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Codified Ordinances of Brooklyn, OH
Codified Ordinances of Brooklyn, Ohio
CERTIFICATION
ROSTER OF OFFICIALS
ADOPTING ORDINANCE NO.: 2003-20
EDITOR'S NOTE
COMPARATIVE SECTION TABLE
CHARTER
PART ONE - ADMINISTRATIVE CODE
TITLE ONE - General Provisions
TITLE THREE - Legislative
TITLE FIVE - Administrative
TITLE SEVEN - Judicial
TITLE NINE - Taxation
CHAPTER 181 Income Tax
181.01 PURPOSE OF LEVY OF INCOME TAX.
181.02 DEFINITIONS.
181.03 RATE AND INCOME TAXABLE.
181.031 EFFECTIVE PERIOD.
181.04 METHOD OF DETERMINATION.
181.041 SALES MADE IN THE CITY.
181.042 TOTAL ALLOCATION.
181.043 RENTALS.
181.0431 INFORMATION FROM LANDLORDS.
181.044 OPERATING LOSS CARRY FORWARD.
181.045 EMPLOYEE BUSINESS EXPENSES.
181.05 SOURCES OF INCOME NOT TAXED.
181.06 WHEN RETURN REQUIRED TO BE MADE.
181.061 FORM AND CONTENT OF RETURN.
181.062 EXTENSION OF TIME FOR FILING RETURNS.
181.063 CONSOLIDATED RETURNS.
181.064 AMENDED RETURNS.
181.07 PAYMENT OF TAX ON FILING OF RETURN.
181.071 COLLECTION AT SOURCE.
181.072 DECLARATIONS OF INCOME NOT COLLECTED AT SOURCE.
181.073 FILING OF DECLARATION.
181.074 FORM OF DECLARATION.
181.075 PAYMENT TO ACCOMPANY DECLARATION.
181.076 ANNUAL RETURN.
181.08 INTEREST ON UNPAID TAX.
181.081 PENALTIES ON UNPAID TAX.
181.082 EXCEPTIONS.
181.083 ABATEMENT OF INTEREST AND PENALTY.
181.084 VIOLATIONS.
181.085 LIMITATION ON PROSECUTION.
181.086 FAILURE TO PROCURE FORMS NOT EXCUSE.
181.09 UNPAID TAXES RECOVERABLE AS OTHER DEBTS.
181.091 REFUND TAXES ERRONEOUSLY PAID.
181.092 AMOUNTS OF LESS THAN ONE DOLLAR.
181.10 BROOKLYN RESIDENT SUBJECT TO INCOME TAX IN OTHER MUNICIPALITY.
181.11 DISBURSEMENT OF FUNDS COLLECTED.
181.12 DUTY TO RECEIVE TAX IMPOSED.
181.121 DUTY TO ENFORCE COLLECTION.
181.122 AUTHORITY TO MAKE AND ENFORCE REGULATIONS.
181.123 AUTHORITY TO ARRANGE INSTALLMENT PAYMENTS.
181.124 AUTHORITY TO DETERMINE AMOUNT OF TAX DUE.
181.125 AUTHORITY TO MAKE INVESTIGATIONS.
181.126 AUTHORITY TO COMPEL PRODUCTION OF RECORDS.
181.127 REFUSAL TO PRODUCE RECORDS.
181.128 CONFIDENTIAL NATURE OF INFORMATION OBTAINED.
181.129 TAXPAYER REQUIRED TO RETAIN RECORDS.
181.1210 AUTHORITY TO CONTRACT FOR CENTRAL COLLECTION FACILITIES.
181.13 BOARD OF REVIEW ESTABLISHED.
181.131 DUTY TO APPROVE REGULATIONS AND TO HEAR APPEALS.
181.132 RIGHT OF APPEAL.
181.14 DECLARATION OF LEGISLATIVE INTENT.
181.141 COLLECTION OF TAX AFTER TERMINATION OF CHAPTER.
CHAPTER 182 Income Tax Effective January 1, 2016
PART THREE - TRAFFIC CODE
PART FIVE - GENERAL OFFENSES CODE
PART SEVEN - BUSINESS REGULATION CODE
PART NINE - STREETS, UTILITIES AND PUBLIC SERVICES CODE
PART ELEVEN - PLANNING AND ZONING CODE
PART THIRTEEN - BUILDING CODE
PART FIFTEEN - FIRE PREVENTION CODE
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181.01 PURPOSE OF LEVY OF INCOME TAX.
   To provide funds for the purposes of general municipal functions of the City of Brooklyn there shall be and is hereby levied a tax on all salaries, wages, commissions and other compensations, and on net profits as hereinafter provided.
(Ord. 2001-36. Passed 9-10-01.)
181.02 DEFINITIONS.
   For the purposes of this chapter the terms, phrases, words and their derivatives shall have the meanings given in the next succeeding sections of this chapter. The singular shall include the plural, and the masculine shall include the feminine and the neuter.
   (a)   “Administrator” means the individual designated to administer and enforce the provisions of the City of Brooklyn Income Tax.
   (b)   “Association” means any partnership, limited partnership, or any other form of unincorporated enterprise, owned by two or more persons.
   (c)   “Board of Review” means the Board created and constituted as provided in Section 181.13.
   (d)   “Business” means any enterprise, activity, profession or undertaking of any nature conducted for profit or ordinarily conducted for profit, whether by an individual, partnership, association, corporation or any other entity, including however all non-profit corporations which are exempt from the payment of Federal Income Tax.
   (e)   “Corporation” means a corporation or joint stock association organized under the laws of the United States, the State of Ohio, or any other state, territory, or foreign country or dependency.
   (f)   “Employee” means one who works for wages, salary, commission or other type of compensation in the service of an employer.
   (g)   “Employer” means an individual, partnership, association, corporation, government body, unit or agency, or any other entity, whether or not organized for profit, who or that employs one or more persons on a salary, wage, commission, or other basis of compensation.
   (h)   “Fiscal Year” means an accounting period of twelve (12) months or less ending on any day other than December 31.
   (i)   “Fundamental change” means any substantial alteration of an employer's business, including, without limitation, any liquidation, dissolution, bankruptcy or reorganization, such as merger, consolidation, acquisition, or transfer, or other change in identity, form or organization.
   (j)   “Gross Receipts” means the total income from any source whatsoever.
   (k)   “Manager” means any of the employer's directors, officers, partners or other persons having control or supervision of the employer's business, and/or employees or other persons charged with the responsibility of filing the return, paying taxes, or otherwise complying with this chapter.
   (l)   “Net Profits” means a net gain from the operation of a business, profession, enterprise, or other activity after provision for all ordinary and necessary expenses either paid or accrued in accordance with the accounting system used by the taxpayer for Federal Income Tax purposes without deduction of taxes imposed by this chapter, federal, state, and other taxes based on income; and in the case of an association, without deduction of salaries paid to partners and other owners.
   (m)   “Non-Resident” means an individual domiciled outside the City of Brooklyn.
   (n)   “Non-Resident Unincorporated Business Entity” means an unincorporated business entity not having an office or place of business within the City of Brooklyn.
   (o)   “Person” means every natural person, partnership, fiduciary, association or corporation. Whenever used in any clause prescribing and imposing a penalty, the term "person", as applied to any unincorporated entity, shall mean the partners or members thereof, and as applied to corporations, the officers thereof.
   (p)   “Place of Business” means any bona fide office (other than a mere statutory office), factory, warehouse, or other space which is occupied and used by the taxpayer in carrying on any business activity individually or through one or more of his regular employees regularly in attendance.
   (q)   “Resident” means an individual domiciled in or whose usual place of abode is in the City of Brooklyn.
   (r)   “Resident Unincorporated Business Entity” means an unincorporated business entity having an office or place of business within the City of Brooklyn.
   (s)   “Taxable Income” means wages, salaries and other compensation paid by an employer or employers before any deduction and/or the net profits from the operation of a business, profession or other enterprise or activity adjusted in accordance with the provisions of this chapter.
   (t)   “Taxable Year” means the calendar year, or the fiscal year upon the basis of which the net profits are to be computed under this chapter, and in the case of a return for a fractional part of a year, the period for which such return is required to be made.
   (u)   “Taxpayer” means a person, whether an individual, partnership, association, or any corporation or other entity, required hereunder to file a return or pay a tax.
      (Ord. 2001-36. Passed 9-10-01.)
181.03 RATE AND INCOME TAXABLE.
   (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.)
181.031 EFFECTIVE PERIOD.
   Said tax shall be levied, collected and paid with respect to the salaries, wages, commissions and other compensation, and with respect to the net profits of businesses, professions or other activities earned on and after June 1, 2009.
(Ord. 2009-1. Passed 5-26-09.)
181.04 METHOD OF DETERMINATION.
   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.)
181.041 SALES MADE IN THE CITY.
   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.)
181.042 TOTAL ALLOCATION.
   (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.)
181.043 RENTALS.
   (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.)
181.0431 INFORMATION FROM LANDLORDS.
   (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.)
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