“Exempt income” means all of the following:
(a) The military pay or allowances of members of the armed forces of the United States or members of their reserve components, including the national guard of any state;
(b) Intangible income;
(c) Social security benefits, railroad retirement benefits, unemployment compensation, pensions, retirement benefit payments, payments from annuities, and similar payments made to an employee or to the beneficiary of an employee under a retirement program or plan, disability payments received from private industry or local, state, or federal governments or from charitable, religious or educational organizations, and the proceeds of sickness, accident, or liability insurance policies. As used in division (c) of this section, “unemployment compensation” does not include supplemental unemployment compensation described in Section 3402(o)(2) of the Internal Revenue Code.
(d) The income of religious, fraternal, charitable, scientific, literary, or educational institutions to the extent such income is derived from tax-exempt real estate, tax-exempt tangible or intangible property, or tax-exempt activities.
(e) Compensation paid under R.C. § 3501.28 or R.C. § 3501.36 to a person serving as a precinct election official to the extent that such compensation does not exceed one thousand dollars ($1,000.00) for the taxable year. Such compensation in excess of one thousand dollars ($1,000.00) for the taxable year may be subject to taxation by the City of Brook Park. The City of Brook Park may not require the payer of such compensation to withhold any tax from that compensation.
(f) Dues, contributions, and similar payments received by charitable, religious, educational, or literary organizations or labor unions, lodges, and similar organizations;
(g) Alimony and child support received;
(h) Awards for personal injuries or for damages to property from insurance proceeds or otherwise, excluding compensation paid for lost salaries or wages or awards for punitive damages;
(i) Income of a public utility when that public utility is subject to the tax levied under R.C. § 5727.24 or R.C. § 5727.30. This division (i) does not apply for purposes of R.C. Chapter 5745.
(j) Gains from involuntary conversions, interest on federal obligations, items of income subject to a tax levied by the state and that a municipal corporation is specifically prohibited by law from taxing, and income of a decedent's estate during the period of administration except such income from the operation of a trade or business;
(k) Compensation or allowances excluded from federal gross income under Section 107 of the Internal Revenue Code;
(l) Employee compensation that is not qualifying wages as defined in Section 1803.35 of this chapter;
(m) Income the taxation of which is prohibited by the constitution or laws of the United States. Any item of income that is exempt income of a pass-through entity under Section 1803.13 of this chapter is exempt income of each owner of the pass-through entity to the extent of that owner's distributive or proportionate share of that item of the entity's income.
(n) Income that the constitution or laws of the United State prohibit from being taxed.
(o) All of the municipal taxable income earned by individuals under eighteen years of age. This provision is effective for tax year 2024 and subsequent years.
(p) (1) Except as provided in divisions (p)(2), (p)(3), and (p)(4) of this section, qualifying wages described in Section 1805.02(b)(1) or (e) to the extent the qualifying wages are not subject to withholding for the City of Brook Park under either of those divisions.
(2) The exemption provided in division (p)(1) of this section does not apply with respect to the municipal corporation in which the employee resided at the time the employee earned the qualifying wages.
(3) The exemption provided in division (p)(1) of this section does not apply to qualifying wages that an employer elects to withhold under Section 1805.02(b)(2).
(4) The exemption provided in division (p )(1) of this section does not apply to qualifying wages if both of the following conditions apply:
A. For qualifying wages described in Section 1805.02(b)(1), the employee's employer withholds and remits tax on the qualifying wages to the municipal corporation in which the employee's principal place of work is situated, or, for qualifying wages described in Section 1805.02(e) , the employee's employer withholds and remits tax on the qualifying wages to the municipal corporation in which the employer's fixed location is located;
B. The employee receives a refund of the tax described in division (p)(4)A. of this section on the basis of the employee not performing services in that municipal corporation.
(q) (1) Except as provided in division (q)(2) or (q)(3) of this section, compensation that is not qualifying wages paid to a nonresident individual for personal services performed in the City of Brook Park on not more than twenty days in a taxable year.
(2) The exemption provided in division (q)(1) of this section does not apply under either of the following circumstances:
A. The individual's base of operation is located in the City of Brook Park.
B. The individual is a professional athlete, professional entertainer, or public figure, and the compensation is paid for the performance of services in the individual's capacity as a professional athlete,
professional entertainer, or public figure. For purposes of division (q)(2)B. of this section, "professional athlete," "professional entertainer," and "public figure" have the same meanings as in Section 1805.02.
(3) Compensation to which division (q) of this section applies shall be treated as earned or received at the individual's base of operation. If the individual does not have a base of operation, the compensation shall be treated as earned or received where the individual is domiciled.
(4) For purposes of division (q) of this section, "base of operation" means the location where an individual owns or rents an office, storefront, or similar facility to which the individual regularly reports and at which the individual regularly performs personal services for compensation.
(r) Compensation paid to a person for personal services performed for a political subdivision on property owned by the political subdivision, regardless of whether the compensation is received by an employee of the subdivision or another person performing services for the subdivision under a contract with the subdivision, if the property on which services are performed is annexed to a municipal corporation pursuant to R.C. § 709.023 on or after March 27, 2013, unless the person is subject to such taxation because of residence. If the compensation is subject to taxation because of residence, municipal income tax is to be payable only to the municipal corporation of residence.
(s) In the case of a tax administered, collected, and enforced by the City of Brook Park pursuant to an agreement with the directors of a joint economic development district under R.C. § 715.72, the net profits of a business, and the income of the employees of that business, exempted from tax under R.C. § 715.72(Q).
(t) Income from disaster work:
(1) Income derived from disaster work conducted in Ohio by an out-of-state disaster business during a disaster response period pursuant to a qualifying solicitation received by the business;
(2) Income of a qualifying employee described in R.C. § 5703.94(A)(14)(a), to the extent such income is derived from disaster work conducted in Ohio by the employee during a disaster response period pursuant to a qualifying solicitation received by the employee's employer, and/or for work on critical infrastructure owned or used by the employee's employer described in R.C. § 5703.97(A)(14)(b).
(Ord. 9984-2015. Passed 12-15-15; Ord. 11375-2023. Passed 12-12-23.)