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(1) On all salaries, wages, commissions and other compensation, lottery winnings and income derived from gaming, wagering, lotteries or schemes of chance but only when such amounts are equal to or exceed four million dollars ($4,000,000), and on net profits from unincorporated business entities and professions, earned during the effective period of this chapter by residents of the City;
(2) On all salaries, wages, commissions and other compensation earned during the effective period of this chapter by nonresidents for work done or services performed or rendered in the City. On lottery winnings and income derived from gaming, wagering, lotteries or schemes of chance, but only when such amounts are equal to or exceed four million dollars ($4,000,000), by nonresidents when the lottery ticket is purchased and/or the gaming, wagering or scheme of chance is conducted, inside the City limits;
(3) On the employer's income derived from finance and carrying charges associated with his or her consumer's accounts receivable;
(4) On the portion attributable to the City of the net profits earned during the effective period of this chapter of all resident unincorporated businesses, professions or other entities, derived from sales made, work done, services performed or rendered and business or other activities conducted in the City;
(5) On the portion of the distributive share of the net profits earned during the effective period of this chapter of 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 under this chapter on income attributable to another taxing municipality shall be subject to Section 880.29;
(6) On the portion attributable to the City of the net profits earned during the effective period of this chapter of all nonresident unincorporated businesses, professions or other entities, derived from sales made, work done, 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;
(7) On the portion of the distributive share of the net profits earned during the effective period of this chapter of 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 under this chapter on income attributable to another taxing municipality shall be subject to Section 880.29; and
(8) On the portion attributable to the City, of the net profits earned during the effective period of this chapter of all corporations, derived from sales made, work done, services performed or rendered and business or other activities conducted in the City, whether or not such corporations have an office or place of business in the City.
(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.
(Ord. 5-85. Passed 4-22-85; Ord. 57-04. Passed 7-12-04; Ord. 114-01. Approved by Voters 11-6-01; Res. R-27-07. Approved by Voters 11-6-07.)
(a) (1) Rental income received by a taxpayer shall be included in the computation of net profits from business activities only if and to the extent that the rental ownership, management or operation of the real estate from which such rentals are derived (whether so rented, managed or operated by a taxpayer individually or through agents or other representatives) constitutes a business activity of the taxpayer in whole or in part.
(2) Where the gross monthly rental of any and all real properties, regardless of the number and value, aggregates in excess of two hundred fifty dollars ($250.00) per month, it shall be prima-facie evidence that the rental, ownership, management or operation of such properties is a business activity of such taxpayer, and the net income of such rental property shall be subject to tax. However, in the case of commercial property, the owner shall be considered engaged in a business activity when the rental is based on a fixed or fluctuating percentage of gross or net sales, receipts or profits of the lessee, whether or not such rental exceeds two hundred fifty dollars ($250.00) per month. Further, in the case of farm property, the owner shall be considered engaged in a business activity when he or she shares in crops or when the rental is based on a percentage of the gross or net receipts derived from the farm, whether or not the gross income exceeds two hundred fifty dollars ($250.00) per month. A person who operates a licensed rooming house shall be considered in business whether or not the gross income exceeds two hundred fifty dollars ($250.00) per month.
(3) A. On or before February 1, 2005, all property owners of rental or leased residential property who rent said premises to tenants, shall file with the Finance Director of Avon, Ohio, a report showing the names, addresses and places of employment of each such tenant who occupies said residential premises within the corporation limits of the City, as of January 1, 2005.
B. Beginning January 1, 2005, and thereafter, within 30 days after a new tenant(s) occupies residential rental or leased property of any kind within the City, the property owner(s) of such rental or leased residential property who rents to the tenant(s), shall file with the Finance Director of the City, a report showing the name(s), address(es) and place(s) of employment of each such tenant who occupies said residential premises within the corporation limits of the City.
C. Beginning January 1, 2005, and thereafter, within 30 days after a tenant vacates a rental or leased residential property located within the City, the property owner of such vacated rental or leased property shall file with the Finance Director of the City, a report showing the date of vacating from the rental or leased residential property and identifying such vacating tenant(s) by name, forwarding address (if available) and place of employment (if available).
(b) Income earned by a taxpayer from a royalty interest in the production of an oil or gas well, whether managed, extracted or operated by the taxpayer individually or through an agent or other representative, shall be included in the computation of net profits from a business activity to the extent that such royalty interest constitutes a business activity of the taxpayer.
Where the gross income received by a taxpayer from a royalty interest in the production of an oil or gas well in a taxable year exceeds three thousand dollars ($3,000), it shall be prima-facie evidence that the income was derived from a business activity of such taxpayer and the net income from such royalty interest shall be subject to tax.
(Ord. 5-85. Passed 4-22-85; Ord. 212-04. Passed 12-28-04.)
(a) The portion of a net operating loss sustained in any taxable year subsequent to April 1, 1968, allocable to the City, may be applied against the portion of the profit of succeeding years 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.
(b) The portion of a net operating loss sustained shall be allocated to the City in the same manner as provided in this chapter for allocating net profits to the City.
(c) The Administrator shall provide, by rules and regulations, the manner in which such net operating loss carry-forward shall be determined.
(Ord. 371-68. Passed 2-28-68.)
(a) Filing of consolidated returns may be permitted or required in accordance with the rules and regulations prescribed by the Administrator.
(b) In the case of a corporation that carries on transactions with its stockholders or with other corporations related by stock ownership, interlocking directorates or some other method, or in the case of a person who operates a division, branch, factory, office laboratory or activity in the City constituting only a portion of its total business, the Administrator shall require such additional information as he or she may deem necessary to ascertain whether or not net profits are properly allocated to the City. If the Administrator finds that 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 or she shall make such allocation of net profits to the City.
(Ord. 371-68. Passed 2-28-68.)
The tax provided for in this chapter shall not be levied upon the following:
(a) Pay or allowances of active members of the Armed Forces of the United States, or the income of religious, fraternal, charitable, scientific, literary or educational institutions to the extent that such income is derived from tax exempt real estate, tax exempt tangible or intangible property or tax exempt activities;
(b) Poor relief, unemployment insurance benefits, old age pensions or similar payments, including disability benefits received from local, State or Federal Governments or charitable, religious or educational organizations;
(c) Proceeds of insurance paid by reason of the death of the insured, and pensions, disability benefits, annuities or gratuities not in the nature of compensation for services rendered, from whatever source derived;
(d) Receipts from seasonal or casual entertainment, amusements, sports events and health and welfare activities when any such are conducted by bona fide charitable, religious or educational organizations and associations;
(e) Gains from involuntary conversion, cancellation of indebtedness, interest on Federal obligations, items of income already taxed by the State which the City is specifically prohibited from taxing and income of a decedent's estate during the period of administration (except such income from the operation of a business);
(f) Salaries, wages, commissions and other compensation and net profits, the taxation of which is prohibited by the United States Constitution or any Act of Congress limiting the power of the states or their political subdivisions to impose net income taxes on income derived from interstate commerce; and
(g) Salaries, wages, commissions and other compensation and net profits, the taxation of which is prohibited by the Constitution of the State of Ohio or any Act of the Ohio General Assembly limiting the power of the City to impose net income taxes.
(Ord. 371-68. Passed 2-28-68.)
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