New Page 1

INCOME TAX ORDINANCE

AN ORDINANCE LEVYING A TAX TO PROVIDE FUNDS FOR THE PURPOSE OF GENERAL MUNICIPAL OPERATION, MAINTENANCE OF EQUIPMENT, NEW EQUIPMENT, EXTENSION, ENLARGEMENT AND IMPROVEMENT OF MUNICIPAL SERVICES AND FACILITIES AND CAPITAL IMPROVEMENTS, ON ALL SALARIES, WAGES, COMMISSIONS AND OTHER COMPENSATIONS EARNED BY RESIDENTS OF THE VILLAGE OF MARSHALLVILLE, OHIO: ON ALL SALARIES, WAGES, COMMISSIONS AND OTHER COMPENSATION EARNED BY NON-RESIDENTS OF THE VILLAGE OF MARSHALLVILLE FOR WORK DONE OR SERVICES PERFORMED OR RENDERED IN THE VILLAGE OF MARSHALLVILLE: ON THE NET PROFITS EARNED ON ALL BUSINESSES, PROFESSIONS OR OTHER ACTIVITIES CONDUCTED IN THE VILLAGE OF MARSHALLVILLE BY NON-RESIDENTS, AND ON THE NET PROFITS EARNED BY ALL CORPORATIONS DOING BUSINESS IN THE VILLAGE OF MARSHALLVILLE AS THE RESULT OF WORK DONE OR SERVICES PERFORMED OR RENDERED IN THE VILLAGE OF MARSHALLVILLE: REQUIRING THE FILING OF RETURNS AND FURNISHING OF INFORMATION BY EMPLOYERS AND ALL THOSE SUBJECT TP SAID TAX: IMPOSING ON EMPLOYERS THE DUTY OF COLLECTING THE TAX AT THE SOURCE AND PAYING THE SAME TO THE VILLAGE OF MARSHALLVILLE: PROVIDING FOR THE ADMINISTRATION, COLLECTIONS AND ENFORCEMENT OF SAID TAX: DECLARING VIOLATION THEREOF TO BE A MISDEMEANOR AND IMPOSING PENALTIES THEREFORE: AND DECLARING AN EMERGENCY.

BE IT ORDAINED BY THE COUNCIL OF THE VILLAGE OF MARSHALLVILLE, THREE-FOURTHS (3/4) OF THE MEMBERS CONCURRING, AND DECLARING AND EMERGENCY.

SECTION 1. PURPOSE

To provide funds for the purposes of general municipal operations, maintenance, new equipment, extension and enlargement of municipal services and facilities and capital improvements of the Village of Marshallville there shall be, and is hereby levied, a tax on salaries, wages, commissions and other compensation, and on net profits as hereinafter provided.

SECTION 2. DEFINITIONS

As used in this ordinance, the following words shall have the meaning ascribed to them in this Section, except as and if the context clearly indicates or requires a different meaning.

ADMINISTRATOR - The individual designated by the ordinance to administer and enforce the provisions of the ordinance.

ASSOCIATION - A partnership, limited partnership, or any other form of unincorporated enterprise, owned by two or more persons.

BOARD OF REVIEW - The board created by and constituted as provided in Section 13 of this ordinance.

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

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

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

GROSS RECEIPTS - The total income from any source whatsoever.

NET PROFITS - A 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 ordinance, federal, state, and 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 Village of Marshallville.

NON-RESIDENT UNINCORPORATED BUSINESS ENTITY - An unincorporated business entity not having an office or place of business within the Village of Marshallville.

PERSON - Every natural persons, partnership, fiduciary, association or corporation. Whenever used in any clause prescribing and imposing a penalty, the term PERSON as applied to any unincorporated entity shall mean the partners or member thereof, and as applied to corporation, the officers thereof.

PLACE OF BUSINESS - Any Bona Fide office (other than a mere statutory office), factory, warehouse or other space which is occupied and used by the taxpayer in carrying on any business activity individually or through one or more of his regular employees regularly in attendance.

RESIDENT - An individual domiciled in the Village of Marshallville.

RESIDENT UNINCORPORATED BUSINESS ENTITY - An unincorporated business entity having an office or place of business within the Village of Marshallville.

TAXABLE INCOME - Wages, salaries, and other compensation paid by an employer or employers before any deductions and/or the net profits from the operation of a business, profession or other enterprise or activity adjusted in accordance with the provisions of the ordinance.

TAXABLE YEAR - The calendar year, or the fiscal year upon the basis of which net profits are to be computed under this ordinance and, in the case of a return for a fractional part of a year, the period for which such return is required to be made.

TAXPAYER - A person, whether an individual, partnership, limited partnership, association, or any corporation or other entity, required hereunder to file a return or pay a tax.

The singular shall include the plural and the masculine shall include the feminine and the neuter.

SECTION 3. IMPOSITION OF TAX

A. Subject to the provisions of Section 16 of this ordinance, an annual tax, the purposes specified in Section 1 hereof, shall be imposed on and after January 1, 1979, at the rate of one (1) percent (%) per annum upon the following.

1. On all salaries, wages, commissions, and other compensation earned on and after January 1, 1979, by residents of Marshallville.

2. On all salaries, wages, commissions, and other compensation earned on and after January 1, 1979, by non-residents for work done or services performed or rendered in Marshallville.

3. (a) On the portion attributable to Marshallville of the net profits earned on or after January 1, 1979 of all resident unincorporated businesses, professions, or other entities, derived from sales made, work done, services performed or rendered and businesses or other activities conducted in Marshallville.

(b) On the portion of the distributive share of the net profits earned on or after January 1, 1979, of a resident partner or owner of a resident unincorporated business entity not attributable to Marshallville and not levied against such unincorporated business entity.

4. (a) On the portion attributable to Marshallville of the net profits earned on and after January 1, 1979, of all non-resident unincorporated businesses, professions, or other entities, derived from sales made, work done or services performed or rendered and business or other activities conducted in Marshallville, whether or not such unincorporated business entity has an office or place of business in Marshallville.

(b) On the portion of the distributive share of the net profits earned on and after January 1, 1979, of a resident partner or owner of a non-resident unincorporated business entity not attributable to Marshallville and not levied against such unincorporated business entity.

5. On the portion attributable to Marshallville, of the net profits earned on and after January 1, 1979, of all corporations derived from sales made, work done, services performed or rendered and business or other activities conducted in Marshallville whether or not such corporations have an office or place of business in Marshallville.

B. The portion of the net profits attributable to Marshallville of a taxpayer conducting a business, profession, or other activity both within and without the boundaries of Marshallville shall be determined as provided in Section 718.02 of the Revised Code of Ohio and in accordance with the rules and regulations adopted by the Council of the Village of Marshallville pursuant to this ordinance.

C. Operating Loss Carry Forward.

1. The portion of a net operating loss sustained in any taxable year subsequent to January 1, 1979, allocable to Marshallville may be applied against the portion of the profit of succeeding year (s) allocable to Marshallville, until exhausted but in no event for more than five (5) taxable years. No portion of a net operating loss shall be carried back against net profits of any prior year.

2. The portion of a net operating loss sustained shall be allocated to Marshallville in the same manner as provided herein for allocating net profits to Marshallville.

3. The Administrator shall provide by Rules and Regulations the manner in which such net operating loss carry forward shall be determined.

D. Consolidated Returns

1. Filing of consolidated returns may be permitted or required in accordance with the Rules and Regulations prescribed by the Administrator.

2. In the case of a corporation that carried on transactions with its stockholders or with other corporations related by stock ownership, interlocking directorates, or some other method, or in case any person operates a division, branch, factory, office, laboratory or activity within Marshallville constituting a portion only of its total business, the Administrator shall require such additional information as he may deem necessary to ascertain whether net profits are properly allocated to Marshallville. If the Administrator finds net profits are not properly allocated to Marshallville by reason of transactions with stockholders or with other corporations related by stock ownership, interlocking directorates, or transactions with some 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 Marshallville.

E. Exception. The tax provided for herein shall not be levied upon the military pay or allowances of members of the armed forces of the United States, or upon the net profits of any civic, charitable, religious, fraternal or other organization specified in Section 718.01 of the Revised Code of Ohio to the extent that such net profits are exempted from municipal income taxes under said Section.

SECTION 4. EFFECTIVE PERIOD

Said tax shall be levied, collected, and paid with respect to the salaries, wages, commissions, and other compensations, and with respect to the net profits of businesses, professions, or other activities earned on and after January 1, 1979, and until repealed.

SECTION 5. RETURN AND PAYMENT OF TAX

A. Each taxpayer, except as herein provided, shall, whether or not a tax is due thereon, make and file a return on or before April 30 of the year following the effective date of this ordinance, and on or before April 30 of each year thereafter. When the return is made for a fiscal year or other period different from the calendar year, the return shall be filed within four (4) months from the end of such fiscal year or period. The Administrator is hereby authorized to provide by regulation that the return of an employer or employers, showing the amount of tax deducted by said employer or employers from the salaries, wages, commissions or other compensation of an employee, and paid by him or them to the Administrator shall be accepted as the return required of any employee whose sole income, subject to tax under this ordinance, is such salary, wages, commissions, or other compensation.

B. The return shall be filed with the Administrator on a form or forms furnished by or obtainable upon request from such Administrator setting forth:

(1) The aggregate amounts of salaries, wages, commissions and other compensation earned and gross income from business, profession or other activity, less allowable expenses incurred in the acquisition of such gross income earned during the preceding year and subject to said tax;

(2) The amount of the tax imposed by this ordinance on such earnings and profits;

(3) Such other pertinent statements, information, returns, or other information as the Administrator may require.

C. The Administrator may extend the time for filing of the annual return upon the request of the taxpayer for a period of not to exceed six (6) months, or one (1) month beyond any extension requested of or granted by the Internal Revenue Service for the filing of the Federal Income Tax Return. The administrator may require a tentative return, accompanied by payment of the amount of tax shown to be due thereon by the date the return is normally due. No penalty or interest shall be assessed in those cases in which the return is filed and the final tax paid within the period extended.

D. (1) The taxpayer making a return shall, at the time of the filing thereof, pay to the Administrator the amount of taxes shown as due thereon, provided, however, that where any portion of the tax so due shall have been deducted at the source pursuant to the provisions of Section 6 of this ordinance, of where any portion of said tax shall have been paid by the taxpayer pursuant to the provisions of Section 7 of this ordinance, or where an income tax has been paid to another municipality, credit for the amount so paid in accordance with Section 15 hereof, shall be deducted from the amount shown to be due and only the balance if any, shall be due and payable at the time of filing and return.

(2) A taxpayer who has overpaid the amount of tax to which the Village of Marshallville is entitled under the provisions of this ordinance may have such overpayment applied against any subsequent liability hereunder or, at his election indicated on the return, such overpayment (or part thereof) shall be refunded, provided that no additional taxes or refunds of less than One Dollar ($1.00) shall be collected or refunded.

E. (1) Amended Returns. Where necessary an amended return must be filed in order to report additional income and pay any additional tax due, or claim a refund of tax overpaid subject to the requirements and/or limitations contained in Sections 11 and 15. Such amended returns shall be on a form obtainable on request from the Administrator. A taxpayer may not change the method of accounting or apportionment of net profits after the due date for filing the original return.

(2) Within three (3) months from the final determination of any federal tax liability affecting the taxpayers' Marshallville tax liability, such taxpayer shall make and file an amended Marshallville return showing income subject to the Village of Marshallville tax based upon such final determination of federal tax liability, and pay any additional tax shown due thereon or make claim for refund of overpayment.

SECTION 6. COLLECTION AT SOURCE

A. In accordance with the Rules and Regulations prescribed by the Administrator, each employer within or doing business within Marshallville shall deduct at the time of the payment of such salary, wage, commission, or other compensation, the tax of one (1) percent (%) of the gross salaries, wages, commissions or other compensation due by the said employer to said employee and shall, on or before the last day of the month following the close of each calendar quarter make a return and pay to the Administrator the amount of taxes so deducted. Said returns shall be on a form or forms prescribed by or acceptable to the Administrator and shall be subject to the Rules and Regulations prescribed therefor by the Administrator. Such employer shall be liable for the payment of the tax required to be deducted and withheld, whether or not such taxes have in fact been withheld.

B. Such employer in collecting said tax shall be deemed to hold the same, until payment is made by such employer to Marshallville, as a Trustee for the benefit of Marshallville and any such tax collected by such employer from his employees shall, until the same is paid to Marshallville, be deemed a trust fund in the hands of such employer.

C. On or before January 31st of each year beginning with the year 1979, each employer shall file a withholding return setting forth the names and addresses of all employees from whose compensation the tax was withheld during the preceding calendar year and the amount of tax withheld from his employees and such other information as may be required by the Administrator.

SECTION 7. DECLARATIONS

A. Every person who anticipates any taxable income which is not subject to Section 6 hereof, or who engages in any business, profession, enterprise or activity subject to the tax imposed by Section 3 hereof shall file a declaration setting forth such estimated income or the estimated profit or loss from such business activity, together with the estimated tax due hereon, if any, provided, however, if a persons income is wholly from wages from which the tax will be withheld and remitted to the Village of Marshallville in accordance with Section 6 hereof, such person need not file a declaration.

B. (1) Such declaration shall be filed on or before April 30 of each year during the life of this ordinance, or within four (4) months of the date the taxpayer becomes subject to tax for the first time.

(2) Those taxpayers reporting on a fiscal year basis shall file a declaration within four (4) months after the beginning of each fiscal year or period.

C. (1) Such declaration shall be filed upon a form furnished by, or obtainable from the Administrator, provided, however, credit shall be taken from Marshallville tax to be withheld from any portion of such income. In accordance with the provisions of Section 15 hereof, credit may be taken for tax to be paid or to be withheld and remitted to another taxing municipality.

(2) The original declaration (or any subsequent amendment thereof) may be increased or decreased on or before any subsequent quarterly payment date as provided for herein.

D. Such declaration of estimated tax to be paid Marshallville shall be accompanied by a payment of at least one-fourth (1/4) of the estimated annual tax and at least a similar amount shall be paid on or before the last day of the sixth, ninth and twelfth months after the beginning of the taxable year. Provided, however, that in the case an amended declaration has been filed, the unpaid balance shown due thereon shall be paid in equal installments on or before the remaining payment dates.

E. On or before the last day of the fourth month of the year following that for which such declaration or amended declaration was filed, an annual return shall be filed and any balance which may be due the Village of Marshallville shall be paid therewith in accordance with the provisions of Section 5 hereof.

SECTION 8. DUTIES OF THE ADMINISTRATOR

A. (1) It shall be the duty of the Administrator to receive the tax imposed by this ordinance in the manner prescribed herein from the taxpayers; to keep an accurate record thereof; and to report all monies so received.

(2) It shall be the duty of the Administrator to enforce payment of all taxes owing Marshallville, to keep accurate records for a minimum of five (5) years showing the amount due from each taxpayer required to file a declaration and/or make any return, including taxes withheld, and to show the dates and amounts of payments thereof.

(3) The taxes imposed and levied pursuant to the provisions of this ordinance shall be administered by an Administrator, appointed by the Council of the Village of Marshallville, and such other employees as may be from time to time determined by the Council of the Village of Marshallville. and they shall receive such salary as may be determined by the Village Council.

B. Said Administrator is hereby charged with the enforcement of the provisions of this ordinance, and is hereby empowered, subject to the approval of the Board of Review, to adopt and promulgate and to enforce rules and regulations relating to any matter or thing pertaining to the collection of taxes and the administration and enforcement of the provisions of this ordinance, including provisions for the re-examination and correction of returns.

The Administrator is authorized to arrange for the payment of unpaid taxes, interest and penalties on a schedule of installment payments, when the taxpayer has proven to the Administrator that, due to certain hardship conditions, he is unable to pay the full amount of the tax due. Such authorization shall not be granted until proper returns are filed by the taxpayer for all amounts owed by him under the ordinance.

Failure to make any deferred payment when due shall cause the total unpaid amount, including penalty and interest, to become payable on demand and the provisions of Sections 11 and 12 of the ordinance shall apply.

C. In any case where a taxpayer has failed to file a return or has filed a return which does not show the proper amount of tax due, the Administrator may determine the amount of tax appearing to be due Marshallville from the taxpayer and shall send to such taxpayer a written statement showing the amount of tax so determined, together with interest and penalties thereon, if any.

D. Subject to the consent of the Board of Review or pursuant to regulation approved by said Board, the Administrator shall have the power to compromise any interest or penalty, or both, imposed by Section 10 of this ordinance.

SECTION 9. INVESTIGATIVE POWERS OF THE ADMINISTRATOR - PENALTY FOR DIVULGING CONFIDENTIAL INFORMATION.

A. The Administrator, 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 our person subject to or whom the Administrator believes is subject to the provisions of this ordinance, for the purpose of verifying the accuracy of any return made, or, if no return was made, to ascertain the tax due under this ordinance. Every such employer, supposed employer, taxpayer or supposed taxpayer is hereby directed and required to furnish upon written request by the Administrator, or his duly authorized agent or employee, the means, facilities, and opportunity for making such examinations and investigations as are hereby authorized.

B. The Administrator is hereby authorized to order any person presumed to have knowledge of the facts to appear before him and may examine such person, under oath, concerning any income which was or should have been returned for taxation or any transaction tending to affect such income, and for this purpose may compel the production of books, papers, records, and federal income tax returns and the attendance of all persons before him, whether as parties or witnesses, whenever he believes such persons have knowledge of such income or information pertinent to such inquiry.

C. The refusal to produce books, papers, records and federal income tax returns, or the refusal to submit to such examination by any employer or person subject to the tax or required to withhold tax or the failure of any person to comply with the provisions of this Section or with an order or subpoena of the Administrator authorized hereby shall be deemed a violation of this ordinance, punishable as provided in Section 12 hereof.

D. Any information gained as the result of any returns, investigations, hearings or verifications required or authorized by this ordinance shall be confidential, except for official purposes, or except in accordance with proper judicial order.

Any person divulging such information in violation of this ordinance shall, upon conviction thereof, be deemed guilty of a misdemeanor and shall be subject to a fine or penalty of not more than Five Hundred Dollars ($500.00) or imprisoned for not more than six (6) months, or both. Each disclosure shall constitute a separate offense.

In addition to the above penalty, any employee of the Village of Marshallville who violates the provisions of this Section relative to the disclosure of confidential information shall be guilty of an offense punishable by immediate dismissal.

E. Every taxpayer shall retain all records necessary to compute his tax liability for a period of five (5) years from the date his return is filed, or the withholding taxes are paid.

SECTION 10. INTEREST AND PENALTIES

A. All taxes imposed and all monies withheld or required to be withheld by employers under the provisions of this ordinance and remaining unpaid after they become due shall bear interest at the rate of one-half of one percent (1/2%) per month or fraction thereof.

B. In addition to interest as provided in paragraph A hereof, penalties based on the unpaid tax are hereby imposed as follows:
(1) For failure to pay taxes due - other than taxes withheld - one-half percent (1/2%) per month of fraction thereof.

(2) For failure to remit taxes withheld from employees - three percent (3%) per month or fraction thereof.

C. Exceptions. A penalty shall not be assessed on an additional tax assessment made by the Administrator when a return has been filed in good faith and the tax paid thereon within the time prescribed by the Administrator; and provided further that, in the absence of fraud, neither penalty nor interest shall be assessed on any additional tax assessment resulting from a federal audit, providing an amended return is filed and the additional tax is paid within three (3) months after final determination of the federal tax liability.

D. Upon recommendation of the Administrator, the Board of Review may abate penalty or interest, or both, or upon an appeal from the refusal of the Administrator to recommend abatement of penalty and interest, the Board may nevertheless abate penalty or interest, or both.

SECTION 11. COLLECTION OF UNPAID TAXES AND REFUNDS OF OVERPAYMENTS.

A. All taxes imposed by this ordinance shall be collectible together with any interest and penalties thereon, by suit, as other debts of like amount are recoverable. Except in the case of fraud, omission of a substantial portion of income subject to this tax, or failure to file a return, an additional assessment shall not be made after three (3) years from the time the return was due or filed whichever is later, provided, however, in those cases in which a Commissioner of Internal Revenue and the taxpayer have executed a waiver of the Federal statute of limitation, the period within an additional assessment may be made by the Administrator shall be one (1) year from the time of the final determination of the federal tax liability.

B. Taxes erroneously paid shall not be refunded unless a claim for refund is made within three (3) years from the date which such payment was made or the return was due, or within three (3) months after final determination of the Federal tax liability, whichever is later.

C. Amounts of less that One dollar ($1.00) shall not be collected or refunded.

SECTION 12. VIOLATIONS - PENALTIES

A. Any persons who shall:
(1) Fail, neglect or refuse to make any return or declaration required this ordinance; or

(2) Make any incomplete, false or fraudulent return; or

(3) Fail, neglect or refuse to pay the tax, penalties or interest imposed by this ordinance; or
(4) Fail, neglect or refuse to withhold the tax from his employees or remit such withholding to the Administrator; or

(5) Refuse to permit the Administrator or any duly authorized agent or employee to
examine his books, records, papers and Federal Income Tax returns relating to the income or net
profits of a taxpayer; or

(6) Fail to appear before the Administrator and to produce his books, records, papers or
Federal Income Tax returns relating to the income or net profits of a taxpayer upon order or
subpoena of the Administrator; or

(7) Refuse to disclose to the Administrator any information with respect to the income or
net profits of a taxpayer; or

(8) Fail to comply with the provisions of this ordinance or any order of subpoena of the
Administrator authorized hereby; or

(9) Give to an employer false information as to his true name, correct social security
number and residence address or fail to promptly notify an employer of any change in residence
address and date thereof; or

(10) Fail to use ordinary diligence in maintaining proper records of employee's residence
addresses, total wages and Marshallville tax withheld, or to knowingly give the Administrator false
information; or

(11) Attempt to do anything whatever to avoid the payment of the whole or any part of the
tax, penalties or interest imposed by this ordinance;

Shall be guilty of a misdemeanor and shall be fined not more that Five Hundred Dollars ($500.00) or imprisoned not more that six (6) months or both for each offense.

B. Prosecutions for an offense made punishable under this Section or any other provision of this ordinance shall be commenced within three (3) years after the commission of the offense, provided that in the case of fraud, failure to file a return, or the omission of twenty-five percent (25%) or more of income required to be reported, prosecutions may be commenced within six (6) years after the commission of the offense.

C. The failure of any employer or person to receive or procure a return, declaration or other required form shall not excuse him from making any information return, return, or declaration, from filing such form, or from paying the tax.

SECTION 13. BOARD OF REVIEW

A. A Board of Review, consisting of the Treasurer, President of Council and the Village Solicitor, is hereby created. A majority of the members of the Board shall constitute a quorum. The Board shall adopt its own procedural rules and shall keep a record of its transactions. Any hearing by the Board may be conducted privately and the provisions of Section 9 hereof with reference to the confidential character of information required to be disclosed by the ordinance shall apply to such matters as may be heard before the Board on appeal.

B. All rules and regulations and amendments or changes thereto, which are adopted by the Administrator under the authority conferred by this ordinance, must be approved by the Board of Review before the same becomes effective. The Board shall hear and pass on appeals from any ruling or decision of the Administrator, and at the request of the taxpayer or Administrator, is empowered to substitute alternate methods of allocation.

C. Any person dissatisfied with any ruling or decision of the Administrator which is made under the authority conferred by this ordinance may appeal therefrom to the Board of Review within thirty (30) days from the announcement of such ruling or decision by the Administrator, and the Board shall, on hearing, have jurisdiction to affirm, reverse or modify any such ruling or decision, or any part thereof.

SECTION 14. ALLOCATION OF FUNDS - - amended by Ordinance 80-35, 11/3/80

The funds collected under the provisions of this ordinance shall be deposited in a special fund known as "Income Tax Fund" and said funds shall be disbursed in the following manner;

(1) Such part thereof as shall be necessary to defray costs of collecting the taxes and the cost of administering and enforcing the provisions thereof.

(2) Not more than seventy-five percent (75%) of the net shall be deposited in the General Fund to defray operating expenses of the Village.

(3) At least twenty-five percent (25%) of net available income tax receipts received annually shall be deposited in the Permanent Improvement Fund to be used for capital improvements for the Village.

SECTION 15. CREDIT FOR TAX PAID TO ANOTHER MUNICIPALITY

A. Where a resident of Marshallville is subject to a municipal income tax in another municipality, he shall not pay a total municipal income tax on the same income greater than the tax imposed at the higher rate.

B. Every individual taxpayer who resides in Marshallville who receives net profits, salaries, wages, commissions, or other personal service compensation for work done or services performed or rendered outside of Marshallville, if it be made to appear taxable under this ordinance to another municipality, shall be allowed a credit against the tax imposed by this ordinance of the amount so paid by him or in his behalf to such 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.

C. A claim for refund or credit under this section shall be made in such manner as the Administrator may, by regulation, provide.

SECTION 16. SAVING CLAUSE

If any sentence, clause, section or part of this ordinance, or any tax against any individual or any of the several groups specified herein, is found to be unconstitutional, illegal or invalid, such unconstitutionality, illegality or invalidity shall affect only such clause, sentence, section or part of this ordinance and shall not affect or impair any of the remaining provisions, sentences, clauses, sections or other parts of this ordinance. It is hereby declared to be the intention of the Council of Marshallville that this ordinance would have been adopted had such unconstitutional, illegal or invalid sentence, clause, section or other part thereof not been included herein.

SECTION 17 COLLECTION OF TAX AFTER TERMINATION OF ORDINANCE.

A. This ordinance shall continue effective insofar as the levy of taxes is concerned until repealed, and insofar as the collection of taxes levied hereunder and actions or proceedings for collection any tax levied or enforcing any provisions of this ordinance are concerned, it shall continue effective until all of said taxes levied in the aforesaid period are fully paid and any and all suits, and prosecutions for the collection of said taxes or for the punishment of violations of this ordinance shall have been fully terminated, subject to the limitations contained in Sections 11 and 12 thereof.

B. Annual returns due for all or any part of the last effective year of this ordinance shall be due on the date provided in Sections 5 and 6 of this ordinance as though the same were continuing.

SECTION 18. TENANTS AND PENALTY FOR FAILURE TO COMPLY

Beginning January 1, 1979, and thereafter, within thirty (30) days after a new tenant occupies rental property of any kind within the Village of Marshallville, Ohio, all property owners of rental property who rent to tenants of apartments, rooms, trailer parks, etc. shall file with the Tax Commissioner of the Village of Marshallville.