Ohio § 718.04

§ 718.04.

(A) Notwithstanding division (A) of section 715.013 of the Revised Code , a municipal corporation may levy a tax on income and a withholding tax if such taxes

are levied in accordance with the provisions and limitations specified in this chapter.  On or after January 1, 2016, the ordinance or resolution levying such taxes, as

adopted or amended by the legislative authority of the municipal corporation, shall

include all of the following: (1) A statement that 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 that the tax shall

be measured by municipal taxable income; (2) A statement that the municipal corporation is levying the tax in accordance with

the limitations specified in this chapter and that the resolution or ordinance thereby

incorporates the provisions of this chapter; (3) The rate of the tax; (4) Whether, and the extent to which, a credit, as described in division (D) of this

section, will be allowed against the tax; (5) The purpose or purposes of the tax; (6) Any other provision necessary for the administration of the tax, provided that the

provision does not conflict with any provision of this chapter. (B) Any municipal corporation that, on or before March 23, 2015, levies an income tax

at a rate in excess of one per cent may continue to levy the tax at the rate specified

in the original ordinance or resolution, provided that such rate continues in effect

as specified in the original ordinance or resolution. (C)(1) No municipal corporation shall tax income at other than a uniform rate. (2) Except as provided in division (B) of this section, no municipal corporation shall

levy a tax on income at a rate in excess of one per cent without having obtained the

approval of the excess by a majority of the electors of the municipality voting on

the question at a general, primary, or special election.  The legislative authority of the municipal corporation shall file with the board

of elections at least ninety days before the day of the election a copy of the ordinance

together with a resolution specifying the date the election is to be held and directing

the board of elections to conduct the election.  The ballot shall be in the following form:  “Shall the Ordinance providing for a

... per cent levy on income for (Brief description of the purpose of the proposed levy)

be passed? FOR THE INCOME TAX AGAINST THE INCOME TAX ” In the event of an affirmative vote, the proceeds of the levy may be used only for

the specified purpose. (D) A municipal corporation may, by ordinance or resolution, grant a credit to residents

of the municipal corporation for all or a portion of the taxes paid to any municipal

corporation, in this state or elsewhere, by the resident or by a pass-through entity

owned, directly or indirectly, by a resident, on the resident's distributive or proportionate

share of the income of the pass-through entity.  A municipal corporation is not required to refund taxes not paid to the municipal

corporation. (E) Except as otherwise provided in this chapter, a municipal corporation that levies

an income tax in effect for taxable years beginning before January 1, 2016, may continue

to administer and enforce the provisions of such tax for all taxable years beginning

before January 1, 2016, provided that the provisions of such tax are consistent with

this chapter as it existed prior to March 23, 2015. (F) Nothing in this chapter authorizes a municipal corporation to levy a tax on income,

or to administer or collect such a tax or penalties or interest related to such a

tax, contrary to the provisions and limitations specified in this chapter.  No municipal corporation shall enforce an ordinance or resolution that conflicts

with the provisions of this chapter. (G)(1) Division (G) of this section applies to a municipal corporation that, at the time

of entering into a written agreement under division (G)(2) of this section, shares

the same territory as a city, local, or exempted village school district, to the extent

that not more than thirty per cent of the territory of the municipal corporation is

located outside the school district and a portion of the territory of the school district

that is not located within the municipal corporation is located within another municipal

corporation having a population of four hundred thousand or more according to the

federal decennial census most recently completed before the agreement is entered into

under division (G)(2) of this section. (2) The legislative authority of a municipal corporation to which division (G) of this

section applies may propose to the electors an income tax, one of the purposes of

which shall be to provide financial assistance to the school district described in

division (G)(1) of this section.  Prior to proposing the tax, the legislative authority shall negotiate and enter

into a written agreement with the board of education of that school district specifying

the tax rate;  the percentage or amount of tax revenue to be paid to the school district

or the method of establishing or determining that percentage or amount, which may

be subject to change periodically;  the purpose for which the school district will

use the money;  the first year the tax will be levied;  the date of the election on

the question of the tax;  and the method and schedule by which, and the conditions

under which, the municipal corporation will make payments to the school district.  The tax shall otherwise comply with the provisions and limitations specified in

this chapter.