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MUNICIPALITY OF SEBRING

TITLE SEVEN – Taxation

Chap. 171. Income Tax

CHAPTER 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

Overpayments

171.01 PURPOSE

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.

171.02 DEFINITIONS

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

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this chapter, after appointment by the Village Manager and upon approval by

Council.

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,

2004.

(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

171.13.

(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

compensation basis.

(i) Fiscal year means an accounting period of twelve months or less ending on any day

other than December 31.

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(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

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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

Chapter.

(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

tax.

(v)The singular shall include the plural, and the masculine shall include the feminine and the

neuter.

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

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performed or rendered and business or other activities conducted in the

Municipality.

(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.

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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

Municipality.

(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

activities;

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

of retirement;

(4) Proceeds of insurance paid by reason of death of the insured; retirement

disability benefits, annuities, or gratuities not in the nature of compensation for

services rendered from whatever source derived;

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(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.

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(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;

and

(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,

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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

any overpayment.

(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

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LAST DAY OF THE MONTH FOLLOWING THE CLOSE OF EACH CALENDAR

QUARTER.

(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.

171.07 DECLARATIONS.

(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

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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

payment dates.

(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

year, respectively.

(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

of Review.

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(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

information.

(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%)

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per month or fraction thereof; or twenty dollars ($20.00) whichever is

greater.

(2) For failure to remit taxes withheld from employees five percent (5%) per

month or fraction thereof; or twenty dollars ($20.00) whichever is

greater.

(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

OVERPAYMENTS

(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

(NDCP):

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(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.

171.12 VIOLATIONS

(a) No person shall:

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

or

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

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

chapter; or

(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

appeal.

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(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

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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.

171.16 SEVERABILITY

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

ORDINANCE

(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

continuing.

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

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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

tenant.

171.99 PENALTY

(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