provisions of Section 171.16, an annual tax for the purposes specified in
Section 171.01 shall be imposed on and after January 1, 2007, at the rate of two percent (2%)
per year upon the following:
(a) On all INCOME, salaries, QUALIFYING wages, commissions, other
compensation and other income received during the effective period of this chapter
by residents of the Municipality. The term “other income” includes but is not
limited to income earned, received, or derived from gaming, wagering, lotteries,
including the Ohio State Lottery, or schemes of chance. All of which shall not be
taxed as business income unless the individual subject to this tax has a federal
gamblers permit effective during the tax year in which income from gaming,
wagering, lotteries or schemes of chance is received.
(b) On all INCOME, salaries, QUALIFYING wages, commissions, other
compensation and other income receive during the effective period of this chapter by
nonresidents for work done or services performed or rendered in the Municipality.
(c) (1) On the portion attributable to the Municipality of the net profits earned during
the effective period of this chapter of all resident unincorporated businesses,
professions or other entities, derived from sales made, work done, services
performed or rendered and business or other activities conducted in the
(2) On the portion of the distributive share of the net profits earned or received
during the effective period of this chapter of a resident partner or owner of a
resident unincorporated business entity not attributable to the Municipality and
not levied against such unincorporated business entity.
(d) (1) On the portion attributable to the Municipality of the net profits earned during the
effective period of this chapter of all nonresident unincorporated business,
professions or other entities, derived from sales made, work done or services
performed or rendered and business or other activities conducted in the
Municipality whether or not such unincorporated business entity has an office or
place of business in the Municipality.
(2) On the portion of the distributive share of the net profits earned or received
during the effective period of the chapter of a resident partner or owner of a
nonresident unincorporated business entity not attributable to the Municipality
and not levied against such unincorporated business entity.
(e) (1) On the portion attributable to the Municipality of the net profits earned during
the effective period of this chapter of all corporations derived from sales made,
work done, services performed or rendered and business or other activities
conducted in the Municipality whether or not such corporations have an office or
place of business in the Municipality.
(2)The portion of the net profits attributable to the Municipality of a taxpayer
conducting a business, profession or other activity both within and without
boundaries of the Municipality shall be determined as provided in Ohio R.C.
718.02 in accordance with the rules and regulations adopted by the Administrator
pursuant to this chapter.
(3) 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.
(34) Operating loss carry-forward
A. The portion of a net operating loss sustained in any taxable year subsequent to
January 1, 1983, allocable to the Municipality may be applied against the
portion of the profit of succeeding year (s) allocable to the Municipality 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,
or applied against salaries or wages in any year.
B. The portion of a net operating loss sustained shall be allocated to the
Municipality in the same manner as provided herein for allocating net profits
to the Municipality.
C. The Administrator shall provide by rules and regulations the manner in which
such Net operating carry-forward shall be determined.
(45) Consolidated Returns
A. 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 Municipality of Sebring. However, once the
affiliated group has elected to file a consolidated return or a separate return
with the Municipality, the affiliated group may not change their method of
filing in any subsequent tax year without written approval from the
Municipality of Sebring.
B. 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 Municipality
constituting a portion only of its total business, the Administrator shall
require such additional information as he may deem necessary to ascertain
whether net profits are properly allocated to the Municipality . If the
Administrator finds that the net profits are not properly allocated to the
Municipality 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 proper allocation of net profits to the
(f) The tax provided for herein shall not be levied on:
(1) Military pay or allowances of members of the Armed Forces of the United States
and of members of their reserve components, including the Ohio National Guard;
(2) The gross income and gross receipts of religious, fraternal, charitable, scientific,
literary, or educational institutions to the extent that such income is derived from tax
exempt real estate, tax exempt tangible or intangible property, or tax exempt
(3) Unemployment insurance benefits, welfare benefits, and pensions paid as a result
(4) Proceeds of insurance paid by reason of death of the insured; retirement
disability benefits, annuities, or gratuities not in the nature of compensation for
services rendered from whatever source derived;
(5) Parsonage allowance, to the extent of the rental allowance or rental value of a
house provided as a part of an ordained minister’s compensation; THE MINISTER
MUST BE DULY ORDAINED, COMMISSIONED, OR LICENSED BY A
RELIGIOUS BODY CONSTITUTING A CHURCH OR CHURCH
DENOMINATION, AND HAVE AUTHORITY TO PERFORM ALL
SACRAMENTS OF THE CHURCH.
(6) Receipts BY BONA FIDE CHARITABLE, RELIGIOUS AND
EDUCATIONAL ORGANIZATIONS AND ASSOCIATIONS, WHEN THOSE
RECEIPTS ARE from seasonal or casual entertainment, amusements, fund raising,
sports events, and health and welfare activities when conducted by bona fide
charitable, religious, or educational organizations and associations;
(7) The income of individuals under 18 years of age;
(8) Gains from involuntary conversion, cancellation of indebtedness, interest on
federal obligations, items of income already taxed by the state from which the city is
specifically prohibited from taxing, and income of a decedent's estate during the
period of administration (except such income from the operation of a business);
(9) Expenses deductible in accordance with federal guidelines on federal form 2106,
subject to audit and approval by the Tax Administrator;
(10) 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;
(11) Salaries, income, wages, commissions, other compensation, other income and
net profits, the taxation of which is prohibited by the United States Constitution or
any act of Congress limiting the power of the states or their political subdivisions to
impose net income taxes on income derived from interstate commerce; and
(12) Salaries, wages, commissions, other compensation, other income and net
profits, including interest and dividends as provided in 718.01 R.C., the taxation of
which is prohibited by the Constitution of the State or any act of the Ohio General
Assembly limiting the power of the city to impose net income taxes.
171.04 EFFECTIVE PERIOD
The tax shall be levied, collected and paid with respect to the income, salaries, wages,
commissions, and other compensation and with respect to the net profits of businesses,
professions or other activities earned from January 1, 1966, until repealed.
171.05 RETURN AND PAYMENT OF TAX.
(a) Each taxpayer shall, FOR YEARS PRIOR TO TAXABLE YEAR 2004,
whether or not a tax is due thereon, make and file a return on or before April 30 of each year,
following the effective date of this chapter., AND ON OR BEFORE APRIL 15TH FOR
TAXABLE YEARS 2004 AND LATER. When the return is made for a fiscal year or other
period different from the calendar year, the return shall be filed within four months from the end
of such fiscal year or period FOR YEARS PRIOR TO TAXABLE YEAR 2004, AND
WITHIN 105 DAYS FOR TAXABLE YEARS 2004 AND LATER. Each resident of the
Municipality who has no income subject to the Municipality’s income tax shall so indicate this
fact on their income tax return, including the reason(s) their income is not taxable, and shall be
relieved of filing future returns unless and until such time the taxpayer receives income taxable
to the Municipality.
(b) The return shall be filed with the Administrator on a form or forms furnished by
or obtainable upon request from such Administrator or on other forms deemed acceptable by the
Administrator setting forth:
(1) The aggregate amounts of INCOME, salaries, wages, commissions, other
compensation and other income EARNED OR received and gross receipts
from business, profession or other activity, less allowable expenses incurred
in the acquisition of such gross receipts received during the preceding year
and subject to the tax.
(2) The amount of the tax imposed by this chapter on such receipts and profits;
(3) Such other pertinent statements, information returns or other information as
the Administrator may require, INCLUDING BUT NOT LIMITED TO
COPIES OF ALL W-2 FORMS, 1099 MISCELLANEOUS INCOME
FORMS, AND ALL APPLICABLE FEDERAL SCHEDULES.
(c) The Administrator may grant an extension for filing of the annual return upon
the request of the taxpayer for a period not to exceed six months, or one month beyond any
extension requested of or granted by the Internal Revenue Service for the filing of the federal
income tax return FOR TAXABLE YEARS PRIOR TO 2004. 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 Administrator may require a tentative return,
accompanied by payment of the amount of tax shown to be due thereon by the date the return is
normally due. No penalty or interest shall be assessed in those cases in which the return is filed
and the final tax paid within the period as extended. The Administrator may deny the extension
if the taxpayer’s income tax account with the Municipality of Sebring is delinquent in any way.
(d) (1) The taxpayer making a return shall, at the time of the filing thereof, pay to
the Administrator the amount of taxes shown as due thereon, provided,
however, that where any portion of the tax so due has been deducted at the
source pursuant to the provisions of Section 171.06, or where any portion of
such tax has been paid by the taxpayer pursuant to the provisions of Section
171.07, or where an income tax has been paid to another Municipality,
credit for the amount shown to be due and only the balance, if any, shall be
due and payable at the time of filing the return.
(2) A taxpayer who has overpaid the amount of tax to which the Municipality is
entitled under the provisions of this chapter 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, provided that no additional taxes or refunds of less than one dollar
($1.00) shall be collected or refunded.
(e) (1) Where necessary, an amended return must be filed in order to report
additional income and pay any additional tax due, or claim a refund of tax
overpaid, subject to the requirements and/or limitations contained in
Sections 171.11 and 171.15. Such amended returns shall be on a form
obtainable upon request from the 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.
(2) Within three months from the final determination of any federal tax liability
affecting the taxpayer’s Municipal tax liability, such taxpayer shall made
and file an amended Municipal return showing income subject to the
Municipal tax based upon such final determination of federal tax liability,
and pay any additional tax shown due thereon or make claim for refund of
(f) Any business, profession, association or corporation reporting a net loss is
subject to the filing requirements of this ordinance.
171.06 COLLECTION AT SOURCE
(a) In accordance with rules and regulations prescribed by the Administrator, each
employer within or doing business within the Municipality shall deduct at the time of payment
of such salary, wages, commissions or other compensation or other income, the tax of two
percent 2%) of the gross salaries, wages, commissions or other compensation or other income
due by the employer to the employee.
(b) Each such employer withholding tax in accordance with subsection (a) hereof,
shall make a return and pay to the Administrator the amount of taxes so withheld as follows: If
the amount of taxes so withheld is five hundred dollars ($500.00) or more in any calendar
month, a return shall be made and the taxes so withheld shall be paid to the Administrator on or
before the tenth day of the succeeding calendar month; but if the amount of taxes so withheld is
less than five hundred dollars ($500.00) for any calendar month, a return shall be made and the
taxes so withheld paid to the Administrator on or before the last day of the month following the
close of each calendar quarter IF THE TAXES WITHHELD DURING THE PREVIOUS
TAX YEAR AVERAGED FIVE HUNDRED DOLLARS ($500.00) OR MORE PER
MONTH, THEN MONTHLY PAYMENTS OF TAXES WITHHELD SHALL BE PAID
BY AN EMPLOYER TO THE ADMINISTRATOR WITHIN TEN CALENDAR DAYS
AFTER THE CLOSE OF EACH CALENDAR MONTH; EMPLOYERS WHO
AVERAGED LESS THAN FIVE HUNDRED DOLLARS ($500.00) PER MONTH
SHALL MAKE PAYMENT OF THE WITHHELD TAXES ON OR BEFORE THE
LAST DAY OF THE MONTH FOLLOWING THE CLOSE OF EACH CALENDAR
(c) Such returns shall be on a form or forms prescribed by or acceptable to the
Administrator and shall be subject to the rules and regulations prescribed therefore by the
Administrator. Such employer shall be liable for the payment of the tax required to be deducted
and withheld, whether or not such taxes have in fact been withheld.
(d) Such employer in collecting the tax shall be deemed to hold the same, until
payment is made by such employer to the Municipality, as a trustee for the benefit of the
Municipality and any such tax collected by such employer from his employees shall, until the
same is paid to the Municipality be deemed a trust fund in the hands of such employer.
(e) The employer of a domestic worker shall be required to withhold income tax on
wages, salaries, commissions, other compensation and other income paid by the employer to the
domestic worker, and remit such withheld tax to the municipality of Sebring in accordance with
(a) and (b) of this Section.
(f) All employers that provide any contractual service within the Municipality, and
who employ subcontractors in conjunction with that service, shall provide the Municipality the
names and addresses of the subcontractors. The subcontractors shall be responsible for all
income tax withholding requirements under this chapter.
(a) Every person who anticipates any taxable income which is not subject to Section
171.06, or who engages in any business, profession, enterprise or activity subject to the tax
imposed by Section 171.03 shall file a declaration setting forth such estimated income or the
estimated profit or loss from such business activity, together with the estimated tax due thereon,
if any, provided, however, that if a person’s income is wholly from wages from which the tax
will be withheld and remitted to the Municipality in accordance with Section 171.06, such
person need not file a declaration.
(b) (1) Such declaration shall be filed on or before April 30 of each year, AND
ON OR BEFORE APRIL 15TH FOR TAXABLE YEARS 2005 AND
LATER, during the life of this chapter, except that no penalties or
interest shall be assessed, for not filing a declaration, on any resident
taxpayer who was not domiciled in the Municipality on the first day of
January of the year in which they became subject to estimated payments,
nor shall penalties or interest be assessed on estimated payments if the
taxpayer has remitted an amount equal to one hundred percent of the
previous year's tax liability, provided that the previous year reflected a
twelve-month period AND THE TAXPAYER FILED A RETURN
FOR THAT YEAR.
(2) Those taxpayers reporting on a fiscal year basis shall file a declaration
within four months after the beginning of each fiscal year period, AND
WITHIN 105 DAYS FOR TAXABLE YEARS 2005 AND LATER.
(c) (1) Such declaration shall be filed upon a form furnished by, or obtainable
from, the Administrator, OR ON OTHER FORMS DEEMED
ACCEPTABLE BY THE ADMINISTRATOR provided, however, that
Credit shall be taken for the Municipal tax to be withheld from any
portion of such ESTIMATED income. In accordance with the
provisions of Section 171.15, credit may be taken for tax to be paid to or
to be withheld and remitted to another taxing municipality.
(2) 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.
(d) Such declaration of estimated tax to be paid to the Municipality by taxpayers
who are individuals 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 July 31, October 31
and January 31 next following. However, 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
(e) Such declaration of estimated tax to be paid to the Municipality by corporations
and associations shall be accompanied by a payment of at least one-fourth of 90% of the
estimated annual tax and at least a similar amount shall be paid on or before June 15, September
15 and December 15. In the case of a fiscal year taxpayer the second, third, and fourth quarterly
payments shall be due on the fifteenth day of the sixth, ninth, and twelfth months of the taxable
(f) On or before the fifteenth day (15th) 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 the Municipality shall be paid therewith in accordance with
the provisions of Section 171.05.
171.08 DUTIES OF THE ADMINISTRATOR.
(a) It shall be the duty of the Administrator to receive the tax imposed by this
chapter 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 Administrator to enforce payment of all taxes owing
the Municipality, to keep accurate records for a minimum of six years showing the amount due
from each taxpayer required to file declaration and/or make any return, including taxes
withheld, and to show the dates the amount of payments thereof.
(c) The Administrator is hereby charged with the enforcement of the provisions of
this chapter 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 chapter,
including provisions for the re-examination and correction of returns. TAXPAYERS ARE
HEREBY REQUIRED TO COMPLY WITH SAID RULES AND REGULATIONS.
(d) In any case where a taxpayer has failed to file a return or has filed a return which
does not show the proper amount of tax due, the Administrator may determine the amount of
tax so determined, together with interest and penalties if any, and shall in writing inform the
taxpayer of the total assessed amount so due. Such assessment shall be collected in accordance
with the rules and regulations as set forth by the Tax Administrator and approved by the Board
(e) Subject to the consent of the Board of Review or pursuant to regulation approved
by such Board, the Administrator shall have the power to compromise any interest and penalty,
or both, imposed by Section 171.10.
171.09 INVESTIGATIVE POWERS OF THE ADMINISTRATOR;
DIVULGING CONFIDENTIAL INFORMATION
(a) The Administrator, or any authorized employee, is hereby authorized to examine
the books, papers, records and federal AND STATE income tax returns of any employer or of
any taxpayer or person subject to, or whom the Administrator believes is subject to the
provisions of this chapter, for the purpose of verifying the accuracy of any return made or, if no
return was made, to ascertain the tax due under this chapter. Every such employer, supposed
employer, taxpayer or supposed taxpayer is hereby directed and required to furnish, upon
written request by the Administrator, or his duly authorized agent or employee, the means,
facilities and opportunity for making such examination and investigations as hereby authorized.
(b) The Administrator or his duly authorized agent 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
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 federal income tax returns or
the refusal to submit to such examination by any employer or person subject to or presumed to
be subject to the tax or by any officer, agent or employee of a person subject to the tax or
required to withhold tax or the failure of any person to comply with the provisions of this
section or with an order or subpoena of the Administrator authorized hereby shall be deemed a
violation of this chapter punishable as provided in Section 171.99.
(d) Any information gained as the result of any returns, investigations, hearings or
verifications required or authorized by this chapter shall be confidential except for official tax
purposes, or except in accordance with proper judicial order. No personal shall divulge such
(e) Every taxpayer shall retain all records necessary to compute his tax liability for a
period of six years from the date his return is filed, or the withholding taxes are paid.
171.10 INTEREST AND PENALTIES
(a) All taxes imposed and all moneys withheld or required to be withheld by
employers under the provisions of this chapter and remaining unpaid after they become due
shall bear interest at the rate of two percent (2%) per month or fraction thereof.
(b) In addition to interest as provided in subsection (a) hereof, penalties based on the
unpaid taxes are hereby imposed as follows:
(1) For failure to pay ANY taxes, INCLUDING ESTIMATED
PAYMENTS, WHEN due, other than taxes withheld, two percent (2%)
per month or fraction thereof; or twenty dollars ($20.00) whichever is
(2) For failure to remit taxes withheld from employees five percent (5%) per
month or fraction thereof; or twenty dollars ($20.00) whichever is
(c) The minimum penalty for failure to file a complete and timely return as specified
in Section 171.05 shall be twenty dollars ($20.00) whether or not a tax is due.
(d) A penalty shall not be assessed on an additional tax assessment made by the
Administrator when a return has been filed in good faith and the tax paid thereon within the
time prescribed by the Administrator. Further, in the absence of fraud, neither penalty or
interest shall be assessed on any additional tax assessment resulting from a federal audit,
provided an amended return is filed and the additional tax is paid within three months after final
determination of the federal tax liability.
(e) Upon recommendation of the Administrator, the Board of Review may abate
penalty or interest, or both, or upon an appeal from the refusal of the Administrator to
recommend abatement of penalty and interest, the Board may nevertheless abate penalty or
interest, or both.
171.11 COLLECTION OF UNPAID TAXES AND REFUNDS OF
(a) All taxes imposed by this chapter shall be collectible, together with any interest
and penalties thereon, by suit, as other debts of like amount are recoverable. Except in the case
of fraud, omission of a substantial portion of income subject to this tax, or failure to file a
return, 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
civil actions 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 which the Commissioner of Internal Revenue and the taxpayer have executed a
waiver of the federal statute of limitations, the period within which an additional assessment
may be made by the Administrator shall be one year from the time 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 and
otherwise complying shall be personally liable for failure to file the return or pay the taxes and
penalties and interest due as required. The dissolution, bankruptcy, or reorganization of any
employer does not discharge the officers' or employees' liability for a prior failure of such
business to file a return or pay the taxes due.
(c) Taxes erroneously paid shall not be refunded unless a claim for refund is made
within three years from the date upon which such payment was made or the return was due, or
within three months after final determination of the federal tax liability, whichever is later.
HOWEVER, THE FOLLOWING SHALL APPLY REGARDING REFUNDS OF TAX
WITHHELD FROM NON-QUALIFIED DEFERRED COMPENSATION PLANS
(1) A TAXPAYER MAY BE ELIGIBLE FOR A REFUND IF THE
TAXPAYER HAS SUFFERED A LOSS FROM A NDCP. THE
LOSS WILL BE CONSIDERED SUSTAINED ONLY IN THE
TAXABLE YEAR IN WHICH THE TAXPAYER RECEIVES THE
FINAL DISTRIBUTION OF MONEY AND PROPERTY
PURSUANT TO THE NDCP. FULL LOSS IS SUSTAINED IF NO
DISTRIBUTION OF MONEY AND PROPERTY WILL BE MADE
BY THE NDCP.
(2) A TAXPAYER WHO RECEIVES INCOME AS A RESULT OF
PAYMENTS FROM A NDCP, AND THAT INCOME IS LESS
THAN THE AMOUNT OF INCOME DEFERRED TO THE NDCP
AND UPON WHICH MUNICIPAL TAX WAS WITHHELD, THEN
A REFUND WILL BE ISSUED ON THE AMOUNT
REPRESENTING THE DIFFERENCE BETWEEN THE
DEFERRED INCOME THAT WAS TAXED AND THE INCOME
RECEIVED FROM THE NDCP. IF DIFFERENT TAX RATES
APPLIED TO THE TAX YEARS IN WHICH DEFERRALS, A
WEIGHTED AVERAGE OF THE DIFFERENT TAX RATES
WILL BE USED TO COMPUTE THE REFUND AMOUNT.
(3) REFUNDS SHALL BE ALLOWED ONLY IF THE LOSS IS
ATTRIBUTABLE TO THE BANKRUPTCY OF THE EMPLOYER
WHO HAD ESTABLISHED THE NDCP, OR THE EMPLOYEE’S
FAILURE OR INABILITY TO SATISFY ALL OF THE
EMPLOYER’S TERMS AND CONDITIONS NECESSARY TO
RECEIVE THE NONQUALIFIED COMPENSATION.
(d) INCOME TAX THAT HAS BEEN DEPOSITED WITH THE
MUNICIPALITY OF SEBRING, BUT SHOULD HAVE BEEN DEPOSITED WITH
ANOTHER MUNICIPALITY, IS ALLOWABLE BY THE MUNICIPALITY OF
SEBRING AS A REFUND BUT IS SUBJECT TO THE THREE-YEAR LIMITATION
ON REFUNDS. INCOME TAX THAT SHOULD HAVE BEEN DEPOSITED WITH
THE MUNICIPALITY OF SEBRING, BUT WAS DEPOSITED WITH ANOTHER
MUNICIPALITY, SHALL BE SUBJECT TO RECOVERY BY THE MUNICIPALITY
OF SEBRING. THE MUNICIPALITY OF SEBRING WILL ALLOW A NONREFUNDABLE
CREDIT FOR ANY AMOUNT OWED THE MUNICIPALITY OF
SEBRING 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 MUNICIPALITY OF
SEBRING’S TAX RATE. IF THE MUNICIPALITY OF SEBRING’S TAX RATE IS
HIGHER, THE TAX REPRESENTING THE NET DIFFERENCE OF THE RATES IS
ALSO SUBJECT TO COLLECTION BY THE MUNICIPALITY OF SEBRING.
(de) Amounts of less than one dollar ($1.00) shall not be collected or refunded.
(a) No person shall:
(1) Fail, neglect or refuse to make any return or declaration required by this chapter;
(2) Make any incomplete, false or fraudulent return; or
(3) Fail, neglect or refuse to pay the tax, penalties or interest imposed by this
(4) Fail, neglect or refuse to withhold the tax from his employees or remit such
withholding to the Administrator; or
(5) Refuse to permit the Administrator or any duly authorized agent to employee to
examine his books, records, papers and federal income tax returns relating to the
income or net profits of a taxpayer; or
(6) Fail to appear before the Administrator and to produce his books, records, papers
or federal income tax returns relating to the income of net profits of a taxpayer
upon order or subpoena of the Administrator; or
(7) Refuse to disclose to the Administrator any information with respect to the
income or net profits of a taxpayer; or
(8) Fail to comply with the provisions of this chapter or any order or subpoena of the
Administrator authorized hereby; or
(9) Give to an employer false information as to his 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
(10) Fail to use ordinary diligence in maintaining proper records of employees,
residence addresses, total wages paid and the Municipal tax withheld, or
knowingly give the Administrator false information; or
(11) Attempt to do anything whatever to avoid the payment of the whole or any part
of the tax, penalties or interest imposed by this chapter.
(b) All prosecutions under this section must be commenced within the period
stipulated in Ohio R.C. 718.06.
(c) The failure of any employer or person to receive or procure a return, declaration
or other required form shall not excuse him from making any information return, return or
declaration, from filing such form, or from paying the tax.
171.13 BOARD OF REVIEW
(a) A Board of Review, consisting of the Mayor-President of Council, the President
Pro Tempore of Council, and the Finance Director is hereby created. In the event of the
inability of one of the above-named persons to serve on the Board, whether due to illness,
vacancy in office, conflict of interest or any other cause, the remaining two members of the
Board shall designate another Council member to service as the third member of the Board until
the reason for the inability to serve is removed or cured. A majority of the members of the
Board shall constitute a quorum. The Board shall adopt its own procedural rules and shall keep
a record of its transactions. Any hearing by the Board shall be conducted privately and the
provisions of Section 171.09 with reference to the confidential character of information required
to be disclosed by this chapter shall apply to such matters as may be heard before the Board on
(b) All rules and regulations and amendments or changes thereto, which are adopted
by the Administrator under the authority conferred by this chapter, must be approved by the
Board of Review before the same become effective. The Board shall hear and pass on appeals
from any ruling or decision of the Administrator and, at the request of the taxpayer or
Administrator, is empowered to substitute alternate methods of allocation, and the decision of
the Board of Review shall be final.
(c) Any person dissatisfied with any ruling or decision of the Administrator which is
made under the authority conferred by this chapter, and who has filed with the Municipality of
Sebring the required returns or other documents pertaining to the municipal income tax
obligation at issue, may appeal therefrom to the Board of Review within thirty days from the
announcement of such ruling or decision by the Administrator. The appeal shall be in writing
and shall state why the decision should be deemed incorrect or unlawful. The Board shall, on
hearing, have jurisdiction to affirm, reverse or modify any such ruling or decision, or any part
thereof. Such hearing shall be scheduled within 45 days from the date of appeal. The Board's
ruling must be made within 30 days from the date of the closing of the record on the appeal
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.
(d) Any person dissatisfied with any ruling or decision of the Board may appeal
therefrom to a court of competent jurisdiction by perfecting the appeal as required by state law
within 30 days from the filing of such ruling or decision. 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.
171.14 ALLOCATION OF FUNDS
(a) Seventy percent (70%) of all monies received by the Municipality of Sebring
Income Tax be deposited in the Municipal General Fund.
(b) Seven percent (7%) of all monies received by the Municipality of Sebring
Income Tax be deposited in the Municipal Special Revenue Fund.
(c) Sixteen percent (16%) of all monies received by the Municipality of Sebring
Income Tax be deposited in the Municipal Capital Projects Fund.
(d) Seven percent (7%) of all monies received by the Municipality of Sebring
Income Tax be deposited in the Municipal Income Tax Fund.
171.15 CREDIT FOR TAX PAID TO ANOTHER MUNICIPALITY
(a) Where a resident of the Municipality is subject to a municipal income tax in
another municipality he shall not pay a total municipal income tax on the same income greater
than the tax imposed at the higher rate.
(b) Every individual taxpayer who resides in the Municipality who receives net
profits, INCOME, salaries, QUALIFYING wages, commission or other personal service
compensation or other income for work done or services performed or rendered outside of the
Municipality, if it is made to appear that he has paid a municipal income tax on the same
income taxable under this chapter to another municipality, shall be allowed a credit against the
tax imposed by this chapter of the amount so paid by him or in his behalf to such other
municipality. The credit shall not exceed the tax assessed by this chapter on such income
earned in such other municipality or municipalities where such tax is paid.
(c) A claim for refund or credit under this section shall be made in such manner as
the Administrator may be regulation provide.
If any sentence, clause, section or part of this chapter, 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 clause, sentence, section
or part of this chapter and shall not affect or impair any of the remaining provisions, sentences,
clauses, sections or other parts of this chapter. It is hereby declared to be the intention of
Council that this chapter would have been adopted had such unconstitutional, illegal or invalid
sentence, clause, section or part thereof not been included herein.
171.17 COLLECTION OF TAX AFTER TERMINATION OF
(a) This chapter shall continue effective insofar as the levy of taxes is concerned
until repealed 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 chapter 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 chapter have been fully terminated, subject to the limitations contained in
Sections 171.11 and 171.12.
(b) Annual returns due for all or any part of the last effective year of this chapter
shall be due on the date provided in Sections 171.05 and 171.06 as though the same were
171.18 DUTIES OF OWNERS OF RENTAL OR LEASED PROPERTY
(a) For the purposes on this section, “tenant” means:
(1) If there is a written lease or rental agreement, the person or persons who
signs the written lease or rental agreement with the owner.
(2) If there is an oral lease or rental agreement, the person or persons with
whom the owner enters into the oral lease or rental agreement.
(b) All property owners of rental or lease property who rent to tenants of residential,
commercial or industrial premises shall file with the Administrator a report showing the names
and address of each such tenant who occupies residential, commercial or industrial premises
within the corporation limits of the Municipality.
(c) Within thirty days after a new tenant occupies residential, commercial or
industrial rental property of any kind within the Municipality, all property owners of rental or
leased residential, commercial or industrial property who rent to tenants, shall file with the
Administrator, a report showing the names and addresses of each such tenant who occupies
residential, commercial or industrial premises within the corporation limits of the Municipality.
(d) Within thirty days after a tenant vacates a rental or leased residential, commercial
or industrial property located within the Municipality, the property owner of such vacated rental
or lease property shall file with the Administrator a report showing the date of vacating from the
rental or leased residential, commercial or industrial property and identifying such vacating
(a) Whoever violates any of the provisions of this chapter for which no penalty is
otherwise provided shall be guilty of a misdemeanor of the first degree.
(b) Whoever violates Section 171.09(d) shall be guilty of a misdemeanor of the first
degree. Each disclosure shall constitute a separate offense.
In addition to the above penalty, any employee of the Municipality who violates Section
171.09(d) shall be guilty of an offense punishable by immediate dismissal.
(c) Whoever violates Section 171.18 is guilty of a minor misdemeanor for a first
offense and a misdemeanor of the fourth degree for a subsequent offense.
Ordinance No. 1778-01
Last Passed by Council: December 27, 2001