VILLAGE OF COLUMBUS GROVE, OHIO
 
ORDINANCE NUMBER 2004-2
 
INCOME TAX ORDINANCE AUTHORIZING AN INCOME TAX
LEVY AT 1.25% AND REPEALING ORDINANCE NO. 2003-8
 
     LEVYING A TAX TO PROVIDE FUNDS FOR THE PURPOSE OF GENERAL
MUNICIPAL OPERATIONS, FOR PURCHASE AND MAINTENANCE OF NEW AND
ADDITIONAL EQUIPMENT FOR THE DIFFERENT DEPARTMENTS OF THE VILLAGE,
EXTENSION, ENLARGEMENT AND IMPROVEMENT OF MUNICIPAL SERVICES AND
FACILITIES AND CAPITAL IMPROVEMENTS, INCLUDING STREET IMPROVEMENTS
AND REPAIRS, CONSTRUCTION, ACQUISITION, REMODELING OR ENLARGEMENT OF
PUBLIC BUILDINGS, CAPITAL IMPROVEMENTS AND RETIREMENT OF NOTES AND
BONDED INDEBTEDNESS, UPON ALL SALARIES, WAGES, COMMISSIONS AND OTHER
COMPENSATION EARNED BY RESIDENTS OF THE VILLAGE OF COLUMBUS GROVE,
OHIO; ON ALL SALARIES, WAGES, COMMISSIONS AND OTHER COMPENSATIONS
EARNED BY NON-RESIDENTS OF THE VILLAGE OF COLUMBUS GROVE, OHIO, FOR
WORK DONE OR SERVICES PERFORMED OR RENDERED IN THE VILLAGE OF
COLUMBUS GROVE, OHIO; ON THE NET PROFITS EARNED ON ALL BUSINESSES,
PROFESSIONS, OR OTHER ACTIVITIES CONDUCTED BY RESIDENTS OF THE VILLAGE
OF COLUMBUS GROVE, OHIO; ON THE NET PROFITS EARNED ON ALL BUSINESS,
PROFESSIONS, OR OTHER ACTIVITIES AND ON THE NET PROFITS EARNED BY ALL
CORPORATIONS DOING BUSINESS IN THE VILLAGE OF COLUMBUS GROVE, OHIO,
AS A RESULT OF WORK DONE OR SERVICES PERFORMED OR RENDERED IN THE
VILLAGE OF COLUMBUS GROVE, OHIO; 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 COLUMBUS GROVE, OHIO;
PROVIDING FOR THE ADMINISTRATION, COLLECTION, AND ENFORCEMENT OF
SAID TAX; DECLARING VIOLATION THEREOF TO BE A MISDEMEANOR AND
IMPOSING PENALTIES THEREFORE.
 
     NOW THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE VILLAGE OF
COLUMBUS GROVE, OHIO TWO-THIRDS OF ITS MEMBERS CONCURRING:
 
 
SECTION 1. PURPOSE, To provide the funds for the purpose of general municipal operations,
for purchase and maintenance of new and additional equipment for the different departments
of the Village, extension, enlargement and improvement of municipal services and facilities
and capital improvements, including street; improvements and repairs, construction,
acquisition, remodeling or enlargement of public buildings, capital improvements and
retirement of notes and bonded indebtedness, of the Village of Columbus Grove, Ohio, 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
meanings ascribed to them in this Section, except as and if the context clearly indicates or
requires a different meaning.
 
ASSOCIATION -- A partnership, limited partnership, or any other form of unincorporated
enterprise owned by two or more persons.
 
BOARD OF REVIEW -- The Board created by and constituted as provided in Section 13
of this Ordinance.
 
BUSINESS -- 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.
 
CAFETERIA PLAN -- Written plan under which (a) all participants are employees and (b)
the participants may choose among 2 or more benefits consisting of cash and qualified
benefits.
 
CORPORATION -- A corporation or a joint stock association organized under the laws of
the United States, State of Ohio, or any state, territory, or foreign country or dependency.
 
EMPLOYEE -- One who works for wages, salary, commission or other type of
compensation in the service of an Employer.
 
EMPLOYER -- 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.
 
FISCAL YEAR -- An accounting period of twelve (12) months or less, ending on any day
other than December 31.
 
GROSS RECEIPTS -- The total income from any sources whatsoever.
 
NET PROFITS -- The net gain from the operation of a business, professions, or enterprise
after provision for all ordinary and necessary expenses either paid or accrued in accordance
with the accounting system used by the taxpayer of Federal Income Tax purposes.
(i.e., the taxpayers adjusted federal taxable income.).
 
NON-RESIDENT -- An individual domiciled outside the Village of Columbus Grove, Ohio.
 
NON-RESIDENT UNINCORPORATED BUSINESS ENTITY -- An unincorporated business
entity not having an office or place of business within the Village of Columbus Grove, Ohio.
 
PERSON -- Every natural person, partnership, fiduciary, association or corporation.
Whenever used in any section, phrase or clause prescribing and imposing a penalty, the
term “person” as applied to any unin­corporated entity, shall mean the owner, partners or
members thereof; as applied to S-corporations, the stockholders thereof; and as applied
to C-corporations, any of it's officers, employees, or trustees charges with the
responsibility of filing returns and making payments to the Village of Columbus Grove.
The dissolution, termination, or bankruptcy of a corporation or business trust shall not
discharge responsible officers, employees, or trustees of their liability for a prior failure
of the corporation or business trust to file returns or remit taxes due.
 
PLACE OF BUSINESS -- Any bonafide 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 activities, individually, or through one or more of his regular employees regularly
in attendance.
RESIDENT -- An individual domiciled in the Village of Columbus Grove, Ohio.
 
RESIDENT UNINCORPORATED BUSINESS ENTITY -- An unincorporated business entity
having an office, or place of business within the Village of Columbus Grove, Ohio.
 
TAX ADMINISTRATOR -- The individual charged with the direct responsibility for
administration of the tax on income levied by the Village of Columbus Grove.
 
TAXABLE INCOME -- "Taxable Income" means salaries, wages and other compensation
paid by an employer or employers before any deductions and/or the net profits from the
operation of a business, profession, or other enterprise or activity including rental property,
adjusted in accordance with the provisions of the ordinance. Taxable income also includes
"other compensation" which includes, but is not limited to, tips tax shelter plans, gifts of
any type for services rendered, vacation and holiday pay, wage continuation benefits,
directors; fees, jury duty fees, stock options granted in connection with the performance
of services and not designated as capital gains, and lottery winnings.
 
TAXABLE YEAR -- The calendar year, or the fiscal year, upon the basis of which the net
profits are to be computed under this Ordinance and in the case of return for fractional
part of a year, the period for which such return is required to be made.
 
TAXPAYER -- A person, or an individual, partnership, association, or any corporation or
other entity required hereunder to file a return or pay a tax.
 
The singular shall include the plural and the masculine shall include the
feminine and the neuter.
 SECTION 3. IMPOSITION OF TAX.
 A. Subject to the provisions of Section 16 of this Ordinance, an annual tax for the purpose
specified in Section 1 shall be imposed on and after January 1, 2004, at the rate of one and
one quarter percent (1.25%) per annum upon the following:
1. On all salaries, wages, commissions, and other compensation earned
during the effective period of the Ordinance by residents of the Village of
Columbus Grove, Ohio.
 
2. On all salaries, wages, commissions, and other compensation earned
during the effective period of the Ordinance by non-residents for work done
or services performed or rendered in the Village of Columbus Grove, Ohio.
(a) Exemption for certain nonresident individuals: On and after January
1, 2001, a municipal corporation shall not tax the compensation paid to a
nonresident individual for personal services performed by the individual in
the municipal corporation on twelve or fewer days in a calendar year
unless one of the following applies:
(i) individual is an employee of another person; the principal place of
business of the individual's employer is located in another municipal
corporation in this state that imposes a tax applying to compensation
paid to the individual for services performed on those days; and the
individual is not liable to that other municipal corporation for tax on
the compensation paid for such services.
 
(ii) the individual is a professional entertainer or professional athlete,
the promoter of a professional entertainment or sports event, or an
employee of such promoter, all as may be reasonably defined by the
municipal corporation. (ORC 718.O11)
3.
 
(a) On the portion attributable to the Village of Columbus Grove, of
the net profit earned during the effective period of this Ordinance of
all resident unincorporated businesses, professions, or other entities,
derived from sales made, work done, services performed or rendered
and business or other activities conducted in the Village of Columbus
Grove, Ohio.
 
(b) On the portion of the distributive share of net profits earned during the
effective period of this Ordinance of a resident partner or owner of a resident
unincorporated business entity, not attributable to the Village of Columbus
Grove, Ohio, and not levied against such unincorporated business entity.
4.
(a) On the portion attributable to the Village of Columbus Grove, Ohio, of
the net profits earned during the effective period of this Ordinance, of all
non-resident unincorporated businesses, professions, or other entities,
derived from sales made, work done, or services performed or rendered
and businesses or other activities conducted in the Village of Columbus
Grove, Ohio, whether or not such unincorporated business entity has an
office or place of business in the Village of Columbus Grove, Ohio.
(b) On the portion of the distributive share of net profits earned during the
effective period of this Ordinance of a resident partner or owner of a non­
resident unincorporated business entity not attributable to the Village of
Columbus Grove, Ohio, and not levied against such unincorporated business
entity.
5. On the portion attributable to the Village of Columbus Grove, Ohio, of the
net profits earned during the effective period of this Ordinance, of all
corporations derived from sales made, work done, services performed or
rendered in business or other activities conducted in the Village of Columbus
Grove, Ohio, whether or not such corpora­tions have an office or place of
business in the Village of Columbus Grove, Ohio.
 
6. Rentals received by the taxpayer are to be included only if and to the
extent that the rental, owner­ship, management, or operation of the real estate
from which such rentals are derived (whether so rented, managed, or operated
by the taxpayer individually or through agents or other representa­tives)
constitutes a business activity of the taxpayer in whole or in part.
 
Where the gross monthly rental of any real properties regardless of number and
value, aggregate in excess of $125.00 per month, it shall be prima
facie evidence that the rental, ownership, manage­ment, or operation of such
properties is a business activity of such taxpayer, and the net income of such
rental properties shall be subject to tax; provided that in case of commercial
property, the owner shall be considered engaged in a business activity when the
rental is based on a fixed or fluctuating percentage of gross or net sales,
receipts, or profits of lease, whether or not such rental exceeds $125.00 per
month, provided further that in the case of farm property; the owner shall be
considered engaged in a business activity when he shares in the crops or when
the rental is based on a percentage of the gross or net receipts derived from the
farm, whether or not the gross income exceeds $125.00 per month; and
provided further that the person who operates a rooming house of five or more
rooms rented shall be consid­ered a business whether or not the gross income
exceeds $125.00 per month.
 
In determining the amount of gross monthly rental of any real property, periods
during which ( by reason of vacancy or any other cause) rentals are not received
shall not be taken into consideration by the taxpayer.
 
Rentals received by a taxpayer engaged in the business of buying and selling real
estate shall be considered as part of business income.
 
Real property, as the term is used in this regulation, shall include commercial
property, residential property, farm property, and any and all other types of real
estate.
 
In determining the taxable income from rentals, the deductible expense shall be
of the same nature, extent, and amount as are allowed by the Internal Revenue
Service for Federal Income Tax purposes.
 
Residents of Columbus Grove are subject to tax on the net income from rentals
(to the extent above specified), regardless of the location of the real property
owned excepting that, if any such property is located in and subject to a
municipal income tax by another taxing municipality, credit shall be claimed for
tax due or paid such other taxing municipality in accordance with Section 15 hereof.
 
Non-residents of Columbus Grove are subject to tax only on the income from real
property located in Columbus Grove, and in determining whether gross monthly
rentals exceed one hundred twenty- five dollars ($125.00), shall take into
considera­tion only the income from such properties located with Columbus Grove.
Provided, however, if such non-resident owner is subject to tax in his munici­pality
of residence on the same income and his municipality of residence grants a similar
credit to Columbus Grove residents, he shall be entitled to the credit provided for by
Section 15 of the Ordinance.
 
Corporations owning or managing real estate are taxable only on that portion of
income derived from property located in the Village of Columbus Grove.
 
B. The portion of the net profits attributable to the Village of Columbus Grove, Ohio,
of the taxpayer conducting a business, profession or other activity both within and
without the boundaries of the Village of Columbus Grove, Ohio, shall be determined
as provided in Section 718.02 of the Revised Code of Ohio in accordance with the
rules and regulations adopted by the Tax Aministrator pursuant to this Ordinance.
 
C. OPERATING LOSS CARRIED FORWARD.
 
1. The portion of a net operating loss sustained in any taxable year subsequent
to January 1, 2004, allocated to the Village of Columbus Grove, Ohio, may be applied
against the portion of the profit of the preceding year (s) allocable to the Village of
Columbus Grove, Ohio, until exhausted but not for more than five (5) taxable years.
No portion of a net operating loss shall be carried back against net profits of any
prior year.
 
2. The portion of a net operating loss sustained shall be allocated to the Village
of Columbus Grove, Ohio, in the same manner as provided herein for allocating net
profits to the Village of Columbus Grove, Ohio.
 
3. The Tax Administrator shall provide by Rules and Regulations, the manner in
which such net operating loss carried-forward, shall be determined.
 
D. CONSOLIDATED RETURNS.
1. Filing of consolidated returns may be permitted or required in accordance with
Rules and Regulations prescribed by the Tax Administrator.
 
2. 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 Village of Columbus Grove, Ohio, constituting
a portion only of its total business, the Tax Aministrator shall require such additional
information as he may deem necessary to ascertain whether the net profits are
properly allocated to the Village of Columbus Grove, Ohio. If the Tax Administrator
finds net profits are not properly allocated to the Village of Columbus Grove, Ohio, 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 profit
to the Village of Columbus Grove, Ohio.
E. EXCEPTIONS.
No tax shall be imposed on any of the following; (ORC 718.01(B))
(1) The 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 income of religious, fraternal, charitable, scientific, literary, or educational
institutions to the extent that such income is diverted from tax-exempt real estate,
tax-exempt tangible property, or tax-exempt activities;
 
(3) Except as otherwise provided in division (G) of this section, intangible income;
 
(4) 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. Such compensation in excess of
one thousand dollars shall be subjected to taxation, but the taxpayer is not required
to withhold any tax from that compensation.
 
(5) Compensation paid to an employee of a transit authority, regional transit
authority, or regional transit commission created under Chapter 306. of the
Revised Code for operating a transit bus or other vehicle for the authority or
commission in or through the Village of Columbus Grove, unless the bus or vehicle
is operated on a regularly scheduled rout, the operator is subject to such a tax by
reason of residence or domicile in the Village of Columbus Grove, or the
headquarters of the authority or commission is located within the municipal
corporation;
 
(6) The income of a public utility, when that public utility is subject to the tax levied
under section 5727.24 or 5727.30 of the Revised Code, except there shall be a tax on
the following, subject to Chapter 5745, of the Revised Code:
(a) Beginning January 1, 2004, the income of an electric company or
combined company;
 
(b) Beginning January 1, 2004, the income of a telephone company.
 
As used in division (F) (6) of this section, "combined company,"
"electric company." and "telephone company" have the same meanings
as in section 5727.01 of the Revised Code.
(7) On and after January 1, 2004, items excluded from federal gross income pursuant
to section 107 of the Internal Revenue Code;
 
(8) On and after January 1, 2004, compensation paid to a nonresident individual to
the extent prohibited under section 718.011 of the Revised Code.
 
(9) Employee compensation that is not "qualifying wages" as defined in section
718.03 of the Revised Code.
 
(10) Amounts paid into a cafeteria plan, pursuant to IRC Section 125, shall not be
included in the computation of taxable income.
SECTION 4 -- EFFECTIVE PERIOD
 
Said tax shall be levied, collected and paid with respect to the salaries, wages, commissions,
and other compensation and with respect to the net profits, of businesses, professions, or other
activities earned on and after January 1, 2004, and shall continue effective thereafter for an
indefinite time and until said Ordinance shall be repealed or superseded.
 
SECTION 5 -- RETURN AND PAYMENT OF TAX.
 
A. Each taxpayer, except as herein provided, shall, whether or not a tax be due thereon,
make and file a return on or before April 30, of the year following the effective date of this
Ordinance, and on or before April 30 of each year thereafter. 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 period. The Tax Administrator is hereby
authorized to provide by regulations that the return of an employer or employers, showing
the amount of tax deduction by said employer or employers, from the salaries, wages,
commissions or other compensation of employee, and paid by him or them to the
Tax Aministrator shall be accepted as the return required of any employee whose sole
income, subject to tax under this Ordinance, is such salary, wages, commissions, or
other compensation.
 
B. The return shall be filed with the Tax Administrator on a form or forms furnished by or
obtainable upon request from such Tax Administrator setting forth:
1. The aggregate amounts of salaries, wages, commissions and other
compensation earned and gross income from business, profession or other
activity, less allowable expenses incurred in the acquisition of such gross income
earned during the preceding year and subject to said tax;
 
2. The amount of the tax imposed by this Ordinance on such earnings and profits;
and,
 
3. Such other pertinent statements, information returns, or other information as the
Tax Administrator may require.
C. The Tax Administrator may extend the time for filing of the annual return upon the
request of the taxpayer for a period of not to exceed six (6) months, or one (1) month
beyond any extension requested of or granted by the Internal Revenue Service for the
filing of the Federal Income Tax Return. The Tax Aministrator may require a tentative return,
accompanied by payment of the amount of tax shown. to be due thereon by the date
that 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 extended.
 
D.
1. The taxpayer making a return shall, at the time of the filing thereof, pay to
the Tax Administrator the amount of taxes shown as due thereon; provided,
however, that where any portion of the tax so due shall have been deducted
at the source pursuant to the provisions of Section 6 of this Ordinance, or
where any portion of said tax shall have been paid by the taxpayer pursuant
to the provisions of Section 7 of this Ordinance, or where an income tax has
been paid to another municipality, credit for the amount so paid in accordance
with Section 15 hereof, 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 said
return.
 
2. The taxpayer who has overpaid the amount of tax to which the Village of
Columbus Grove, Ohio, 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.
E. AMENDED RETURNS.
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 Section 11 and 15. Such
Amended returns shall be on a form obtainable upon request from the
Tax Aministrator. The taxpayer may not change the method of accounting of
apportionment of net profits after the due date for filing the original return.
 
2. Within three (3) months from the final determination of any Federal tax liability,
affecting the taxpayer’s Village of Columbus Grove, Ohio, tax liability, such
taxpayer shall make and file an amended Village of Columbus Grove, Ohio, return
showing income subject to the Village of Columbus Grove, Ohio, 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. In accordance with Rules and Regulations prescribed by the Tax Aministrator,
each employer within or doing business within the Village of Columbus Grove,
Ohio, shall deduct at the time of payment of such salary, wage, commission,
or other compensation, the tax of one and one quarter ( 1.25%) percent of the
gross salaries, wages, commissions or other compensation due by the said
employer to the said employee and shall, on or before the last day of the
month following the close of each calendar quarter, make a return and pay to
the Tax Aministrator the amount of taxes so deducted. Said return shall be on a
form or forms prescribed by or acceptable to the Tax Aministrator and shall be
subject to the Rules and Regulations prescribed therefore by the
Tax Aministrator. 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 said tax shall be deemed to hold the same until
payment is made by such employer to the Village of Columbus Grove, Ohio, as
a Trustee for the benefit of the Village of Columbus Grove, Ohio, and any such
tax collected by such employer from his employees until the same is paid to the
Village of Columbus Grove, Ohio, be deemed a trust fund in the hands of such
employer.
SECTION 7. DECLARATIONS.
A. Every person who anticipates a taxable income which is not subject to
Section 6 hereof, or who engages in any business, profession, enterprise or
activity subject to tax imposed by Section 3 hereof, 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 person’s income is wholly from wages from which the tax will be
withheld and remitted to the Village of Columbus Grove, Ohio, in accordance
with Section 6 hereof, such person need not file a declaration.
 
B.
1. Such declarations shall be filed on or before April 30 of each year
during the life of this Ordinance, or within four (4) months of date the
taxpayer becomes subject to the tax for the first time.
 
2. Those taxpayers reporting on a fiscal year basis, shall file a
declaration within four (4) months after the beginning of each fiscal
year or period.
C.
1. Such declaration shall be filed upon a form furnished by, or
obtainable from, the Tax Administrator, provided, however, credit
shall be taken for Village of Columbus Grove, Ohio, tax to be
withheld from any portion of such income. In accordance with the
provision of Section 15, hereof, credit may be taken for tax to be
paid or to be withheld and remitted to another taxing municipality.
 
2. The original declaration (or any subsequent amendments thereof)
may be increased or decreased on or before any subsequent quarterly
payment paid as provided for herein.
D. Such declaration of estimated tax to be paid to the Village of Columbus Grove,
Ohio, shall be accompanied by a payment of at least one-forth (1/4) of the
estimated annual tax and at least a similar amount shall be paid on or before the
last day of the seventh, tenth, and thirteen months after the beginning of the taxable
year. Provided, however, that 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 date.
 
E. On or before the last day of the fourth month of the year following that for which
said declaration or amended declaration was filed, an annual return shall be filed and
any balance which may be due to the Village of Columbus Grove, Ohio, shall be paid
therewith in accordance with the provisions of Section 5 hereof.
SECTION 8. DUTIES OF THE TAX ADMINISTRATOR
A.
1. It shall be the duty of the Tax Administrator to receive the tax imposed by
this Ordinance in the manner prescribed herein from the taxpayer; to keep an
accurate record thereof; and to report all monies so received.
 
2. It shall be the duty of the a Tax Administrator to enforce payment of all taxes,
owing the Village of Columbus Grove, Ohio, to keep accurate records for a
minimum of five (5) 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 payment thereof.
B. Said Tax Administrator is hereby charged with the enforcement of the provisions of
this Ordinance, 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 Ordinance, including provisions for the
re-examination and correction of returns.
 
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 Tax Administrator may determine
the amount of tax appearing to be due the Village of Columbus Grove, Ohio, from the
taxpayer and shall send 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 regulations approved
by said Board, the Tax Administrator shall have the power to compromise any interest
or penalty, or both, commonly imposed by Section 10 of this Ordinance.
SECTION 9. INVESTIGATIVE POWERS OF THE TAX ADMINISTRATOR-PENALTY
FOR DIVULGING CONFIDENTIAL INFORMATION.
A. The Tax Administrator, or any authorized employee, is hereby authorized to examine
the books, papers, records and Federal Income Tax Returns from any employer or of any
taxpayer or person subject to or whom the Tax Aministrator is subject to the provisions of this
Ordinance, for the purpose of verifying the accuracy of any return made, or if no return was
made, to ascertain the tax due under this Ordinance. Every such employer, supposed
employer, taxpayer or supposed taxpayer is hereby directed and required to furnish upon
written request by the Tax Aministrator, or his duly authorized agent or employee, the means,
facilities, and opportunity for making such examinations and investigations as are hereby
authorized.
 
B. The Tax Administrator 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 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 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 Tax Administrator authorized hereby, shall be
deemed a violation of this Ordinance, punishable as provided in Section 12 hereof.
 
D. Any information gained as a result of any returns, investigations, hearings or verifications
required or authorized by this Ordinance shall be confidential, except for official purposes,
or except in accordance with proper judicial order. Any person divulging such information in
violation of this Ordinance, shall upon conviction thereof, be deemed guilty of a misdemeanor
and shall be subject to a fine or penalty of not more than Five Hundred ($500.00) Dollars or
imprisonment for not more than six (6) months or both. Each disclosure shall constitute a
separate offense. In addition to the above penalty, any employee of the Village of Columbus
Grove, Ohio, who violates the provisions of this Section, relative to the disclosure of
confidential information shall be guilty of an offense punishable by immediate dismissal.
 
E. Every taxpayer shall retain all records necessary to compute his tax liability for a period
of five (5) years from the date his return is filed, or the withholding taxes are paid.
SECTION 10. INTEREST AND PENALTIES.
A. All taxes imposed and all monies withheld or required to be withheld by employers under
the provisions of this Ordinance remaining unpaid after they become due, shall bear interest
at the rate of one-half (½) of one per cent (1%) per month or fraction thereof.
 
B. In addition to interest as provided in Paragraph A hereof, 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 (1.5)
percent per month or fraction thereof, or One Dollar, ($1.00), whichever is greater.
 
2. For failure to remit taxes withheld from employees, three (3) per cent per month
or fraction thereof, or Five Dollars ($5.00), whichever is greater.
C. EXCEPTIONS. A penalty shall not be assessed on an additional tax assessment made
by the Tax Administrator when a return has been filed in good faith and the tax paid thereon
within the time prescribed by the Tax Administrator; 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 (3) months after final determination of the Federal tax liability.
 
D. Upon recommendation of the Tax Administrator, the Board of Review may abate the
penalty or interest, or both, or upon an appeal from the refusal of the Tax Administrator to
recommend abatement of penalty and interest, the Board may nevertheless abate penalty
or interest, or both.
SECTION 11. COLLECTION OF UNPAID TAXES AND REFUNDS OF OVERPAYMENTS.
A. All taxes imposed by this Ordinance 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, an additional assessment shall not be made after three (3) years from the time
the return was due or filed whichever is later, provided, however, in those cases in which the
Commissioner of Internal Revenue and the taxpayer have executed a waiver of the Federal
statute of limitation, the period within which an additional assessment may be made by the
Tax Administrator shall be one (1) year from the time of the final determination of the Federal tax
liability.
 
B. Taxes erroneously paid shall not be refunded unless a claim for refund is made within
three (3) years from the date which such payment was made or the return was due, or within
three (3) months after final determination of the Federal tax liability, whichever is later.
 
C. Amounts of less than one dollar ($1.00) shall not be collected or refunded.
SECTION 12. VIOLATIONS -- PENALTIES
A. Any person who shall:
1. Fail, neglect or refuse to make any return or declaration required by this
Ordinance; 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
Ordinance; or
 
4. Fail, neglect or refuse to withhold the tax from his employees or remit such
withholding to the Tax Administrator; or
 
5. Refuse to permit the Tax Administrator or any duly authorized agent or
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 Tax Administrator and to produce his books,
records, papers or Federal Income Tax Returns relating to the income or net
profits of a taxpayer upon order or subpoena of the Tax Administrator; or
 
7. Refuse to disclose to the Tax Administrator any infor­mation with respect
to the income or net profits of the taxpayer; or
 
8. Fail to comply with the provisions of this Ordinance or any order or subpoena
of the Tax 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 Village of Columbus Grove, Ohio,
tax withheld, or to knowingly give the Tax 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 Ordinance;
Any person found guilty of violating this tax ordinance shall be guilty of a first degree
misdemeanor and shall be fined not more than One Thousand Dollars ($1000.00) or
imprisoned not more than six (6) months or both, for each offense. In lieu of, or in
addition to the foregoing there shall be a fine assessed in the amount of $10.00 per
month for each month delinquency in filing an individual local income tax return.
 
B. All prosecutions under this Section must be commenced within five (5) years from
the time of the offense complained of, except in the case of failure to file a return or in
the case of filing a false or fraudulent return, in which event the limitation of time within
which prosecution must be commenced, shall be ten (10) years from the date the
return was due or the date the false or fraudulent return was filed.
 
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.
SECTION 13. BOARD OF REVIEW.
A. A Board of Review, consisting of three (3) representative citizens of the Village of
Columbus Grove, Ohio, to serve a term of one (1) year to be appointed by the Chief
Executive Office of the Village of Columbus Grove, Ohio, is hereby created. 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
may be conducted privately and the provisions of Section 9 hereof with reference to the
confidential character of information required to be disclosed by the Ordinance shall
apply to such matters as may be heard before the Board on appeal. The Village
Solicitor of the Village of Columbus Grove, Ohio, shall be legal advisor to said Board of
Review.
 
B. All rules and regulations and amendments or changes thereto, which are adopted by
the Tax Administrator under the authority conferred by this Ordinance, must be approved
by the Board of Review before the same becomes effective. The Board shall hear and pass
upon appeals from any ruling or decision of the Tax Administrator, and at the request of
the taxpayer or Tax Administrator, is empowered to substitute alternate methods of allocation.
 
C. Any person dissatisfied with any ruling or decision of the Tax Administrator which is
made under the authority conferred by this Ordinance may appeal therefrom to the Board
of Review within thirty (30) days from the announcement of such ruling or decision by the
Tax Administrator, and the Board shall, on hearing, have jurisdiction to affirm, reverse, or
modify any such ruling or decision, or any part thereof.
 
D. Any person dissatisfied with any ruling or decision, of the Board of Review, may appeal
therefrom to a court of competent jurisdictions with thirty (30) days from the announcement
of such ruling or decision.
SECTION 14. ALLOCATION OF FUNDS
The funds collected under the provisions of this Ordinance shall be applied for the following
purposes, to-wit:
A. With regard to the first one percent (1%) of taxes collected, such part thereof as shall
be necessary to defray all costs of collecting the taxes levied by the Ordinance and the
cost of administering and enforcing the provisions hereof.
 
B. The balance of the first one percent (1%) shall be dispersed as follows:
1. Sixty (60%) per cent shall be allocated to the General Fund for operational
expenditures.
 
2. Forty (40%) per cent to be used for the following:
For purchase and maintenance of new and additional equipment for the different
departments of the Village, extension, enlargement and improvement of municipal
services and facilities and capital improvements, including street improvements
and repairs, construction, acquisition, remodeling or enlargement of public buildings,
capital improve­ments and retirement of notes and bonded indebtedness.
 
3. No withdrawal from the sixty (60) per cent fund shall be made without resolution
of Council.
C. With regard to the remaining one-quarter (.25%) of taxes collected,such part thereof
shall be allocated to a fund to be designated Pool Improvement Fund, which shall be
used as the repository for the amount of tax received as set forth within this section.
The funds derived therefrom shall be used for the maintenance, repair, and
improvements of the municipal pool property located on road 8-P and owned by the
Village of Columbus Grove , as well as debt reduction for debts associated with the
maintenance, repair, and improvements of the municipal pool property.
SECTION 15. CREDIT FOR TAX PAID TO ANOTHER MUNICIPALITY
A. Where a resident of the Village of Columbus Grove, Ohio, 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 one quarter of one percent (.25%) above the tax imposed at
the higher rate.
 
B. Every individual taxpayer who resides in the Village of Columbus Grove, Ohio, who
receives net profits, salaries, wages, commissions or other personal service compensation
for work done or service performed or rendered outside of the Village of Columbus Grove,
Ohio, if it be made to appear that he had paid a municipal income tax on the same income
taxable under this ordinance to another municipality, shall be allowed a credit against the
tax imposed by this Ordinance of the amount so paid by him or in his behalf to such other
municipality. to the extent of a total credit of one percent (1%) The credit shall not exceed
the tax assessed by this Ordinance on such income earned in such other municipalities
where such tax is paid.
 
C. A claim for refund or credit under this section shall be made in such manner as the
Tax Tax Administrator may by regulation provide.
SECTION 16. REVERSION TO ONE PERCENT (1%) TAX.
 
     The increase in the local income tax from one percent (1%) to one and one quarter
percent (1.25%) was pursuant to the approval of the electorate at the election held May 6,
2003. Pursuant to the duration of the levy, which is until December 31, 2018, after which,
the income tax shall automatically revert to one percent (1%).
 
SECTION 17: CONTINUITY OF TAXATION.
 
     In the event the new rate is approved at the next general election, which rate will go into
effect January 1, 2004, the old tax rate of one percent (1%) will continue until the end of the
day on December 31, 2003, with no gap in taxation.
 
SECTION 18: SAVING CLAUSE.
 
     If any sentence, clause, section or part of this Ordinance, or any tax against any individuals
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 Ordinance and shall not affect or impair any of the remaining provisions,
sentences, clause, sections or other parts of this Ordinance. It is hereby declared to be the
intention of the Council of the Village of Columbus Grove, Ohio, that this Ordinance would have
been adopted had such unconstitutional, illegal or invalid sentence, clause, section or part
thereof not been included herein.
 
SECTION 19. COLLECTION OF TAX AFTER TERMINATION OF ORDINANCE
A. In the event that this Ordinance is terminated for any reason whatsoever, insofar
as the collection of taxes levied hereunder and actions or proceedings for collecting
any tax so levied or enforcing any provisions of this Ordinance are concerned, it shall
continue effective until all of said taxes levied during its operative period of time are fully
paid and any and all suits and prosecutions for the collection of said taxes or for the
punishment of violations of this Ordinance shall have been fully terminated, subject to
the limitations contained in Sections 11 and 12 hereof.
 
B. Annual returns due for all or any part of the last effective year of this Ordinance shall
be due on the date provided in Sections 5 and 6 of this Ordinance as though the same
were continuing.
SECTION 20: REPEAL.
 
     Ordinance No. 2003-8 is hereby repealed.
 
SECTION 21: ENACTMENT.
 
     This Ordinance shall take effect and be enforced from and after the earliest period allowed
by law.
 
Passed this 24th day of May, 2004