(A) Taxable income. Subject to the provisions of § 95.15 of this chapter, an annual tax for the purposes specified in § 95.01 shall be imposed on and after January 1, 2010, at the rate of 1.5% per annum for the purposes specified in § 95.01; 0.14% for the purposes described in § 95.01; at the rate of 0.09% for the purposes described in § 95.01; at the rate of 0.19% for the purposes described in § 95.01; and at the rate of 0.08% for the purposes described in Section 95.01 upon the following.
(1) On all qualifying wages, commissions, and other compensation and other taxable income earned or received, including tips, and on proceeds of any state lottery received, during the effective period of this chapter by residents of the city as set forth in R.C. § 718.03.
(2) On all qualifying wages, commissions, other compensation and other taxable income earned or received, including tips, during the effective period of this chapter by nonresidents for work done or services performed or rendered in the city as set forth in R.C. § 718.03.
(3) (a) On the portion attributable to the city 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 city.
(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 resident unincorporated business entity not attributable to the city and not levied against such unincorporated business entity by the city. However, the liability of an individual partner or owner taxable hereunder on income attributable to another taxing municipality shall be subject to any relief and reciprocity provisions of § 95.14.
(4) (a) On the portion attributable to the city 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 city, whether or not such unincorporated business entity has an office or place of business in the city.
(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 business entity not attributable to the city, and not levied against such business entity; provided that the liability of an individual partner or owner taxable hereunder on income attributable to another taxing municipality shall be subject to any relief and reciprocity provisions of § 95.14.
(5) On the portion attributable to the city of the 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 city, whether or not such corporations have an office or place of business in the city.
(B) Businesses conducted within and without city. The portion of the net profits attributable to the city of a taxpayer conducting business, professional or other activity both within and without the boundaries of the city shall be determined as provided in R.C. § 718.02 and in accordance with the rules and regulations adopted by the Commissioner pursuant to this chapter.
(C) Operating loss carry-forward.
(1) The portion of a net operating loss sustained in any taxable year subsequent to January 1, 1957, apportioned to the city may be applied against the portion of the profit of succeeding year(s) apportioned to the city until exhausted but in no event for more than five taxable years. 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 apportioned to the city in the same manner as provided herein for apportioning net profits to the city.
(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, required, or denied in accordance with rules and regulations prescribed by the Tax Commissioner. Commencing on January 1, 2003, consolidated returns will be accepted from affiliated groups of corporations that file consolidated returns for federal income tax purposes for the same reporting period as set forth in R.C. § 718.06.
(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 the city constituting a portion only of its total business, the Tax Commissioner shall require such additional information as he or she may deem necessary to ascertain whether net profits are properly allocated to the city. If the Tax Commissioner finds net profits are not properly allocated to the city 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 or she shall make such allocation as he or she deems appropriate to produce a fair and proper allocation of net profits to the city.
(E) Exception.
(1) 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. § 718.01 to the extent that such net profits are exempted from municipal income taxes under the section.
(2) (a) Compensation paid to a nonresident individual for personal services performed within the city, if the personal services are performed during 12 or fewer days during the calendar year.
(b) Compensation paid to a nonresident individual who is an employee for work or services performed in the city if the services or work is performed during 12 or fewer days during the calendar year and further provided that the individual’s employer is located outside of the city in another municipal corporation in Ohio and the individual pays tax on the compensation to the municipal corporation in which the employer’s principal place of business is located and no portion of the tax is refunded to the individual.
(c) The foregoing two divisions do not apply to professional entertainers, professional athletes, promoters for professional entertainment or sporting events and their employees.
(d) For purposes of this section, a day is a full day or any fractional part of a day.
(3) Parsonage allowance paid to ministers of the gospel in the form of rental allowance as part of the minister’s compensation to the extent excluded from federal or Ohio income tax.
(4) The income of a public utility, when that public utility is subject to the tax levied under R.C. §§ 5725.24 or 5727.30, except a municipal corporation may tax the following, subject to R.C. Chapter 5745:
(a) The income of an electric company or combined company; or
(b) The income of a telephone company.
(5) COMBINED COMPANY, ELECTRIC COMPANY, and TELEPHONE COMPANY have the same meanings as in R.C. § 5727.01.
(1980 Code, § 95.03) (Ord. 3218, passed 12-16-1974; Am. Ord. 5526, passed 2-16-1993; Am. Ord. 5527, passed 2-16-1993; Am. Ord. 6091, passed 1-6-1997; Am. Ord. 7192, passed 12-15-2003; Am. Ord. 8027, passed by electorate 11-2-2010)