(1) On all salaries, wages, commissions and other compensation earned during the effective period of this chapter by the residents of the Village.
(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 within the Village.
(3) A. On the portion attributable to the Village 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 Village.
B. On the portion of the distribution 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 Village, and not levied against such unincorporated business entity by the Village.
(4) A. On the portion attributable to the village 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, or services performed or rendered and business or other activities conducted in the Village, whether or not such unincorporated business entity has an office or place of business in the Village.
B. 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 Village and not levied against such unincorporated business entity by the Village.
(5) On the portion attributable to the Village, of 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 Village; whether or not such corporations have an office or place of business in the Village.
(Ord. 23-1985. Passed 5-8-85.)
(6) On the portion attributable to this Municipality pursuant to the terms of this chapter and including:
A. 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 a tax.
B. The employer's income derived from finance and carrying charges associated with their consumer's accounts receivable.
(Ord. 37-1984. Passed 10-10-84.)
(7) On all gains from any lottery and/or gambling winnings received by an individual.
(Ord. 18-2006. Passed 8-9-06.)
(b) If the Tax Administrator approves the use of books and records as a substitute method, the following shall apply:
(1) The net profits allocable to the Village of Boston Heights from business, professional or other activities conducted in the Village of Boston Heights by corporations or unincorporated entities (whether resident or non- resident) may be determined from the records of the taxpayer only if the taxpayer has bona fide records which disclose with reasonable accuracy what portion of his net profits is attributable to that part of his activities conducted within the Village of Boston Heights.
(2) If the books and records of the taxpayer are used as the basis for apportioning net profits, a statement must accompany the return explaining the manner in which such apportionment is made in sufficient detail to enable the Tax Administrator to determine whether the net profits attributable to the Village of Boston Heights are apportioned with reasonable accuracy.
(3) In determining the income allocable to the Village of Boston Heights from the books and records of a taxpayer, an adjustment may be made for the contribution made to the production of such income by headquarters activities of the taxpayer, whether such headquarters is within or without the Village of Boston Heights.
(Ord. 4-2005. Passed 1-12-05.)
(Ord. 4-2005. Passed 1-12-05.)
(c) As used in this chapter, "sales made in the Village" means:
(1) All sales of tangible personal property delivered within the Village, regardless of where title passes, if shipped or delivered from a stock of goods within the Village.
(2) All sales of tangible personal property delivered within the Village, regardless of where title passes, even though transported from a point outside the Village, if the taxpayer is regularly engaged through his own employees in the solicitation of promotion of sales within the Village and the sales result from such solicitation or promotion.
(3) All sales of tangible personal property which is shipped from a place within the Village to purchasers outside of the Village, regardless of where title passes, if the taxpayer is not through his own employees, regularly engaged in the solicitation or promotion of sales at the place where delivery is made.
(d) Add together the percentages determined in accordance with subsections (b)(1), (2) and (3) or such of the aforesaid percentages as are applicable to the particular taxpayer and divide the total so obtained by the number of percentages used in deriving the total in order to obtain the business allocation percentage referred to in subsection (b) hereof.
A factor is applicable even though it may be allocable entirely in or outside the Village.
(e) (1) The portion of a net operating loss sustained in any taxable year subsequent to the effective date of the "first" income tax ordinance permitting loss carry-forwards allocable to this Municipality may be applied against the portion of the profit of succeeding year(s) allocable to this Municipality, until exhausted but in no event for more than three taxable years. No portion of a net operating loss shall be carried back against the net profits of any prior year.
(2) The portion of a net operating loss sustained shall be allocated to the Village in the same manner as provided herein for allocating net profits to the Village.
(3) The Administrator shall provide by Rules and Regulations the manner in which such net operating loss carry-forward shall be determined.
(Ord. 4-2005. Passed 1-12-05.)
(f) (1) Any affiliated group which files a consolidated return for federal income tax purposes pursuant to Section 1501 of the Internal Revenue Code may file a consolidated return with the Village of Boston Heights. However, once the affiliated group has elected to file a consolidated return or a separate return with the Village of Boston Heights, the affiliated group may not change their method of filing in any subsequent tax year without written approval from the Village of Boston Heights.
(Ord. 4-2005. Passed 1-12-05.)
(2) 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 case any person operates a division, branch, factory, office, laboratory or activity within this Municipality constituting a portion only of its total business, the Administrator shall require such additional information as he may deem necessary to ascertain whether net profits are properly allocated to this Municipality. If the Administrator finds net profits are not properly allocated to this Municipality 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 shall make such allocation as he deems appropriate to produce a fair and proper allocation of net profits to this Municipality. However, the Administrator shall have the authority to require any taxpayer to file on the basis of income and expenditures of this Municipality alone when he deems such filing necessary to secure an adequate payment of taxes for this Municipality; and further, the Administrator shall have the authority to determine what is an equitable allocation of national or international administrator expenses which may be allowed.
(g) The tax provided for herein shall not be levied on the following:
(1) Pay or allowance 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.
(2) 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.
(3) Proceeds of insurance paid by reason of the death of the insured; pensions, disability benefits, annuities or gratuities not in the nature of compensation for services rendered from whatever source derived.
(4) 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.
(5) Alimony received.
(6) Personal earnings of any natural person under eighteen years of age.
(7) Compensation for personal injuries or for damages to property by way of insurance or otherwise.
(8) Interest, dividends and other revenue from intangible property.
(9) Gains from involuntary conversion, cancellation of indebtedness, interest on Federal obligations, items of income already taxed by the State from which the Village 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.
(10) 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.
(11) Salaries, wages, commissions or other compensation and net profits, the taxation of which is prohibited by the Constitution of the State or any Act of the Ohio General Assembly limiting the power of the Village to impose net income taxes. (Ord. 4-1982. Passed 2-10-82.)
(12) Parsonage allowance, to the extent of the rental allowance or rental value of a house provided as a part of an ordained minister’s compensation. The ordained minister must be duly ordained, commissioned or licensed by a religious body constituting a church or church denomination, and must have authority to perform all sacraments of the church.
(h) (1) A non-resident individual who works in the Village of Boston Heights twelve or fewer days per year shall be considered an occasional entrant, and shall not be subject to the Village of Boston Heights municipal income tax for those twelve days. For purposes of the 12-day calculation, any portion of a day worked in the Village of Boston Heights shall be counted as one day worked in the Village of Boston Heights.
(2) Beginning with the thirteenth day, the employer of said individual shall being withholding the Village of Boston Heights income tax from remuneration paid by the employer to the individual, and shall remit the withheld income tax to the Village of Boston 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 Village of Boston Heights by the individual for the first twelve days.
(3) If the individual is self-employed, it shall be the responsibility of the individual to remit the appropriate income tax to the Village of Boston Heights.
(4) The 12-day occasional entry rule 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.
(Ord. 4-2005. Passed 1-12-05.)
(Ord. 4-2005. Passed 1-12-05.)