(1) On all salaries, wages, including sick and vacation pay, accrued leave pay, commissions and other compensation earned by or paid to residents;
(2) On all salaries, wages, including sick and vacation pay, accrued leave pay, commissions and other compensation earned by or paid to nonresidents for work done or service performed in the municipality;
(3) (a) On the portion attributable to the municipality of the net profits earned during the effective period of this chapter of all resident associations, unincorporated businesses, professions or other entities derived from sales made, work done or services performed or rendered, or business or other activities conducted in the municipality; and
(b) On a resident partner’s or owner’s share of the net profits earned during the effective period of this chapter of a resident association or other unincorporated entity not attributable to the municipality and not levied against such association or other unincorporated entity.
(4) (a) On the portion attributable to the municipality of the net profits earned during the effective period of this chapter, of all nonresident associations, unincorporated businesses, professions or other entities, derived from sales made, work done or services performed or rendered or business ties conducted in the municipality, whether or not such association or other unincorporated entity has an office or place of business in the municipality; and
(b) On a resident partner’s or owner’s share of the net profits earned during the effective period of this chapter of a nonresident association or other unincorporated entity not attributable to the municipality and not levied against such association or other entity.
(5) On the net profits earned during the effective period of this chapter of all corporations derived from sales made, work done or services performed or rendered, and business or other activities conducted in the municipality whether or not such corporation has an office or place of business in the municipality.
(B) Allocation of net profits. Where a person conducts a business both within and outside the municipality, the portion of the entire net profits of such business to be allocated as having been made within the municipality may be determined from the records of such business, if such business has bona fide records which disclose with reasonable accuracy what portion of its net profits is attributable to that part of its activities conducted within the municipality or at the option of the taxpayer may be determined by the following formula, which shall be used if taxpayer has no bona fide records showing net profits from village business activities, subject, however, to the provisions of division (D)(2) hereof.
(1) Multiply the entire net profits of the business by a business allocation percentage to be determined by:
(a) Ascertaining the percentage with the average net book value of the real and tangible personal property owned or used in the business and situated within the municipality, during the period covered by the return is of the average net book value of all the real and tangible personal property owned or used in the business, wherever situated, during such period;
(b) Ascertaining the percentage which the gross receipts of the business from sales made and services performed in the municipality, during the period covered by the return, are of the total gross receipts from all sales and services, wherever made or performed, during such period;
(c) Ascertaining the percentage which the total wages, salaries, commissions and other compensation paid, during the period covered by the return, to employees for services performed in the municipality is of the total wages, salaries, commissions and other compensation paid during such period to all employees within and outside the municipality; and
(d) Adding together the percentages determined in accordance with divisions (B)(1)(a), (B)(1)(b) and (B)(1)(c) above, or such of the aforesaid percentages as are applicable to the particular taxpayer, and dividing the total so obtained by the number of percentages used in deriving that total.
(2) A factor is applicable even though it may be allocable entirely in or outside the municipality.
(3) In the event a just and equitable result cannot be obtained under the formulas provided for herein, the Board of Review, upon application of the taxpayer or the Tax Commissioner, shall, under uniform regulations adopted by the Board, have the authority to substitute other factors or methods calculated to effect a fair and proper allocation.
(C) Operating loss carry-forward.
(1) The portion of a net operating loss sustained in any taxable year, beginning with January 1, 1975, allocable to the municipality, may be applied against the portion of the profit of succeeding tax years, allocable to the municipality, until exhausted, but in no event for more than the five taxable years immediately following the year in which the loss occurred. 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 municipality in the same manner as provided herein for allocating net profits to the municipality.
(3) The Tax Commissioner 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 Tax Commissioner.
(2) In the case of a corporation that carried on transactions with its stockholders or with other corporations related by stock ownership, interlocking directorates or some other method, the Tax Commissioner shall require such information, in addition to the return hereinafter provided for, as he or she may deem necessary to ascertain whether net profits are properly allocated to the municipality. If the Tax Commissioner finds net profits are not properly allocated to the municipality by reason of transactions with stockholders or with other corporations related by stock ownership, interlocking directorates or some other method, he or she may require the filing of a consolidated return or adjust such transactions so as to produce a fair and proper allocation of net profits to the municipality.
(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 R.C. Chapter 718 to the extent that such net profits are exempted from municipal income taxes under such chapter.
(1997 Code, § 35.15) (Ord. 556-74, passed 12-9-1974; Ord. 822-91, passed 3-11-1991; Ord. 1183-09, passed 8-19-2009)