Title
AN ORDINANCE ADOPTING NEW CHAPTER 891 OF THE CODIFIED ORDINANCES OF THE CITY OF HUDSON REGARDING MUNICIPAL INCOME TAX, AND DECLARING AN EMERGENCY.
Executive Summary: This ordinance adopts the revisions of ORC section 718 as approved by House Bill 5. HB 5 was passed in an effort to make municipal income collection and administration uniform throughout the State.
Body
Legislative History
Chapter 890 of the City's current codified ordinances establishes the authority, purpose and other general provisions of our income tax.
Purpose & Explanation
The purpose of this ordinance is to adopt Chapter 891 which is a complete re-write of our income tax code in order to comply with ORC section 718. The General Assembly mandated that we adopt the provisions by January 1, 2016.
Currently, municipalities throughout Ohio have the ability to establish certain rules, definitions, policies, etc. when administering municipal income taxes. This created inconsistencies and confusion amongst taxpayers and tax preparers especially those dealing with multiple municipalities. This legislation is being implemented as way to make it more uniform.
Attached to this file is a memo from the Regional Income Tax Agency (RITA) that summarizes the major changes. At this point, it is difficult to quantify the overall financial impact of the changes. Some provisions will provide increased revenue to the City; others will decrease our revenue.
There are three items that required Council discussion/action:
1. Do we tax income on earnings for those under the age of 18? Currently we do not, however, this legislation removes that limitation.
2. Do we want to put limits on the amount of penalties and interest that the Tax Administrator can waive without approval from the Income Tax Board of Review? Currently, the Tax Administrator can waive up to $100 in interest and $1,000 in penalties
3. The makeup of the Income Tax Board of Review will change effective January 1, 2016. It wi...
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