In the case of residents of the City of Bucyrus, an annual tax of one (1) percent is imposed on all qualifying wages, commissions, other compensation and other taxable income earned or accrued on or after January 1, 2004. There is also imposed on these same earnings any additional amount of tax of limited duration imposed by any prior ordinance or resolution for whatever time period is stated in that ordinance or resolution. For the purpose of determining the tax on the earnings of resident taxpayers, the source of the earnings and the place or places in or at which the services were rendered are immaterial. The tax, or taxes, shall be imposed on qualifying wages. All such earnings, wherever earned or paid are taxable; however, if a taxpayer’s income includes income against which the taxpayer has taken a deduction for Federal income tax purposes for employee business expense, as reported on Form 2106, a deduction in the same amount as shown on Form 2106 will be allowed for Bucyrus income tax purposes. If the income against which this deduction is taken was taxed by another municipality, credit for the tax paid to that city will be reduced in accordance with the said deduction.
The following are items which are subject to the tax:
(a) Qualifying wages and other compensation received by an individual, whether directly or through an agent and whether in cash or in property, for services rendered on and after January 1, 2004.
(1) As an officer, director or employee of a corporation (including charitable and other non-profit corporations), joint stock association or joint stock company;
(2) As an employee (as distinguished from a partner or member)of a partnership, limited partnership, or any other form of unincorporated enterprise owned by one or more persons;
(3) As an employee (as distinguished from the proprietor) of a business, trade or profession conducted by an individual owner;
(4) As an officer or employee (whether elected, appointed or commissioned) of a governmental administration, agency, arm, authority, board, body, branch, bureau, department, division, subdivision, section or unit of the State of Ohio or any of the political subdivisions thereof;
(5) As an officer or employee (whether elected, appointed or commissioned) of a governmental administration, agency, arm, authority, board, body, branch, bureau, department, division, subdivision, section or unit of the United States Government or of a corporation created and owned, or controlled by the United States Government or any of its agencies;
(6) As an employee of any other entity or person.
(b) Qualifying wages and other compensation received by an individual, whether directly or through an agent and whether in cash or in property, for services rendered on and after January 1, 2004.
(1) Whether based upon hourly, daily, weekly, semi-monthly, monthly, annual, unit of production, or piece-work rates; and
(2) Whether paid by an individual, limited partnership, partnership, association, corporation (including charitable and other non-profit corporations), governmental administration, agency, arm, authority, board, body, branch, department, division, subdivision, section or unit, or any other entity.
(c) Commissions received by a taxpayer whether directly or through an agent and whether in cash or in property, for services rendered on and after January 1, 2004 regardless of how computed, by whom or wheresoever paid.
If amounts received as a drawing account exceed the commissions earned, the tax is paid on the gross amount received.
Amounts received from an employer by way of employee business expense and not by way of compensation and used as such by the individual receiving them, are not deemed to be compensation, whether or not the employer deducts these amounts as an expense in determining his net profits.
If such commissions are included in the net earning of a trade, business, profession, enterprise or activity carried on by such individual and therefore subject to tax under Section 185.02(c), they shall not again be separately taxed. In such case, such net earnings shall be taxed as provided in Section 187.11.
(d) The receipt of fees and other compensation for personal services rendered shall be deemed to be subject to tax under the Ordinance.
(e) Domestic servants are subject to tax under the Ordinance, but are not subject to withholding provisions. That is to say, the Domestic will report earnings and pay the tax directly to the Bucyrus Income Tax Department.
(f) Other compensation includes but is not limited to qualifying wages paid by the employer for the purpose of health, rest, recuperation or other rewards, regardless of label as sick pay, vacation pay, holiday pay, personal days, severance pay, annual leave, longevity, bonuses, or wage continuation plans.
(g) If a taxpayer has a nonqualified deferred compensation plan and does not receive said compensation as a result of the following, a refundable credit will be allowed as provided in Section 718.021 of the Ohio Revised Code:
(1) The insolvency or bankruptcy of the employer who had established the nonqualified deferred compensation plan; or
(2) The employee’s failure or inability to satisfy all of the employer’s terms and conditions necessary to receive the nonqualified deferred compensation.
(Res. 240-2003. Passed 12-30-03.)