75-04 Tax Profits of S Corp - Laserfiche WebLink

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PLACED ON 1st READING 1 REFERRED TO THE FINANCE COMMITTEE 7/6/04. ORDlNANCENO. 75.70l, BY: Corrigan. Demro. Dever, Dunn. FitzGerald. Madigan. Seelie. AN EMERGENCY ORDINANCE declaring the necessity of submitting to the electors of the City of Lake wood the question of preserving the municipality's right to impose a municipal income tax on a shareholder's Ohio source distributive share of the net profits of S cOlþorations WHEREAS, the Municipal Income Tax Ordinance of the City of Lake wood, Chapter 128 of the Codified Ordinances of the City of Lake wood, currently does, and prior to December 6, 2002 did, contain authority to tax the shareholders Ohio source distributive share on net profits of an S Corporation: and WHEREAS, if the City of Lake wood desires to preserve the aforesaid authority with regard to Ohio source shares ofnetprofitsofS Corporations as it is contained in it's Municipal Income Tax Ordinance, a recent change in State law, as codified in Ohio Revised Code Section 718.01(F)(9), requires that the municipality submit the question of such continuation to it's electors at the general election to be held on November 2, 2004' and WHEREAS, pursuant to the aforesaid change in State law, the City may continue the taxation of such income only upon the affinnative vote of a majority of the electors of the municipality voting in favor of doing so· and "WHEREAS, the City of Lakewood desires to submits such question to the èlectors of the municipality at the general election to be held on November 2, 20.04; and WHEREAS, this Council by a vote of at least five (5) members elected thereto determines that this ordinance is an emergency measure, and that this ordinance shall take effect at the earliest date possible as set forth in ARTICLE III, SECTIONS 10 and 13 of the SECOND AMENDED CHARTER OF TIlE CITY OF LAKEWOOD. and that it is necessary for the immediate preservation of the public property, health and safety, and to provide for the usual daily operation of municipal departments in that the City could potentially lose tax money if this ordinance does not go into effect immediately upon passage. Now therefore, BE IT ORDAINED BY THE CITY OF LAKEWOOD, STATE OF OIDO that Section 1. This Council hereby authorizes .and directs the submission to the electors of the City of Lake wood at the general election to be held aUhe usual places of voting of said municipality on Tuesday, November 2, 2004, the question as to whether or not the City should continue to tax a shareholder's Ohio source distributive share of the net profit of an S corporation Section 2. The foregoing issue; upon receiving an affirmative vote to continue such taxation by a majority of the electors voting thereon at the November 2,2004 general election, shaH become effective immediately upon its adoption Section 3. The Clerk of this Council" is hereby authorized and directed promptly to forward a certified copy of this Ordinance to the Board of Elections of Cuyahoga County Section 4. The Board of Elections of Cuyahoga County shan cause an appropriate notice to be duly given of the election to be held on November. 2, 2004 on the· foregoing issue relative to the Municipal Income Tax Ordinance of this municipality and otherwise to proVide for such election in the manner provided by the general laws of the State of Ohio. Section 5. The Clerk of Council is hereby authorized and directed to cause the fuIl text of such issue to be published once a week for two consecutive weeks in a newspaper published in the municipality with the first publication to be made at least fifteen (15) days prior to the general election to be held on November 2, 2004