The provisions of this Ordinance shall not be construed as levying a tax upon the following:
(a) The military pay or allowance of members of the armed forces of the United States and members of their reserve components, including the National Guard.
(b) Proceeds from welfare benefits, unemployment insurance benefits, social security benefits, and qualified retirement plans as defined by the Internal Revenue Service.
(c) Dues, contributions and similar payments received by charitable, religious, educational or literary organizations or labor unions, lodges and similar organizations.
(d) Proceeds of insurance, annuities, workers’ compensation insurance, permanent disability benefits, compensation for damages for personal injury and like reimbursements, not including damages for loss of profits and wages.
(e) Alimony or spousal support.
(f) Gains from involuntary conversions, cancellations of indebtedness, interest on Federal obligations, and income of a decedent’s estate during the period of administration (except such income from the operation of a business).
(g) Earnings and income of all persons under eighteen (18) years of age, whether residents or non-residents.
(h) Compensation for damage to property by way of insurance or otherwise.
(i) The rental value of a home furnished to a minister of the gospel as part of his compensation, or the rental allowance paid to a minister of the gospel as part of his compensation, to the extent used by him to rent or provide a home pursuant to section 107 of the Internal Revenue Code.
(j) Compensation paid under Section 3501.28 or 3501.36 of the Ohio Revised Code to a person serving as a precinct election official, to the extent that such compensation does not exceed one thousand dollars annually. Such compensation in excess of one thousand dollars may be subject to taxation. The payer of such compensation is not required to withhold City tax from that compensation.
(k) Compensation of an individual if all of the following apply:
(1) The individual does not reside in the City.
(2) The compensation paid is for personal services performed by the individual in the City on twelve or fewer days, or any part of a day, in the calendar year.
(3) In the case of an individual who is an employee, the principal place of business of the individual’s employer is located outside the City, and the individual pays tax on said compensation to the municipality, if any, in which the employer’s principal place of business is located and no portion of that tax is refunded to the individual.
(4) The individual is not a professional entertainer or professional athlete, the promoter of a professional entertainment or sport event, or an employee of such a promoter.
(l) Interest and dividends from intangible property.
(m) Income of any charitable, educational, fraternal or other type of nonprofit association or organization enumerated in Ohio Revised Code 718.01 to the extent that such income is derived from tax-exempt real estate, tax-exempt tangible or intangible property, or tax-exempt activities.
(n) Any association or organization falling in the category listed in the preceding paragraph receiving income from non-exempt real estate, tangible or intangible personal property, or business activities of a type ordinarily conducted for profit by taxpayers operating for profit shall not be excluded hereunder.
(o) In the event any association or organization receives taxable income as provided in the proceeding paragraph from real or personal property ownership or income producing business located both within and without the corporate limits of the City, it shall calculate its income apportioned to the City under the method or methods provided in Article II-6 of the Rules and Regulations.
(p) If exempt for federal income tax purposes, fellowship and scholarship grants are excluded from City income tax.
(q) The income of a public utility, when that public utility is subject to the tax levied under section 5727.24 or 5727.30 of the Ohio Revised Code, except a municipal corporation may tax the following, subject to Chapter 5745. of the Ohio Revised Code:
(1) The income of an electric company or combined company;
(2) The income of a telephone company.
As used in subsection (q) hereof, “combined company”, “electric company”, and “telephone company” have the same meanings as in section 5727.01 of the Ohio Revised Code.
(r) An S corporation shareholder’s distributive share of net profits of the S corporation, other than any part of the distributive share of net profits that represents wages as defined in section 3121(a) of the Internal Revenue Code or net earnings from self- employment as defined in section 1402(a) of the Internal Revenue Code, to the extent such distributive share would not be allocated or apportioned to this State under division (B)(1) and (2) of section 5733.05 of the Ohio Revised Code if the S corporation were a corporation subject to the taxes imposed under Chapter 5733 of the Ohio Revised Code.
(s) Generally the above noted items in this section are the only forms of income not subject to the tax. Any other income, benefits, or other forms of compensation shall be taxable. (Ord. 57-2003. Passed 12-30-03.)