ROSSFORD — Income tax collections could increase after implementation of a new construction contractor registration requirement with the city.
The revision to the municipal code was passed by council on Monday on a third reading, after being first introduced at the March 27 meeting, with a vote of 6-0. Passage of the ordinance was recommended by the economic development and planning committee.
“Is this going to apply to the Joe-Schmo small-time contractor guy that doesn’t have any small contractors, so will this apply to the little guy too?” Councilwoman Brenna Reynolds asked.
City attorney Kevin Heban said that it would, if it’s a commercial business, and it would be enforced by the zoning inspector.
Economic Development and Planning Committee Chair Councilman Chris Heban clarified the reason for the new registration requirement.
“The purpose behind this is to make sure we’re capturing all the subcontractor’s income tax, for income tax purposes on large projects,” Heban said. “For the residential guy, because that is a big question, we don’t need the guy who mows your lawn, it’s geared toward the large commercial project.”
He said that they looked for guidance from a similar ordinance by the City of Oregon.
Responsibilities of a general contractor will now include “verifying subcontractor registration with the Regional Income Tax Authority.”
Both residential and commercial contractors in the construction trades are required to register. The list of residential contractors includes the fields of: general contractors, electrical, plumbing, HVAC, sewer/stormwater sewer, solar and concrete/paving. Commercial/industrial general contractors and all subcontractors will also have to register.
Initial registrations for the trades are $100 each, with residential general contractors paying $150. Commercial general contractors will pay $600. After the initial registration annual renewals are lower.
The city can revoke a permit for “departure from or disregard of plans and specifications.”
Fines for violations can be as much as $500 per occurrence.
The exception to the permitting is made for the do-it-yourselfers working on single-family dwellings that they are living in, but homeowners are still responsible for all permits.
Councilman Robert Ruse was absent, and excused, from the meeting.
In other business, Mayor Neil MacKinnon III informed council that for the 12th year in a row the city has received an Excellent rating in financial reporting from the Government Finance Association. He congratulated the finance committee, recently appointed Finance Director Chris Kirk and former Finance Director Kelly O’Boyle.
