(a) An annual income tax for the purposes specified in Section 191.01 shall be imposed at the rate of one percent (1%) on and after January 1, 1991, and continuing indefinitely; in addition an annual income tax of one-half percent (½%) shall be imposed on and after January 1, 2010, and continuing until December 31, 2019, the proceeds of which shall be equally divided with one-quarter of one-percent (1/4%) to be used for the purpose of street resurfacing, the installation and maintenance of improvements and appurtenances thereto, and the purchase of equipment necessary therefor, and the remaining one-quarter of one percent (1/4%) to be allocated to the City’s General Fund. The income from investment of the additional one-half percent (½%) income tax shall be paid into the City’s General Fund. Such tax rates shall be levied per annum upon the following: (Ord. 09-24. Passed 6-22-09.)
(1) All salaries, wages, commissions and other compensation and on net profits from unincorporated business entities and professions earned by residents on or after April 1, 1969.
(2) All salaries, wages commissions and other compensation earned on or after April 1, 1969, by nonresidents for work done or services performed or rendered in the City.
(3) A. The portion attributable to the City of the net profits earned on or after April 1, 1969, by all resident unincorporated businesses, professions and other entities, derived from sales made, work done, services performed or rendered and business or other activities conducted in the City.
B. The portion of the distributive share of the net profits earned on or after April 1, 1969, by a resident partner or owner of a resident unincorporated business entity not attributable to the City and not levied against such unincorporated business entity; provided, however, that the liability of an individual partner or owner taxable hereunder on income attributable to another taxing municipality shall be subject to the provisions of Section 191.16.
(4) A. The portion attributable to the City of the net profits earned on or after April 1, 1969, by all nonresident unincorporated businesses, profession or other entities, derived from sales made, work done or services performed or rendered and business or other activities conducted in the City whether or not such unincorporated business entity has an office or place of business in the City.
B. The portion of the distributive share of the net profits earned on or after April 1, 1969, by a resident partner or owner of a nonresident unincorporated business entity not attributable to the City and not levied against such unincorporated business entity; provided, however, that the liability of an individual partner or owner taxable hereunder on income attributable to another taxing municipality shall be subject to the provisions of Section 191.16.
(5) The portion attributable to the City of the net profits earned on or after April 1, 1969, by all corporations derived from sales made, work done, services performed or rendered, ordinary gains from the operation of and/or the complete or partial sale or disposition of the assets of a business, profession or enterprise or other activity (whether or not such business, profession, enterprise or other activity is conducted for profit or is ordinarily conducted for profit) and business or other activities conducted in the City, whether or not such corporations have an office or place of business in the City.
(6) On a resident’s entire share, whether distributed or not, of the net profits of an S corporation as defined in Section 1361 of the Internal Revenue Code. If a resident is a shareholder in two or more S corporations to be included in the same return, the resident’s share of the net loss of one S corporation (except any portion of a loss separately reportable for municipal tax purposes to another taxing entity) may be used to offset the resident’s share of the profits of another S corporation for purposes of arriving at overall net profits derived from S corporations. Credit on the tax imposed by this paragraph shall be given for tax paid on the resident’s share of the net profits of an S corporation under item (5) of division (a) of Section of this section. The tax imposed under this paragraph is effective for all accounting periods commencing on or after January 1, 2003.
(Ord. 02-111. Passed 10-14-02.)
(7) To the fullest extent allowed by State law, on all lottery winnings, regardless how denominated, received by any person from any source, including, but not limited to any lottery authorized, sanctioned, sponsored, conducted or participated in by the State of Ohio, or any of its subdivisions.
(Ord. 04-85. Passed 9-27-04.)
(b) The portion of the net profits attributable to the City of a taxpayer conducting a business, profession or other activity both within and without the boundaries of the City shall be determined as provided in Ohio R.C. 718.02 and in accordance with the rules and regulations adopted by the Administrator pursuant to this chapter.
(c) Operating Loss-Carry Forward.
(1) The portion of a net operating loss sustained in any taxable year subsequent to April 1, 1969, allocable to the City may be applied against the portion of the net profit of succeeding year(s) allocable to the City until exhausted but in no event for more than five taxable years. No portion of a net operating loss shall be carried back against net profits of any prior year.
(2) The portion of a net operating loss sustained shall be allocated to the City in the same manner as provided herein for allocating net profits to the City.
(3) The Administrator shall provide by rules and regulations the manner in which such net operating loss carry-forward shall be determined.
(d) Consolidated Returns.
(1) Filing of consolidated returns may be permitted or required in accordance with rules and regulations prescribed by the Administrator.
(2) In the case of a corporation that carried on transactions with its stockholders or with corporations related by stock ownership, interlocking directorates or some other method, or in case any person operates a division, branch, factory, office, laboratory or activity within the City constituting a portion only of its total business, the Administrator shall require such additional information as he may deem necessary to ascertain whether net profits are properly allocated to the City. If the Administrator finds net profits are not properly allocated to the City by reason of transactions with stockholders or with other corporations related by stock ownership, interlocking directorates or transactions with such division, branch, factory, office, laboratory or activity, or by some other method, he shall make such allocation of net profits to the City.
(e) Exception. The tax provided for herein shall not be levied upon the military pay or allowances of members of the Armed Forces of the United States or upon the net profits of any civic, charitable, religious, fraternal or other organization specified in Ohio R.C. 718.01 to the extent that such net profits are exempted from municipal income taxes under such section.
(Ord. 69-6. Passed 3-24-69.)
(Ord. 69-6. Passed 3-24-69.)
(f) Deductions and Limitations. If a taxpayer’s taxable income includes income against which the taxpayer has taken a deduction for federal income tax purposes as reportable on the taxpayers Form 2106, and against which a like deduction has not been allowed by the City, the taxpayer shall deduct from taxable income an amount equal to the deduction shown on such form allowable against such income, to the extent not otherwise so allowed as a deduction by the City. In the case of a taxpayer who has a net profit from a business or profession that is operated as a sole proprietorship, taxable income shall not be greater than the net profit reported by the taxpayer on Schedule C, filed with the federal income tax return in reference to the year in question except as otherwise specifically provided by ordinance or regulation.
(Ord. 83-57. Passed 11-14-83.)