173.02 DEFINITIONS.

   For the purposes of this chapter, the following terms, phrases, words and their derivatives shall have the meanings ascribed to them in this section, except as and to the extent the context thereof clearly indicates or requires a different meaning. The singular shall include the plural and the masculine shall include the feminine and the neuter.

   (a)    "Adjusted federal taxable income" means a"C" corporation's federal taxable income before net operating losses and special deductions as determined under the - Internal Revenue Code, but including subsequent adjustments from required additions and deductions. Pass-through entities must compute "Adjusted federal taxable income" as if the pass-through entity were a "C" corporation. This definition does not apply to any taxpayer required to file a return under Section 5745.03 of the Ohio Revised Code or to the net profit from a sole proprietorship. This definition is effective for tax years beginning on or after January 1, 2004.

   (b)    "Association" means any partnership, limited partnership or any other form of unincorporated enterprise or collection of persons or entities owned, operated or controlled by one (1) or more persons.

   (c)    "Board of Review" means the Board created by and constituted as provided in Section 173.48.

   (d)    "Business" means any enterprise, activity, profession or undertaking of any nature conducted for profit or ordinarily conducted for profit, whether by an individual, partnership, limited partnership, association, corporation, joint venture or any other entity or arrangement, excluding, however, all nonprofit corporations which are exempt from the payment of Federal Income Tax.

   (e)    "Corporation" means a corporation or joint stock association organized under the laws of the United States, the State of Ohio or any other State, territory or foreign country or dependency. "Corporation" shall not include Subchapter S corporations as defined in the federal tax code, 26 U.S.C. 1361.

   (f)    "Domicile" means the permanent legal residence of a taxpayer. A taxpayer may have more than one domicile.

   (g)    "Employee" means an individual who works for wages, salary, commissions, or other type of compensation or other income in the service and under the control of an employer.

   (h)    "Employer" means an individual, partnership, limited partnership, association, corporation, government body, unit or agency, or any other entity, whether or not organized for profit, who or that employs one (1) or more persons on a salary, wage, commission or other compensation or other income basis.

   (i)    "Federal Short-term Rate" means the rate of the average market yield on outstanding marketable obligations of the United States with remaining period of maturity of three (3) years or less, as determined under section 1274 of the Internal Revenue Code of 1966, 100 Stat. 2085, 26 U.S.C. 1274, for July of the current year.

   (j)    "Fiscal year" means an accounting period of twelve months or less ending on any day other than December 31.

   (k)    "Generic form" means an electronic or paper form designed for reporting estimated municipal income taxes, and/or annual municipal income tax liability, and/or requests for refunds, which contain all the information required on the City's regular tax return, estimated payment forms, and request for refund forms, and are in a similar format that will allow processing of the generic forms without altering the City's procedures for processing forms.
(Ord. 2004-218. Passed 12-21-04.)

   (l)   "Gross receipts" means the total income from any source whatever (such as, but not limited to sales, work done, or services rendered) before any deductions, exceptions or credits are claimed.

      (Ord. 2005-078. Passed 5-3-05.)

   (m)    "Income" means all monies derived from any source whatsoever, including but not limited to:

      A.   All salaries, wages, commissions, other compensation and other income from whatever source received by residents of the City of Bedford Heights.

      B.   All salaries, wages, commissions, other compensation and other income from whatever source received by nonresidents for work done or services performed or rendered or activities conducted in the City of Bedford Heights.

      C.   The portion attributable to the City of the net profits of all unincorporated businesses, associations, professions, corporations, or other entities, from sales made, work done, services performed or rendered, and business or other activities conducted in the City of Bedford Heights.

   (n)   "Net profits" means (for taxable years prior to 2004) a net gain from the operation of a business, profession or other enterprise or activity after provision for all ordinary and necessary expenses either paid or accrued in accordance with the accounting system used by the taxpayer for Federal Income Tax purposes, without deduction of taxes imposed by this chapter or Federal, State and other taxes based on income, and, in the case of an association, without deduction of salaries paid to partners and other owners, and without deduction for dividends paid or disbursed to shareholders of incorporated business entities, and without deduction for charitable contributions, and without deductions for expenses attributable to non- taxable income, and otherwise adjusted to the requirements of this Chapter. "Net profits" shall include any amount or value received, realized, or recognized in a sale or other disposition of tangible personal property or real property used in business, in excess of book value. (For taxable years 2004 and later, see "Adjusted federal taxable income.")

   (o)    "Nonresident" means an individual domiciled outside the City of Bedford Heights.

   (p)   "Nonresident unincorporated business entity" means an unincorporated business entity not having an office or place of business within the City of Bedford Heights.

   (q)    "Other entity" means any person, unincorporated body, venture or combination of individuals or entities not previously named or defined and includes, but is not limited to, fiduciaries, located within the City of Bedford Heights.

   (r)    "Person" means every natural person, partnership, LLC, limited partnership, fiduciary, association or corporation. Whenever used in any clause prescribing and imposing a penalty, the term "person", as applied to any unincorporated entity, means the partners or members thereof, and as applied to corporations, the officers thereof and any individual properly classified as a "responsible party" as has been interpreted by the Internal Revenue Service.

   (s)   "Place of business" means any bona fide office (other than a mere statutory office), factory, warehouse or other space which is occupied and used by the taxpayer in carrying on any business activity individually or through one or more of his regular employees regularly in attendance.

   (t)    "Qualifying wages" means wages as defined in Section 1321(a) of the Internal Revenue Code, without regard to any wage limitations, but including subsequent adjustments - from required additions and deductions. "Qualifying wage" represents employees' income from - which municipal tax shall be deducted by the employer, and any wages not considered as part of "Qualifying wage" shall not be taxed by the Municipality. This definition is effective January 1, 2004, for taxable years 2004 and later.

   (u)    "Resident" means an individual domiciled in the City of Bedford Heights.

   (v)    "Resident unincorporated business entity" means an unincorporated business entity having an office or place of business within the City of Bedford Heights.

   (w)   "S Corporation" means a corporation wherein the shareholders have made an election under Subchapter S of the Internal Revenue Code that income be taxed to the shareholders as if the corporation were a partnership.

   (x)   "Taxable income" means qualifying wages, salaries and other compensation paid by an employer or employers before any deduction of any kind and/or the net profits from the operation of a business, profession or other enterprise or activity adjusted in accordance with the provisions of this chapter. "Other compensation" includes, but is not limited to, bonuses; commissions; incentive payments; directors' and other fees; property in lieu of cash; tips; dismissal or severance pay; supplemental income benefits for early retirement regardless of their label; contest prizes and awards; tax shelter plans (including contributions to retirement plans, annuities or Independent Retirement Accounts (IRAs) and all other deferred compensation plans); vacation and sick pay regardless of label (such as sick leave including third-party sick pay, disability, vacation pay, etc.); wage continuation plans; supplemental employment benefits (subpay); depreciation recapture; gifts and gratuities in connection with employment; fellowships, grants and stipends (including those representing payment for teaching, research or other services); group term life insurance protection over fifty thousand dollars ($50,000) (taxed on the cost of such insurance in excess of fifty thousand dollars ($50,000)); benefits resulting from an employer's assumption of a tax; stock options given as compensation; income from gambling, gaming, wagering, lotteries (including the Ohio State Lottery) and schemes of chance; and all other compensation earned, received or accrued and not excluded in Section 173.10 herein.

   (y)   "Taxable year" means the calendar year or the fiscal year upon the basis of which the net profits are to be computed under this chapter and, in the case of a return for a fractional part of a year, the period for which such return is required to be made.

   (z)    "Tax Administrator" or "Administrator" means the Administrator of the Department of Taxation of the City of Bedford Heights or the person executing the duties of such Administrator.

   (aa)   "Taxpayer" means a person, whether an individual, partnership, limited partnership, association, corporation or other entity, required hereunder to file a return or pay a tax.
(Ord. 2004-218. Passed 12-21-04.)