ORDINANCE 2016 – 1
AN ORDINANCE AMENDING ORDINANCE 2015-14 ESTABLISHING INCOME TAX RULES AND REGULATIONS AND DECLARING AN EMERGENCY.
WHEREAS, The Ohio General Assembly enacted House Bill 5 which amends sections of the Ohio Revised Code that set forth the authority for Municipal Corporations to impose and income tax; and
WHEREAS, Pursuant to the Ohio Constitution, the City of Newton Falls is required to abide by these amendments enacted by the Ohio General Assembly; and
WHEREAS, Newton Falls City Council passed Ordinance 2015-14 in November of 2015 in order to comply with House Bill 5; and
WHEREAS, An initiative petition was submitted by referendum to the Trumbull County Board of Elections and approved, by the electors, that full credit for income tax paid by Newton Falls Village residents to another municipality be restored, effective 2016 January 1, and that restoration of this credit shall only be repealed by popular vote; and
WHEREAS, City Council deems it necessary and in the best interest of the City to amend the existing Income Tax Rules and Regulations to conform with results of the November 2015 election.
COUNCIL FOR THE CITY OF NEWTON FALLS, STATE OF OHIO, HEREBY ORDAINS:
Section I: “Exhibit A” attached here to as if fully rewritten herein amends Exhibit A of Ordinance 2015-14, Section 6.
Section II: This ordinance shall be retroactive to January 1, 2016.
Section II: Any ordinances or parts of ordinances in conflict with the context of this ordinance are hereby repealed.
Section III: This Ordinance is hereby declared to be an emergency measure necessary for the immediate preservation of the public peace, health, safety or welfare of the citizens of the City of Newton Falls the reason for the emergency is the need to have this in effect as soon as possible in order to comply with the recent election.
PASSED IN COUNCIL THIS 19th DAY OF JANUARY 2016.
Mayor, Lyle Waddell
City Clerk/Clerk of Council
Ordinance wording for granting 100% municipal income tax credit
(A) Every individual taxpayer domiciled in Newton Falls who is required to and does pay, or has acknowledged liability for, a municipal tax to another municipality on or measured by the same income, qualifying wages, commissions, net profits or other compensation taxable under this ordinance, may claim a nonrefundable credit upon satisfactory evidence of the tax paid to the other municipality. Subject to division (C) of this section, the credit shall not exceed the tax due Newton Falls under this ordinance, or the tax due the other municipality, whichever is less.
(B) Newton Falls shall grant a credit against its tax on income to a resident of Newton Falls who works in a joint economic development zone created under Section 715.691 or a joint economic development district created under Section 715.70, 715.71, or 715.72 of the ORC to the same extent that it grants a credit against its tax on income to its residents who are employed in another municipal corporation.
(C) If the amount of tax withheld or paid to the other municipality is less than the amount of tax required to be withheld or paid to the other municipality, then for purposes of division (A) of this section, “the income, qualifying wages, commissions, net profits or other compensation” subject to tax in the other municipality shall be limited to the amount computed by dividing the tax withheld or paid to the other municipality by the tax rate for that municipality.
(D) No credit shall be allowed for school district income tax.