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OR01NANCE NO. ~J. ~1983

AN ORpINANCE ENA,CT:tNG A Mt'NIC1PAL INCOl-tE 'l'AX AND ~ROVID:f"NG FOR !TS COLLECTION AND A'bMINIS'l'RATlQN.

lifflERSAS, ~he. cowfoil of the Village Qf Ma.disor. has .determined. th<t.t it.. is :r.e'Cessacy for the prop_~r oper:ation of the Vill:age g0v~rninen,t that a tax. he le'(,Tied upon certd.n foi'ms 6£. income.

NOW, THl!:iUU'ORE, BE IT ORDAIN$D BY TlfE COUNCIL C)F 'l'Jm VILtAGB OF MADlSON', COUNTY OF !.AKE AND. S'l'A'l!JS OF OH!O, that. the ·Madi$0n. Muhic.Jpal lncome T.ax coqe be and h,ereby it> enaqted •a$ fo-1 lows:-

Pw:pose . of 'teyy of rnc®ie Tax . --• - ~ -·

¢0 provid~ ·funds f(>r the· pw;-pose:s o'f gen~.t:al munici-p~i: operation and capital, :unp:rov~~nt.15_ , th~- funds '1:0 ,be divid~q equa·i-1y :fO.r bo1:h PUJ:l>oSe$, ~here is hex~ l~vi~d a tax on. all . S.a1a.i:i-e-s, wa.g~s, comm;tssi·ons# and othei; cotnJ?ensations , anij/o.r·. net: l'rofits as heret.ti~f't.e~ p.l:ovide.E!,. ·

SECTI-0~ 2. I)ef in.). tio!is ~ .

. (A.) A,dmini,strat-o:r;

Adr.l'in~stltatl:n' :meane the indivi,d:ual ~s.i-g:.nated ·to adndnist~r and ~nfo;-ce :the px-ovision.s pf the; viiJ.age ii:i.oome :ti!,x.

U~J Assignment

i\s1Jiqnment means· the a$siqnment· @a~~ PY. a tesiden-t ot Madison Vil;J.~.ge af a alai.-m for refqnd, due .f:rom -~riot;her taxir.:g municipality grant.il.!19' c~Q.it to nonresident.a 't]\l!t"eof.

(C) Associ~t.ion

As·sociat.ion means any partnership, limited part:nership or any other foi:tn. of Unincorpora-ecd enterprise ow.neQ. by two or mot"e p~-r.so:'l:;.

(D) Board of Reviaw

Board of Review me·an:s the Boa.t:d oreat;ed .by an~ cons:t:i tutad 'as provi.4ed ~ti ~ection 4~,.

(E) Bllsines$'

~u-sine$:S means any enterprise, aei;;ivi ty., p.rp,fe!Osic:m, tJ;ade, ·or urlde~'talqing of $.ly nabu:-e c:ondu·eted ~or prqfit o.r ord ina.t" ily cono uc ted fo:t' pro;f it, whethel'.' by an indJ. :vi,(3.ua 1, propr.l.etorship, :part.ne;t>ship, B.S$.oC:iat;.ion~ coxpora.ti.on .or · ltny otbe~ entity, . en-luqin9 hoWS'7~~ 1. iill tion..-protit eorporation.s wh.i.ch ju-~· e;Xe.tbp:t _ from t.he pay)nei:nt of :Federal Illeome Tax.

1.F~ co~o-.ratj.o~

Co:tpdr!!.ti.on· ,means a eorpo:ra'tion or: . j!!>int $to~.lc as.,sociation or9·anized .undeJ;" the laws of the United Statl;!s, tjle st.at~ of Obi.o or !my othe.t' state, ct~rritory or .-foreign cotmtry or d~penden_c:y.

{Gl -Ioye.e ~-·

~lqyee me.ans one· who -~orks fo~ w-~ges; -salaxy-,. eomrnissiol\· o;:- oth¢.i- t~ O.f. c.ompensatio.n :in ~~ seryice of ·an ·e;niP.l.9~,er.

on ~loyer

~ployez: mea;ns an indi vidµai ,_ proprietorslt'.j.,p ·1 p~:rt:nership' asscicia ti on,, eotpo~~tirin, cjov~ental · .body~ WU. t o~ agency; or auy·' other entity; whet.her dr not organized f·or- p~ofi·t ~· · ·who or t!Ul't. ~loyJt ohe' .or more peI.son·s on a i>.a.lary, 'W~qe.( ~omi'Oission .or .oth~ pasj,.,$ of 9ompens~t;:io1l .. ~he ·tenn employer .ao,e$ not include any- per$011·. ·'Whb ¢mP.loy~ only d.?Zn¢stic belp ~o:i; .. sut:h pex.so-n 's ~rivate re$_i~~nc~~

{I) l°'~sca~ Xea~

,Fisc<.\l ¥e~X' me.ans an ac~oµn~inc;t period, o.::t twel:ve ~ntll-s Gj: :less en4ll~t ¢.JS. :any day other than December -~l,$t •

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(J) Gross Receip·ts.

Gz'oss Receipts means the total. inco:tlle from Q.ny souree w·hats0~ver.

(K) Net. Pro£,its:

·Net pro·fits rne.a:is the 1let. qa;i,n from the pperation o:f .a. t.t"ad~h bi:sin.ess; ,profession, ent,er-prise o~ <>ther acti\rit.y a.fte.r _'Pr .. o~~$ion. for: ·ai1 ord±batlf. -a:ncl lle'c~ssaey expe_nses either p~.J.4 or a~¢rue<l in a-oo.o~d·a:nce· .with t;he a.ccou.rtt.i..hg sy,s:t~ . '\1S'ed by . tb~: t~ayer for Pederal tncotr.e Tax putppses, w:..-thout deducti.on o:t: ta~Ea~· .t~os~d by ·this Ordinan.ce L F,ecle~al, Sta.t.e and other tax-es· bas~d on inQQ!ne,. .a,nd in th¢ C;ase 'Of im ass<:>cia·t.ion~ wi.tho.ut de.ducti<iin :ef :s$.lari$s paid to partners .._na othe'r ownC!.t.s • -

(L) ._N(.:m~e,s,i4ent

Nc>nres·ident Jrt&ans an ~n'd:iv;t.aua,.l. dQtilciiled outside the V'il.laga ot. Mad.i's.on.

(M) Nonre$i~e,nt Uiiincorpor~ted Business Ent~ty

N6nre.si.dent unincorp-orate!~ l;>u$.ues~ ~tity means :an: ··oin¢orporated business en~ity not ha.vi,ng ~ of.fie$ or pl.ace of .bus.l,ne$s- :W-:ithin tha 'Vi'llage of Ma!ii,SoA- ·

(N) Person

;per son mean$-- every natural ,p.e.t~~n; ~l:'tne.-rshi'p, fitluciuy , ~s-sociatio~ o.r co;rpo~a.t.ion o-r ·othe-r .entJ..t:Y. w~nevet: us~d

,.in .any qlaµ~ :pra$·c;:J,'i,biil'q a.nd .imposin9 a penalty, ·"pii!~son" a:s :appl;Led. to -any unihcorporatte<l ~tity, means· the· partner~. ot memb'E!r$ thereqf', ~d ~$ appJ,ie.d t6 .a;J; coz;poration. the off ic.&l;'s. thereof. - ·

·fO) :Pla-e~ Of ~ti.Sin«;!$~

Pla~e ot l;>usi~ess •~ns any bpna .£ ide o:f fi.ee, faet.~ry, warehouse: or- o.t~r spac~, 9thel: 1ilia,n ~ me:-e. S.tatut.ory office, w:r.,i:ch i .s occ:up,iedl. and used by the ta~Pt;\Yer in ¢:~n;'yi,n9 on :any._ b~iness actt~:V-ity indi vidual.iy or· throu.gl:l (lne or' 1110re o ·f h,i~· r¢qula:t'-.~pl.Qyees tegularly. in attendatt~ •

. (_PJ Re:;icient

Resident JneAn·S an indi vidu~l dOfiti.cil~d in t~e Village pj: ((ad'i$O:i.

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(Q) Resident Unincorpqrated Business Entity

~esic;lemt unincorporated business entity means an u.n£ncorporated bus.iness entity having . an office or place o·r;· '.business withill. the Village of Madison.

(R) Taxable Income

'J.;'~able iricome q\eans wages, salaries, commissions, bo~uses, ineenti ve payments, · fees., tips and othe;r · compensatio·n pa;i d by an employ~:X'. before any deduction and/or tbe net profits from the ope,rati6J1. of a b~siness, pro£ession or other enterprise er activity adjusted in acco.rciance with the provi sions of t .his Ol'.:dinance.

(S) Taxable Year

Taxable year means the calendar ye~, or the fiscal yea.r upon the . basis 0£ :whicb the net profits are to b~ :cqropµted under th:j.$ Ordinance, and ;in the case of a z-ettirn for a frac:tional part of a year, the period for wht<::h such return is r~q.u:irea to be made.

(T) Taxpayer

TaX})ayer means a person, whether a,n individu~l, partrrership,, assoc,i,at.ion, corpora:tion .o.r other entity, req·uired hereundel'.' to file a re.tUJ::n of earnJ;ngs .o-r 9£ · net profits or pay a tax.

:$ECTIOU 3. a.~te and T~able . 'lnCQme

. For the Pl.U7P0S(?;s specified, ip S~ction l .,. Gm 'and after the ef.fe.ctive aa.te of t..."lis orditi:ance, a taJC of one. ~e·r.eeJ1t ( lt.) percent pet annum shall. ~e imposed upon the fo1,l.owil}g inoome;

(A} All salaries; wages., conunl.ssions anq othet CPr.t? etlSation e.arned oh . and after the ef£ecti ve. date. a.£ thi-s .Ordinance by ;re$id-ents ·Of i::he Village .of .Madi sO.n.

(B) All salarl,es i wages, CO.Iltr!li$s.ions and othei: CQlI'?enp;ation ea;rned Ori an.d . after . the e£fective . date o.f this Ord;inance by n011r,e$ddents of the~ Village ·of .Madison ;for work dQne or s~rvices perfonned or rendered within the Vi1.laqe of Madis·on~·

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(CJ 1'he portion ai;;tributabl.e to the Village o! Madison on the net profits earned on and after the . effectiv~ date of dus ordinance ot all resident unincorporated business entities or professions 01;· other activj,tie$,. derived · from sales .mad¢, work done, serv;i,.oes parfqrme.d. oi:' r¢nde£ed and l>u~ina~s or other <i\Ctivities conducted .in th~ Village of Mc;.di..son.

,(D} The· port;.ion: of· the difitributive ·$.hare Gf the net prcfi ts · earned on and a£t.~i;- ~:b1;1 ef:fe:ct,i v~ de.t.e of t.his Qi;din.~ce: o-:f all ;res.ident pa.rtners or· QWner~ of res-ide.nb llhincorpotatee .QUsine.!ui e;i:i:titite·s not A~t:ributahl.e ·tQ the viilag~ qf Madison an(l· not le".Tied against: s~<;i un;(:n,corporatec! b.usin~ss ·e-nti t.,i~s.

(El .. The portion •tt:,d,buta),:>le . to the VilJ,.a9e of Madison ·Of the net prpfit$ earned on qr afte.~ the ~ft~t:tive d.at~ of tni$ O:-ciinanc.e of all nonresident· uninaorp.oJ:"ated busl.Dess ent.i,tj.,te$, ot piofeasio:ns o:r other activitl.~s1 derived' fr~ sale~ lltade i work done,. ~ervice:S: ~rformed or renderea a.,tld ~u~dness -or oi;~r act.iv~ties oonducited l.n t.be Villaqe -of .Madia.on· whether o~ not ~a,id \U:d.h<::orpor•teci ~.sin.ass entities have ari.- Qffice ·or }>lace of busin~s-15 in -f:'bf!- Vi.ll~g'~ o.t M&dison-..

(~l The .. po,:tiop. t:>f the. clist,ributi v:e share of the ~et _profits; earned ~ or 4fteJ: tht;l efftM:tive date-... of this OrdiAance of -~U. resident ·~r.tlJ>~rs q_r owners pf n~r~si·dent lUlii:lco:rpo:rated busine.ss entities not. attribu~a))-le to di.e Vil:t.a=ge =qf M~ison a,n~ ·iiot. l.eVied ag'(l_inst .sa;i.d unineorP<)rat.ed,. btisi;n~,ss "e::iti.ti e$..

·(.G) 'l'be po~tion is.tt.t: il:>utai:>.le ·to .th$ Vil.l aqe of Madi~on :0£ ·the net, pt'ofits !e~Xi&d .on o~. att.~~ 't.he :eff$Cti ve date· of _:tnis ·ardiriance of al.l :corpora-'tj_~rts,. :de.tived. f:i:-oin sales ma~~, wor~ d¢>;ne, -~·rvices 'performed or ·x~dered and ·bU.f;\i:ness­ol:" _other ~ctiyit:i .. es. ccu;~d.'llCt~d ·ir, the =v111acje of Ma.d~st>n~ ~hether or not said co~pe~~tioh:$ _ ~ve (Ul. office or place:: of' busi ness. in t he V,il;la~ ·of ~adis~n.

SE~;tON 4 • . J:lff-e~t.i ve Pa:t:e.

-Thet.~x '$.h~ll be .l~v~~d-# Qolle:Ctea atid paid. with r~spect ·to the salaries, \olages t ,~l'lll:t!i.$sicns. ,aJ;l,1_ 'Q.t.l').e.i:; CQJ.n.P~ilsation, and wJ.th .respe-ct to '.tha ne;t: ·-praf;i.ts , af: bu'si,.ness; professions· ·or other aef.ivities -earned on· ~4 a£t¢.~ the 1st d~:y of Jan\la:ry i9a4~ ·

~ s-

s~cT·Io~ 5. P~te~nat·:i,on ·of A1location of ·Tax

(J\.) In t .he taxation of income whiah is sul)'ject to V'illage ino.ome t<Dtea 1 if the .books and reoord·s o.f a tax_t><lyez; conducting .a hu~inass or: px:ofe·.saion both within and without the bo.:urid:aries of the Vi:ll<;l.'qe shiitll. ~isc.loE!e with reasoni;l.bl~ ?¢euract ~t portion cf its net prof:it .$.$ attril>utable ~o the.t part of the business or prbfession ¢ondu_c~eCl within -t;:.he, boundaries of the Village, then 9;ttly s~ch poJ:tion 'sball be (;::Qnsi<lte-re.d ·as having a ti!ixe:bl.e situs in the V;illa9e fo.r purposes -Gf th~ V:LUag~ in~c:>me taxation. In th~ absen.ce of touch re~ords~ n.e~ ptof:J.t . fr-Qil\ a bus1ness· .or pryf:e~~ion conducted' both witl\.ln and, wl,t!)bt.rt. th~ boundaries ;of the Vill~9e sball ·be e:ens:L<\er~d as having a ·taxable situs in: tl:lt\l. Viil~ge ~or .purpose$ Qf vill~a9~ in~otne t~a:tion 1.n tbe scune .p~opo;+t,ion AS the average r~~.i.o pf:

'Ci) .. :fhe a;~arage nat: 'hook value of' the real anQ tcmq.i.ble per!;;onal p:topertt awned -or used by :the :e21:"r.u.iyer in thlt 'l>u.sine.s$' .<;>r profession in the Vil.lag~ during · the taxable pe~iod: to ·tlle . . a._v.~age net: bo6k va1 ue of al.l, Qf. the rea·l .. ilUld ·tanqi))le. personal p~q)er'ty ·own.ed or· used ,by the taxpal"tt in the ~\lsineli.$ <ir pro:fe.ssion our±:n<; ·th~ s·Mt~ ~eriod, wherever ~i.tuate:a •

. • .

As used in ~m preceding .paragraph,, re.~l .1;r9pe1ity $.hall .inc1ude i:>roptt.r-ty :rent~d ;or. ie.ase~ by the .taxp~y-er and· ;ha value of such :prppe.rty sball :be determined by mµ.l.tjl?~;ri:ng the annual renuu th~recm w et~ht;

(:2) Wag:e.~, saia+le~, And other amqpe.nsation paid au:iin.9· the taxO;ple periOd to p~sona emplcyed in the bus:J.:n~ss. Q4 pr.ofe:s..sion fo~ ~ervices ~r:fo;t"!l\eQ ih the. Vi-ll~9~ i;o "7aqes, salarit:t& an4 o~her · 1'~n.Sat±on .Paid qurin9· t.he. ¢ame pei:'i,od to· persons:, empl~y~q ;J.h the l>.U.Sine9S: o.,r 'J?:t:Ofes'$J.9n, Wbereve'.r tbeil:' f?'eryic~s ~r~ perfor~d.

{3.) Gros,s re~ei,pt..s Qf 'th~ bu.sine~.$ or .pra£ass,iqn fr()m:. sale made and se:rv~ces pex_J;Ormed du:ti.n~ the. taxa,ble .periO\i i,n the Villaqe t<:;. 9~()S·S ~ceipt$ of the ·buEitu;1.s·11 · or prQfessic::>n during- the ;;.m.ne pe;riod .fl:(i)JU sal~s and seririces, Yh.ere~ ~de or perzormed.

(B) As used iµ, 43.'i'i.$:.i<>n {A) o.f -:.his s.ection., ··~~l:e$ made. l.n the Vill~9e" ~ans: ·.

..

(l} All sales of tangible personal property which is delivered within 'f;.he Village.z:egardless of where title pa.$$es il shipped or deliv~red from a stock of go.ads within the V.illaqe;

(2) ,All Sil.les Of tangibl.e personal pr9perty which is delivered with.in . the Villa·ge regardle:ss of wtlere ti tte pas&e:!:l even though t;ranspotted from a point outs id¢ t!:a.e Vil.lag~ if the taxpay.et" ts re_gularly engaged through its o\-in .erop.loyees in the sqlicita~f.ql} .or. prqm.o:tion of sales vi thin tll~ Villa9e and the sa.le.s re-su~t ~rom su~h .se>l_i:cii:atj,pn or p~O:moticm;

(3) All sales Q;: t;ang.tbl,e· personiil property .which :is s"hi.pped fl;om. a place. wi tl?,in tjie Villa~e . to purch,asex:s ·o:ut.si.de .tile Village regard.less' of wh-e.re title passes i; the t~ayer i$ not, throuqh it&: Own einployee$( reqularly.&t}gac;eq i;n the soli¢:it;.ation o+ promotion O-f sales at the. J1>1.ace wh(U"e 4eUver .ifi> made.

_ (C) Add -th& peroen.tage determined in a.ccord:~ce w,:t.th (A)., (.1); (2) . <¢d ;U) -or au.eh o.t the afores.a.id perc~nt:aqes a• may 'be ~li<'-~le to t,he t<Uq>ayer 's :bu~.i.n~~s :and· divida t:he total SO' .obtained .by the nwnb~r o:t percantage.S used. i.n ,asce.rtairii~g' s.ai-A total~ 'th& r-esult $'(); oP.ta.:f..ned i.$ ~b~· bu~~pees allocae·.io:t\ pera~tage. ln dete:rmininq the aveta:ge percentaqe.1 4t factgr sheill 11ot -~ ~xclu.ded from -th.~ eomputat:.i9.n ;:rne:rel y because $aj.d. :f~ct.or is ))c;>µnd ·to b~ .. ~.ll.o.ca.b.le entirely outside the Villa.9e. A factor ).s e~cl,µded ot.ly whEitl it:. does no'.t exis~ anyw-be.+-~ • ·

S$<;:TION 6. !tQta.ia . . . -.:+-

(A) Rent~l income rEtcei"Ved by ;a taxpayer 41ball he cine!ude:d in ·the ~oinputation of net pro£i:t$ frcmi t>-us:i.ne~·s ac:tivitie.s und.ar· s~ction 3JC) to. .. <Ql # Q%1,ly if, and to the .eXt'.'en:t, that the rental, own~r:$h-iJ:', *1iati"gement o:rt opE:~•t.ions pt th.e r~l esta.i;e -from which . sueh renta,ls are. d,~r.i,.v~d, w.hetber ~o, t.entl!d, ~ll9ea Qr operated· by a taJ(I>ayer inC.1vidu~Uy or through a_goetl\!is o.r other representative,,_ constitute~: a bu$ine$'$ aeti-Vity o-~ the· taxpa~er in whole .~x- l.n ·pa:re • · ·

(B} \¥here the! ,q~oss tnontnly rent•l of any and a);.). 1;eal fi3:'.0Pe.J:ties, r.eg•rdJ,:e~ . c>~ puinber and yil.lue, aggrega~es in excess o! onlit hµnd~~d :twe~ty..,fi;ve dqllus ($125.00J pei: month, it. shall .be "prima-.f'ac-ie Elv,i.!3.~nc:e ~t the retita,+,

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ownership,· management o;r ope:t'atir;>n of such properties is a business activity 0£ such taxpayer, and the net income 9£ such rent~l property shall he subject j:,o ta~. nowev~r, .in the case of CO..mmerciaI property, the 9wner shall be ¢ons.1,.d~:i:;ed e.ngaged .in a busin~.ss activity when the re_nta_l is h.ased on a ~i~ed .or (luctllatin~ pere:entage of grPss or net sales, receipts or profits of the. le~ise.e.., whether or l)Ot such rental exceeds one hun~ed. twen,ty~five doll<Jrs . ($l~S.OO} per lilonth; provl.ded further that .l:r} the .c;:?ase t:>f f<S.x:m property, the b~er shall be considered. en~qed it\ a . bu&i;lless act:t:vity -w,hen he $hat-es. the crop.s or when the renPa.l ·is has~d on a pe=cen~ag:P. of the gro.s.s ·oi' net receipts deritted from the .fa.rm"' whetll,e:~ or n.ot the 9ross. ijlcome exeeeds one hundred twenty•fi "e dollars ($12_5.00·) per :l"l\O.nth. lt is· prE>v.Mied .further that the. per~u;m wl:l,o c>perat~s a .. licensed ~o0t.nin.g house .$hall be:· considered in .bUsi!}f;!SS W:h~ther Qr no~ the :gross in<:io~ ejcce·eds one. hundr~d. tw~nty--:fi'lle dol.iars _(Sl2?.00} per InOllth.

S~TlON7. 9J2!rati~g: 1.Qs$";. Car:r;x -Jrorw!rCl , - rn • • • ' ' " ' ; . " • ' • •, ' ' ' • • ""

{A) ~e Po.J:.t.i()n .of a net operatl,µg lo~~ susta!ned in a,ny· taxaple y~~t s\l;bsequent. to the effective date of this

·0ra~na;noe .al:loca:Ple' .t~ 'tJle .v:il:le>-ge rnay be applied agaizwt t :he portion 0£ ·the .profit. ot s,i.ic:ce.ed.U1i!J. ta.¥ .y.eai-s allocable to the Vil.lage witil. exhcs.uste~ but ;(.n np :~~nt, fo;: :mor.e- ithl!n f.~ve t,a;X_able years ilPinediat.ely fo11ow.~9 :tb~ year in ~hi¢h ·the lc;>ss oct::l.ir~ed •. NQ portion of a net opera.t~nq loss shall ~: ~r5.ed .};>ltqk ag•inst net profit:s or an.1 ;prio.r yea;r;.

(B) The portio·n of net o~ati.ng loss austa.ined st-1a.ll b:e .al,loea ted to • the Village in the sam~. ll"JU"Uler as provj;d,:ed. :l'l~r~in fQ( all(:l.¢'<:..tin9 Ji!=l1" profits to the "V$.lb.ge. ·

(C} The Adntj.niE?tl:'4.t.or . slta.l1 provide by nles and regulatioll& ·the manner .i,n Whi.cb .sucll, :net ¢~eJ;ating· loss j:airjt forward shall .he determine~. ·

SECTION 8. sou1rces Qf .Income . NQt Taxed

Tb~ tax. pro'lf.i.c;ied f,¢r i~ 1:h,is 04dina~ snall not )>e levied on tpe !o.llOWi~g;

{Al pay or auowanee of active. .member$ . . pf the anne4 :fotces. !;>-~ :the 'lJ.ni te(i .St.ates-, or the in.come ~f rel,igious( frate~a,l, chatitule, $.¢ientific,. literary c.r educational ill.sti,tut:i¢tli? to t'be e.:?Ct:'~pt ~C!.t :such inc.Qllle is derived front 't..a.lC·· ~xemp.t rea:i e~ta:t.e ., tax exempt tangible -or intangible · property ·Or t-ax e~E!m.Pt .~<;:t:i vi t;les.

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(l!} Poor relief, unemployment insurance benefits, old .it9e pens.ions or similar ~yments including disability benElfits recelveid frcltl loqal, state or Federal governm$nts or charital:>l~,

.. religious or education~! organizations.

(C) Proceeds o~ insu.ranee p~id by reason o.f the death of the insUX'ed, pens.ions, disability b,~nefits, ~nn:uitie·s or, gratuities· no·:t in the nature of compensa:t:ton for sel;"<rices rep.der~(l front whateveJ: ~o~ce derived.

<DJ ~eceipts frQlD ~eacsO'nal · or. cfiisuaJ. ent~~:tctlmnent, am~sernents, . . sports events an(I health anci welta . .r:a ·activities

·lfhen any such are <iond:u.cted by bona fid,e cha:;ita:bl~, relig.io"Q.s pr ~ducat:·i~~l organ.batiQn.s ·and associations. ·

(E) Al.:i,mony tec:ei ved.

tr) Pe:r-sonal earnings of any fi~t:Ul'.:'a],, ~rson ·unqer e:i.9hteen ,Yea.ts of aqe.

(~}.. compep¢~tio:n tor ~i'.$.o.nat ·injuries: or for damaq¢$ to .. pl;ope;t;tY by W;!!.Y Qj; insl::t'~Qe or otl:l&~i~e-

UO :tntei:est, dividends and ot.he:r :re~u$ from i~tatt§iPl-e ,Ptoperty.

(I) Ga.in!3 from invol,unt.ary ool'l,ve-r:s;i:C>11.; cancel.lq:t,ion of indebt~dness, int~rest on Fed$ra1 Qbliga.ti.qns,· itE!Jits of

. ific~ a.trea4y taxed :t:.y the State which the vil.,laqe -is spe•¢ifi cally pl:'Ol:libited ~rom t«i.~l·.-i<], and in.:oo.ite of a d.ec~~ent's- estate cu.ring the. pe·r.J.ocl of: arlailil!ist.,r!ition, excw:-pt. such income· flt(:)fn the ~pe.r)u;:j,on ·of A bu,~i,nes:s •·

{Jl sala:ries;, wa9il1s, collilllissiona. an'.i oth&.t' competlsat:~on andi n~t P+oftt.s.,. tl:ie tax~tion of Whicli. is prohibited by the Un;tted state$ C.;>tist itut:io;t or any a¢:t of Ctm·gress ·1 i ·mitin9 t:~ powe~ 'Of 'the state~ or thei,r pol~eic~l. _ sll):>divi:;c~O.hS· to irr.pC)se ,riet· ineoJlle ~e.li! ~n ;i.nc;o .. · <ieri v:~· (r9m. .itit~.rfJtat~ co.m.inerce-• ·

{l<} ~aiai:"ies, wages , .. commis·sions and. other compe;n_'ii~tion and nett profits,. t~ taxation 0£' ~~h i~ prollib.'.i,te<l ~Y the Con,s'l;it.uti.on of #he, :;tate or any. ac.e pf: th~ oJti.o General Assembly ll.ItU ting- the power Qf. the Vill;age t .o iropqse n~t inc<>111.e taxes. ·

SECTION' 9. Pate ~O'I: Fil.ins Returns

Each taxpayer, ex:cept a$ herein provided, shall, whether or not a ·tax i$ .due. thereon, make a.nd tile a .ret.urn on or before April 30th of the year followinc;r the ~£f~c:tiye elate ·9f ~hi.s Ord:i.n~ce and on oX' before April SOth of . e~oh year. thereafter . . Wh~n the return is made for a fis.~al year" or c::>t:ner per.io<l dif.ferent front the .calendar year, the ret.urn :shall be filed within foUJr inonths from t:.he and O:f £uch fiscal year ·or peric>ct. - The All.Illi~i.s·trat.Qr is herebY .au";.horized to pro,ride. .by regulation. t!l~t the _ l;:"~t~il of an ~~layer, showing :t.he amo.unt of. tax deducted by ·the. em!_>J.oyer !rOlll t;be salaries 1

wag.ei;, coinmissJ.on$ or othe.:- compen$atJ.9n of an ~p·loy~e, and: ·pa~d by nira or t~~ to the Administrator ~h~J,l pe arcc::epted ·~$ the ~eturl) Jt~quir¢d ·0£ an ~.mployse whcse csole :lneome su~ject '.to ta~ under thi s Ol='dii\l\-"'lce, is ·such sa:lary. ·

S$CTION ~Q ~ FQrJtt. and Cont~nt .pf .Ret\i:r:rt.

. 'rhe ret~ shall be filed w:i..th ~e A~inist.rA:t(l~" o:n a, form ·fµrnished by Q:r; obtainabr~ upon request ~r~ s"Qc;:I) .Admin.i,st,r4tot", ~ettin9 .foJ:th:

tM Th• aggr(i\qat.e ~ow:ftf} 9f a~4ri~lt, w~.q:es, cOJl\nlissions, .:Ponuse s.1 and ether compens~tion $.arned anq tax;;$te n~t profi t.s earned. duri.Dg 0the prececing .year. and Subja.ct to the tax.

{S) :r!le @o:unt of the tax ·impose.d.. by· this O;rdj,..nan<:;e, qn. S'1Cb e~11;.i.hg'S an4 p;tofi.ts;. .

(C.) -suc;:h· ot.h•r ]ilet't,;tnet).t :~ t ~ternen.ts , informati:On, returns .~ .other inform~t,i,on ~8 ~. ~dmin:is~rator m~y

.X'~qu:i:i:-~ .•

_g:(;'J'lON ti ~ :~tension ot. '£itne.· !Pr Fi.;Liitg Retur,i!!!

The Admin,i;~t.ra:tor ma:y ~end t~~ time: for fl..l.ing of ·the annual :r.:etl,lrn upon the reqU~$'t: <.>f the t,~ay¢t .for- a :p-eti..od. not. to exceed six t:n91lths, or o,n~ mon~ll.. ~yond any . :extensio.n requested of or. 9'Z'~ted by. the- lnte+nal RF!V~'ilu~ -Sel:'vi.ce for llbe :filiJi.' of the tederal tnco:m.e ta:x: ret·urn. 11.'he .~i;t_ii,st.rat.or 'Jilil.Y ~equire s.. t.eTitative return, . accQlllp~i~d by payme.~t oe 'ehe: ~ofult c# tax $1'..6~ t:o 'be due thereon by th~ ·dc:ste the retUX,n i~- l)()rln_a;Lly due. Np· penalty ot: interest :shall. be asse,ssed ·in those. cases· ·µi- which the return is filed ·arid th&: fi-nal· t:ax w.ithi~ the .perio<t a.$ exten~~d0 • • ..

- .10-

SECTION 12. Consolidated aeturns

(M Filing of consolidated returns by a group of ~()rpo,rai:ions who are af~.i,:l,iateq through' stock .owner-ship may be permitteQ. ·o.r requ,ire~ in ac¢o~dance 'W'itb rules and :regulations pres·cr.:i,bed by the Adiaj.nistrator.

(B) . ,!n th.e _, <;ase of a po.rp:ora.tion that carriea on t.rans.aotions with, its $t;ocldli:;>lder$ .or w:i th othe~ corporations rel~ted by stock oW~$t'S)J.ip, ~n:terlooldng di rector.ates· or som~ otlle~ method..,. or. J.n case ~"ly person operates a division., branch,, factory, offJ.oe,. .l'Abora~ocy or ~ct,i;v.:i,~y within ,the Vil.J.cige oonsti.tutin.g a portion only of itl!i tot~l ·J.;>usiness, the . ~:i.n·istrator shall require such add,itional iilfol:'111ati~n ~& h~ ·i:nay de~ nece$sary: to ~S.e$.rta.in whet,her net pro.fl ts -ar:e :p,ro~~l,y a,l.lQcatf!a to t;ha Villa~~· lf i:he Admi.rustrat':>r finds· .:that net; profit~ ~e 'no·17 ~qperly alloca.te4: to the Vi-lla-ge .by .. reason of tra!lsacti0n,s wit~ &tQC:kho:lders o~ with other C:qt:pol:'ations rela..ted by s-to·ck :ownersh:a.p., interlpekinq :dire¢t:c>t"a:te.s ~ transactions with s\i:ch division, branch,. fact.qry, cffficei ~r~tory or ~qtivity or by some cether method, -~ ~h~ll make s~ch a.llocat.ion as: he deems app~opriate to produce a fair ~a' ,prope:r; al].Qoat~on ot ,net pr9.fit!l to the Village-.

~.EtTJ:ON l,3 •• Anl¢:n~(:d ~eturn$

r(A) Where nece(ui·al;'.y, -~ .amended ~etu.t~ lJIUSt );)_e filed in order to repor·t a<lditi.o,p:al. incoit~ ._~_d· pay any .ad.d:i~ional tl!lx d~ / oi:" cl.a,µti a. refund of tax o.verpaid;, sul:>jeet . to •t4~ requ,ir~nt,s ,. lim1tations., -<i>r bo·th; coil:tairt:e.d i.n t:his' .ardin~~·- Sueh .~ndeci .ret'tttn sball ·.be;. on a .f .c».ll\ obta·inable en ;req~st :fr.01' ~h4!· Achnii,liStra~or. A -~axpayer ~1 n.ot change the method of aeeoUlltincy or apportic:mment Pf' the net prof.i t.s •af'te.;; t .he: 4ue date for filing the ori9i4~l. retu~. · ·

UH Within three ,mc;.nt;.hs from ·the .fi:nal. determinati.on of any · Fede:ra:i ~u l ii.ability. ij;ffe-cting, tli~ ;taxpayer •·s . Vi.llage tax l,iabil.ity, sue~. taxpayer Elh.al.l nu~ke an(J file an .a-.llded Villa9e return sbowl.n11 i,n9_()Dfe su.J>jep~ to·. ·the. \ti.ll.j!t.ge tax b.cs.sed upo~ such fi:nal determination of F¢de.ral tax liabi,lity; and pay ~Y ~dd:itional tax . :Shown due .thereon- or make .cla..lJ:n · for :r;~fµ~4 ·of. any. ·ov~~ynient •

..

-11-

SECTION 14. Payment of Tax on Fil.i.nq of Return

(A) 'rhe taxpayer making a return shall, at the time of the filing tber~o~, pay t.o the Adtninistrator the amount of taxes shown C!L& d-:.i~ t.hereoµ. However, w~ere any portion of, t}ie t~ so due has b~an dedl;lcted at the source pursuant t0· the provisions of Section 15, or where any portion. of t .lie t 'i!lX bas :bee.n pa;t,4 by tha taxpayer pursuant to the .provis.iQil.$ o;f· Se.cti.on 16 ' · or where an .income tax has been p(!,id tq ~noth.~t- municip~:i.ity, eredit for the amount s.o paid in accordance with SeGt.ion :31, shall be deduct.e<l from the amount . Shown. tO be due. and on.Ly' the . haiarice; . if (ll'ly I Sb~ll be due a.n.d payable at t .be Hme of filing the return.

{B) A taxpay~J;" who _has 9ve;rp4id the ~ount of ta.x to which the Vi1lage i;s en·titled iµide.?; the pr6v}.$ions p .f this Or.d:l.nance mar have such overpayment. appliE!d against any sUbseq-uent.; l acili-cy hereunder· or, at his el.ection indicateli on tlie .. return, s.ut:h ove.x:payment, or part thereof, shail be · pr¢mptlJ ,,refundeJ;I; provided. th~t no ~dditio~l taxes or .J;'.e;fUl).ds. of .l~s.s t;;han 'Oll& dolla~ ($1. 0:0°), shall be collected o~ refunded.

$$CTioN· ls. collection at Sout'o·e

fA) J'.n ar.;:oordance· with. :rules and reguliiti.Qns p.,escl;'ibe4 by the A®tini..Str.ator ~ each employer within (,7)%' 4oinq bu$iness "1ith.in the Village ~ha11 deduct at ·the time of pa~ent of s\,lch. salary, .waq~, c-ommis~i6n<;>r other comp~sauon, the amoU!lt of t.ax i.mposed by 'Sepf:ion 3 on; t)1a gr()ss sa;l.arl.~, wa.ges 1 oonuni$lsions or ot;ber compen·sation due by the eit!pl:oyer to the empl-o¥:ee ·and shall, cm or before the last da;y of t..he­l'll¢'.nth fo'J.l.Qw.i.,.nq t .he clQs.e 0£ such calendar qU~rte.r :make a ~e~~n cm4 pay 't:q the Aqminis~ator the ~Utit· of taxes so deduc-t$d, sUl:>je~f; to the pro.visions .pf ·s-~.,.;seQtions (C) tb IE). hersoi. Retur11s ·shall be. on a fo:rA presctib~d by ot accept.able to. the Administrator.~ an.d. .she.ll be subject: to the •ul.es ~n4. .regµla.t:J.ons p~esorihad ·therefor by the Atl,11Li.n,istr,at;.Q.IJ' • Su"Ch employ~:)': shall 'be li.a.,f..>le for the payment ot tt.ie ta~ requi.r~d to- :be ded.\l:Ct-ed '~nd . '(rlithheld, wbethe::- Qr not suoh t ·ax:e.s hiave .in fact .be~ -wit:hhe:ld.

on such :empl~yer in cellecting the tax .shall be deemed tO r.old ·the $8.1tle I until paymeJit iS lflade .by .$'UC:h employer ~o th~: V.illage, as a tru.$tee .fO:t the beh.eflt o'£ the Village and any sudh tax collected :by such «;mipl.oyel;' from his ~ployees shall_, · ·until. the same is p~id to the Village, be deemed a trust fund ,in the hands of suc!l employer . ·

-l2-

(C) Such employer who deducts the tax of one hu~dred dollars ($lOQ .• QO) ·· or lt,\Ore in .the first or second month of ~ calendar g"Q,arter s}lall ,. on or before the twentieth day of the fol.!owing month, pay to t-he Administrator the amount ox tax.es so deducted .

(:0) Such ~mployer who make payments on a moni::.hl y ba,sis for the fi:ts.i; twQ months of a c~;Leri.dar quar.t.er shall pay such tax ·ded:qcted for the third tnon.th of the c.alend.ar quarter at the regular titne for fili.n<; ~e $ploy~r'!>' quarterly return Of :in'CQn\e . tax withheld.

(B) P·ayI?leints shall. be on a .forin furrl.i·shed by or obtainable upo:n recan~st from the Administr.;l~or, settihg forth the· amount of ta)!: .deducteq '.for th~ J.Qoptji.. A receipted cqpy of s,ucb. fpJ:m. shall be r~tur;n~d tq the ~loye.r to be att;,aphed to and· filed with the ~player's quarterly re!t~tn o'f ;i;neqme t~ wit:hb.e1.g. ·

·(Fl .No :pe.rt$on sh:all. ·'be required t .Q w.ithhol~ t.he .t..ax on wa'#es .or etbe.r -c"mpensa;tion paid domestic se~:ts. employed

·~y him, e;xc l us .i:ve ly i.n or ~ut ,;>uch pe.r:son' s re.sid~nc::e, even t1'".>ugh su¢h r~~i4enc~ is in the Villaqe* but Slolch ~mploy~ shall be s·ubj·ec~ t.o. ~:u of' the r<!q\li~ements of this ordinano&.

stc·:•:roN . l6. Pecl~ra.tio-n: . oi lncqQ Nut eoU~cted . at. sour..oe

Every per~on wilp anticipat~s ~::r · ti'OO!lb1e inc:ome which is not subject to St;!ct.ion 1$ or who eng~ges i1' .any J:;l,u:s.ine:ss" profession7 enterprise· or activity· subject to the tax . .ini.posed by $ect,i.oij: 3 sha.11. f:i.le a . declar.cttion . sett:ing f()rth such ~!itimate4 income or t~ est:UM._t.ed profit or lo . .s.s from su.eh ·b:usin'9SS act.i,yity to9~ther with · th~ . es.timat~(l . ta~ due •thereon., i;f any~ .Ho:'i!tev.:e:r, if a person 1 s ~come is WhQl.ly £.rqm. wage-s from whieh the tu will be withheld and rem;i..tte.d to tlle VJ.:"llage in .accoJ;dance wit:h section lS lie.r eef, $Ucl\ pe·r$on uead no~ file ~ ·dec:l.,.re.t.ton. ·

SEC't.;J:O~' .11. Fiiinq ·Of P~elaratiob '.

(A) '.rh~. d~clar.ation require.a by ·seicti on 16 ~hall be fi l ed . . on 9r b~fe+e April .30th ·of each year during: 't.~ effe~1:iye p.e,J;'ipd se:t tc:>.rth in .~ection · 5-0 o~ within f Ptii. mont.?ts: o'f the date t.he taxp~ye.l:' beC91il~S subjec~ to t~x for ·tb;e first tiitre.

fB-) I'hc:>se ~~yers reporting on a fiscal year· basis ~h,all file a declarat_ion within f ptir tnonths afte.r the beginning of each suoh :fiscal' ye.a,r or pe;i-iod.

SECTX:ON 18. rorrn of Declaration

(A,) The declal;'a,tion requ_.t;red .by $ection. 16 shall be f.ileCl upon a form furnishec by, or obtainabl!il f;t;"om, the Adnfa.t..istrato.r. -However, a credit shall be taken for Village tu to :be ·wi,thh~ld f-ro:rn ~Y portion of such income. In accox-danc~ ~it,h 'the provisions of SeC'-ti.on 3! credit may be .taken for ta)( to be paid to or t;o be with)lel d apd rernittEld to another ·te.:xin9 municipality.

:(la) Th¢ origi.l).~l deciaration, or a~y sub-sequent a,menoroent. thereof,_ may };>-., increased :or dac;!;rea..~e.d on _or before any s't.ibsequent quarterly paym.e:it d.ue as prQVided for h.arein.

SECTION l.9·. P~~n17 to Accomean;y I?ecllU'.~tion

The estimated t• shall .either b~ ;p~~d in: ful.l W'ith the first d.ecla1:"a.ti6n· o-f estimated tax· a.-n , e1rch- tax year or 'in ~qual irtstall.nlents Qn Pl:' betpi'e the l~$t aay Of the fO".JJ:th I

~;ixth, ni:nth ~d 'thirte~nth JnOnths of the t~at-le year.. In ·· the event an_ amended aecla.J;"ation ha~ been f.i.led, the llX)pa.id -balance shown ~~ t.bereon. .sllall be p-aid in e-c;tuaJ. installments ~~ b.t ·before the remairii.ng pi:i.;ylllen-t date:s .•

SECT!ON 20. &nu~l . aetllX'n ' •

-On o~ ·before ~e J.a~t d-ay c# th~ lourµt month of ~lie ~ea~ !ol.J.owing t.h:~t for which s-uc.h · deel~otation or atRended cleclara.tion wcu. f1Jed; ari .annual return. -shaJ..l. be t'.ile.d, and. uy ba~an._ce Which •:Y be 4u.e the V;i.ll~ve ·sball .Pe paid '.t,~ere-.v,i.th :i;.:n acc_o~ane,e wit.h the P;-ovis~ons of sect.i¢n 14.

·s~CT!'ON 21. 1nter~st on tl.tipa.id Tax_ A;U taxes .itl!PO$ed. ancii all ni.oJU.es lf'ii!:h:held or re.qui~ed

to be w;.thheld l:>y ~l9~r1;5· under the pro.visions of th~ .Ordinance remaining ·unpi!lid afte:r .tney· beco:me· .Clue shall bear interest at the. rate pf s.ix perce.n't; t6tJ pe+." ~l'U!.uni or fraction the.-r:eof_.

P-enalti.$s 01:1 Onpaid if-ax 9 .-

:J:fl aQ;ditiqn tc:> .interest as pl;Q")"ided in secticn 21, petia.lti:es based -on. the tmpaid tax ai'f!; h~reby impo$ed as: fol.lo~s:

-14-:

(A) For failure to pay taxes due other than taxes withheld: ten percent · (lOt) pei; anntini or fraction thereof.

(:!;!) ~er fa,ilure to remit taxes witbheld from employees: ten pe.t<:ent (10%) per i:nonth o.r fraction thereof· •

. $E.Cl'l;ON 23. Ex~ept:ions to Penai~i~s

.A pena;lty sh.a . .U .not. be assessed on an additional tax as.sessmer.t made l:>y the .A('1ninistr~to·t when a return has been f _iled in· good faith an~ the tax pai.d thereon W:l. thin the t.inte presc;l;"i.be<'l by the Administrat<ni'; and pJrov~de~ . furtll~r.1 t:hat in the absence of fr.aud, _ ,t>.ei:ther penalty nor ir.te.z;-est shall be as.ses.sed on any additional. t~x. asse:$~nn~nt resulting fJ;om a :Federal. atidi t,, providing an amend$4 rei:;urn .ts· h.led and th~ i)ddition~l tax b paid within three months <).fte~ a ..final ~etermina:ti,<m o:t; tbc Fede&~l tax i.ia:l:>ili.tY. ·

·sSCT_I()N' 24. Abate~n£ -o~ r.i:ii:~rest a~ Penalt;y

=D'pon r~oommen~at;;ioli of ·tJie Ac;'bbini strator., t.1ie Bo.ard Qf .Review may abate penalty or i.nte~$t, or ·Pc>'b"h; :Or upon an appeal. f.roin the refusal o~ the ,!\.dmini~trator -to reconttnend aba~enien-r. of .penalty and interest, tha Bo~ra may never.tbel"ss abate. penal.ty or i:nter~~'t, 6:~ ~t;;_b,, £ot ~ocd eause shown.

SECTION 25. Vioiations . . ~ .

No l>erson- sbal!J

(A.) Fa.q,., neq1$'Pt or -refuse to make. any return 9r declaration. requ.i,re.Q: by th:Ls Ord:~~a·nce . ·

•(liH M~ke. any inc0mplete, ·false c;n; ~:i:-atrdui:ent return.

(Cl Fail.,, :n,egle·ct. t>:t t'~t'us~ to pay the t-x, penalties or !.n.t~3;est .ilnf>Osed by ·t:·hi~: ordi.nan~e. ·

(01 ~ail, n~qlect or refus-e to. withhold t.he ~~ from his E:unp1~yees ·Or -Fet:it $\lcl,l :~ithl)Oldin<;r'. tO the 1'dJ.ntiU£trator.

_ (i!l R~fuse to .pei;mi t the .Adaj.nis.~ator or· al'l¥ duly autbo;.i~.~ a~ent <;>1. employee to .examine his .books, ,records, paper·s and P'~de.r~i i11eome :1:a~ r~tlU:'!lS rel.a tipg to the incOJt1e or net l?rofits of a ·taxpayer •

..

-lS-

. .

(F) Fail to appear before the Admini$trato:r and to produce his books:, records:, pape·rs or Federal income tax returns relating to the income or net pro£its of a taxpayer upori order ·or subpoena of t.he Administrator.

. (G) ~efuse tQ disc.lose to the Administ:r'ator any int-ormation wi,th respect to tllc income or. m~t profits of a taxpayer.

(H) F·ail to comply with tha. provisions of this Ortlina\t.·C~ c>r any o:rd;e:r; Qr subP9ena of thr;.> Adlti:l.nistrator autboriz-ed hereby ..

(I) Give tQ ~ employer false in~.rmat.ion ~s to his true :tame, :correct $o:eia,1 sec.urity nwribeX" and t"esic!en<;:e address, OX' fail to promptly notify· ,an e1t1Ployer of aI)y change in x;¢$i~noe .addrf:\ss and date thereof.

(J) fail. $.0 use o.~din~ry c;lil ig¢nc~. in· ~a:i,nt.a!ni.ng ppopeI? rec.prd$ .of employees' residence addr~sse~,. tot.al wages paid and Vill.ag:e tax withlteld, oi; to k;nv\f.i.ngJ.y giv·e t.~ Ac'l4\ini.st;.J;at<?r: false information.

(K) Atte-mp:i=. t:o dt;>· ·anythinq what~ve:r t9 avoid the payment ~f the whole or any part <;>f the t~, penalt1,:.e$ or interest i-mJilOSed by this: Ord.inance. ·

J)EC'l'ION :?6. Limitation on ~tos:ecution·s ·. (A} C;iy.i.l, a~tiOn$ t.o ree~t\ret~ Vi1l~9'e i.n~.ome tues :and

penal tie.s and i .nterest on Village in~o~ "taJ<e$ !llhall. .b~ brought lliithin three (3) years aft~r t~e tax :w.as du~ or the .rett.i:tn was filed}' whichever is lat.er.

(B} Pros~:Jutions un'der this 'QJ;:dinance, shall be commenced Wi t,P,in. th.ree ( ~) y~~r~ ~ft;.er ·the CQl1ll'll.i,.SSi.ori of the Of.f .er:.$e, proyidea that in the ·case of ·fr-aud, failure t.<'> .:t:~le a :retUt'n, 'DX the Omissimi .. :of. twent:y-fi~e perceJ1-& {2Si) or J!lOl:'f;· of l.ncoriie · r~qu~red t.Q be :repo;rteCI, pro·secutions may );:le C9:rt\!l&l\q~e,. wi thit} :six (6) yea~$ ,~fter. the commission of tbs of£ense .

. SECTION 27 • J:a..ilure to Pt'Octu:-~ ·T~. f~&

The fa.ilur.e· 0£ any employer or person t .o receiv~ or procnr:e a X'et;ur,n, declaration or other required form shall not excuse him from making any information ret:t;rn, return .<.>r declaration, from filing au~h foilll ~r froll\ paying the ta.x.

-,.15-

SECTION 28. Unpaid 'l'axes Recoverable as Other Debts

All taxes ixnposed by this Crdinance $hall be collectible, together wi,th any interest and penalties thereon1 by suit, as other debts of li.~e amo\lnt are r .ecoverable. J::xce?t in t.he case of f~aud,, _ of ol'U.ssion of a substantial port.ion of income subject to tb.i,s tax, or o,f failU:r:e to fi"le a . return, an additional assessment shall not he ~aoe ~fter three years f .rom tb.e time t~ re.turn was .due or filed, w.r.ichever is 1a:ter~ How.ev.ei::, j.n t:hot'le cases in which a Conun;i.ssioner of In~err.al Revel)Ue and tQ:e taxpayer nave executed a waitte:r 0£' the Fede:i;~1 statute· of limita.tion 1 the :peried within which ail. additional assessment may h~ made by- the hdir.J.:nistrato.r :$.h~l.l be One yee.:t £rem the tinte 9£ th~ final cleteJ;?ninat~on ~£ the. Fed~~-Al 't.X l.iability. ·

SECT!ON ~9. Re~~ Of Tax's £r:~<:>neou~l)' Pa+d

T~es erron~ously ·paid shall not ··l:>e refunded unl,e$3 a clailt\ for _.i;ef.W1Q; :is made wit.bin three years .from th& a·ate -which ·such paY1'1e~t wa:s Illad.e or the ret.util was d~e, or within thr-ee months a£,te..r. th~ fi:n.a-1. detez:min~ticm ot th~ Federal, tax l;i ab.i. li:ty, :wh.ichewr is later. ·

SECTION 30. AlllOunts of .Less than One i>o+.lf!x:

JUUOi.Ults .Of les.s than c;ne qoilar ($.:(. 00) shall. not he coiiected or ~efundei:l .. ,

$CT:;£Oiq . 31. _Madison V:iiJ.aie ,Re:siden·t s'l:ibjec~ tc:> Inc;olt!$ 1'~ _ij\ other Munic:i.2a!i ty

! , - , . I . . . -· . ~ . , .

(A) Wht!>:i .4 -~e~ide;nt o:f Ma.d:i.so.n Vi·11a~ is s$je-c~. t.o a tn'Wl'icipal .income ~ax ~· a.no~llet municipality on trn, sam:e incbllle taxable unde"X" th.i~ Ordinance~ sui;:!l M.adiaon Vi.lla9e .t'esid,ant :fllilY, claim a <%edit Of thEI $,Ou.ht Qf J.nCOnt~ tax paid to th~ pthet: Jthmtai~ity'#' hut $UCh Ct'ed1 t shall n.~t .,be in. excess 0£ the ta~ -astJei:l:sed :under Sect~on 3 ·of this or.d::.naru:e.

(Bl l:i the eve .. nt a M~d1son ·villa~$ r~sident. is entitl~d tQ credit for taxes paiQ :anothi;:r tnunici.p"-lity, such Maaison Villaqe resid~nt- is requ:i.red to fi1~-' . .a £-et.urn on a fotm in sU¢h manner a~ ~he Adnli11i$trator aesig.na.t$g by the Viilage may prfis6.:'i~. -

'{C) Assignment 0£ any claim for ref\incl to wM .. t;:h a M~C:U: scm V.il.!age ~es_idenf.. ntay b.e entitl.ed. front anoth~J;· XD:Uili-cipality. ~h~ll be 1::¢ntatively a9c:epted a:s payment of

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that portion of Madisc>n Village income tax represented by such assignment. Howevei;, if satisfactory evidence is offere-<;I that the taxpayer is entitled to the claim .covered by the assignm~nt, such taxpayer shall not ]:)e deprived of credi:t tb~rE;lfor .becaus~ of rault or neglect on the part of either municipality.

(P} In the event sue~ Madison Vilia9e residei)t fails, n~<.;tlect.s or refuses to !ile. sm::h return ());' fprtn a,s is presc~ibed by the 1'.dlliipistr.atot', he shall not be ~ntit.led to such :·cre·dit and shall b~ considered in violation of this ordinano.e: for failure t.o fils a returI) and make paptent of ta~es d~e l'lereunder.. · · ·

The .funds cplJ.ected. . tmde.t; the .provi&ions of thi.s Ord,:l,na.-ti¢-e shall be di:sburse:i in t~~ ;follow in$( ~·in:et;

fl\) ~i.rst, such -pa.rt thereof as shall pe i'lecessary to d~fray all expenses· of eol,lec:tin_g the- tax and. of th.is Ordinance ~hall be paid. ·

UU The ba:lance rell\aini11g -~ft~r pa~ni;. o·f th.e .expenses referr~d to in .sub .. sectir>n (~} -herso£ shall be deposited i _n · th~ 'G-e~era,l F~d ~.r th'.E: · n\J.n~c:ipal purPQses set ·forth .in Section l. · ·

SECT!ON 33. Adalinistr!:ltor

·The. vi~lcige Cou~c:fl sh~l.1. appoint the :.Administrator cf the Madis.on Income tax Cod;e.

$$(.':TION '.l-4. ~~.ceipt and Re.cords ()f ... Tax

:The. Admir::i.strator. sl.1.e.ll. receiv~ ·tbe t~- .i.mpo$ed ~Y this Orainance in. th$ manner pr,esotibed herein f.;-Q~ the t:~ye.rs, icee? an ilCcurate record thereof, and: r~po;rt a.J,-1 monies so rec~.i v.eQ. ~- · ·

s:tc";l'ION 3$. .en£orcement of Collect4-oa

the '.Administrator £$hall enforce payment of all ti!J.Xes 0wi~<itc::> the Village, k.eep accurate records for o. minimum o.f .f1v~ ye.ats· shpwing- t~ amount du.-e f;rcj.Jn e~c.h -t:,a.xpaye~ r-equir~<l tq 'fi.l,E! a c;ie(i::la.ration and ·make any return, 9r both,. ::.nc;luding. taxe$ wi:~hh~ld ~d shpw the <iate·s and amo\;lntS of, pa~nts the:reof .•

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SECTION 36. Authority to Make and Enforce Regulat:ions

The Ad.ministra~or is h~re.by charged with tne enforcement cf the provisions of this Ordinance and is hereby empowered, !"ubject to the approval of the Boa;rd of 1leview, to a<iopt ~rtd promulg-ate. and to enforce rules and re9ulat.i,ons relating to any roattE!r or thi~g perta.inin9 to the collecti.Qn of taxes and the administ:ratio~ and en~o:i;ceJile.nt of the provi·sions o~ th;is O.t'din~nce, inel.t:lding provisions for their reexamination and :correction of returns.

SECT10N 37. ~ . -.......,;-- AuthQl:itl to ittra!lcae ln$t~1lment Payments

. . . • . ' • ' ' • t - •

(Al Tpe . A&.nir,listrato.t- is. authorized to arran-ge for tbe pa~p.t of tmpai'd ta.~es, i;~terest and p~al ties on a se~ule of in.stallment, payments; :when tlle ta.xpayer has proved to the A"dtnin.i.strator that, d.ue t9 CeJ;"tai.n har<l$hip condit:l,on~, he is- unable to pay the fnll amount of the tax· ¢1~. ·s'1c.1) a.~thQX:ization ~all not .be granted until prop.er 'returns are fi.led by th~ t~ayer ·tor a:u ·amounts owed 'by him undex: th;.$ Ordttance. ·

{B} Failure to make ·any deferred payment. when due, sha.ll cause. the ·total unpaid au;ount, including pena_lt.y ~nd int~reat: ,, .. to become payable on deJnAnd and thE: prov:ision ot secti.:>n:;· ii1 .22 and .51 ahal.l apply..

$ECTIQN 3.$. Autht):c"1ty to J)~t:ermine AI'!\Ount of Taj!; Due

. In any .case where a taxpayer has failed to f:i,.le a . retux-n or h~~ fil.e'd' ~ returl\ w:hioh. do.e~ n<>t show the proper· amo~t of tax due the ~dini.hist.r~t<)~ may determine the amount of ta:x appear inq to .l?e dQ.e ~he :Vil.l a,ge from the taxpayer .and shall send t? $-µch· taxpa.yer a w,r:i.tten stittement. shQwing the airu)UJ}t o:f tax so determined., together ·with ,intcre::at ·and

-p~n-altie~ the~eoni if. any·~ Such -determination of ta~ may be ·cid1usted ·upon s\l.Pltlission by t.he taxpeyer of actriai records from :wl).ich ·}\-is '1:.ax ~Y be cC)1t1p~:t,eQ.

SECTIO~ )9·. Inve$tig~tion$

. The ACbni.nist.J::'.21.tor, or ~Y ·authorized emplqyee ·' is hereby 4\lthor.i,ze(l to e~~ne the boOlcS 1 . .p.a,pers, reoord.s and Federal I.nc:OICI~ t~x retm:'r..s of an.y eJiiPloy~r · qr o! any taxpayer o.r per~on. st.$teo-t: tq, or wb,om the AillUirtbtrator believes is subject to the provis,t.om~ of thi$ OrcH:P:~~ce ·, £or the purpose. of veri.fy.i.nq the accuracy ef ·any ,:eturn made ; o~, if no return was made,, to ascertain th.a tax due Ul'l4er this . Ordinance.· :Every such employer, supposed elilploye:r, ·taxpayer

-l.9-

or supposed ta:>epaye.t; is hereby di1·ected and required to f~rnish w,it:,hin ten (10} days fol.].owing the written request by. the .Administrator, or hi$ du;Ly authorized agent or employee, the means, facilities and opportuniT;y for making su.ch e~ami.nations and investigations as are hereby authorizeq.

S~CT!ON .. 4q. ~l)thorit-y to cqnpel :Production of Re-cords

The ,Adltu.,nistrator is hereby a~thc;>r:i.zeQ to order any person presumed. tO hi:i,ve knowledge of the facts to appear b.efoI;'e h.$,m. and :piay ~in.e such p~rson, tinder oath, concernin.g any incomt! "'1h,ich. wa·~ Qr 5,houlP. hav~ been returned for taxation or any transact~on tending to a!fe.t:t such income., a:nd for this pu.rpos.e may compel the prod11c:tism ot books, p~pers, . rc~ords, t.nd l?ede;:c:il income tax Eeturns. and the attendanc¢ bf all. per;S:c·rts ·bet.ore. llim wheth?.r as parties 01;' witnes-.ses~ w~e~v.;;!r hepel..t~v~s is\l~h persons 'have. knowledge of such i:ncome or inf omat~Citt pe;c:ti;nent to $uch inquiry . .

·s~Cir'I~ .41. Refusal to Prqd.~ce P.e~ords

:R.efus~l qy ~.Y elilploye,J:, .s:upposed . employer, taxpayer or supi>osed t~ayer, pr the 4e;£us.al .of any sµch person tP appear before the · .Administrato;:· or hi-~ du.lye aut,~o~ized Cl..gent, tQ: · Subni.it. to. such examination, Qr to produce tne records r~qu,est:ed co11st.i tutes. a misdemeanor ptinishal>le ,by f .:ine or irupri.sonme.nt·, er both, a$ :pre$~l;'ibs<\ ·hy. t:be violati9ns prqvis~ons o.f thi:s .()r-dinance .

SEc;T+ON 42. O(>nf~,den~ial. 'NaturE; of lnforritatiqn.

~'1 ·i n '.formfltiQn gained . a~ the ~salt of Ant re.tu.qi~, investi(j~tions ,, he~r;i.ngs or verifi .cauon$ rect,uired, or

·aut.b<>riz~d by t.~i.5! o.r1unance :~ha1l .he confidential' exce.:pt £ott of;iaial' pur-pose-s, ()li e:fCqep'f: ;in. ~ccordanc:e with p:-oper j udi.cia,l :order. .~Y person d~ yu:J..<ging $.uch i t1,formation shall he guilty ·Of a mis.demeanor puni:.1thable by a ,naxµa\:;Ill fine '~f ona thous.and ®lla~s (.$1., 000. 00) , or: .i'nlprisoriment; for- ;}lot tJ\oJ:e th?n ~i:it l 6 J moQths; or both. :rh addi:t.ion, any eniploy~e of th.<! Yi:l.1~<1¢ WhQ. vio.lat::es this . Sect.l..o.n shilJ.:l .oe c;JUilty o.f :an off ~ns.e p~ishable by imm~iate ~is·m;i.s:sal. · ·

: ~

SECTION: 4·3 ., 'i~eayer Reguir$d : to. a!ta_in Rec<:>rd-s

Evet y taxpay~r sliall ret.ain ~U recordS .nece.ssary to ~put,e his· ta.J( liab;il;ity fo,.r i1. .periyd . of five years f~Olft the date .. h.is retur.n is filed) or t';l}e ~ithhol.4in.g t~xes· are paid.

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SECTlON 44. Auth()ri ty t.o Cqntract fox; C.el}tral Collect.ion .Facihties .;mc;l Servic::e

{A} The Mayor may and he is authorized. hereby to enter into . an a9reement on .behalf of the Vi1J.age l'tith any other inurticipl;l~ corp_or~tion o~ coxporations for t:be PllrRose of ·ii.'dto..i.,niS-tel;'in.g tlje incom$ -::ax law of tl:le. Vi;Lla.ge and ot providing a c:entral eo11ection fapili ty for the collection of the income tax on behalf 0£ the Village.

(J;!') In t})E;J ev~t the M~yor, on bsna.u:. of the Village, e!iters into an asreeiuen-t: with any _ othe~ municipal corporation -o~ corporati.o:ns fur the purpose of ad.ln:i,ni~tering the ~ncuTtle "CU .J.a.w 0£ the Ville9a and of provldin'if, a.. central eoll,ection facility f.or the collection ·or the income tax, then all or p~rt ot the d.ut..ies and au:thority of the :a~_nistra.tion inay pf;! aLSsigned l:>Y such agreement., tr.> .such, C>the.t munibip9.l corperati9n pr corporat:J,.Ons •.

$F;C$l;Ol\' 4~. . . Wit.hhOlO.inq Ta;ltes from Federal. Employees

The Adltd..;nistrato):: u authorized. to. ~te-r il\'tO. ~ agreement .on behalf. of the Village .. with the Un.:i,ted. Stat.as· secretary ·Q'.f the T:reasu±y for the purpose of ·withholding -Vi.llage income 91:- ~ployinent tax;es. from tha compensation oe .F~eral emplorees whose reg'Ul~ place of Feqe.ral emplo~ent is with;in th~ terti~t>r~al. JUXiscll,.ction O:f the Vi.llaCjJ'~.

SECTION 4f!.. SGard' of Review Estaj;!li$hed

ABOi!i:t;'d Q-f R~Vie\of, e<>n$istin9 ()'f the .~yor, the Solici,.tor ·and the -President ot counc.11 is hereby created. The ~oard shall $:elect, ~ach ye~f ~Qr ·a· one-year :term, one of its me~ex;-s "to .serv.e as Cbairtli~ an.d one to serv~ a• ~ec.:et:ary. :.:\. ma:ior .1. ty ·of -tl'te rnembf!r~ of t;he BQa!:d' ,shal,l.· constitute a . :g\lorum.. The Board shall adopt its ovn procedural. rules and s-hall ke"p a .re.cord of it::s ·tra.ns:ac:tiams. MY hea.rin9 by ~he aoa.rd may be conduot;~d privat~:ly .and the; provisions of Secti.t>;i - 4~ witQ X-efe:r;e11qe .to the conf:,f.dential . ch•racte.r of info. rm-a_ .t.ic,n re.qtt.Lret:l _ to.· !;>(! . disclo_> se_ d by th1. s Or.ciJ.,na::nce· s_ h. all ,apply 'tb $'~ch 'J1m.-tt~.r;s as may he ~eJlrc\ l;>.efore ~e ~Oard qf :Review-.

S$C'l'.XON 47. Boa.:t·d -t:o Approve ~eg:ula.'tl,.9~~ ciQ~ Hear ~P?&!iJ:S·

All' rules and regulations and amendments or chan9es theret:o~.hi.ch are aaopted by t:ne Acllnin:i.st.rat.or under the

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authority conferred by this Ordinance must be app~oved by the Board Of Review before the same becomes effective. The Boa~d s ·ha11 hear and pass on appeals from any ruling or deci.sion of the .Administrator, and, at: the request of the taxpayer Pr Adn\il)istX'ator, is empowered to substitute alternative metbods o;f al,locat:ioh.

SECT::IO~ 48. Right of. Appeal

:Any per.$on dissati~fie;:l '"i 'th any rulin~ o.r decision a:f th~ ;Adm~n,tstr~tcr W;hich .is l:t@Q~ unqer the ~ut.ho~ity conferred .by t!tls Ordinance ~Y appeal therefJ::O.O) to the Bpa:>::d pf' Review within thuty days from t}l~ ant'lotinoement ot: s-cch ~.U.Linq or d.ecisions by· the Administrail~n:. 'l'h~ Bo~~d sh'all, ~m hea.iin·SJ; have ju:riac;Uctio.11 to affirm., reverse or moO.ify .any such ruling or .deci~ion .ot ir.:y part thereof. Hearing$ be.fC?re the BCIU'd sball. be priv~te :unless the taxpayer reCjuests, inwr;tting,·a publl.c; hea:r;in.g.

SECTION . ..f9.. Pe<:;J:~ration of Le<J.islative .lnT.ent

. .If any s~ntence, clause; se¢t.i()n al; pl!lrt of ~his ·oxdinanee, or' any tax a--gainst any ln'd1vi~~a1 .or any of the se_veta:l groups $p.et:ifiecl !1.erein_, is found to be un,qo~~titution~l, .ill~gal or inva.l.~d, such un<;or.:st.itntionality, illegality :i;>l:' invalidity si,.a::p aff~ct only $licb C'l.~us$ 1 e.entence, section or pa,it. of' thi~ Ordinance and s.hall not a,£fect <;>r imp~i.r an_y of. the relnaining provisions:·; sent.ence$, ¢la.Ucsed., $ections o.r otl'.ier pa;r;t.s. It is hereby ce~lared :-t:_o l:;)e the .;i.nt~ntion ot COUil.C:il-Phat this Ordinanoe· wouid ·have been ad-opted haet <;~ch u:neoµstitutibna1, illegal ·Or inv;;i..lid sentence, alause, s~ction Ot"' p~t thereof _not ~Xl +nclu®d h,erein.

SECTION . 50 • Collection of Tax af-ter fe.t'.mil}ati.cm of Ci:r:d'.i~.anee · ·

(Al '7'h,:t,.~ O~(;lina.r..q~ ?ha~l. co:nt.i.-nu~ et£:ecti ve ..insofat as the levy of taxes .Ls conc~rned .µntil. t-epe~l,e!:}i. and insofar. its the· c0...14-ectio:n of taxas lev.i ed.- here"µndeX' and a,ct,ions atrd prooeeriings £.or .1:;:911ecting any tax S.0 levied 9r eritforcing P.~y; J>rO-vi~~ons of thu . O.rd:.rta.-ic.e -~e con~erned, it ·shall con:ti.PU~ eff~ctive ~til al.i of. th_ei t.~~i;!s .l~vjecl j.n tlle af'o;resaid .period are fully paid. and· CliiY an~ ·,all $Uit& and prosecutioos .for ·the .co·llectj..on of tax.es or for the punishment of violations :of this Ordinance .have been full.y tepninated~

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..

(B) Annual returns due for all Or any p$1rt o'f. the last effective year of this Ordinance shall be due on the ciate provided in Set:tions 9 and 15, as thou9h the same were continuing.

SEctlbN 'SJ,;, Penalty

Wh.0,ey(;'!t;- vi.o_lat.es Se~t1ons 25 and 41 shall be !ined not more t~ ~iv_$ hundte.d doll.a:i.-s ($500 . 00h imprisoned not more than s -ix _(-6) _niG;11t.hs, ot. ho-th.

SEC'tlON 52. This Q.rdin-anc;e shall take ~£fec;:t and be in fdr~e from and_ immediately up-Jn the earliest . 'f-eriod allowed by· J,G'lw.

PAS$ED:c

A'r'l'ES:T:

·.

ORDINANCE NO."\~ -1994

AN ORDINANCE REPEALING SECTION 3.1 OF ORDINANCE NO. 22-19831

SO AS 10 ELIMINATE THE 1~ INCOME TAX CR.EOlt GlVEN TO MADISON VILLAGE RESIDENTS SUBJECT TO AN INCOME TAX IN OTHER MUNICIPALITIES, EFFECTIVE JANUARY 1, 1995.

. WHEREAS, Section ~1 Of Ordinance No. 22-1983, allo\w a MacftSon VIAage resident to claim a credit fOr the amount of· Income tax paid to other municipalities against the municipal income tax due M~isQn Vilage; and,

WHEREAS, becatJSe MacftSOO VIiiage Is in Immediate need ·or ElddltionaJ revenue in order to provide muntdpal services to the Village residents, it Is the Intent and de$lre ct Council to eliminate .the 100% .income tax credit given to Madison vutage residents subject to an income1ax In othet municipalitles, effective January 1, 1995.

NON, TI'fEFtt:FORE. BS. .rr·ORDAfNED BY'THE COUNCIL OF THE VILLAGE OF MADISON, COUNTY OF LAKE AND STATE OF OHIO:

~ 1._. 1hat Section .31 of Ordinance No. 22 .. 1993, be and hereby is repea ~Ive. January 1~ 1995, so as· tt:J. eUminate. the 100%1t1Corne. tax ctedit presentty giver\ to Madison VUlagereSldents ·sut;ject to an-income tax in· other munidpali~ ties. . . .

SiCDON 2. That it is found anc:hfetermined that all formal acttons of-this Counal ~ and tefatin~ ·tQ ttie· passage of 1hi$ Ordinance were adopted . In an open meeting of this. council, and 1hat all deliberati.ons ef tf1iS Council .end of any . of i!S ooc1Hnlftees that tesuft~ ir.rsuch formal flCtiOf1 were In~ open to. the public, an compfance with all legal requirements. incfUdklg Section 12122 or the Ohio .Revised. eocte. ' '

SECTION-.3. That this Ordinance shall effect at d by raw. PASSED: NomQt>er 9. 1994

SPONSORS> BY:. ATIEST:

couna1maa

COUriCilman

ORDINANCE NO. 11 - 2004

First Reatfillg 2116/04 Secotrd Reatlirlt J/OJJrU

Thi1'd Readitrg JI/ J/D4

AN ORDINANCE AMENDING ORDINANCE NO. lZ...l9gJ TO INCLUDE "LOTTERY AND GAMBLING WINNINGS AS TAXABLE INCOME AND PROVIDING FOR THE IMPOSIDON AND COLLECTION OF TAX THEREON.

WHEREAS, the current ordinance of the Village Income Tax Co.de does not include lottery or ·gambling winnings as taxable income; and,

WHEREAS~ the. Council for the Village of Madison desires.to include lottery and gambling winnings as taxable income and provide for the imposition and rollection thereon.

NOW, THEREFOJtE~ BE.lT ORDAlNEl> BY TH& COUN<:a·O~ ~VILLAGE OF MADISON, COUNTY OF"I..A.n AND STA'JE OF ()BlO:

SEQJON 1. Ordinance No 22-1989 is amended as follows· See.tion:2 Paragraph (R) shall be deleted and shall be replaced With the fotlo\lVing:.

"SECTION 2 Taxablelnc:ome

R. ' 'Taxable income" m~any and all income earned or received by an individUJ.1 or an entity, tb~ taxation of which by the village is not prohibited by federal law, stat-e law or .specifically exempted under Section 8 of this .chapter. Wages, salari~ fottecy winni1lgs. and other wirurings from any and all types Qf gambling sq.U be considered iaxaJ>l~ m(;9me. All employee compensation, befQr~ any deduction illldlor the net profib from the oper•or of Jl. business, ._profession or ·other enterprise. ot activity adjusted in accordance with the pro'Vitions of tbis cllapter, shall b~ co~dered .taxable income."

$EC1JON z. Ordinance No. 22-1983 is amended as follows; SeQtion 3 s.hal1 be d(3leted and shall "e replaced with the following,

"'SEcnQN.L.. Rat~ and Taxable ~e

forthe purposes specified in Section 1, on or afterUie effective date of this Otdioance, a tax of one percent (1 %) per annum shall be imposed upon "the f()llowing income:

(a) All salaries, wages, commissions, lott@y winnings. other gambling winnings, and other compensation earned on or after the effective date of this Ordinance, by residents of the Village.

(b) Lottery and gambling losses are deductible against lottery and gambling winnings. The administration shall pto.vide the rules and regulations the manner in which to determine such losses.;,

'

SEC'I10N 3, Ordinance No. 22-1983 is amended as follows: Section l O (A) shall be deleted and replaced with the following:

«Section 10. Form and Content of Return

"The return shall be filed with the Administrator on a fonn furnished by or ohtain$:ble upon request· form such Administrator,. setting forth:

(a} The aggregate am,ounts .of salaries, wages. commissions, lottery winnings, other gambling winnings,, and other compensation ea.med and gross incxnne, ineoine. frotn business, ptaression, other enterprise or. a«ivity, less ·allowable expenses incurred in the acquisition of such grass income earned· during the preceding yem- and subject to~··

sgctION 4. ltis found and detenniited that all fQnnal actions of this CollJlcil concerning and rel«ting to the passage of this Ordinance were adopted .m an. open meeting .of this Council,. and thafall .deliberations. of this council And of any ofii. committees that resulted in such fonnal action were i.:i ttieetings open to the public~ in compli~ with all legal rcquirelllents, inelutiing Section lZl.22 of the Ohio Revised Code.

SECJ'ION 5. That this Ordinaace shall take effect oQ the earliest date aliow~ by law.

SPONSORED BY: ATTEST:

Councilman dCVtM ·Q~ Dana Pihkei. Fiscal Officer

Councilm~n

Third Reading August 6, 2007 Second Reading July 23, 2007

First Reading July 9, 2007

ORDINANCE NO. 32 ~ 2007

AN ORDINANCE REQUIRING INDIVIDUALS AND ENTITITIES THAT PERFORM CONSTRUCTION WORK FOR THIRD PARTIES WITHIN THE VILLAGE OF MADISON OHIO TO REGISTER SO THAT A.~Y AND ALL

APPLICABLE LOCAL INCOME TAXES WILL BE COLLECTED

WHEREAS, Council for the Village of Madison desires to ensure providing that individuals and entities that perform construction work for third parties within the Village pJ!Y any and all apPJlcable 1ocal income taxes.

WHEREAS, the Village has detennined that it is losing tax revenues because 1ndividuals and entities t}iat perfonn construction work for third parties within th.e Village are not paying all applicable income local taxes owed according the VHlage's QrdimmcCs;

WHEREAS; the.Village has. an absolute interest in ensuring that individuals and entities .that perform cc>nstruction work for third-parties within the Village of Madisc:>n Ohio pay allnecessmy income taxes; am.I

BE IT ORDA.INED BY THE COUNCIL .FOR THE VILLAGE OF 'MADISON, COUNY OF LAl{Ei STATE OF OHIO THAT:

SECTION 1: All individuals or entities that perform. any type of construction work for thifd parties beh:ig contractors a:ndlor developers, shall register with the Village Ta.x Administrator prior to pmonning any such work oil a project.

SECTION 2 '. As part of the registration :proCC$s, contractors andior developers ·Shali complete a µotW.zed statement $etting forth the following:

{l) the names, dates of birth and 'addtesses of all individuals to be employed on the project;

(2) ~e mun~, addresses and tu jd~ntification nu.111bers of all independent contractors/subcontractors to be used on the project~

(3) the number of cays estimated that each independent contract.or/subcontractor will work on the project;

(4) a Certificate from the State of Ohio Bure.au o.f Worker's Cornpensation; ~d;

(5) a $taternent that all employe.es, or subcontractors that are sole ptoprietorsblp.s or partnerships, have the legal right to work jn the United States of America.

SECTION 3: As part of the registration process, contractors and/or developers shall provide notarized statements from each independent contractor/subcontractor to be used ·by the contractor on the project setting forth everything set furth in section two (2) above and a. statement regarding the total

Third Reading August 6, 2007 Second Reading July 23, 2007

First Reading July 9, 2007

number of days the independent contractor/subcontractor has worked in the Village to date during that calendar year.

SECTION 4: If for whatever reason, a subcontractor starts to perfonn work for a contractor and/or developer on ·the project that was not identified during the initial regis~tion process, within three (3) calendar days after the subcontractor starts performing work, the contractor and/ot developer shllll submit the notarized statement required in Sections two (2) and three (3) with respect to that subcentractor.

SECTION S: The Village Administrator shall not issue any type of building or occupancy/construction pennit to any individual or entity unless first presented with suffic1ent documentation from the Tax A<l'nn\istrator o:r 90ntractor and subcontractors showing full comphance wi:th this Ordinance.

SECTION 6: The Village shall not relea8e any draws for work perfonned on any ·construction project und~rtaken by the Village to anyindwidual or entity working on said project until presented with sufficient do.cumentation from the Village's tax auth<>rity that all taxes-required to be paid or withheld under this Ordinance have been- paid andfor forwarded to the Village.

SECTION 7: In addition to the Village's Police Department, the Village Ta1C Administrator is authorized' tO ttlke all necessary stq>s to investigate complaints -of \iolatieins of this Ordinance as well as engage in -independent invesi,,gations to determine eompliance therewith.

_SEQTION . 8. The d_et.ennination of ind~endent <;:ontractor/subcontractor or -employee statt.ts .for purposes of the Village's Ordin:an~ sh.all be the_ stine as .those factors used by tb.e Internal Revenue Service in its code and regulations.

SECTlON-9.: Ifa:cQnttactor violates any part oft'1i,s Ordinance, it shall be guilty of an Un.das~ificd misdemeanor and shail -be subj¢ to a ii;ne in the amoilnt of $500.00; Each day <>f th~ violation shall be a separate offence.

SECTION lO: That 1t is found and detennined that all fonnal actions of this Council concerning and 1elating to ffie ·passag~ of this Ordinance were ado.pted in an open meeting Qf .this Council, and that all deJjberation of this council and of any of its committees thai rcsµlted in such formal action were in meetings open to the pubjic, in compliance with all legal requirements-, including Section 1.21.22 of th~ Ohio Revised Code.

SECTION 11: That this Ordinance shall take effect at the earliest time allowed by:Jaw.

PASSED; A~ i I f).001

SPONSORED BY:

· Councilman

Councilman

Third Reading August 6, 2007 Second Reading July 23, 2007

First Reading July 9, 2007

Michael Evangalista - Mayor ATTEST:

~U'la. Yi_, l/3uuJ.kJ Brenda Break - Fiscal Officer