181.03 IMPOSITION OF TAX.

   (a)   Subject to the provisions of Section 181.16 of this ordinance an annual tax for the purposes specified in Section 181.01 shall be imposed on and after April 1, 1975 at the rate of one percent (1%) per annum upon the following:

      (1)   On all taxable income earned during the effective period of the ordinance by residents of this municipality.

      (2)   On all taxable income earned during the effective period of the ordinance by non-residents for work done or services rendered or performed in this municipality.

         (Ord. 18-95.  Passed 12-14-95.)

      (3)   A.   On the portion attributable to this municipality 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 this municipality.

         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  resident unincorporated business entity not attributable to this municipality and not levied against such unincorporated business entity by this municipality.

      (4)   A.   On the portion attributable to this municipality  of the net profits earned during the effective period of this chapter of all non-resident unincorporated businesses, professions or other entities, derived from sales made, work done, or services performed or rendered and business or other activities conducted in this municipality, whether or not such unincorporated business entity has an office or place of business in this municipality.

         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 non-resident unincorporated business entity not attributable to the municipality and not levied against such unincorporated business entity by this municipality.

      (5)   On the portion attributable to this municipality, 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 this municipality, whether or not such corporations have an office or place of business in this municipality.

         (Ord. 74-11.  Passed 1-30-75.)

      (6)   To the extent that such losses may be applicable, passive activity losses are treated in the same manner as allowed by the Internal Revenue Service.

         (Ord. 18-95.  Passed 12-14-95.)

      (7)   Taxable income shall include proceeds or winnings from gambling, prizes and lottery winnings in the amount of six hundred dollars ($600.00) or more.  Gambling losses may not be used to off-set income reported.

         (Ord. 09-05.  Passed 7-23-09.)

   (b)   The portion of the net profits attributable to this municipality of a taxpayer conducting a business, profession or other activity both within and without the boundaries of this municipality shall be determined as provided in Ohio R.C. 718.02 and in accordance with the rules and regulations adopted by the Administrator 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, 1975 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 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 allocated to this municipality in the same manner as provided herein for allocating net profits to the municipality.
(Ord. 74-11.  Passed 1-30-75.)

      (3)   The net operating loss sustained by a business or profession is not deductible from employee earnings.  However, if a taxpayer is engaged in two or more taxable business activities to be included in the same return, the net loss of one unincorporated business activity (except any portion of a loss reportable for municipal income tax purposes to another municipality) may be used to offset the profits of another for purposes of arriving at overall net profits. 
(Ord. 06-01.  Passed 1-12-06.)

      (4)   The Administrator 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 Administrator.

      (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.

   (e)   Exclusion from Taxation.

      (1)   Poor relief, unemployment insurance benefits, old age pensions or similar payments received from local, state or federal governments or charitable or religious organizations.

      (2)   Proceeds of insurance, annuities, workman’s compensation insurance, social security benefits, pensions, compensation for damages for personal injuries and like reimbursement, not including damages for loss of profits.

      (3)   Compensation for damages to property by way of insurance or otherwise.

      (4)   Interest and dividends from intangible property.

      (5)   Military pay and allowances received as a member of the armed forces of the United States.

      (6)   Any charitable, educational, fraternal or other type of non-profit association or organization enumerated in Ohio R.C. 718.01 of the Revised Code of Ohio which is exempt from payment of real estate taxes is exempt from payment of tax imposed by this chapter.

      (7)   The provisions of this chapter shall not apply to any person who has not during the taxable year, attained his eighteenth birthday.

         (Ord. 74-11.  Passed 1-30-75.)

      (8)   Parsonage allowance, to the extent of the rental allowance or rental value of a house provided as part of an ordained minister’s compensation.  The minister must be duly obtained, commissioned or licensed by a religious body constituting a church or church denomination.

      (9)   The Village shall not tax the compensation paid to a nonresident individual for personal services performed by the individual in the Village on twelve or fewer days in a calendar year unless one of the following applies:

         A.   The individual is an employee of another person, the principal place of business of the individual’s employer is located in another municipality in Ohio that imposes a tax applying to compensation paid to the individual for services paid on those days; and the individual is not liable to that other municipality for tax on the compensation paid for such services.

         B.   The individual is a professional entertainer or professional athlete, the promoter of a professional entertainment or sports event, or an employee of such promoter, all as may be reasonably defined by the Village. 
(Ord. 05-09.  Passed 9-22-05.)