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(a) An annual tax for the purposes specified in Section 181.01 hereof shall be imposed on and after June 1, 2009 at the rate of the two and one-half percent (2.5%) per annum upon the following:
(1) On all salaries, wages, commissions and other compensation earned on and after June 1, 2009, by residents of the City of Brooklyn, with the exception that, effective July 1, 2010, the City of Brooklyn income tax shall not be levied on stock options exercised on or after July 1, 2010.
(2) On all salaries, wages, commissions and other compensation earned on and after June 1, 2009, by non-residents of the City of Brooklyn for work done or services performed or rendered within the City of Brooklyn, with the exception that, effective July 1, 2010, the City of Brooklyn income tax shall not be levied on stock options exercised on or after July 1, 2010.
(Ord. 2010-34. Passed 5-24-10.)
A. 12 - Day Occasional Entry Rule. A non-resident individual who works in Brooklyn 12 or fewer days per year shall be considered an occasional entrant and shall not be subject to Brooklyn 's municipal income tax for those 12 days. For purposes of the 12-day calculation any portion of a day worked in Brooklyn shall be counted as one day worked in Brooklyn. Beginning with the thirteenth day, the employer of said individual shall begin withholding Brooklyn income tax from the remuneration paid by the employer to the individual and shall remit the withheld income tax to Brooklyn. If the individual is self-employed it shall be the responsibility of the individual to remit the appropriate income tax to the City of Brooklyn. If two or more individuals of the same employer (even if they are independent contractors of that employer) perform work in Brooklyn related to the service for which the employer has been engaged, the individuals shall not be subject to the 12-day occasional entry rule but rather to the withholding rules that apply to one hundred fifty dollars ($150.00) deminimus amounts. 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.
B. $150.00 Deminimus Rule. A non-resident employer, agent of such employer, or other payer not situated in Brooklyn shall not be required to withhold Brooklyn income tax from remuneration paid to employees of the employer until the collective tax liability of the employees initially exceeds one hundred fifty dollars ($150.00). Independent contractors of a non-resident employer shall be deemed employees for work performed in Brooklyn on behalf of the employer and are subject to the collective tax liability provision as if they were employees and are not excluded from taxation. When the collective tax liability exceeds one hundred fifty dollars ($150.00) the employer is required to begin withholding the appropriate income tax for Brooklyn on behalf of all employees performing work in Brooklyn. Once the collective tax liability has exceeded one hundred fifty dollars ($150.00) the employer must withhold income tax for Brooklyn for the remainder of that calendar year and for subsequent years, even if the liability in subsequent years does not exceed one hundred fifty dollars ($150.00). However, if the tax liability for each of the three consecutive years (subsequent to that year in which the employer became liable for withholding the income tax) does not exceed one hundred fifty dollars ($150.00), the employer will be considered as not having performed work in Brooklyn in regard to further tax liability, and will again be subject to the original rule provisions.
(3) A. On the portion attributable to the City of Brooklyn on the net profits earned on and after June 1, 2009, 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 Brooklyn.
B. On the portion of the distributive share of the net profits earned on and after June 1, 2009, of a resident partner or owner of a resident unincorporated business entity not attributable to the City of Brooklyn and not levied against such unincorporated business entity.
(4) A. On the portion attributable to the City of Brooklyn of the net profits earned on or after June 1, 2009, of all non-resident 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 Brooklyn, whether or not such unincorporated business entity has an office or place of business in the City of Brooklyn.
B. On the portion of the distributive share of the net profits earned on or after June 1, 2009, of a resident partner or owner of a unincorporated business entity not attributable to the City of Brooklyn and not levied against such unincorporated business entity.
(5) On the portion attributable to the City of Brooklyn on the net profits earned on and after June 1, 2009, of all corporations derived from sales made, work done, services performed or rendered and business or other activities conducted in the City of Brooklyn, whether or not such corporations have an office or place of business in the City of Brooklyn.
(Ord. 2009-1. Passed 5-26-09.)
(6) On all lottery winnings and income derived from lotteries, gaming, wagering or schemes of chance in the amount of $5,000,000.00 or more received by residents of the City on or after July 1, 2010.
(Ord. 2010-34. Passed 5-24-10.)
In the taxation of income which is subject to City of Brooklyn Income Taxes, if the books and records of a taxpayer conducting a business or profession both within and without the boundaries of the City of Brooklyn shall disclose with reasonable accuracy what portion of its net profit is attributable to that part of the business or profession conducted within the boundaries of the City of Brooklyn, then only such portion shall be considered as having a taxable situs in the City of Brooklyn for the purposes of municipal income taxation. The portion of the entire net profits of a taxpayer to be allocated as having been derived from within the City of Brooklyn, in the absence of actual records thereof, shall be determined as follows:
Multiply the entire net profits by a business allocation percentage to be determined by a three-factor formula of property, payroll, and sales, each of which shall be given equal weight, as follows:
(a) The average net book value of the real and tangible personal property owned or used by the taxpayer in the business or profession in the City of Brooklyn during the taxable period to the average net book value of all the real and tangible personal property owned or used by the taxpayer in the business or profession during the same period, wherever situated. As used in the preceding paragraph, real property shall include property rented or leased by the taxpayer and the value of such property shall be determined by multiplying the annual rental thereon by eight.
(b) Wages, salaries, and other compensation paid during the taxable period to persons employed in the business or profession for services performed in the City of Brooklyn to wages, salaries and other compensation paid during the same period to persons employed in the business or profession, wherever their services are performed.
(c) Gross receipts of the business or profession from sales made and services performed during the taxable period in the City of Brooklyn to gross receipts of the business or profession during the same period from sales and services, wherever made or performed.
In the event that the foregoing allocation formula does not produce an equitable result, another basis may, under uniform regulations, be substituted so as to produce such result.
(Ord. 2001-36. Passed 9-10-01.)
As used in Section 181.04, "sales made in the City of Brooklyn" mean:
(a) All sales of tangible personal property which is delivered within the City of Brooklyn regardless of where title passes if shipped or delivered from a stock of goods within the City of Brooklyn.
(b) All sales of tangible personal property which is delivered within the City of Brooklyn regardless of where title passes even though transported from a point outside the City of Brooklyn if the taxpayer is regularly engaged through its own employees in the solicitation or promotion of sales within the City of Brooklyn and the sales result from such solicitation or promotion.
(c) All sales of tangible personal property which is shipped from a place within the City of Brooklyn to purchasers outside of the City of Brooklyn regardless of where title passes if the taxpayer is not, through its own employees, regularly engaged in the solicitation or promotion of sales at the place where delivery is made.
(Ord. 2001-36. Passed 9-10-01.)
(a) Add together the percentages determined in accordance with paragraphs (a), (b), and (c) of Section 181.04 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 said total in order to obtain the business allocation percentages referred to in Section 181.04.
(b) A factor is applicable even though it may be allocable entirely in or outside the City of Brooklyn.
(Ord. 2001-36. Passed 9-10-01.)
(Ord. 2001-36. Passed 9-10-01.)
(a) Rental income received by a taxpayer shall be included in the computation of net profits from business activities under paragraphs (a)(3), (4) and (5) of Section 181.03, only if and to the extent that the rental, ownership, management or operations of the real estate from which such rentals are derived (whether so rented, managed or operated by a taxpayer individually or through agents or other representatives) constitutes a business activity of the taxpayer in whole or in part.
(b) Where the gross monthly rental of any and all real properties, regardless of number and value, aggregates in excess of one hundred twenty-five dollars ($125.00) per month, it shall be prima facie evidence that the rental, ownership, management or operation of such properties is a business activity of such taxpayer, and the net income of such rental property shall be subject to tax; provided that in the case of commercial property, the owner shall be considered engaged in a business activity when the rental is based on a fixed or fluctuating percentage of gross or net sales, receipts or profits of the lessee, whether or not such rental exceeds one hundred twenty-five dollars ($125.00) per month, provided further that in the case of farm property, the owner shall be considered engaged in the business activity when he shares in crops or when the rental is based on a percentage of the gross or net receipts derived from the farm, whether or not the gross income exceeds said one hundred twenty-five dollars ($125.00) per month; and provided further that the person who operates a licensed rooming house shall be considered in business whether or not the gross income exceeds one hundred twenty-five dollars ($125.00) per month.
(Ord. 2001-36. Passed 9-10-01.)
(a) Within thirty (30) days after a new tenant occupies rental property of any kind within the Municipality, all owners of rental property who rent to tenants of apartments, rooms and other rental accommodations shall file with the Tax Administrator a report showing the name, address and telephone number, if available, of each such tenant who occupies an apartment, room or other rental property within the Municipality.
(b) Within thirty (30) days after a tenant vacates an apartment, room or other rental property located within the Municipality, the owner of such vacated rental property shall file with the Tax Administrator a report showing the date of vacation from the rental property and a forwarding address.
(c) Each Board of Review created pursuant to this section shall adopt rules governing its procedures and shall keep a record of its transactions. Such records are not public records available for inspection under Section 149.43 of the Ohio Revised Code. Hearings requested by a taxpayer before a Board of Review created pursuant to this section are not meetings of a public body subject to Section 121.22 of the Ohio Revised Code.
(d) On or before October 1, 2008, and on or before the 1st day of October of each year thereafter, all landlords who rent property in the City of Brooklyn, Ohio, must submit an up-to- date list of all their tenants to the Brooklyn Tax Administrator.
(Ord. 2008-5. Passed 1-28-08.)
(a) The portion of a net operating loss sustained in any taxable year subsequent to January 1, 1967, allocable to the City of Brooklyn may be applied against the portion of the profit of succeeding tax years allocable to the City of Brooklyn, until exhausted but in no event for more than five (5) taxable years immediately following the year in which the loss occurred. No portion of a net operating loss shall be carried back against net profits of any prior year.
(b) The portion of net operating loss sustained shall be allocated to the City of Brooklyn in the same manner as provided herein for allocating net profits to the City of Brooklyn.
(c) The Administrator shall provide by Rules and Regulations the manner in which such net operating loss carry-forward shall be determined.
(Ord. 2001-36. Passed 9-10-01.)
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