§ 362.01 — AUTHORITY TO LEVY TAX; PURPOSES OF TAX; RATE; APPLICABILITY AND EFFECTIVE DATE

362.01 - AUTHORITY TO LEVY TAX; PURPOSES OF TAX; RATE; APPLICABILITY AND EFFECTIVE DATE

362.011 AUTHORITY TO LEVY TAX (A) The tax on income and the withholding tax established by this Chapter 362 are authorized by Article XVIII, Section 3 of the Ohio Constitution. The tax on income and the withholding tax established by this Chapter 362 are deemed to be levied in accordance with, and to be consistent with, the provisions and limitations of Ohio Revised Code Chapter 718 (ORC 718). This chapter is deemed to incorporate by reference the provisions of ORC 718 and Section 29 of House Bill 197 of the 133rd General Assembly. (B) The tax is an annual tax levied on the income of every person residing in or earning or receiving income in the municipal corporation, and shall be measured by municipal taxable income. The Municipality shall tax income at a uniform rate. The tax is levied on Municipal Taxable Income, as defined herein. (C) The income tax at the rate of two and one-half percent (2.5%) shall be levied, collected and paid with respect to the qualifying wages, commissions, and other compensation earned or deemed to be received on or after January 1, 2016, and with respect to the net profits of business, professions or other activities earned on or after January 1, 2016. The income tax rate of two and one-half percent (2.5%) shall be levied, collected and paid with respect to: all prizes, awards and winnings of residents of the city derived from gaming, wagering, sweepstakes and games of chance; all prizes, awards and winnings of non-residents derived from gaming, wagering, sweepstakes and game of chance related to the winning of such income within the city; all prizes, awards and winnings of residents and nonresidents from a casino facility or casino operator located within the city; all prizes, awards and winnings of residents and nonresidents derived from video lottery terminal facilities or video lottery terminal sales agents; and all prizes, awards and winnings paid to residents of the city by the State Lottery Commission. 362.012 PURPOSES OF TAX; RATE (A) A municipal income tax is hereby levied to provide for the purposes of general municipal operations, maintenance, new equipment and capital improvements of the city at the rate of two and one-half percent (2.5%) per sections 362.04, 362.05 and 362.06 of this chapter. (B) The tax upon the income specified herein shall remain in effect for the purpose of filing returns and collection of the tax at the rate of one percent (1%) with regard to all income earned prior to January 1, 1971; at the rate of one and one-half percent (1.5%) with regard to all income earned on or after January 1, 1971 and prior to January 1, 1983; at the rate of two percent (2%) with regard to income earned on or after January 1, 1983, and prior to October 1, 2009; and at the rate of two and one-half percent (2.5%) with regard to all income earned on or after October 1, 2009. 362.013 ALLOCATION OF FUNDS The funds collected under the provisions of this chapter shall be allocated for the following purposes and in the following order: (A) Such part thereof as shall be necessary to defray all costs of collecting the taxes levied by Chapter 362, Columbus City Codes, and enforcing the provisions thereof; (B) Such part thereof as council may appropriate to the general fund for the purpose of paying the cost of general municipal operations; (C) Such part thereof as council may appropriate for the purpose of paying the cost of maintenance of, and the purchase of new equipment, motorized or other; (D) Such part thereof as council may appropriate for the purpose of paying the cost of the repair and maintenance of streets; (E) In any event, for each fiscal year, at least twenty-five percent (25%) of all monies collected under Chapter 362 shall be deposited into a subfund of the general fund to be distributed for the following purposes and in the following order: (1) For transfer to the city's debt retirement fund, amount(s) sufficient, taking into account the current balance in the debt retirement fund, to provide for the payment of principal and interest due during the current fiscal year on bonds and notes issued by the city and other debt obligations of the city which are to be paid from the debt retirement fund and not from another source of funds, and to provide for the payment of costs of debt issuance. Interest and principal due on bonds and notes issued in excess of the one percent (1%) limitations as authorized by Article XII, Section 2, of the Constitution of the state of Ohio, shall be first paid from said debt retirement fund before any payment may be made on interest or principal due on other notes or bonds. Notwithstanding anything in this division 362.013(E) to the contrary and pursuant to authority specifically conferred upon the City Auditor by council through approved debt ordinances, the City Auditor may pay any city arbitrage rebate obligations to the United States Department of the Treasury from the subfund at any time. (2) Following the continuing satisfaction of (E)(1), at the request of the Director of the Department of Finance and Management, and by council appropriation, for current fiscal year expenditures and advances, excluding personnel costs. (3) At the end of each fiscal year, for transfer to the city's debt retirement fund, such unencumbered cash as shall remain in the subfund following transfers or advances, encumbrances, and expenditures made pursuant to divisions (E)(1) and (2) of this section. (F) The balance of funds deposited into the special fund authorized by former section 362.013(E) prior to January 1, 2024 shall be used solely for the payment of interest and principal on bonds and notes issued by the city until such funds are exhausted. Interest and principal due on bonds and notes issued in excess of the one percent (1%) limitations as authorized by Article XII, Section 2, of the Constitution of the state of Ohio, shall be first paid from said special fund before any payment may be made on interest or principal due on other notes or bonds. 362.014 APPLICABILITY AND EFFECTIVE DATE (A) The effective date of the provisions of this Chapter 362 shall be January 1, 2016, and shall apply to municipal taxable years beginning on or after January 1, 2016, except for those sections set forth in Division (C). (B) The enactment of this chapter does not repeal the existing sections of Chapter 361 for any taxable year prior to 2016. For municipal taxable years beginning before January 1, 2016, the city shall continue to administer, audit, and enforce the municipal income tax under Columbus City Codes ?Chapter 361 and ORC 718 as it existed prior to January 1, 2016. (C) The effective dates of Sections 362.03(N)(4)(b)(ix) and 362.03(BB)(2) of this Chapter 362 shall be January 1, 2020, and shall apply to municipal taxable years beginning on or after January 1, 2020.

(Ord. No. 2658-2015, § 1, 11-2-2015; Ord. No. 2967-2020, § 1, 12-14-2020) (Ord. No. 2658-2015, § 1, 11-2-2015) (Ord. No. 2658-2015, § 1, 11-2-2015; Ord. No. 3267-2023, § 1, 12-11-2023) (Ord. No. 2658-2015, § 1, 11-2-2015; Ord. No. 3234-2019, § 1, 12-16-2019)