Cincinnati |
Code of Ordinances |
Title III. FINANCIAL, PERSONNEL, PROCUREMENT AND REAL PROPERTY PROCEDURES |
Chapter 311. CITY OF CINCINNATI INCOME TAX |
§ 311-35. Methods for Estimating Taxes.
A taxpayer shall have the option of determining its estimated municipal income tax on either of the following methods:
(a)
By basing the estimate on the preceding full year's municipal income tax liability, or by annualizing such tax liability if the preceding tax year was not for a full 12-month period. In such case, if each installment is timely paid when due on that basis, no interest or penalty shall apply for any under estimate of municipal income tax for the tax year, regardless of the actual municipal income tax liability for such year, except in the case where the annual return required by Section 311-51 and the payment required with that return by subsection (b) of Section 311-51 have not been submitted by the due dates for such annual return and the payment of municipal income tax due.
(b)
(i)
For tax years prior to 2005, by basing the estimate on the taxable income earned or received during the three-month period preceding the due date for the declaration described in Section 311-33, annualized for the remainder of the tax year, and updating this estimate by amendment as necessary each succeeding three-month period so that at least seventy percent (70%) of the annual municipal income tax liability to be ultimately determined shall have been paid by estimate within one month following the close of the tax year, through timely quarterly installments. Failure to have made timely quarterly payments totaling at least seventy percent (70%) of the ultimate municipal income tax liability by estimate in the fashion so described shall subject the taxpayer to interest and penalties as set forth in Sections 311-73 and 311-75 on the portion of estimated municipal income tax due and not seventy percent (70%) paid by the installment due date.
(ii)
For tax years beginning in 2005 and thereafter, by basing the estimate on the taxable income earned or received during the three-month period preceding the due date for the declaration described in Section 311-33, annualized for the remainder of the tax year, and updating this estimate by amendment as necessary each succeeding three-month period so that at least ninety percent (90%) of the annual municipal income tax liability to be ultimately determined shall have been paid by estimate within one month following the close of the tax year, through timely quarterly installments. Failure to have made timely quarterly payments totaling at least ninety percent (90%) of the ultimate municipal income tax liability by estimate in the fashion so described shall subject the taxpayer to interest and penalties as set forth in Sections 311-73 and 311-75 on the portion of estimated municipal income tax due and not ninety percent (90%) paid by the installment due date.
(c)
Except as otherwise provided in this Section 311-35, the interest and penalty provisions of Sections 311-73 and 311-75 apply to the late payment, nonpayment or underpayment of estimated municipal income tax. However, the interest and penalty provisions of Sections 311-73 and 311-75 shall not apply where either:
(i)
The taxpayer is a resident but was not domiciled in the Municipality on January 1 of the taxable year for which estimated payments of municipal income tax have been made; or
(ii)
The taxpayer has remitted on a timely basis an amount of estimated municipal income tax at least equal to one hundred percent (100%) of the taxpayer's municipal income tax liability for the preceding taxable year, provided that the return for the preceding taxable year reflected a 12-month period and the taxpayer filed with the Municipality a municipal income tax return for the preceding taxable year.
(Ordained by Emer. Ord. No. 363-2015, § 2, eff. Jan. 1, 2016)