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ORDINANCE 03-5
LEVYING A TAX TO PROVIDE FUNDS FOR THE PURPOSE OF GENERAL MUNICIPAL OPERATION, MAINTENANCE OF EQUIPMENT, EXTENSION, ENLARGEMENT AND IMPROVEMENT OF MUNICIPAL SERVICES AND FACILITIES ON ALL SALARIES, WAGES, INCOME, COMMISSIONS, AND OTHER COMPENSATION EARNED BY NON-RESIDENTS OF THE VILLAGE OF BEVERLY FOR WORK DONE OR SERVICES PERFORMED OR RENDERED IN THE VILLAGE OF BEVERLY; ON THE NET PROFITS EARNED ON ALL BUSINESS, PROFESSIONS, AR OTHER ACTIVITIES CONDUCTED BY RESIDENTS OF THE VILLAGE OF BEVERLY; ON THE NET PROFITS EARNED BY ALL BUSINESS, PROFESSIONS OR OTHER ACTIVITIES CONDUCTED IN THE VILLAGE OF BEVERLY BY NON-RESIDENTS, AND ON THE NET PROFITS EARNED BY SERVICES PERFORMED OR RENDERED IN THE VILLAGE OF BEVERLY; REQUIRING THE FILING OF RETURNS AND FURNISHING OF INFORMATION BY EMPLOYERS AND ALL THOSE SUBJECT TO SAID TAX; IMPOSING ON EMPLOYERS THE DUTY OF COLLECTING THE TAX AT THE SOURCE AND PAYING THE SAME TO THE VILLAGE OF BEVERLY; PROVIDING FOR THE ADMINISTRATION, COLLECTION AND ENFORECEMENTS OF SAID TAX; DECLARING VIOLATION THEREOF TO BE A MISDEMEANOR AND IMPOSING PENALTIES THEREFOR.
BE IT ORDAINED BY THE COUNCIL OF THE VILLAGE OF BEVERLY, STATE OF OHIO, THAT:
SECTION 1: PURPOSE
To provide funds for the purposes of general municipal operations, maintenance, new equipment, extension and enlargement and improvement of municipal services and facilities of the Village of Beverly there shall be, and is hereby, levied a tax on salaries, wages, commissions and other compensation, and on net profits as hereinafter provided.
SECTION 2: DEFINITIONS
As used in this Ordinance, the following words shall have the meaning ascribed to them in this section, except as if the context clearly indicates or requires a different meaning.
ADMINISTRATOR – The individual designated by the ordinance, whether appointed or elected to administer and enforce the provisions of the ordinance.
ASSOCIATION – A partnership, limited partnership, or any other form of incorporated enterprise, owned by two or more persons.
BOARD OF REVIEW – The Board created by and constituted as provided in Section 12 of this Ordinance.
BUSINESS – An enterprise, activity, profession or undertaking of any nature conducted for profit or ordinarily conducted for profit, whether by an individual, partnership, association, corporation or any other entity.
CALENDAR YEAR – Calendar year shall be defined as any year beginning on January 1, and ending on December 31.
CORPORATION – A corporation or joint stock association organized under the laws of the United State, The State of Ohio, or any other state, territory or foreign country or dependency.
EMPLOYEE – One who works for wages, salary, commission of other type of compensation in the service of an employer.
EMPLOYER – An individual, partnership, association, corporation, government 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, wages, commission or other compensation basis.
FISCAL YEAR – An accounting period of twelve (12) months or less ending on any day other than December 31st.
GROSS RECEIPTS – The total income from and source whatsoever.
NET PROFITS – The net gain from the operation of a business, profession, enterprise or activity after provisions for all ordinary and necessary expenses incurred in the conduct thereof either paid or accrued in accordance with the accounting system used by the taxpayer for federal income tax purposes, providing such accounting method does not conflict with any provision of this Ordinance and without deduction of taxes imposed by this Ordinance, federal tax based on income or in the case of an unincorporated entity without deduction of salaries or withdrawals of partners or other owners.
NON-RESIDENT – An individual who does not live within the Village of Beverly.
NON-RESIDENT UNINCORPORATED BUSINESS ENTITY – An unincorporated business entity not having an office or place of business within the Village of Beverly.
PERSON – Every natural person, partnership, fiduciary, association or corporation. Whenever used in any clause proscribing and imposing a penalty, the term “person” as applied to an unincorporated entity, shall mean the partners or members thereof, and as applied to corporation, the officers thereof.
PLACE OF BUSINESS – Any Bona Fide office (other than a mere statutory office), factory, warehouse or other space which is occupied and used by the taxpayer in carrying on any business activity individually or through one or more of his regular employees regularly in attendance.
RESIDENT – An individual living in the Village of Beverly.
RESIDENT UNINCORPORATED BUSINESS ENTITY – An unincorporated business entity having an office of place of business within the Village of Beverly.
RESPONSIBLE PARTY – The President, Security and/or Treasurer of any association, corporation or any other form of incorporated enterprise. In a marriage both spouses regardless of which individual is the wage earner.
TAXABLE INCOME – Earned Income considered taxable, subject to Federal, State, and Municipal Income Tax includes: gross wages, (medicare wages) salaries, commission and other compensation, whether earned by activities in or outside the Village of Beverly, Ohio; net income in or outside the Village of Beverly from rental property, lease or royalty (except oil and gas) income; net profits from the operation of a business, profession or other enterprise or activity adjusted in accordance with the provisions of the Ordinance. This includes any income not specifically excluded by the Beverly Income Tax Ordinance.
TAXABLE YEAR – The calendar year, or the fiscal year ending during such calendar year, upon the basis for which the net profits are to be computed under this Ordinance and, in the case of a return for a fractional part of the year, the period for which such return is made. Unless approved by the Department of Taxation, the taxable year of an individual shall be a calendar year.
TAXPAYER – A person, whether an individual, partnership, association, or any corporation, its officers and shareholders, or other entity, required hereunder to file a return or pay a tax. “Taxpayer” does not include individuals under 18 years of age. The singular shall include the plural, and the masculine shall include the feminine and the neuter. Documentation is required from the individuals who own property in Beverly but reside and work outside the village.
SECTION 3: IMPOSITION OF TAX
A. An annual tax for the purposes specified in Section 1 herof shall be imposed at the rate of one per cent (1%) per annum upon the following:
1. On all salaries, wages (medicare wages), commissions, taxable income and other compensation earned on and after January 1, 2004, by residents of the Village of Beverly.
2. On all salaries, wages (medicare wages), commissions, taxable income and other compensation earned on and after January 1, 2004, by non-residents for work done of services performed or rendered in the Village of Beverly.
3. (a) On the portion attributable to the Village of Beverly of the net profits earned on and after January 1, 2004, of all resident unincorporated businesses, professions or other activities, derived from work done or service performed or rendered and business or other activities conducted in the Village of Beverly. (b) On the portion of the distributive share of the net profits earned on and after January 1, 2004, of a resident, partner or owner of a resident unincorporated business entity not attributable to the Village of Beverly and not levied against such unincorporated business entity.
4. (a) On a portion attributable to the Village of Beverly the net profits earned on and after January 1, 2004, of all non-resident unincorporated businesses, professions or other activities, derived from work done or services performed or rendered and businesses or other activities conducted in the Village of Beverly, whether or not such unincorporated business entity has an office or place of business in the Village of Beverly. (b) On the portion of the distributive share of the net profits earned on and after January 1, 2004, of a resident partner or owner of a non-resident unincorporated business entity not attributable to the Village of Beverly and not levied against such unincorporated business entity.
5. On the portion attributable to the Village of Beverly of the net profits earned on and after January 1, 2004, of all corporations derived from work done or services performed or rendered and business or other activities conducted in the Village of Beverly, whether or not such corporations have an office or place of business in the Village of Beverly.
6. The imposition of tax shall be applicable to the net proceeds of all rental monies received by each and every taxpayer irrespective of whether the rental income constitutes proceeds from a business classification. No rental losses or business losses are allowed against W2 earnings or other taxable income. (Rental losses can be carried over for 15 years)
B. The portion of the net profits attributable to the Village of Beverly of a taxpayer conducting a business, profession other activity both within and without the boundaries of the Village of Beverly shall be determined as provided in Section 718.02 of the Revised Code of Ohio and in accordance with the rules and regulations pursuant to this Ordinance.
C. EXCEPTIONS. The tax provided for herein shall not be levied upon unearned income or upon the military pay or allowance of members of the armed forces of the United States or upon the net profits of any civic, charitable, religious, fraternal or other organization specified in Section 718.01 of the Revised Code of Ohio to the extent that such net profits are exempted from municipal income taxes under said Section. January 1, 2004, the primary clergyman of a church is tax exempt from the church earnings. Individuals under 18 years of age are not subject to the tax provided for herin. Individuals shall be subject to the municipal Income Tax the year they turn 19 years of age.
SECTION 4: EFFECTIVE PERIOD
Said tax shall be levied, collected and paid with respect to the salaries, wages commissions and other compensation with respect to the net profits of businesses, professions or other activities earned for a period of five (5) years from January 1, 2004, through and including December 31, 2008.
SECTION 5: RETURN AND PAYMENT OF TAX
A. Each taxpayer or person who engages in business, or whose salaries, wages, commissions and other compensation are subject to the tax imposed by this Ordinance shall, whether or not a tax be due thereon, make and file a return on or before April 30, 2004, and on or before April 30th of each year thereafter with the Department of Taxation setting forth:
1. The aggregate amounts of salaries, wages, commissions, taxable incomes, and other compensation earned by him, and/or gross income from such business less allowable expenses incurred in the acquisition of such gross income earned during the preceding year and subject to the said tax;
2. The amount of the tax imposed by this Ordinance on such earnings and profits; and
3. Such other pertinent statements or information, returns or other information as the Village treasurer or his authorized deputy may require, including a statement that the figures used in the return are the figures used in the return for federal income tax adjusted to set forth only such income as is taxable under the provisions of the Ordinance.
B. All persons having earned income reported to the Internal Revenue Service by their employer, shall furnish a copy of each W-2 form received from their employer to the Village of Income Tax Department. Non-residents of the Village shall furnish copies of the W-2 forms only for earned income from within the corporate boundaries of the Village. W-2’s may be furnished by appending a copy of them to their return or by producing a copy for inspection by the Village Tax Administrator.
C. When the return is made for a fiscal year or other period different from the calendar year, the return shall be filed within four (4) months from the end of such fiscal year or other period.
D. The Village Treasurer or his authorized deputy may extend the time for filing of the annual return as follows:
1. Upon the written request of the taxpayer for a period not to exceed sixty (60) days or thirty (30) days beyond any extension requested of or granted by the Internal Revenue Service for the filing of the federal income tax return, provided a tentative return accompanied by payment of the amount of tax shown to be due thereon, if filed by the date the return is normally due. If the extension for Internal Revenue Service programs is granted, a copy must go to the tax administrator.
2. By regulations approved by the Board of Review for a period not to exceed thirty (30) days from the date for filing federal income tax returned, either individual or corporated, is subsequent to April 15th. 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.
E. The taxpayer making the return required hereunder shall, at the time of the filing thereof, pay the Village treasurer the balance of tax, if any, due after crediting:
1. Any portion of such tax deducted at the source and paid to the Village Treasurer by the person making such deduction pursuant to the provisions of Section 6 hereof.
2. Any portion of said tax paid by such taxpayer pursuant to the provisions of Section 7 hereof.
3. Any credit allowable under the provisions of Section 14 hereof; and
4. Any credits or refunds otherwise allowable under the provisions of this Ordinance.
F. All individuals, partnerships, associations, corporations, businesses, or entities covered by this ordinance are hereby required to file an annual return even though no tax is due.
G. In the case of a corporation that carries on transactions with its stockholders or with other corporations related by stock ownership, interlocking directorates, or some other method, or in case any person operates a division, branch, factory, office, laboratory or activity within the Village of Beverly constituting a portion only of its total business, the Village treasurer or his authorized deputy may require such additional information as may be necessary to ascertain whether net profits allowable to the Village of Beverly are being distorted by the shifting of income, apportionment of expenses, or other devices available to a common control. If the Village treasurer or his duly authorized deputy finds that a person’s net profits allocable to the Village of Beverly are distorted by reason of transaction with stockholders or with other corporations related to stock ownership, interlocking directorates, or transactions with such division, branch, factory, office laboratory, or activity or by some other method, he may adjust said transactions so as to produce a fair and proper location of net profits to the Village of Beverly. If necessary, the Village treasurer of his authorized deputy may require the filing of a consolidated return.
H. A taxpayer who has overpaid the amount of tax to which the Village of Beverly is entitled under the provisions of this Ordinance may have such overpayment applied against any subsequent liability hereunder or, at his election indicated on the return, such overpayment (or part thereof) shall be refunded, provided, that no additional taxes or refunds of less than One Dollar ($1.00) shall be collected or refunded.
I. Within three (3) months from the final determination of any federal tax liability affecting taxpayer’s Village tax liability, such taxpayer shall make and file an amended Village return showing income subject to Village 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.
SECTION 6: COLLECTION AT SOURCE
A. Each employer within or doing business within the Village of Beverly who employs one or more persons on a salary, wage, commission or other compensation basis shall deduct at the time of the payment of such salary, wages, commissions or other compensation due by the said employer to said employee and shall, on or before the last day of the month following the close of calendar quarter, make a return and pay to the Village Treasurer or his authorized deputy the amount of taxes so deducted. Said return shall be on a form or forms prescribed by or acceptable to the Department of Taxation and shall be subject to the rules and regulations prescribed therefor by the Department of Taxations.
B. Such employer in collecting said tax shall be deemed to hold the same, until payment is made by such employer to the Village of Beverly as a trustee for the benefit of the Village of Beverly and any such tax collected by such employer form his employees shall, until the same is paid to the Village of Beverly, be deemed a trust fund in the hands of such employer.
SECTION 7: DECLARATIONS
A. Every taxpayer who anticipate any taxable income of more than One Thousand Dollars ($1,000.00) which is not subject to Section 6 hereof, or who engages in any business, profession, enterprise, or activity subject to the tax imposed by Section 3 thereof , shall file a declaration setting forth such estimated income or the estimated profit or loss from such business activity together with the estimated tax due thereon, if any; provided, however, if a taxpayer’s income is wholly from wages from which the tax will be withheld and remitted to the Village Beverly in accordance with Section 6 hereof, such taxpayer need not file a declaration. Every non-resident of the Village of Beverly who expects to have income of more than One Thousand Dollars ($1,000.00) from within the corporation is required to file a Declaration of Estimated Income Tax.
B. Such declaration shall be filed on or before April 30th of each year during the duration of this ordinance. When a person becomes subject to tax for the first time after such date, a declaration shall be filed within four (4) months of the date he becomes so subject.
C. Such declaration shall be filed upon a form or forms furnished by, or obtainable upon request from the Department of Taxation, which form or forms may require a statement that the figures used in making such declaration are the figures used in |
