Fort Recovery discusses changes

Fort Recovery tax administrator Amanda Wyerick introduced an updated tax ordinance to village council Monday night.
Modifications are necessary to bring the village's municipal income tax ordinance in line with new state requirements.
 “If we go against (Ohio Revised Code chapter) 718, we lose our ability to levy a tax,” Wyerick said.
One of the major changes discussed was a 50 percent charge for businesses that are late in remitting income tax withheld from employees.
“I don’t agree with it, but I have to follow ORC,” Wyerick said, calling the new penalty “steep.”
The charge applies to any late withholdings, even those overdue by one day. Businesses will have more chances to be late, as the remittances will have to be made monthly instead of quarterly.  
“That 50 percent penalty’s absurd,” said council member Dave Garman, who is also an accounting manager at Cooper Farms.
He asked whether companies might submit withholdings electronically every week to be sure they aren’t late.
“I can’t tell you you cannot do it … but as far as remitting it monthly, that would be preferred,” Wyerick said, noting her workload will increase as remittances move from quarterly to monthly.
She will encourage businesses to send the money through the Ohio Business Gateway, an online option that will be faster and cut down on postage costs. Wyerick will also send letters and postcards letting businesses know about the changes.
While late fees may cost businesses, the village also faces more potential costs in paying for lawyers.
Tax violations now are unclassified misdemeanors. The first offense under the new ordinance would be a minor misdemeanor. Additional offenses could go up to a fourth-degree misdemeanor, while some would be first-degree misdemeanors or fifth-degree felonies.
Wyerick said the village’s grant coordinator, Erin Minor, is looking into a provision to seek reimbursement for appointed attorney fees.
“By switching from an unclassified misdemeanor to a fourth-degree misdemeanor, there is a chance of jail time,” Wyerick explained. “They could be appointed an attorney.”
The ordinance is likely to be updated to address attorney fees before its final reading. Council unanimously passed it on to its second reading.
Other proposed changes include:
•Extending the amount of time contractors can work in the village without withholding income from employees from 12 days to 20 days.
•No withholding requirement for small businesses with $500,0000 or less in gross revenue.
•Estimated payments being required for taxpayers likely to pay at least $200 at tax time, up from $100.
•No refunds or taxes due if the amount is $10 or less.
•Only allowing Indiana credit for taxpayers who provide copies of their Indiana tax returns.
•The late payment penalty becoming a 15 percent charge, rather than 5 percent per month up to 15 percent.
The changes would not affect 2015 taxes and would go into effect for 2016 taxes.
In other business, council:
•Heard from village administrator Randy Diller that curbs at the widened intersection of Butler (Ohio 119) and Elm streets (Ohio 49) should be completed within a few weeks.
Diller is still researching costs for a traffic signal for the intersection, though he spoke with Coldwater’s village manager, Eric Thomas, who estimated a cost of $100,000 to $150,000 based on his experience upgrading signals.
•Learned from Diller that several residents interested in completing Rod Thobe’s term have contacted him. The council president said Oct. 5 he would resign effective at the end of the year to get a better retirement package.
•Listened to Sharpsburg Road residents Dillan and Paige Schulze reiterate that they do not want their Gibson Township property annexed into the village.