173.03 RATE AND INCOME TAXABLE.
   An annual tax for the purpose specified in Section 173.01 shall be imposed on and after July 1, 1981, at the rate of two percent (2%) per year upon the following:
   (a)   On all salaries, qualifying wages, commissions and other compensation earned and received or earned and accrued on and after July 1, 1981 by residents of the City of Bedford Heights. "Other compensation" shall include, but is not limited to, income from gambling, gaming, wagering, lotteries (including the Ohio State Lottery) and schemes of chance (to which no regard is given to losses or to the location where such gambling, gaming, wagering lotteries and schemes of chance were received) as well as all other compensation listed as "Other Compensation" in Section 173.02(x) herein.
      (Ord. 2005-078. Passed 5-3-05.)
   (b)    On all salaries, qualifying wages, commissions and other compensation earned and received or earned and accrued on and after July 1, 1981 by nonresidents of the City of Bedford Heights for work done or services performed or rendered OF attributed to work done or services performed or rendered within the City of Bedford Heights.
A non-resident who works in the City of Bedford Heights twelve (12) or fewer days per year shall be considered an occasional entrant, and shall not be subject to the City municipal income tax for those days. For purposes of the 12-day calculation, any portion of a day worked in the City of Bedford Heights shall be counted as one day worked in the City. Beginning with the thirteenth day, the employer of said individual shall begin withholding the City income tax from remuneration paid by the employer to the individual, and shall remit the withheld income tax to the City of Bedford Heights in accordance with the requirements of this Chapter. Since the individual can no longer be considered to have been an occasional entrant, the employer is further required to remit taxes on income earned in the City of Bedford Heights by the individual for the first twelve days. If the individual is self-employed, it shall be the responsibility of the individual to remit the appropriate income tax to the City of Bedford Heights. The 12-day occasional entry rules does not apply to entertainers, or professional athletes, their employees or individuals who perform services on their behalf, or to promoters and booking agents of such entertainment events and sporting events.
   (c)    On the portion attributable to the City of the net profits earned and received or earned and accrued after July 1, 1981 of all resident unincorporated business entities or professions or other activities, derived from sales made, work done, services performed or rendered and business or other activities conducted in the City of Bedford Heights.
   (d)    On the portion of the distributive share of the net profits earned and received or earned and accrued on and after July 1, 1981, of a resident partner or owner of a resident - unincorporated business entity not attributable to the City of Bedford Heights and not levied against such unincorporated business entity.
   (e)    On the portion attributable to the City of the net profits earned and received or earned and accrued on or after July 1, 1981, of all nonresident unincorporated business entities, professions or other activities, derived from sales made, work done, services performed or rendered and business and other activities conducted in the City of Bedford Heights, whether or not such unincorporated business entity has an office or place of business in the City of Bedford Heights.
   (f)    On the portion of the distributive share of the net profits earned and received or earned and accrued on or after July 1, 1981, of a resident partner or owner of a nonresident unincorporated business entity not attributable to the City of Bedford Heights and not levied against such unincorporated business entity.
   (g)    On the portion attributable to the City of the net profits earned and received or earned and accrued on and after July 1, 1981, of all corporations derived from sales made, work done, services performed or rendered and business or activities conducted in the City of Bedford Heights whether or not such corporations have an office or place of business in the City of Bedford Heights.
   (h)    On the portion of the distributive share of the net profits earned and received of a resident shareholder of S Corporation income (but for tax years after 2004 only on such income that represents wages as defined in section 3121 (a) of the Internal Revenue Code or net earnings from self-employment as defined in section 1402(a) of the Internal Revenued Code), whether or not such S Corporation business entity has an office or place of business in the City of Bedford Heights.
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 of Bedford Heights shall be determined as provided in Sections 718.01 and 718.02 of the Ohio Revised Code in accordance with the Rules and Regulation adopted pursuant to this chapter.
      (Ord. 2004-218. Passed 12-21-04.)