Skip to code content (skip section selection)
Compare to:
CHAPTER 881
Supplemental Provisions to Tax Code
881.01   Filing net profit taxes; election to be subject to provisions of chapter.
881.02   Definitions.
881.03   Applicability; taxable situs; apportionment.
881.04   Information provided to tax administrators; confidentiality.
881.05   Filing of annual return; remittance; disposition of funds.
881.06   Electronic filing.
881.07   Consolidated returns.
881.08   Failure to pay tax.
881.09   Declaration of estimated taxes.
881.10   Additional penalties.
881.11   Assessments against taxpayer.
881.12   Refund applications.
881.13   Amended returns.
881.14   Examination of records and other documents and persons.
881.15   Credits.
881.99   Reckless violations; penalties.
CROSS REFERENCES
   Municipal income taxes - see Ohio R.C. Ch. 718
   Earned income tax - see B. R. & T. Ch. 880
881.01 FILING NET PROFIT TAXES; ELECTION TO BE SUBJECT TO PROVISIONS OF CHAPTER.
   (a)   A taxpayer may elect to be subject to Chapter 880 of the Bexley Codified Ordinances in lieu of the provisions set forth in the remainder of this chapter. Notwithstanding any other provision of this chapter, upon the taxpayer's election, both of the following shall apply:
      (1)   The state tax commissioner shall serve as the sole administrator of the municipal net profit tax for which the taxpayer as defined in Chapter 880 of the Codified Ordinances is liable for the term of the election;
      (2)   The commissioner shall administer the tax pursuant to Sections 718.80 to 718.95 of the ORC, Chapter 880 of the Codified Ordinances, and any applicable provision of Chapter 5703 of the ORC.
   (b)   (1)   A taxpayer shall make the initial election on or before the first day of the third month after the beginning of the taxpayer's taxable year by notifying the tax commissioner and the City of Bexley on a form prescribed by the tax commissioner.
      (2)   A.   The election, once made by the taxpayer, applies to the taxable year in which the election is made and to each subsequent taxable year until the taxpayer notifies the tax commissioner and the City of its termination of the election.
         B.   A notification of termination shall be made, on a form prescribed by the tax commissioner, on or before the first day of the third month of any taxable year.
         C.   Upon a timely and valid termination of the election, the taxpayer is no longer subject to Chapter 880 of the Codified Ordinances, and is instead subject to the provisions set forth in the remainder of this chapter.
   (c)   The tax commissioner shall enforce and administer the applicable provisions of Chapter 880 of the Codified Ordinances. In addition to any other powers conferred upon the tax commissioner by law, the tax commissioner may:
      (1)   Prescribe all forms necessary to administer those sections;
      (2)   Adopt such rules as the tax commissioner finds necessary to carry out those sections;
      (3)   Appoint and employ such personnel as are necessary to carry out the duties imposed upon the tax commissioner by those sections.
   (d)   The tax commissioner shall not be considered a tax administrator, as that term is defined in ORC 718.01 and City of Bexley Codified Ordinances.
(Ord. 02-18. Passed 2-13-18.)
881.02 DEFINITIONS.
   If a term used in Chapter 880 of the Codified Ordinances that is not otherwise defined in this chapter is used in a comparable context in both the laws of the United States relating to federal income tax and in Title LVII of the ORC and the use is not consistent, then the use of the term in the laws of the United States relating to federal income tax shall have control over the use of the term in Title LVII of the ORC, unless the term is defined in Chapter 5703 of the ORC, in which case the definition in that chapter shall control. Any reference in this chapter to the Internal Revenue Code includes other laws of the United States related to federal income taxes. If a term is defined in both this section and Chapter 880 of the Codified Ordinances, the definition in this section shall control for all uses of that term in Chapter 880 of the Codified Ordinances. As used in Chapter 880 of the Codified Ordinances only:
   (a)   "Adjusted federal taxable income."
      (1)   For a person required to file as a C corporation, or for a person that has elected to be taxed as a C corporation as described in division (D)(5) of Section 718.01 of the ORC and Chapter 880 of the Codified Ordinances, means a C corporation's federal taxable income before net operating losses and special deductions as determined under the Internal Revenue Code, adjusted as follows:
         A.   Deduct intangible income to the extent included in federal taxable income. The deduction shall be allowed regardless of whether the intangible income relates to assets used in a trade or business or assets held for the production of income.
         B.   Add an amount equal to five percent of intangible income deducted under division (a)(1)A. of this section, but excluding that portion of intangible income directly related to the sale, exchange, or other disposition of property described in section 1221 of the Internal Revenue Code.
         C.   Add any losses allowed as a deduction in the computation of federal taxable income if the losses directly relate to the sale, exchange, or other disposition of an asset described in section 1221 or 1231 of the Internal Revenue Code.
         D.   1.   Except as provided in division (a)(1)D.2. of this section, deduct income and gain included in federal taxable income to the extent the income and gain directly relate to the sale, exchange, or other disposition of an asset described in section 1221 or 1231 of the Internal Revenue Code.
            2.   Division (a)(1)D.1. of this section does not apply to the extent the income or gain is income or gain described in section 1245 or 1250 of the Internal Revenue Code.
         E.   Add taxes on or measured by net income allowed as a deduction in the computation of federal taxable income.
         F.   In the case of a real estate investment trust or regulated investment company, add all amounts with respect to dividends to, distributions to, or amounts set aside for or credited to the benefit of investors and allowed as a deduction in the computation of federal taxable income.
         G.   Deduct, to the extent not otherwise deducted or excluded in computing federal taxable income, any income derived from a transfer agreement or from the enterprise transferred under that agreement under ORC 4313.02.
         H.   Deduct exempt income to the extent not otherwise deducted or excluded in computing adjusted federal taxable income.
         I.   Deduct any net profit of a pass-through entity owned directly or indirectly by the taxpayer and included in the taxpayer's federal taxable income unless an affiliated group of corporations includes that net profit in the group's federal taxable income in accordance with Chapter 880 of the Codified Ordinances.
         J.   Add any loss incurred by a pass-through entity owned directly or indirectly by the taxpayer and included in the taxpayer's federal taxable income unless an affiliated group of corporations includes that loss in the group's federal taxable income in accordance with Chapter 880 of the Codified Ordinances.
      (2)   If the taxpayer is not a C corporation, is not a disregarded entity that has made the election described in Chapter 880 of the Codified Ordinances, and is not a publicly traded partnership that has made the election described in Chapter 880 of the Codified Ordinances, the taxpayer shall compute adjusted federal taxable income under this section as if the taxpayer were a C corporation, except guaranteed payments and other similar amounts paid or accrued to a partner, former partner, shareholder, former shareholder, member, or former member shall not be allowed as a deductible expense unless such payments are in consideration for the use of capital and treated as payment of interest under section 469 of the Internal Revenue Code or United States treasury regulations. Amounts paid or accrued to a qualified self-employed retirement plan with respect to a partner, former partner, shareholder, former shareholder, member, or former member of the taxpayer, amounts paid or accrued to or for health insurance for a partner, former partner, shareholder, former shareholder, member, or former member, and amounts paid or accrued to or for life insurance for a partner, former partner, shareholder, former shareholder, member, or former member shall not be allowed as a deduction.
      (3)   Nothing in division (a) of this section shall be construed as allowing the taxpayer to add or deduct any amount more than once or shall be construed as allowing any taxpayer to deduct any amount paid to or accrued for purposes of federal self-employment tax.
   (b)   "Assessment" means a notice of underpayment or nonpayment of a tax issued pursuant to Chapter 880 of the Codified Ordinances.
   (c)   "Municipal taxable income" means income apportioned or sitused to the municipal corporation under Chapter 880 of the Codified Ordinances, as applicable, reduced by any pre-2017 net operating loss carryforward available to the person for the municipal corporation.
   (d)   "Tax return" or "return" means the notifications and reports required to be filed pursuant to Chapter 880 of the Codified Ordinances for the purpose of reporting municipal income taxes, and includes declarations of estimated tax.
   (e)   "Taxable year" means the calendar year or the taxpayer's fiscal year ending during the calendar year, or fractional part thereof, upon which the calculation of the taxpayer's adjusted federal taxable income is based pursuant to this chapter. If a taxpayer's taxable year is changed for federal income tax purposes, the taxable year for purposes of Chapter 880 of the Codified Ordinances is changed accordingly but may consist of an aggregation of more than one taxable year for federal income tax purposes. The tax commissioner may prescribe by rule an appropriate period as the taxable year for a taxpayer that has had a change of its taxable year for federal income tax purposes, for a taxpayer that has two or more short taxable years for federal income tax purposes as the result of a change of ownership, or for a new taxpayer that would otherwise have no taxable year.
   (f)   "Taxpayer" has the same meaning as in Chapter 880 of the Codified Ordinances, except that "taxpayer" does not include natural persons or entities subject to the tax imposed under Chapter 5745 of the Revised Code. "Taxpayer" may include receivers, assignees, or trustees in bankruptcy when such persons are required to assume the role of a taxpayer.
(Ord. 02-18. Passed 2-13-18.)
Loading...