2012-26

ORDINANCE AMENDING SECTION 193.06 OF THE MARION CITY CODE TO PROVIDE FOR A UNIVERSAL FILING REQUIREMENT AS TO INCOME TAX, AND ADDING SECTION 193.20 ALL IN AN EFFORT TO ENSURE EQUAL APPLICATION OF THE CODE AND TO FACILITATE ENFORCEMENT OF CHAPTER 193 OF THE MARION CITY CODE


WHEREAS, the Council has found a real and present need exists for the City of Marion, Ohio to follow the course taken by similarly situated municipalities in Ohio to make the filing of a return in regard to the City Income Tax universal. The Council herein finds it to be in the best interests of the citizens of the City of Marion to incorporate the following modifications of the existing City Code, some of the cited bases being: More uniform or equal application of the tax code, more efficient enforcement of the Code and ensuring equal application of law, and

WHEREAS, in addition, the City Auditor has advised of the advantages of adding a provision within the existing Code to require registration of employers, contractors and subcontractors on the premises previously identified above,

BE IT ORDAINED by the Council of Marion, Marion County, Ohio:

Section 1. § 193.06 RETURN AND PAYMENT OF TAX, now reading in relevant part as:
(A) Each taxpayer whose earnings or profits are subject to the Municipal Income Tax shall, the 15th day of the fourth month following the end of a taxable year, make and file a final return with the Income Tax Department on a form obtainable from the Income Tax Department, setting forth the aggregate amount of salary, wages, or other compensation and net profits earned by him/her during the preceding year or period and subject to said tax, together with other pertinent information as the Income Tax Department may require. The return shall also show the amount of the tax imposed on such earnings and profits/losses. Taxpayers may file a substitute tax returns provided the substitute return includes all the information and supporting documents required by the Income Tax Department.
(B) The taxpayer making the said return shall, by the 15th day of the fourth month following the end of a taxable year, pay to the Income Tax Department the amount of taxes shown as due thereon. Any portion of said tax shall have been paid by such taxpayer pursuant to the provisions of §§ 193.07 and 193.08 of this chapter, shall be deducted from the amount shown to be due and only the balance, if any, shall be due and payable on the 15th day of the fourth month following the end of a taxable year.
(C) (1) Deduction for business and rental losses may be claimed only to the extent of the profit on each tax return. Deduction for business and rental losses on each tax return may be consolidated in the case of one or more businesses and/or one or more rental properties to arrive at a combined profit or loss.
(2) Loss deduction shall not be transferred from one taxable year to another.
(3) Business and rental losses will not be deducted against compensation or qualifying wages taxed under § 193.04 (A) and § 193.04 (B) of this chapter.
(D) The return of an employer or employers showing the amount of tax deducted by said employer or employers from the salaries, wages or compensation of any employee, and paid by him/her or them to the City Treasurer, shall be accepted as the return required of any employee whose sole income subject to the Municipal Income Tax is such salary, wages or compensation.
(E) (1) for taxable years beginning before January 1, 2004, upon written request of the taxpayer, the Income Tax Department may extend the time for filing the annual return for a period of not more than six months or not more than 30 days beyond any extension requested of and granted by the Bureau of Internal Revenue for the filing of the Federal Income Tax Return. A taxpayer may request an extension by filing a copy of the federal filing extension with the Income Tax Department. Extension requests shall include a remittance to the Income Tax Department of any remaining tax which the taxpayer estimates is due. The due date for payment of the tax shall not be extended.
(2) For taxable years beginning on or after January 1, 2004, upon written request of the taxpayer, the Income Tax Department may extend the time for filing the annual return. A taxpayer may request an extension by filing a copy of the federal filing extension with the Income Tax Department. Extension requests shall include a remittance to the Income tax Department of any remaining tax which the taxpayer estimates is due. The due date for payment of the tax shall not be extended. The extended due date shall be the 1st day of the month following the month to which the due date of the federal income tax return has been extended.
(F) Any affiliated group of corporations filing a consolidated return for federal income tax purposes pursuant to § 1501 of the Internal Revenue Code may file a consolidated return for the same tax reporting period with the municipality.
(G) (1) For taxable years ending after December 31, 2002, each pass-through entity (except S corporations) conducting business within the municipality shall, on the 15th day of the fourth month following the end of a taxable year, make and file an information return with the Income Tax Department on a form obtainable from the Income Tax Department, setting forth the net profits/ losses earned by the entity during the preceding year or period and subject to tax, together with other pertinent information as the Income Tax Department may require. The return shall also include a copy of the federal schedule K-1’s showing each owner’s distributive share of the entity’s income. Taxpayers may file substitute information returns provided the substitute return includes all the information and supporting documents required by the Income tax Department. The entity may request an extension of time to file the return pursuant to paragraph (E) of this section. The entity will be subject to the late filing penalty in § 193.12 (C).
(2) (i) For taxable years ending after December 31, 2002, a pass through entity (except S corporation) may elect to pay on behalf of the owners of the entity the tax due on the net profits of the entity earned within the municipality. The election may be made by the entity submitting the payment with the information return or by the entity submitting estimated tax payments under § 193.08.
(ii) The electing entity will be subject to the interest and penalty provisions of § 193.12.
(iii) The electing entity will be subject to the estimated tax payment requirements for non-individuals of § 193.08. § 193.08 (F) will only apply to the entity and its owners in the first taxable year the entity conducts business within the municipality. If the tax was paid by the owners in the prior year and the entity elects to pay the current year tax directly, the prior year tax liability for the entity will be determined by calculating the tax due from the entity’s prior year’s information return. If the entity elected to pay the tax in the prior year and owners pay the current tax year, the prior year tax liability for the owners will be determined by calculating the tax due on their distributive share of the entity’s prior year income.
(iv) Each owner will be liable for his/her/its distributive share of any unpaid tax, penalty and interest of the entity.
(v) If the owner has other business activities subject to the municipal income tax, the owner’s distributive share of income from and tax paid by the electing entity shall be included on the owner’s return.
(H) Any group of S corporations filing as a single S corporation for federal income tax purposes pursuant to § 1361 (b)(3) of the Internal Revenue Code shall file as a single S corporation for the same reporting period with the municipality.
(Ord. 1971-130, passed 7-26-71; Am. Ord. 1981-59, passed 6-8-81; Ord. 2000-131, passed 10-23-2000; Am. Ord. 2002-119, passed 12-9-2002; Ord. No. 2003-110, passed 11-24-2003) Penalty, see § 193.99

shall be amended to read as follows:

§ 193.06 RETURN AND PAYMENT OF TAX.

(A) Each taxpayer whose earnings or profits are subject to the Municipal Income Tax shall, on the 15th day of the fourth month following the end of a taxable year, make and file a final return whether or not a tax be due thereon with the Income Tax Department on a form obtainable from the Income Tax Department, setting forth the aggregate amount of salary, wages, or other compensation and net profits earned by him/her during the preceding year or period and subject to said tax, together with other pertinent information as the Income Tax Department may require. The return shall also show the amount of the tax imposed on such earnings and profits/losses. Taxpayers may file a substitute tax returns provided the substitute return includes all the information and supporting documents required by the Income Tax Department.

(B) The taxpayer making the said return shall, by the 15th day of the fourth month following the end of a taxable year, pay to the Income Tax Department the amount of taxes shown as due thereon. Any portion of said tax shall have been paid by such taxpayer pursuant to the provisions of §§ 193.07 and 193.08 of this chapter, shall be deducted from the amount shown to be due and only the balance, if any, shall be due and payable on the 15th day of the fourth month following the end of a taxable year.

(C) (1) Deduction for business and rental losses may be claimed only to the extent of the profit on each tax return. Deduction for business and rental losses on each tax return may be consolidated in the case of one or more businesses and/or one or more rental properties to arrive at a combined profit or loss.
(2) Loss deduction shall not be transferred from one taxable year to another.
(3) Business and rental losses will not be deducted against compensation or qualifying wages taxed under § 193.04 (A) and § 193.04 (B) of this chapter.

(D) The return of an employer or employers showing the amount of tax deducted by said employer or employers from the salaries, wages or compensation of any employee, and paid by him/her or them to the City Treasurer, shall be accepted as the return required of any employee whose sole income subject to the Municipal Income Tax is such salary, wages or compensation.

(E) (1) for taxable years beginning before January 1, 2004, upon written request of the taxpayer, the Income Tax Department may extend the time for filing the annual return for a period of not more than six months or not more than 30 days beyond any extension requested of and granted by the Bureau of Internal Revenue for the filing of the Federal Income Tax Return. A taxpayer may request an extension by filing a copy of the federal filing extension with the Income Tax Department. Extension requests shall include a remittance to the Income Tax Department of any remaining tax which the taxpayer estimates is due. The due date for payment of the tax shall not be extended.

(2) For taxable years beginning on or after January 1, 2004, upon written request of the taxpayer, the Income Tax Department may extend the time for filing the annual return. A taxpayer may request an extension by filing a copy of the federal filing extension with the Income Tax Department. Extension requests shall include a remittance to the Income tax Department of any remaining tax which the taxpayer estimates is due. The due date for payment of the tax shall not be extended. The extended due date shall be the 1st day of the month following the month to which the due date of the federal income tax return has been extended.

(F) Any affiliated group of corporations filing a consolidated return for federal income tax purposes pursuant to § 1501 of the Internal Revenue Code may file a consolidated return for the same tax reporting period with the municipality.

(G) (1) For taxable years ending after December 31, 2002, each pass-through entity (except S
corporations) conducting business within the municipality shall, on the 15th day of the fourth month following the end of a taxable year, make and file an information return with the Income Tax Department on a form obtainable from the Income Tax Department, setting forth the net profits/ losses earned by the entity during the preceding year or period and subject to tax, together with other pertinent information as the Income Tax Department may require. The return shall also include a copy of the federal schedule K-1’s showing each owner’s distributive share of the entity’s income. Taxpayers may file substitute information returns provided the substitute return includes all the information and supporting documents required by the Income tax Department. The entity may request an extension of time to file the return pursuant to paragraph (E) of this section. The entity will be subject to the late filing penalty in § 193.12 (C).

(2) (i) For taxable years ending after December 31, 2002, a pass through entity (except S corporation) may elect to pay on behalf of the owners of the entity the tax due on the net profits of the entity earned within the municipality. The election may be made by the entity submitting the payment with the information return or by the entity submitting estimated tax payments under § 193.08.
(ii) The electing entity will be subject to the interest and penalty provisions of § 193.12.
(iii) The electing entity will be subject to the estimated tax payment requirements for non-individuals of § 193.08. § 193.08 (F) will only apply to the entity and its owners in the first taxable year the entity conducts business within the municipality. If the tax was paid by the owners in the prior year and the entity elects to pay the current year tax directly, the prior year tax liability for the entity will be determined by calculating the tax due from the entity’s prior year’s information return. If the entity elected to pay the tax in the prior year and owners pay the current tax year, the prior year tax liability for the owners will be determined by calculating the tax due on their distributive share of the entity’s prior year income.
(iv) Each owner will be liable for his/her/its distributive share of any unpaid tax, penalty and interest of the entity.
(v) If the owner has other business activities subject to the municipal income tax, the owner’s distributive share of income from and tax paid by the electing entity shall be included on the owner’s return.
(H) Any group of S corporations filing as a single S corporation for federal income tax purposes pursuant to § 1361 (b)(3) of the Internal Revenue Code shall file as a single S corporation for the same reporting period with the municipality.


Section 2. Marion City Code CHAPTER 193: MUNICIPAL INCOME TAX shall be amended to include the following additional obligation:
§ 193.20 REGISTRATION OF EMPLOYERS, CONTRACTORS AND SUBCONTRACTORS.
(A) All employers, contractors or subcontractors who do work in the City of Marion, Ohio shall register with the Tax Commissioner, on a form the Tax Commissioner prescribes, within 30 days after the first work is performed or February 15th of the year following the year the worked was performed whichever is later. Said entities shall have a continuing duty to update said information no less than annually on the anniversary date of their initial filing. The Tax Commissioner may request a list of all employees, subcontractors, contractors or others who perform work in the City of Marion, Ohio.
(B) All employers, contractors or subcontractors, in addition to any other penalties for non-compliance contained within M.C.C. 193, shall be assessed an additional penalty of $5 per month for each month it remains non-compliant, up to a maximum of $1,000, for failure to comply with division (A) of this section.
Section 3. The effective date for the changes, modifications and alterations to Marion City Code 193 contained above shall be the 1st day of JULY 1, 2012 and shall be applicable for the tax year known as 2012 and every tax year thereafter.
Section 4. This Ordinance shall take effect and be in force from and after the earliest period allow by law


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Approved: Dave Edwards
President of Council

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Mayor Scott Schertzer


Attest:

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Clerk of Council