CROSS REFERENCES

Power to levy income tax - see Ohio Const., Art. XVIII, Sec. 3;
Payroll deductions - see Ohio R.C. 9.42
Municipal income taxes - see Ohio R.C. Ch. 718

191.01 DEFINITIONS

As used in this chapter, the following words have the meanings ascribed to them in this section, except if the context clearly indicates
or requires a different meaning:

(a)  "Taxpayer" means a person, whether an individual, partnership, limited partnership, corporation, association or other entity, -required to file a return or to pay a tax in accordance with the provisions of this chapter.

(b)  "Association" means a partnership, limited partnership or any other form of unincorporated enterprise, owned by two or more Persons  

(c)  "Business" means an enterprise, activity, profession or undertaking of any nature conducted for profit or ordinarily conducted
for profit, whether by aft individual, partnership, limited partnership, corporation, association or any other entity.

(d)  "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, foreign country or dependency.  

(e) “Employee" means an individual whose earnings are subject to the withholding of Federal income tax or Social security tax.

(f) "Employer" means an individual, partnership, limited partnership, association, corporation, governmental body, unit or
agency or any other entity who or that employs one or more persons on a salary, wage, commission or other compensation
basis.

(g) "Net profits" means the net gain from the operation of a business, profession or enterprise after provision for all cost and expense incurred in the conduct thereof, including reasonable allowance for depreciation, depletion, amortization and reasonable additions to reserve for bad debts, either paid or accrued in accordance with recognized principles of accounting applicable to
the method of accounting regularly employed and without deduction of Federal taxes based on income, and without deducting
taxes imposed by this chapter.

(h) "Nonresidents" means an individual, partnership, limited partnership, corporation, association or other entity domiciled
outside the City of Rittman.  

(i) "Person” means every natural person, partnership, limited partnership, corporation, fiduciary or association. Whenever
used in any clause prescribing and imposing a penalty, the term "person” as applied to any association, means the
partners or members thereof, and as applied to corporation, the officers thereof.  

(j) "Resident' means an individual, partnership, limited partnership, corporation, association or other entity domiciled in the
City of Rittman.

(k) "Other entity" means any person or unincorporated body not previously named or defined and includes inter alia,
fiduciaries located within the City of Rittman. (Ord., 4632. Passed 3-27-67.)

To provide funds for the purposes of general property tax relief, capital improvements, new equipment, maintenance of equipment, operation, maintenance and capital improvements of the City water system and general Municipal operation, there is hereby levied
a tax upon earnings at the rate of one and one-half percent upon the following:

(a)  All salaries, wages, commissions and other compensation earned on and after January 1, 1,978, by resident individuals
of the City of Rittman.

(b) All salaries, wages, commissions and other compensation earned on and after January 1, 1978, by nonresident individuals
of the City of Rittman for work done or services performed or Tendered in the City of Rittman.

(c)  The net profits attributable to Rittman,  earned on and after January 1, 1978, of all resident unincorporated businesses, professions and other activities, derived from work done or services rendered or performed and business or other activities conducted in the City of Rittman.

(d) The Portion of the distributive share of the net Profit earned on and after January 1, 1978, of a resident individual, partner
or owner of a resident unincorporated business entity.  

(e) The net profits attributable to Rittman, earned on and after January 1, 1978, of all nonresident unincorporated businesses, professions or other activities, derived from work done or services performed or rendered and business or other activities
conducted in the City of Rittman.

(f) The portion of the distributive share of the net profits earned on and after January 1, 1978, of a resident individual partner
or owner of a nonresident  unincorporated business entity not attributable to Rittman ad not levied against such unincorporated business entity.

(g) The net profits earned on and after January 1, 1978, of all corporations derived from work done or services performed or rendered and business or other activities conducted in the City of Rittman 

(h) Business Allocation Percentage Formula (Ohio E.C. 718.02),

(1) ID the taxation of income which is subject to taxation by the provisions of this chapter, if the books and records of a taxpayer conducting a business  or profession both within and without the boundaries of the City of Rittman disclose with reasonable accuracy what portion of its net profit is attributable to that part of the business or profession conducted within
the boundaries of the City of Rittman, then only such portion shall be considered as having a taxable status in the City of Rittman, for purposes of income taxation in the absence of such records, net profit from a business or profession
conducted both with and without the boundaries of the City of Rittman shall be considered as having a taxable situs in the
City of Rittman for purposes of income taxation in the same proportion as the average ratio of:

             A. The average net book value of the real and tangible personal property owned or used by the taxpayer in the business or profession in the City of Rittman during the taxable period to the average net book value of all of the real
and tangible Personal property, owned or used by the taxpayer in the business or profession during the same period, wherever situated.
             As used in the preceding paragraph, real property shall include property rented or leased by the taxpayer
and the, value of such property shall be determined by multiplying the annual rental thereon by eight;

          B.    Wages, salaries and other compensation paid during the taxable period to persons employed in the business
or profession for services performed in the City of Rittman to wages, salaries and other compensation paid during the
same period to persons employed in the business, or profession wherever their services are performed.

            C.    Gross receipts of the business or profession from sales made and services performed during the taxable
period in the City of Rittman to gross receipts of the business or profession during the same period from sales and
services, wherever made or performed.
In the event that the foregoing allocation formula does not produce an equitable result, another basis may, under uniform regulations be substituted so as to produce such result.

(2) As used in Section 191.02(h)(1),  "sales made in the City Of Rittman" means:

A.      All sales of tangible personal property which is delivered within the City or of Rittman  regardless of where title
passes if shipped or delivered from a stock of goods within Rittman;

B.      All sales of tangible personal property which is delivered within the City of Rittman regardless of where title passes even though transported from a point outside Rittman  if the tax payer is regularly engaged through  its own employees
in the solicitation or promotion of sales within the City of Rittman and the sales result from such solicitation or promotion;

 C.     All sales of tangible personal property which is shipped from a place within  theCitty of Rittman to purchasers
outside Rittman regardless of where title passes if the taxpayer is not, through its own employees, regularly engaged
in the solicitation or promot4on of sales at the place where delivery is made.
(Ord. 5100. Approved by voters 9-20-77; Amended by voters 11-5-96)

191.03     EFFECTIVE DATE

The income tax shall be levied, collected ad paid with respect of salaries, wages commissions and other compensation
earned on and after January 1, 1978, and with respect to the net profit of businesses, professions and other activities
earned on and after January 1, 1978. However, where the fiscal year of the business, profession or other activity
differs from the calendar year, the tax shall be applied to that part of the net profit for the fiscal year as shall be
earned on and after January 1, 978, to the close of the taxpayer's fiscal year; thereafter the taxpayer shall
report on its fiscal year basis.
(Ord. 5100. Approved by voters 9-20-77; Ammended by voters 11-5-96.)

191.04 RETURN AND PAYMENT OF TAX

(a) Each taxpayer whose earnings or profits are subject to the tax imposed by this chapter shall,  on or before
April 15, 1969, and an April 15 of each year thereafter, make and file a final return with the City Manager on a form
obtainable from the City  Manager,  setting forth the aggregate amount of salary, wages or other compensation and not profits earned by him during the preceding year or period and subject to the  income tax, together with other pertinent information as the City Manager may require. However, when the final return is made for a fiscal year or other period different from the calendar year, the return shall be made within 105 days from the end of the fiscal year or other period.

(b) The return shall also show the amount of ths tax imposed on such earnings and profits. The     taxpayer making
the return shall, at the time of filing, pay to the Treasurer the amount of taxes shown 
as due on the return. However, where any portion of the tax has been paid by the taxpayer pursuant to the provisions
Of Section 191.05 and/or Section 191.06,  credit for the amount so paid shall be deducted from the amount shown to
be due and only the balance, if any, shall be due and payable at the time of filing the final return.

(c) The return of an employer or employers showing the amount of tax deducted by the employer or employers from
the salaries, wages or compensation of a nonresident employee and paid by him or them to the Treasurer, shall be
accepted as the return required of a nonresident employee whose sole income subject to the tax imposed by
Section 191.02 is such Mary wages or compensation.  

(d) All residents of the City subject to the tax imposed by Section 191.02, shall  on or before April 15 of each year
following the passage date of this section,  make and file a return with the City Manager as provided in this section

(e) Upon written request of the taxpayer, the City Manager may extend the time for filing the annual tax return for a
period not more than six months or not more than thirty days beyond any extension requested of and granted by the
Internal Revenue Service for the filing of the Federal income tax return.
(Ord. 5938. Passed 7-27-87.)  

191.05 COLLECTION AT SOURCE.

(a) In accordance with rules, and regulations prescribed by the City Manager, each employer within or doing business
within the City shall deduct at the time of the payment of such salary, wage, commission or other compensation the
tax imposed by Section 191.02 on the gross salaries, wages, commissions or other compensation due by the employer
to the employee and shall,  on or before the twentieth day of the month 
following the close of each calendar quarter, make a return and pay to the  City Manager the amount of taxes so 
deducted subject to the provisions of subsections (c) to (e) hereof.  Returns shall be on a form proscribed 
by or acceptable to the City Manager and shall be subject to the rules and regulations prescribed therefore
by the City Manager. 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

(b) Such employer, in collecting the tax, shall be deemed to hold the same until payment is made by the 
employer to the City and any such tax collected by the employer from his employees shall, until the same 
is paid to the City, be deemed a trust fund in the hands of the employer, (Ord. 5938. Passed 7-27-87.)

(c). Such employer who deducts the tax of one hundred dollars ($100.00) or more per month shall pay to the
Administrator, before the twentieth of the following month, the amount of taxes so deducted an a monthly basis
beginning with the first month the employer exceeds one hundred dollars ($100.00) in taxes withheld. Quarterly
returns shall be filed and paid to the Administrator on or before the twentieth day of the following month. Taxes
not paid by the thirtieth of the month shall be charged interest and penalties as provided for in Section 191.10,
(Ord. 7003. Passed 10-11-99)  

(d) Payments shall be an a form furnished by or obtainable upon request from the City Manager.  

(e) No person shall be required to withhold the tax on wages or other compensation paid domestic servants
employed by him exclusively in or about such person's residence, even though such residence is in the City,
but such employee shall be subject to all of the requirements of this chapter. (Ord. 5938. Passed 7-2 -87.)  

191.06  DECLARATIONS  

(a) Every taxpayer who anticipates any income which is not subject to the provisions of Section 191.05 shall file
a declaration of the estimated tax for the taxable year of 1968. Such declaration shall be filed on or before April 15, 1968,
and thereafter a similar declaration shall be filed by all such taxpayers for each calendar year on or before April 15 of
each ensuing year for the duration of the taxes imposed in this chapter.

(b) The declaration shall be filed upon a form prescribed by the City Manager; the form may simply state that the figures used in making such declaration are the figures used in making the declaration of the estimate for Federal income tax, provided that it is understood  that such figures may be modified according to the provisions of this chapter so that the declaration required by this section shall set forth only such income as is taxable under the provisions of this chapter.  

(c) The declaration to be filed on April 15 of each year shall be accompanied by payment of at least one-fourth of the estimated annual tax, and at least a similar amount shall be paid on or before June 30, September 30 and December 31
of each year.  However, the estimate may be amended at the time of making any quarterly payment,  and the final
return shall he paid on or before April 15 of the year following that for which the declaration was filed. Should it appear
that a taxpayer has paid more than the amount of tax to which the City of Rittman is entitled, a refund of the amount so overpaid shall be made, or the overpayment may be applied toward the declaration of tax due for the ensuing year. Claims for refunds shall be made on forms prescribed by and obtainable from the City Manager. (Ord. 4632  Passed 3-27-67.)  

 191.07  CITY RESIDENT SUBJECT TO INCOME TAX IN OTHER MUNICIPALITY 

(a) When a resident of Rittman is subject to a municipal income tax in another municipally on the same income taxable under Section 191.02, a credit shall be allowed equal to such tax against the Rittman income tax, but such credit shall not exceed the amount of the Rittman income tax. For the purpose of this section, taxable income shall include the distributive share of net profits of a resident partner or owner of an unincorporated business entity.

(b) In the event such Rittman resident fails, neglects or refuses to file such return or form as prescribed by the City Manager, he shall not be entitled to such credit and shall be considered in violation of this chapter for failure to file a return and make payment of taxes due hereunder. (Init. Ord. Approved by voters 11-8-88.)

191.08  ADMINISTRATION; CITY MANAGER'S DUTIES

(a)  (1)  It shall be the duty of the City Manager of Rittman to receive the tax imposed by this chapter in 
       the  manner prescribed in this chapter from the taxpayers; to keep an accurate record thereof; 
       and to report all moneys so received.

(2)  It shall be the duty of the City Manager to enforce payment of all taxes owing the City of Rittman, to keep
accurate records for minimum of six years, showing the amount due from each taxpayer required to file a declaration and/or make any return, including taxes withheld, and to show the dates and amounts of payments thereof.

(b)  (1) The City Manager 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, promulgate 
      and enforce rules and regulations relating 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.

(2)  The City Manager Is hereby authorized to arrange for the payment of unpaid taxes, interest and penalties on a schedule of installment payments, when the taxpayer has proved to the City Manager that, due to certain hardship conditions, he is unable to pay the full amount of the tax due. Such authorization shall not be granted until proper
returns are filed by the taxpayer ,for all amounts owed by him under this chapter.  
Failure to make any deferred payment when due shall cause the total amount unpaid, including penalty and Interest,
to become payable on demand and the provisions of Sections 191.11 and 
1.91.12 shall apply.  

(c) 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 City Manager may determine the amount of tax appearing to be due Rittman from the taxpayer and shall
send to such taxpayer a written statement showing the amount of tax so determined, together with interest and penalties thereon, if any.  

(d) Subject to the consent of the Board Of Review or pursuant to regulation approved by the Board of Review, the City Manager shall have the power to compromise any interest or penalty imposed by this chapter. (Ord. 4632. Passed 3-27-67.)

191.09  INVESTIGATIVE POWERS OF THE CITY MANAGER

(a) The City Manager or his duly authorized agent or employee, is hereby authorized to examine the books, papers and records of any employer or of any taxpayer or person subject to tax,  for the purpose of verifying the accuracy of any return made, or, if no return was made, to ascertain  the tax due. Every such employer, supposed employer, taxpayer or supposed taxpayer, is hereby directed and required to furnish to the City Manager or his duly authorized agent or employee, the means, facilities and opportunity for making such examination and investigations as are hereby authorized

(b) The City Manager, or his duly authorized agent or employee, is hereby authorized to examine any person, employer or employee under oath, concerning any income which was or should have been returned for taxation, and for this purpose may compel the production of books, papers and records and the attendance of all persons before him whether as parties or witnesses, wherever he believes such persons have knowledge of such income

(c) The refusal of such examination by any employer, employee or person subject or presumed to  be subject to tax shall be deemed a violation of this chapter.

(d) Tax returns and all audit papers and information connected therewith are confidential and shall be carefully preserved so that they shall not be available for inspection by anyone other than the proper agents of the City of Rittman for official purposes.  

(e) Any information gained as the result of the filing of any tax returns, investigations, hearings or verifications required or authorized by this chapter shall be confidential, except for official  purposes 
and except in accordance with proper judicial order.  

(f) Any employee of the City of Rittman who violates any provision of this section relative to disclosure of confidential information shall be immediately dismissed from the service of the City, in addition to the penalty provided for in Section 191.99. (Ord. 4632. Passed 3-27-67.)  

191.10  INTEREST AND PENALTIES ON UNPAID TAXES

(a) Interest on Unpaid Tax.  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 one and one half percent (I 1/2 %) per month or fraction thereof.  

(b)  Penalties on Unpaid Tax.   In addition to interest as provided in this section, penalties based  on the unpaid tax are hereby imposed as follows:

(1) For failure to pay taxes due other than taxes withheld:  one and one-half percent (I 1/2 %) per month or fraction thereof.
(2) The minimum penalty for failure to file an annual return shall be twenty-five dollars ($25.00).
(3) For failure to pay taxes withheld from employees:   ten percent (10 %) per month or fraction thereof.

(c) Exception to Penalties.  A penalty shall not be assessed on an additional tax assessment made by the City Manager
when a return has been filed in good faith and the tax paid thereon within the time prescribed by the City Manager and provided further, that In the absence of fraud, neither penalty nor interest shall be assessed on any additional tax assessment resulting from a Federal audit, providing an amended return is filed and the additional tax is paid within three months after a final determination of the Federal tax liability.

 (d) Abatement of Interest and Penalty.  Upon recommendation of the City Manager, the Board of Review may abate penalty or interest or both, or upon an appeal from the refusal of the City Manager to recommend abatement of penalty and interest, the Board may nevertheless abate penalty or interest or both for good cause shown.  (Ord. 5938. Passed 7-27-87.)

191.11  COLLECTION OF UNPAID TAXES   

All taxes imposed and administered by this chapter shall be collectable, together with any interest and penalties thereon, by suit, as other debts of like amount are recoverable.
 When a final return is filed as prescribed in Section 191.04 and a deficiency is determined to be due to the City of Rittman, action to collect the same shall be commenced within the time prescribed by Ohio R.C. 718.06. All applications for refund shall  be made within  the time prescribed by Ohio R.C. 718.06.  

191.12  VIOLATIONS; STATUTE OF LIMITATIONS; FAILURE TO OBTAIN FORM

(a) Each of the following acts shall be considered a violation of this chapter: 

(1)  Failing, neglecting or refusing to make any return or declaration required by this chapter;
(2)  Making any incomplete, false or fraudulent return;
(3)  Failing, neglecting or refusing to pay the tax, penalties or interes imposed by this chapter
(4)  Failing, neglecting or refusing to withhold the tax from employees or to remit such withholding to the treasurer
(5)  Refusing to permit the City Manager or any duly authorized agent or employee to examine books, records and papers relating to the income or net profits. of a taxpayer;
(6)  Failing to appear before the City Manager and to produce books, records and papers relating to the income or net profits of a taxpayer under order or subpoena of the City Manager;
(7)  Refusing to disclose to the City Manager any information with respect to the income or net profits of a taxpayer;
(8)  Failing to comply with the provisions of this chapter or any order or subpoena of the City Manager authorized hereby; or
(9)  Attempting to do anything whatever to avoid the payment of the whole or any part of the tax, penalties or interest imposed by this chapter. (Ord. 4632. Passed 3-27-67.)

(b) All prosecutions; under this section shall be commenced within the time prescribed by Ohio R..C. 718.06. Before commencing a prosecution pursuant  to this chapter, notice shall be sent to the taxpayer by certified mail, return receipt requested,  or by a certificate of mailing, informing him or her of the violation. (Ord. 6801. Passed 11-25-96.)  

(c) The failure of any employer or taxpayer or person to receive or procure a return, declaration or other required form shall not excuse him from making any information return or declaration, from filing such form or from paying the tax. (Ord. 4632. Passed 3-27-67.)

191.13  ALLOCATION OF FUNDS

The funds collected under the provisions of this chapter shall be deposited and
applied to the following purposes:

(a) One half of the one and one-half percent tax (.75 percent) shall be deposited
in the General Fund.

(b) One fourth of the one and one-half percent tax (.375 percent) shall be deposited In the Capital Improvement Fund, tan percent of which shall be earmarked for recreation purposes.

(c) One fourth of the one and one-half percent tax (.375 percent) shall be deposited in the water fund. (Approved by voters 11-5-96)  

191.14  BOARD OF REVIEW

(a) A Board of Review, consisting of three electors of the City of Rittman, to be
appointed by  Council,  is hereby created. No member shall be appointed to the Board of  Review who holds other public office or appointment. The members of the Board of Review shall serve without pay.

(b) A majority of the members of the Board of Review shall constitute a quorum. The Board of Review shall adopt its own procedural rules and shall keep a record of its transactions.

(c) All hearings of the Board shall be conducted privately and the provisions of Sections 191.09 and 191.99(a) with reference to the confidential character of information required to be disclosed by the chapter shall apply to such matters as may be heard on appeal before the Board of Review.  

(d) Any person dissatisfied with any ruling or decision of the City Manager which is made under the authority conferred by this Chapter may appeal there from to the Board of Review within thirty days from the announcement of such ruling or decision by the City Manager, and the Board of Review shall, on hearing, have jurisdiction to affirm, reverse or modify any such ruling or decision, or any part thereof.  

(e) Any person dissatisfied with any ruling or decision of the Board of Review may appeal there from to a court of competent jurisdiction in the manner provided by Ohio R.C. Chapter 2506.

(f) The Board of Review shall serve during the life of the tax imposed in this chapter. (Ord. 4632. Passed 3-27-67)

 191.15  EXEMPTIONS

The provisions of this chapter shall not be construed as levying a tax upon the following:

(a) Funds received from local, State or Federal governments because of service in the Armed Forces of the United States by the person rendering such service, or as a result of another person rendering such service.

(b)  Poor relief, pensions, social security, unemployment compensation, not including supplemental unemployment compensation and disability benefits received from private industry or local, State or Federal governments or from charitable religious or educational organizations.

(c)  Dues, contributions and similar payments received by charitable, religious, educational or literary organizations or labor unions lodges and similar organizations.

(d)  Receipts from casual entertainment, amusements, sports events and health and welfare activities conducted by bona fide charitable, religious  and educational organizations and associations.

(e)  Any association, organization, corporation, club or trust, which is exempt from Federal taxes on income by reason of its charitable, religious, educational, literary, scientific, etc. purposes.

(f)  Gains from involuntary conversions,  cancellation of indebtedness, interest on Federal obligations,  items of income already taxed by the State which the Municipality is expressly prohibited from taxing and income of a Decedents estate during the period of administration (except such income from the operation of a business. )

(g) Earnings and income of all persons under eighteen years of age, whether residents or nonresidents. (Ord. 4632. Passed 3-27-67.)

191.16  REFUNDS

Should it appear that any taxpayer has paid more than the amount of the tax to which the City of Rittman is entitled under the provisions of this chapter, a refund of the amount so overpaid shall be made, provided a proper claim for refund of such overpayment of tax has been filed by the taxpayer. 
(Ord. 4632. Passed 3-27-67.)

191.17 EFFECTIVE PERIOD

The provisions of this chapter shall continue effective insofar as the levy of taxes is concerned until superseded or repealed by a subsequent ordinance of Council. The provisions of this chapter, insofar as the, collection of taxes levied in such period, and actions or proceedings for collecting any tax so levied, or enforcing any provisions of this chapter are concerned, shall continue; effective until all taxes levied under and by virtue of Its authority are fully paid and any and all suits and prosecutions for the collection of such taxes or for, the punishment of violations of any provision of this chapter have been fully terminated. (Ord. 4632. Passed 3-27-67.)

191.18  NONREIMBURSED BUSINESS EXPENSES

 (a)  an individual taxpayer who is permitted for Federal income tax purposes to deduct certain business expenses from gross wages, salaries or commissions (I.R.C., section 62), may file a copy of Federal Income Tax Form 2105 or an itemized statement of expenses with his municipal tax return, claiming only deductions allowable under Part 1 of Form 2106, no matter whether all or part of such wages, salaries or commissions are subject to withhold:

(b)  Such deductions are effective and allowed for the tax year 1982 with returns to be filed on or before April 15, 1983.  (Ord. 5524. Passed 3-14-83.)

191.99  PENALTY

(a) Any person divulging any information gained as a result of the filing of tax returns, investigations, hearings or verifications required or authorized by this chapter shall be fined not more than five hundred dollars (500.00) or imprisoned for not more than six months, or both. Each disclosure shall constitute a separate offense.

(b) Any person who violates any of the provisions of Section 191.12(a) shall be fined not more than five hundred dollars (500.00) or imprisoned not more than six months, or both, for each offense.  (Ord. 4632.
Passed 3-27-67.)