Income Tax Ordinance

AN ORDINANCE AMENDING THE PROVISIONS OF THE CITY INCOME TAX ORDINANCE TO PROVIDE FOR AN INCREASE IN THE INCOME TAX IN THE AMOUNT OF ONE-FOURTH OF ONE PERCENT FOR A FIVE (5) YEAR PERIOD COMMENCING JANUARY 1, 2005, FOR THE PURPOSE OF PROVIDING FUNDS FOR POLICE, FIRE, AND OTHER GENERAL OPERATING EXPENSES OF THE CITY OF WEST CARROLLTON, OHIO BY AMENDING SECTIONS 2, 4, 19, AND 27 OF ORDINANCE 3251 AND REPEALING ANY ORDINANCES IN CONFLICT HEREWITH.

WHEREAS, the purpose of this ordinance is to provide funds for general municipal operations, maintenance of equipment, new equipment, extension, enlargement and improvements, there is hereby levied a voter-approved income tax at two percent (2%) on the net profits of all business entities, professions, or other activities conducted within the City of West Carrollton and/or by City of West Carrollton Residents; on all qualified wages, commissions, and other compensation earned within the City of West Carrollton and/or by City of West Carrollton Residents; requiring the filing of returns and furnishing of appropriate employer supporting documentation and information for all those subject to said tax; imposing on the employers the duty of collecting the tax at the source and paying the same to the City of West Carrollton; providing for the administration, collection, and enforcement of said tax; declaring violation thereof to be a misdemeanor and imposing penalties therefore, and

WHEREAS, is necessary to make revisions to the income tax ordinance which have been discussed at various review meetings;

BE IT ORDAINED BY THE COUNCIL OF THE CITY OF WEST CARROLLTON, STATE OF OHIO: That sections 2, 4, 19, and 27 of Ordinance 3251 are hereby amended to read as follows:

SECTION 2 - INCOME TAX LEVY

To provide funds for the purpose of general municipal operations, there is levied a tax at the rate of two percent (2%), except for those under the minimum age, upon the following:

A.    All qualified wages, sick and vacation pay, commissions, and other compensation earned, received, accrued, rental income, or in any other taxable income set apart unto residents of the City of West Carrollton.

B.    All qualified wages, sick and vacation pay, commissions, rental income and other compensation earned, received, accrued, or in any other way set apart unto non-residents for work done or services rendered in the City of West Carrollton.

C.    1.  On all of the taxable net profits of resident associations, unincorporated businesses, professions, or other entities, derived from sales made, work done, services performed/rendered, business conducted, or other activities performed.  The tax levied on these associations or other business entities are primarily liable for the tax with the owners/officers being secondarily liable.  Credit will be given for appropriate municipal income tax paid to other cities allowable by this ordinance for work performed outside the City of West Carrollton limits.

2.  On a resident partner/owner's share of the taxable net profits earned from a business entity or association.  Credit will be given for allowable municipal income tax paid to other cities for work performed outside the City of West Carrollton limits.

D.    1.  On the portion attributable to the City of West Carrollton of the net profits of all non-resident associations, unincorporated businesses, professions, or other entities, derived from sales made, work done, services performed/rendered, business conducted, or other activities performed in West Carrollton whether of not such an association or other business entity has an office or place of business in the City of West Carrollton.  The tax levied on these associations or other business entities are primarily liable for the tax with the owners/officers being secondarily liable.

2.  On a non-resident partner/owner's share of the net profits earned in the City of West Carrollton from a business entity or association. 

E.    On the payments made to current and former employees by an employer as accrued benefits and/or vacation wages for services performed in West Carrollton; on the payments made to current or former employees by an employer under a wage continuation plan during periods of disability or sickness earned for service performed in West Carrollton.

F. 12-Day Occasional Entry Rule: the City of West Carrollton shall not tax the compensation of an individual if all of the following apply:

1. the individual does not reside in the City of West Carrollton;

2. the compensation is paid for personal services performed by the individual in the City of West Carrollton on twelve (12) or fewer days during the calendar year;

3. in the case of an individual who is an employee, the principal place of business of the individual's employer is located outside the City of West Carrollton and the individual pays tax on compensation described in this ordinance to the taxing entity the employer's principal place of business is located in, and no portion of the tax is refunded to the individual.

4. the individual is not a professional entertainer or professional athlete, the promoter of a professional entertainment/entertainer or sports event, or an employee of such a promoter, all as may be reasonably defined by the City of West Carrollton.

SECTION 4 - COLLECTION OF TAX AT THE SOURCE

A.    Each resident employer and/or employers doing business within the City who employs one or more persons on a qualified wage, commission, or other compensation basis, shall deduct at the time of payment of such qualified wage, commission, or other compensation, the income tax at the rate of two percent (2%) on the gross qualified wages, commissions, or other compensation due by the employer to such employee and shall, following the schedules as specified in this section, make a return showing the amount of taxes so deducted and a record of payments showing that all taxes deducted during the periods required have been paid to the City in accordance with the payment schedule prescribed by this Ordinance.

B.    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.  Every employer or officer(s) of a business entity is deemed to be a trustee for this municipality in collecting and holding the tax required under this Ordinance to be withheld.  The funds so collected by such withholding are deemed to be trust funds.  The officer(s) and/or employee(s) having control, supervision, and/or charged with the responsibility of filing the return and making payment is personally liable for failure to file the return or pay the tax due as required by this Ordinance. The officer(s) or employee(s) shall be personally liable for the tax he failed to return or pay as well as any related interest and penalties.  The dissolution of a business entity does not discharge an officer's or employee's liability for failure of the business entity to pay the tax due.

C.    Employers shall pay to the City all income tax withheld or required to be deducted and withheld on a quarterly or monthly basis. If the employers' City of West Carrollton withholding tax due is consistently averaging $500 or more per month or over $6,000 for the year, they must file on a monthly basis. The monthly withholding return (w-1) is due on or before the fifteenth day of each following month. All other employers may elect to file quarterly.  The quarterly withholding tax due must be paid on or before the end of the month following the reporting period (i.e. due dates of April 30, July 31, October 31, and January 31) with the proper withholding tax return (W-1).

D.    Each employer, on or before the corresponding IRS due date, shall file with the Income Tax Department of the City of West Carrollton an information return, City of West Carrollton Reconciliation of Tax Withheld (W-3), for each employee from who income tax has been or should have been withheld showing the name, address and social security number of the employee, the total amount of qualified wages, commissions, tips and other compensation paid the employee during the year, and the amount of municipal income tax withheld from each employee (Form W-2).  In lieu of submitting form W-2's, an alternative method of reporting must be approved by the Finance Director or his delegate.  The Finance Director or his delegate may, by regulation, provide for the use of electronic media by employers for reporting of annual wage and tax data.

E.    In addition to the above wage reporting requirements, any person who compensates an individual, contractor or subcontractor shall report such payment.  The information required includes the name, address and social security number (or federal identification number for business entities), and amount of compensation.  Federal form 1099 may be submitted in lieu of such listing.  The information must be filed annually with the Income Tax Department of the City of West Carrollton on or before the corresponding IRS due date for form 1099.

F. Failure to file any required documentation in a timely manner as prescribed by this section will be subject to late filing penalty assessment as prescribed in this Ordinance.

SECTION 19 - ALLOCATION OF FUNDS

A.    The funds collected under the provisions of this Ordinance shall be placed in a fund to be known as the Income Tax Receipts Fund and shall be allocated in such a manner as prescribed by ordinances adopted by the City Council.

B.    However, of the 2% City Income Tax, monies received from the .50% City Income Tax is designated to the Capital Improvement Program Fund (CIP) and the remaining monies received from 1.5% City Income Tax is designated to the General Fund.

SECTION 27 - EFFECTIVE PERIOD

Any taxes levied by Ordinance 3251 shall remain in full force and effective except as modified herein.  Ordinance 3251 shall apply in all terms and conditions for tax events prior to January 1, 2005, and shall continue as modified by this measure.  The tax provided for in this Ordinance shall be levied, collected, and paid with respect to the qualified wages, commissions, and other compensation, and with respect to the net profits of businesses, professions, and other activities, earned from the effective date of this Ordinance, January 1, 2005, and shall apply to all taxes, filings, and assessments effective and beginning with tax year 2005.

Passed:

Mayor

Attested: Clerk of Council

Effective Date:  January 1, 2005

AN ORDINANCE REPEALING CHAPTER 94 OF THE WEST CARROLLTON CODIFIED ORDINANCES AND ENACTING A NEW CHAPTER 94, "INCOME TAX", AND REPEALING ANY ORDINANCES IN CONFLICT HEREWITH, AND DECLARING AN EMERGENCY.

WHEREAS, the purpose of this ordinance is to provide funds for general municipal operations, maintenance of equipment, new equipment, extension, enlargement and improvements, there is hereby levied a voter-approved income tax at the rate of one and three quarters percent (1.75%) on the net profits of all business entities, professions, or other activities conducted within the City of West Carrollton and/or by City of West Carrollton Residents; on all salaries, wages, commissions, and other compensation earned within the City of West Carrollton and/or by City of West Carrollton Residents; requiring the filing of returns and furnishing of appropriate employer supporting documentation and information for all those subject to said tax; imposing on the employers the duty of collecting the tax at the source and paying the same to the City of West Carrollton; providing for the administration, collection, and enforcement of said tax; declaring violation thereof to be a misdemeanor and imposing penalties therefore, and

WHEREAS, is necessary to make revisions to the income tax ordinance which have been discussed at various review meetings;

BE IT ORDAINED BY THE COUNCIL OF THE CITY OF WEST CARROLLTON, STATE OF OHIO:

SECTION 1 - DEFINITIONS

As used in this Ordinance, the following words shall have the meaning ascribed to them in this section, except as and if the content clearly indicates or requires a different meaning:

ASSOCIATION - A Partnership, limited partnership, limited liability partnership/company, or any other form of unincorporated enterprise or business entity, owned by two or more persons.

BOARD OF APPEAL - A board consisting of three appointed West Carrollton citizens in charge of reviewing penalty and/or interest abatement appeals and then rendering an impartial decision.

BOARD OF REVIEW - A board consisting of the City Manager, the Finance Director, or their respective designees, and a third individual appointed by the membership in charge of reviewing and making minor revisions to, additions to, interpretations of, and/or clarifications of the income tax ordinance.

BUSINESS/BUSINESS ENTITY - An enterprise, venture, activity, profession or undertaking of any nature conducted for profit or ordinarily conducted for profit; including but not limited to the renting or leasing of property, real, personal or mixed; whether by an individual, partnership, fiduciary, trust, association, corporation, or any other entity.

CORPORATION - A corporation, Subchapter S corporation, or joint stock association organized under the laws of the United States, State of Ohio, or any other 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, whether or not organized for profit, or any other entity that employs one or more persons on a salary, wage, commission or other compensation basis.

FINANCE DIRECTOR - The individual responsible for managing the fiscal affairs of the City of West Carrollton, including collection of all tax imposed by this Ordinance.

FISCAL YEAR - An accounting period of twelve months (12) or less ending on any other day than December 31.

FORM 2106 -- The Internal Revenue Service Form 2106 filed by a taxpayer pursuant to the Internal Revenue Code.

GENERIC FORM - An electronic or paper form designed for reporting estimated municipal income taxes and annual municipal income tax liability that is not prescribed by a particular municipal corporation for the reporting of that municipal corporation''s tax on income.

GROSS RECEIPTS - The total income for any source before any deductions, exceptions or credits are claimed which are required to be included in the tax return.

INTANGIBLE INCOME -- Income of any of the following types: income yield, interest, dividends, or other income arising from the ownership, sale, exchange, or other disposition of intangible property including, but not limited to investments, deposits, money, or credits as those terms are defined in Chapter 5701 of the Ohio Revised Code.

INTERNAL REVENUE CODE -- The Internal Revenue Code of 1986, 100 Stat. 2085, 26 U.S.C. 1, as amended.

INTERNET -- The international computer network of both federal and nonfederal interoperable packet switched data networks, including the graphical sub-network known as the world wide web.

JOINT ECONOMIC DEVELOPMENT DISTRICT (JEDD) - Districts created under Ohio Revised Code sections 715.70 through 715.81.

NET PROFITS - The net gain from the operation of a business, profession, enterprise, or other activity, after provision for all ordinary and necessary expenses either paid or accrued in accordance with the accounting system used by the taxpayer for Federal income tax purposes without deduction of taxes imposed by this chapter, Federal, State, or other taxes based on income; and in the case of an association, without deduction of salaries paid to partners, and other owners; and otherwise adjusted to the requirements of this Ordinance.

NON-RESIDENT - An individual domiciled outside the City of West Carrollton.

OTHER PAYER -- Any person that pays an individual any item included in the taxable income of the individual, other than the individual''s employer or that employer''s agent.

PERSON - A human being, partnership, fiduciary, association, or corporation. Whenever used in any clause prescribing and imposing a penalty, "person" as applied to any unincorporated entity means the parties or members thereof, and as applied to corporations, the office thereof; and any employee having control, supervision, or responsibility of tax law compliance on behalf of a human being, partnership, fiduciary, association, or corporation.

RESIDENT - An individual domiciled in the City of West Carrollton.

RETURN PREPARER -- Any person other than a taxpayer that is authorized by a taxpayer to complete of file an income tax return, report, or other document for or on behalf of the taxpayer.

SCHEDULE C -- The Internal Revenue Service Schedule C filed by a taxpayer pursuant to the Internal Revenue Code.

SECTION 1231 PROPERTY - Business real estate/land or any depreciable business property excluded from the definition of "capital assets" as defined by the Internal Revenue Code.

SECTION 1245 PROPERTY - Property that is or has been depreciable such as personal property or other tangible property (i.e. fixed assets/property, plant, and equipment) used as an integral part of the business operations as defined by the Internal Revenue Code.

SECTION 1250 PROPERTY - Any real property that is or has been depreciable but not subject to recapture under Section 1245 as defined by the Internal Revenue Code. Examples include buildings and their structural components and tangible real property.

TAXABLE YEAR - Calendar year or the fiscal year on the basis of which the net profits are to be computed under this chapter and in the case a return for a fractional part of a year, the period for which such return is required to be made. Assume calendar year for all individuals.

TAXPAYER - Any person, as defined, required filing a return or paying tax pursuant to this ordinance.

THE SINGULAR SHALL INCLUDE THE PLURAL AND THE MASCULINE SHALL INCLUDE THE FEMININE AND THE NEUTER.

SECTION 2 - INCOME TAX LEVY

To provide funds for the purpose of general municipal operations, there is levied a tax at the rate of one and three-quarters percent (1.75%), except for those under the minimum age, upon the following:

A. All salaries, wages, sick and vacation pay, commissions, and other compensation earned, received, accrued, rental income, or in any other taxable income set apart unto residents of the City of West Carrollton.

B. All salaries, wages, sick and vacation pay, commissions, rental income and other compensation earned, received, accrued, or in any other way set apart unto non-residents for work done or services rendered in the City of West Carrollton.

C. 1. On all of the taxable net profits of resident associations, unincorporated businesses, professions, or other entities, derived from sales made, work done, services performed/rendered, business conducted, or other activities performed. The tax levied on these associations or other business entities are primarily liable for the tax with the owners/officers being secondarily liable. Credit will be given for appropriate municipal income tax paid to other cities allowable by this ordinance for work performed outside the City of West Carrollton limits.

2. On a resident partner/owner's share of the taxable net profits earned from a business entity or association. Credit will be given for allowable municipal income tax paid to other cities for work performed outside the City of West Carrollton limits.

D. 1. On the portion attributable to the City of West Carrollton of the net profits of all non-resident associations, unincorporated businesses, professions, or other entities, derived from sales made, work done, services performed/rendered, business conducted, or other activities performed in West Carrollton whether of not such an association or other business entity has an office or place of business in the City of West Carrollton. The tax levied on these associations or other business entities are primarily liable for the tax with the owners/officers being secondarily liable.

2. On a non-resident partner/owner's share of the net profits earned in the City of West Carrollton from a business entity or association.

E. On the payments made to current and former employees by an employer as accrued benefits and/or vacation wages for services performed in West Carrollton; on the payments made to current or former employees by an employer under a wage continuation plan during periods of disability or sickness earned for service performed in West Carrollton.

12-Day Occasional Entry Rule: the City of West Carrollton shall not tax the compensation of an individual if all of the following apply:

the individual does not reside in the City of West Carrollton;

the compensation is paid for personal services performed by the individual in the City of West Carrollton on twelve (12) or fewer days during the calendar year;

in the case of an individual who is an employee, the principal place of business of the individual''s employer is located outside the City of West Carrollton and the individual pays tax on compensation described in this ordinance to the taxing entity the employer''s principal place of business is located in, and no portion of the tax is refunded to the individual. Note that the $150 Deminimus Rule must also be considered (Section 4-G);

the individual is not a professional entertainer or professional athlete, the promoter of a professional entertainment/entertainer or sports event, or an employee of such a promoter, all as may be reasonably defined by the City of West Carrollton.

SECTION 3 - INCOME TAX RETURN AND PAYMENT OF TAX

A. Each person engaged in business or whose salary, wages, commissions, and/or other compensation are subject to the income tax imposed by this Ordinance, shall make and file, on or before April 30th of the following year in each year they are subject to City income tax, a return with the City of West Carrollton income tax department, whether or not tax is due. A taxpayer on a fiscal year accounting basis for Federal income tax purposes shall, beginning with the first fiscal year in which any part of such year falls within the effective period of this Ordinance, file a return on or before the last day of the fourth (4) month after the close of fiscal year-end or period.

B. All City of West Carrollton residents at the minimum age or older, are required to file a City of West Carrollton income tax return. This mandatory filing requirement is in effect whether or not income tax is due. The tax administrator may enforce a minimum age filing requirement.

C. A husband and wife, in any taxable year, may elect to file separate or joint returns.

D. The taxpayer making a return shall, at the time of filing thereof, pay to the City of West Carrollton Income Tax Department, the amount of taxes due thereon, provided, however, that where any portion of the tax due shall have been deducted at the source pursuant to the provisions of this Ordinance, or where any portion of said tax shall have been paid by the taxpayer pursuant to the provisions of this Ordinance, or where an income tax has been properly paid to another municipality, credit for the amount so paid in accordance with this Ordinance 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. The tax administrator may determine a reasonable minimum balance due limit. If the balance due is at or below this limit, payment may not be required.

E. The Finance Director or his delegate may provide by regulation to accept that the return of an employer(s) showing the correct tax deducted by said employer(s) from the salary, wages, commissions, or other compensation of and paid by the employer(s) to the City of West Carrollton Income Tax Department shall be accepted as the return required of any employee whose sole income, subject to the tax under this Ordinance, is such salary, wages, commissions, or other compensation.

F. A taxpayer who has overpaid the amount of tax to which the City is entitle under the provisions of this Ordinance may have the 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 unpaid liability exists, and that such refund is in compliance with this Ordinance, and is within three years after tax for that year was initially due. The tax administrator may determine a reasonable minimum refund due limit. If the balance due is at or below this limit, the refund will not be required.

G. The net loss from an unincorporated business activity (example: Federal schedule C) may not be used to offset salaries, wages, commissions, or other compensation. However, if a taxpayer is engaged in two or more taxable business activities to be included in

the same return, the net loss of one unincorporated business activity (except any portion of a loss that is separately reportable for municipal tax purposes to another similar municipal taxing entity) may be used to offset the profits of another for purposes of arriving at overall net profits. A profit or loss from any entity required by this Ordinance to file as a separate entity cannot be offset in any manner. A net operating loss sustained in any taxable year may not be carried backward to any other taxable year but may be carried forward for three (3) years.

H. The City of West Carrollton shall accept a generic form of any return, report, or document required to be filed if the generic form once completed and filed, contains all of the information required to be submitted with the City of West Carrollton''s prescribed returns, reports or documents, and, if the taxpayer or return preparer filing the generic form otherwise complies with the rules or ordinances of the City of West Carrollton governing the filing of returns, reports or documents.

SECTION 4 - COLLECTION OF TAX AT THE SOURCE

A. Each resident employer and/or employers doing business within the City who employs one or more persons on a salary, wage, commission, or other compensation basis, shall deduct at the time of payment of such salary, wage, commission, or other compensation, the income tax at the rate of one and three quarters percent (1.75%) on the gross salaries, wages, commissions, or other compensation due by the employer to such employee and shall, following the schedules as specified in this section, make a return showing the amount of taxes so deducted and a record of payments showing that all taxes deducted during the periods required have been paid to the City in accordance with the payment schedule prescribed by this Ordinance.

B. 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. Every employer or officer(s) of a business entity is deemed to be a trustee for this municipality in collecting and holding the tax required under this Ordinance to be withheld. The funds so collected by such withholding are deemed to be trust funds. The officer(s) and/or employee(s) having control, supervision, and/or charged with the responsibility of filing the return and making payment is personally liable for failure to file the return or pay the tax due as required by this Ordinance. The officer(s) or employee(s) shall be personally liable for the tax he failed to return or pay as well as any related interest and penalties. The dissolution of a business entity does not discharge an officer's or employee's liability for failure of the business entity to pay the tax due.

C. Employers shall pay to the City all income tax withheld or required to be deducted and withheld on a quarterly or monthly basis. If the employers' City of West Carrollton withholding tax due is consistently averaging $500 or more per month or over $6,000 for the year, they must file on a monthly basis. The monthly withholding return (w-1) is due on or before the fifteenth day of each following month. All other employers may elect to file quarterly. The quarterly withholding tax due must be paid on or before the end of the month following the reporting period (i.e. due dates of April 30, July 31, October 31, and January 31) with the proper withholding tax return (W-1).

D. Each employer, on or before January 31 of the following year, shall file with the Income Tax Department of the City of West Carrollton an information return, City of West Carrollton Reconciliation of Tax Withheld (W-3), for each employee from who income tax has been or

should have been withheld showing the name, address and social security number of the employee, the total amount of salary, wages, commissions, tips and other compensation paid the employee during the year, and the amount of municipal income tax withheld from each employee (Form W-2). In lieu of submitting form W-2's, an alternative method of reporting must be approved by the Finance Director or his delegate. The Finance Director or his delegate may, by regulation, provide for the use of electronic media by employers for reporting of annual wage and tax data.

E. In addition to the above wage reporting requirements, any person who

compensates an individual, contractor or subcontractor shall report such payment. The information required includes the name, address and social security number (or federal identification number for business entities), and amount of compensation. Federal form 1099 may be submitted in lieu of such listing. The information must be filed annually with the Income Tax Department of the City of West Carrollton on or before January 31 of the following year.

Failure to file any required documentation in a timely manner as prescribed by this section will be subject to late filing penalty assessment as prescribed in this Ordinance.

The $150 Deminimus Rule

A nonresident employer, agent of such an employer, or other payer that is not situated in the City of West Carrollton shall not be required to deduct and withhold taxes from the taxable income of an individual unless the total amount of tax required to be deducted and withheld for the City of West Carrollton on account of the employer''s employees or all the other payer''s payees exceeds one hundred fifty dollars ($150) for a calendar year.

If the total amount of tax required to be deducted and withheld on account of all the nonresident employer''s employees or all of the other payer''s payees exceeds one hundred fifty dollars ($150) for a calendar year, the employer, agent of such an employer or other payer must deduct and withhold taxes in each ensuing year even if the amount required to be deducted and withheld of those ensuing years is one hundred fifty dollars ($150) or less, until such time that the tax so deducted and withheld is one hundred fifty dollars ($150) or less for three (3) consecutive years.

SECTION 5 - EXEMPTIONS/DEDUCTIONS

EXEMPTIONS

A. Military pay or allowance of active members of the Armed Forces of the United States.

B. The income of religious, fraternal, charitable, scientific, literary, non-profit, educational institutions, and/or other organization specified in the Ohio Revised Code, Section 718.01, to the extent that such income is derived from tax-exempt real estate, tax-exempt tangible or intangible property or tax exempt activities.

C. Personal earnings of any natural person under the minimum age filing requirement (Section 3B), if applicable. The entire year of taxable income becomes taxable if the person exceeds that minimum age by the end of the year (no proration).

D. Any natural person 65 or older by the end of the taxable year is entitled to an exemption to be determined by the Tax Administrator.

E. Social Security benefits, unemployment insurance benefits, welfare benefits, and qualified pensions paid as a result of retirements.

F. Most interest, dividends, and royalties.

G. Poor relief, food stamps, unemployment compensation, aid to dependent children, child support, alimony, capital gains and losses from investment activity (Federal schedule D), worker's compensation, lottery winnings, prizes or gifts not associated with employment, third-party sick and disability pay, jury duty if turned over to employer, housing allowances for clergy to the extent that the allowance is used to rent or provide a home.

H. Salaries, wages, commissions and other compensation and net profits, the taxation of which is prohibited by the United States Constitution, the Constitution of the State of Ohio, any act of Congress, or any act of the Ohio General Assembly limiting the City of West Carrollton to impose income taxes on income.

DEDUCTIONS

I. FORM 2106 EMPLOYEE BUSINESS EXPENSE: A person who receives wages, salary, or compensation and who pays business expenses without reimbursement from his employer or association, shall be entitled to a deduction to the same extent that such expenses are allowable under The Federal Income Tax Code without any adjusted gross income limitations. However the deduction will only be permitted to the extent the Finance Director deems it ordinary, necessary, and it was incurred while earning the income and directly related to earning the income subject to the tax levied by this Ordinance.

J. Losses incurred from business activities such as self-employment (Federal schedule C), rental (schedule E), and partnership interests (schedule E) losses may be carried forward for three (3) years to offset similar business activity income. Such losses may not be used to offset employee compensation such as wages and salaries. If part or all of the business loss was generated outside the City of West Carrollton limits, that portion of the loss must be allocated to other taxing districts appropriately.

K. Part-year residents can deduct the portion of their income earned while they did not live in the City of West Carrollton. Other deductions must be allocated on the same basis. A person will be considered a resident if they live in West Carrollton for 30 days or more.

SECTION 6 - CONSOLIDATED RETURNS

A. Filing of consolidated returns may be permitted, required or denied in accordance with the rules and regulations prescribed by the Finance Director or his delegate. The returns must be a fair representation of business activity in the City. A method of reporting should not be chosen with the intent to minimize or decrease the entities tax liability. If the Tax Administrator determines this intent, the consolidated return may be denied.

B. In the case of a corporation that carries on transactions with its stockholders or with other corporations related by stock ownership, interlocking directorates, or some other method, or in case any person operates a division, branch, factory, office, laboratory or other activity within the City constituting a portion only of its total business, the Finance Director or his delegate may require such additional information as he may deem necessary to ascertain whether net profits are properly allocated to the City. If the Finance Director or his delegate finds taxable income not being properly allocated to the City by reasons such as 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 profits to the City.

SECTION 7 - DECLARATIONS

A. Every person who anticipates any taxable income which is not subject to this Ordinance hereof or who engages in any business, profession, enterprise, or other activity subject to the tax imposed by this Ordinance hereof, shall file a declaration setting forth such business activity together with the estimated tax due thereon.

B. Such declaration shall be filed on or before April 30th of each year, or within four (4) months after the taxpayer first becomes subject to the tax.

Taxpayers who report on a fiscal year basis shall file a declaration within four months after the beginning of each fiscal year or period.

C. 1. Such declaration shall be filed on a form furnished or obtainable from the Income Tax Department. Credit shall be taken for West Carrollton City Tax withheld, if any, from any portion of such income. In addition, credit may be taken for tax paid or to be withheld and remitted to other taxing municipalities in accordance with this Ordinance.

2. The original declaration (or any subsequent amendment thereof) may be increased or decreased on or before any subsequent quarterly payment date as provided herein. A declaration may be amended at any time, provided, however, that the unpaid balance due shall be paid in equal installments on or before the remaining payment dates.

D. 1. Such declaration of estimated tax to be paid the City shall be accompanied by a payment of at least one-fourth of the estimated annual tax, and at least an equal amount to be paid on or before the last day of the 7th, 10th, and 13th months after the beginning of the year. For a calendar-year taxpayer, the due dates are as follows: April 30, July 31, October 31, and January 31 of the following year.

2. On or before the last day of the fourth month of the calendar year or fiscal year following that for which such declaration or amended declaration should be filed, an annual return shall be filed and any balance which may be due the City shall be paid therewith in accordance with the provisions of this Ordinance.

3. The final installment of estimated tax quarterly payments need not be made if the taxpayer files his final return and pays the balance of tax due thereon within forty-five (45) days of the end of his Ordinance-complying taxable year.

E. A declaration of estimated tax shall not be considered filed in good faith if it is less than ninety percent (90%) of the total correct tax is not paid by the final quarter declaration due date. The remaining tax due the day after the final quarter due date is subject to a ten percent (10%) interest charge. An exception will be made if one hundred percent (100%) or more of the prior year tax liability, after tax withheld is deducted, has been paid in equal quarterly installments in the current year.

F. Taxpayers that have a total correct tax due of less than one hundred dollars ($100) before any estimated tax payments are made are not required to file a declaration because they are exempt from declaration interest.

SECTION 8 - DUTY TO RETAIN RECORDS

Every taxpayer shall retain all records necessary to compute tax liability for a period not less than five (5) years from the date the return is filed, or the taxes required to be withheld are paid.

SECTION 9 - CREDIT FOR TAX PAID TO OTHER MUNICIPALITIES

A. Every individual taxpayer who resides in the City but who received net profits, salaries, wages, commissions or other compensation for work done or services performed or rendered outside of the City, if he has paid a municipal income tax or Joint Economic Development District tax based on income, on such net profits, salaries, wages, commissions or other compensation in another municipality, shall be allowed a credit for the amount so paid by him or in his behalf in such municipality. The credit shall not exceed the tax assessed by this Ordinance on such income earned in such other municipality or municipalities where such tax is paid.

B. Not withstanding the provisions contained in this Ordinance hereof, or any other provisions inconsistent herewith, a claim for refund or credit under this section shall be made in such manner as the Finance Director or his delegate may, by regulation, provide.

SECTION 10 - ALLOCATION OF TAXABLE INCOME

If the books and records of a taxpayer conducting a business or profession both within and without the boundaries of the City of West Carrollton shall disclose with reasonable accuracy what portion of its net profit is attributable to that part of the business or profession conducted within the boundaries of the City of West Carrollton, then only such portion shall be considered as having a business or profession conducted both within and without the boundaries of the City of West Carrollton shall be considered as having a taxable situs in the same proportion as the average ratio of:

A. 1. The average net book value of the real and tangible personal property owned or used by the taxpayer in the taxable period to the average net book value of all of the real and tangible personal property owned or used by the taxpayer in the business or profession during the same period, wherever situated.

2. As used in the preceding paragraph, real property shall include property rented or leased by the taxpayer and the value of such property shall be determined by multiplying the annual rental therein by eight.

B. 1. Wages, salaries, and other compensation paid during the taxable period to persons employed in the business or profession for services performed in the City of West Carrollton to wages, salaries, and other compensation paid during the same period to persons employed in the business or profession wherever their service are performed.

2. As used in the preceding paragraph, persons employed shall not be construed to mean any subcontractor or independent contractor.

C. Gross receipts of the business or profession from sales made and services performed during the taxable period in the City of West Carrollton to gross receipts of the business or profession during the same period from sales and services, wherever made or performed.

In the event the foregoing allocation formula does not produce an equitable result, the Finance Director may under uniform regulations, substitute another basis or his delegate so as to produce such result. Changing to a basis to minimize or manipulate taxable income should not be a reason for making the change. Once a basis is chosen, this basis should be consistently use unless the Finance Director approves a change.

As used in this chapter, "sales made in the City," means:

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

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

3. All sales of tangible personal property which is shipped from a place within City to purchasers outside the City regardless of where title passes if the taxpayer is not, through his own employees, regularly engaged in the solicitation or promotion of sales at the place where delivery is made.

4. For West Carrollton resident business or business entities, if sales are made outside the City but no municipal income was paid to another municipality for that activity, then that corresponding taxable income becomes taxable to the City of West Carrollton.

5. If the sales department is physically located in the City of West Carrollton limits, and substantially all the sales department's activity occurs in West Carrollton, those sales shall be considered in West Carrollton for allocation purposes regardless of where the purchaser is located or the product/service is eventually shipped/rendered.

D. Non-resident individual taxpayers working in and out of the City of West Carrollton limits will calculate their tax liability based on the formula of the total number of days worked in the City divided by the total number of days worked for the year, excluding vacation, holiday, and sick days) during the year. The resulting percentage applied to the total annual income from wages. Where no record can be substantiated for the total number of days worked, two hundred and sixty (260) days will be used. Employer verification/certification of basis for refunding the tax is required.

SECTION 11 - LOSS CARRY-FORWARD

A. The portion of net operating loss, based on income taxable under this Ordinance, sustained in any taxable year allocable to the City may be applied against the portion of the profit of succeeding years allocable to the City until fully utilized but, in no event, for more than three (3) taxable years. No portion of a net operating loss shall be carried back against net profits of any prior year. On an individual return, such losses may not be used to offset employee compensation such as wages and salaries.

B. In the event taxable income is properly allocated both within and outside the City, the portion of net operating loss sustained shall be allocated to the City in the same manner as provided in this Ordinance for allocating net profits to the City as stated in this Ordinance. The portion of net operating loss to be carried forward shall be determined in the year the net operating loss is sustained, on the basis of the allocation factors applicable to that year. The same method of accounting and allocation must be used in the year to which an operating loss is carried as was used in the year in which the operating loss was sustained.

C. The net operating loss of a business which loses its identity through a merger, consolidation, etc; shall not be allowed as a carry-forward loss deduction to the surviving business entity.

SECTION 12 - REFUNDS; OVERPAYMENTS

A. A taxpayer who has overpaid the amount of tax to which the City of West Carrollton is entitled under the provisions of this Ordinance may have the overpayment applied against any subsequent liability hereunder, or at the taxpayer's election indicated on the return, such overpayment, or part thereof, shall be refunded, if above the minimum refund due limit, provided that not additional unpaid liability exists, all proper supporting documentation was filed, and the refund is properly requested within three years after that year's tax return was initially due before extensions.

B. The tax administrator may determine a reasonable minimum refund due limit. If the balance due is at or below this limit, the refund will not be required.

C. Refunds may be held for or applied against prior year outstanding tax balances.

D. All requests for refund of tax overpaid must be made in writing, unless otherwise accepted/approved by the Finance Director, by one of the following methods:

1. Indicating a refund for tax overpaid on the space indicated on the West Carrollton income tax return with proper supporting documentation, or

2. Written correspondence in the form of a refund request, with all supporting documentation and/or information attached.

E. When a taxpayer's return indicates that a refund is due and a refund is not issued within a reasonable amount of time after the Income Tax Department has received proper verification and substantiation as to

The validity of the refund claim, interest shall be paid at the rate determined by the Tax Administrator. A return, which indicates a claim for refund, is not deemed to be filed until the Income Tax Department receives all proper verification and substantiation validating the refund claim.

SECTION 13 - EXTENSIONS

A. The Finance Director or his delegate shall have the authority to extend the time for filing of the annual return of the taxpayer for a period not to exceed six (6) months, or one month beyond any extension requested or granted by the Internal Revenue Service for the filing of the Federal Income Tax Return. Upon written request for extension and/or a copy of the Federal extension, such extension will be considered, providing that notification, documentation, and information are included, accompanied by a tentative return and payment of tax shown to be due therein by the date the return is normally due. No penalty shall be assessed in those cases in which the return is filed and the final tax paid within the period as extended. Any portion of tax unpaid after the original due date of the return, but paid within the period as extended, will be subject to interest charges as prescribed by this Ordinance. If an extension request is denied, the subsequent filing of the return and payment of tax due shall be subject to the applicable penalty and interest charges as prescribed by this Ordinance.

B. The City of West Carrollton may deny a taxpayers request for extension if the taxpayer:

fails to timely file the request;

fails to file a copy of the federal extension request (if applicable);

owes the City of West Carrollton any delinquent income tax, penalty, interest, assessment or other charge for the late payment of nonpayment of income tax;

has failed to file any required income tax return, report, or other related document for a prior tax period.

SECTION 14 - AMENDING AN INCOME TAX RETURN

A. An amended return shall be filed in order to report additional income and pay any additional tax due, or claim a refund if overpaid, subject to requirements and/or limitations contained in this Ordinance. A taxpayer may not change the method of accounting or method of apportionment of taxable income after the due date for filing the original return if the original methods were consistent and correct.

B. Within three (3) months from the final determination of any federal tax liability affecting a taxpayer's City tax liability, such taxpayer shall make and file an amended City return showing income subject to City tax based upon such final determination of Federal tax liability, and pay any additional tax shown due therein, or make claim for refund of overpayment, according to regulations and/or limitations as set forth in this Ordinance.

SECTION 15 - FAILURE TO FILE/ESTIMATING RETURNS

If a taxpayer fails to properly file an income tax return, and the Finance Director has made a reasonable attempt to contact and inform the taxpayer of the failure to file, the Finance Director can estimate the income tax return based on prior year activity and/or other method the Finance Director deems reasonable. If the taxpayer then files a return with the actual data within a reasonable amount of time, the actual return would then take precedence. If the taxpayer does not respond by filing an actual return within a reasonable amount of time, the estimated figures will become binding. The City of West Carrollton can pursue taxpayers who have not properly filed their City income tax returns or properly provided sufficient documentation to the City of West Carrollton Tax Department why no return was required for six (6) years after the return was originally due.

SECTION 16 - COLLECTION OF UNPAID TAXES

All taxes imposed by this Ordinance shall be collectible, together with any interest, fees, and penalties thereon, by suit, as other debts of like amounts are recoverable. All additional assessments shall be made and all criminal and civil actions to recover municipal income taxes, and the associated penalties, interest, and fees shall be brought within three years after the tax was due, the return was filed, the bankruptcy was discharged, or the City of West Carrollton payment agreement expected completion date, whichever is later.

SECTION 17 - PENALTIES, INTEREST, AND FEES

A. 1. All taxes imposed by this Ordinance and remaining unpaid after they become due shall bear interest, in addition to the unpaid tax, at the rate to be determined by the Tax Administrator.

2. Declaration interest will be charged at a rate of ten percent (10%). A declaration of estimated tax shall not be considered filed in good faith if it is less than ninety percent (90%) of the total correct tax is not paid by the final quarter declaration due date. The remaining tax due the day after the final quarter due date is subject to a ten percent (10%) interest charge. An exception will be made if one hundred percent (100%) or more of the prior year liability has been paid in equal quarterly installments in the current year.

B. In addition to the interest as provided in Section 17.A.1 hereof, penalties based on the unpaid tax are hereby imposed as follows:

1. For failure to pay taxes due, other than taxes withheld, a penalty of one and one half percent (1.5%) per month or ten percent (10%) of the unpaid tax, whichever is greater, but not to exceed fifty percent (50%) of the initial tax due.

2. For failure to remit proper taxes withheld from employees, the corresponding employer is subject to a penalty of three percent (3%) per month or ten percent (10%) of the unpaid tax, whichever is greater, but not to exceed fifty percent (50%) of the initial tax due.

C. 1. For failure to file a tax return when due as required by this Ordinance, a reasonable penalty to be determined by the Tax Administrator shall be assessed per return.

2. Filings are deemed to be made timely if postmarked by the due date.

D. Except in the case of fraud and excluding the late fee discussed in the above SECTION 17.A.2 and 17.C, the total penalty can't exceed fifty percent (50%) of the initial delinquent unpaid tax balance.

E. A penalty shall not be charged on any additional City of West Carrollton income tax assessment made by the Income Tax Department when a return has been filed in good faith and the tax paid thereon within the time prescribed by this Ordinance, and provided further that in the absence of fraud, neither penalty nor interest shall be assessed on any additional tax assessment resulting from a Federal Audit providing an amended return is filed and the additional tax is paid within three months after the final determination of the Federal Tax Liability.

F. A fee deemed reasonable by the Finance Director will be charged for each check returned to the City of West Carrollton marked as non-sufficient funds or unpaid.

SECTION 18 - CRIMINAL 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 substantially 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 withholdings to the City of West Carrollton; or

5. Refuse to permit the Finance Director or his delegate or any duly authorized agent or employee to examine his books, records, papers, State, and Federal income tax returns relating to the taxable income of a taxpayer; or

6. Refuse to disclose to the Income Tax Department any information with respect to the taxable income of a taxpayer; or

7. Fail to comply with the provisions of this Ordinance or subpoena of the Income Tax Department; or

8. Fail, as an individual charged with the responsibility to withhold and remit from the wage of employees the City of West Carrollton income tax in accordance with the provisions of this Ordinance; or

9. Attempt to do anything whatever to avoid the payment of the whole or any part of the tax, penalties, interest, or fees imposed by this Ordinance.

B. Whoever violates any provisions set forth above shall be guilty of a misdemeanor in the first degree and may be assessed such penalties, including fines and/or imprisonment as the same are set forth in the Ohio Revised Code.

C. All prosecutions under this section shall be commenced within the time specified in Section 718.06 of the Ohio Revised Code.

D. The failure of any employer, taxpayer, or person to have knowledge of this Ordinance or to receive or procure a return, declaration, or other required form shall not excuse such person from making any information return, return, or declaration, from filing such form, or from paying the tax.

SECTION 19 - ALLOCATION OF FUNDS

A. The funds collected under the provisions of this Ordinance shall be placed in a fund to be known as the Income Tax Receipts Fund and shall be allocated in such a manner as prescribed by ordinances adopted by the City Council.

B. However, of the 1.75% City Income Tax, monies received from the .50% City Income Tax is designated to the Capital Improvement Program Fund (CIP) and the remaining monies received from 1.25% City Income Tax is designated to the General Fund.

SECTION 20 - BOARD OF APPEAL

A. A Board of Appeal, consisting of a Chairman and two other individuals, each to be selected by Council, is hereby created. A majority of members of the Board shall constitute a quorum. The Board of Appeal shall adopt its own procedural rules and shall keep a record of its transactions. Such records are not public records available for inspection under Section 149.43 of the Ohio Revised Code. Hearings requested by a taxpayer before a Board of Appeal created pursuant to this section are not meetings of a public body subject to Section 121.22 of the Ohio Revised Code. Therefore any hearing by the Board of Appeal may be conducted privately with the tax confidentiality provisions of this Ordinance applying to such matters.

B. Any person dissatisfied with any ruling or decision of the Finance Director, which is made under the authority conferred by this Ordinance, may appeal therefrom to the Board of Appeal within thirty (30) days from the announcement of the ruling or decision by the Finance Director, or the date the tax liability is paid in full, which ever is later, the Board of Appeal shall, on hearing, have jurisdiction to affirm, reverse, or modify any such ruling or decision, or any part thereof pertaining to penalty and interest only. The Board shall schedule a hearing within forty-five (45) days after receiving the appeal, unless the taxpayer waives the hearing. The Board shall issue a decision on the appeal within Ninety (90) days after the Board''s final hearing on the appeal, and send notice of its decision by ordinary mail to the petitioner within fifteen (15) days after issuing the decision.

C. The imposition of penalty and interest as prescribed in the codified ordinance of the City of West Carrollton is not the sole basis for an appeal. Interpretations of the legality of any provision of this Ordinance by the City Law Director are not rulings or decisions of the Finance Director and are not subject to appeal to the Board of Review. Any such legal interpretations should be challenged through normal court proceedings.

SECTION 21 - BOARD OF REVIEW

A. A Board of Review consisting of the City Manager, the Finance Director, or their respective designees, and a third individual to be appointed by the membership, is hereby created. A majority of the members shall constitute a quorum. The Board of Review shall adopt its own procedural rules and shall keep a record of its transactions. Any hearing by the Board of Review may be conducted privately with the tax confidentiality provisions of this Ordinance applying to such matters.

B. The Board of Review may adopt, promulgate, and enforce rules and regulations relating to any matter or thing pertaining to the administration, operation, and enforcement of the provisions of this Ordinance.

SECTION 22 - REPORTS BY LANDLORDS, CONDOMINIUM ASSOCIATES AND OTHER ORGANIZATIONS

A. Every owner of two (2) or more rental units and every owner or operator of a mobile home park is hereby directed and required to furnish to the Finance Director or his delegate a yearly roster of the names and addresses of persons residing in the rental units or mobile home park. The listing must include any changes during the year. The yearly roster shall be filed in the following year on or before January 31st. Larger entities may be required to file on a quarterly or semi-annually basis at the Finance Director's discretion.

B. Every condominium association, owners' organizations of condominium units, or other owners'/residents' cooperative dwelling affiliations is hereby required to furnish a yearly roster of the names and addresses of their members that own, rent, or have an interest in properties located in the City of West Carrollton to the Finance Director or his delegate. This roster must include any changes during the year such as new owners or forwarding addresses. The yearly roster shall be filed in the following year on or before January 31st. Larger entities may be required to file on a quarterly or semi-annually basis at the Finance Director's discretion.

SECTION 23 - DUTIES OF THE FINANCE DIRECTOR

A. It shall be the duty of the Finance Director to collect and receive the tax levied by this Ordinance in the manner prescribed by this Ordinance, and it shall also be his duty to keep an accurate record showing the payment received by him from each taxpayer and the date of the payment.

B. 1. The Finance Director or his delegate is hereby charged with the administration and enforcement of the provisions of this Ordinance and they are hereby authorized to enforce the rules and regulations relating to any matter or thing pertaining to the administration and enforcement of the provisions of this Ordinance, including provisions for the re-examination and correction of returns and payments.

2. In any case where a taxpayer has failed, neglected or refused to file a return or has failed, neglected or refused to pay the tax due on a return or has filed a return which does not show the proper amount of tax due, the Finance Director or his delegate may determine the amount of tax appearing to be due the City from the taxpayer based on any information in his possession and shall send to such taxpayer a written statement showing the amount of tax so determined together with interest and penalties thereon, if any.

C. The Finance Director or his delegate is authorized to arrange for the payment of unpaid taxes, fees, interest and penalties on a schedule of installment payments when the taxpayer has approved to the Finance Director or his delegate that, due to certain hardship conditions he is unable to pay the full amount of tax due. Such authorization shall not be granted until proper returns are filed by the taxpayer for all mounts owed by him under this Ordinance. However, All additional assessments shall be made and all criminal and civil actions to recover municipal income taxes, and the associated penalties, interest, and fees shall be brought within three years after the tax was due, the return was filed, the bankruptcy was discharged, or the City of West Carrollton payment agreement expected completion date, whichever is later.

SECTION 24 - INVESTIGATIVE POWERS OF THE FINANCE DIRECTOR

A. 1. The Finance Director or his delegate or any authorized employee is hereby authorized to examine the books, papers, records, and Federal Income Tax Returns of any employer or of any taxpayer or person subject to, or who the Finance Director of his delegate believes is subject to the provisions of this Ordinance, for the purpose of verifying the accuracy of any return made, or, if any 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 Finance Director or his delegate, or his duly authorized agent or employee, the means, facilities and opportunity for making such examinations and investigations as are hereby authorized.

2. The Finance Director or his delegate 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 would have been returned for taxation or any transaction tending to effect 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.

B. The Finance Director or his delegate or any authorized employee is hereby authorized to institute procedures to determine the associations, businesses, corporations, persons, employers, and employees subject to the provisions of this Ordinance, and in connection therewith, to require that all persons, as defined in this Ordinance shall provide in writing to the Finance Director or his delegate such information as deemed necessary to provide for the enforcement of this Ordinance. The refusal to provide information requested by the Finance Director shall be deemed a violation of this Ordinance, punishable as provided in this Ordinance.

SECTION 25 - CONFIDENTIALITY

A. Any information gained as result of any returns, investigations, hearings, or verifications required or authorized by this Ordinance shall be confidential. No disclosure thereof shall be made except to Municipal, County, State, or Federal taxing agencies, or, except for official purposes, or except in accordance with proper judicial order. No person shall otherwise divulge such information.

B. Each disclosure shall constitute a separate offense. In addition any City of West Carrollton employee who violates the provisions of this Section relative to disclosure of confidential information shall be guilty of an offense which may be punishable by immediate dismissal.

SECTION 26 - SAVING CLAUSE

This Ordinance shall not apply to any person, firm, or corporation or to any property as to whom or which it is beyond the power of Council to impose the tax herein provided for. Any sentence, clause, section, or part of this Ordinance, or any tax against or exception granted any individual or any of the several groups of persons, or forms of income specified herein is found to be unconstitutional or 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, clauses, sections or other parts of this Ordinance. It is hereby declared to be the intention of Council of the City of West Carrollton that this Ordinance would have been adopted had such unconstitutional, illegal, or invalid sentence, part thereof not been included therein.

SECTION 27 - EFFECTIVE PERIOD

Any taxes levied by Ordinance 3034 shall remain in full force and effective except as modified herein. Ordinance 3034 shall apply in all terms and conditions for tax events prior to December 31, 2000, and shall continue as modified by this measure. The tax provided for in this Ordinance 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, and other activities, earned from the effective date of this Ordinance, and shall apply to all taxes, filings, and assessments effective and beginning with tax year 2001.

SECTION 28 -- EMERGENCY DECLARATION

This Ordinance is hereby declared to be an emergency measure necessary for the immediate preservation of the public peace, health, and safety and shall go into effect January 1, 2001. The reason for this declaration is to be in compliance with State Law, which goes into effect January 1, 2001 for the City of West Carrollton.

Passed: December 28, 2000

Mayor

Attested:

Clerk of Council

Effective Date: January 1, 2001