§ 95.18 IMPOSITION OF TAX; EXCEPTIONS.
   (A)   Bases.
      (1)   Resident employee.
          (a)   For the purpose of determining the tax on the earnings of resident taxpayers taxed under § 95.03(A)(1), the sources of the earnings and the place or places in or at which the services were rendered are immaterial. All such earnings wherever earned or paid are taxable.
         (b)   The following are items which are subject to the tax imposed by § 95.03(A)(1):
            1.   Gross salaries, wages, bonuses and incentive payment earned by an individual whether directly or through an agent and whether in cash or in property for services rendered during the tax period as:
               a.   An officer, director or employee of a corporation (including charitable and other non profit organizations), joint stock association or joint stock company;
               b.   An employee (as distinguished from a partner or member) of a partnership, limited partnership or any form of unincorporated enterprise owned by two or more persons;
               c.   An employee (as distinguished from a proprietor) of a business, trade or profession conducted by an individual owner;
               d.   An officer or employee (whether elected, appointed or commissioned) of the United States Government, or any of its agencies; or of the State of Ohio or any of its political subdivisions or agencies thereof; or any foreign country or dependency except as provided in § 95.03(F);
               e.   An employee of any other entity or person, whether based upon hourly, daily, weekly, semi monthly, monthly, annual, unit of production or piece work rates; and whether paid by an individual, partnership, association, corporation (including charitable and other non profit corporations), governmental administration, agency, authority, board, body, branch, bureau, department, division, subdivision, section or unit, or any other entity.
            2.   Commissions earned by an individual directly or through an agent and whether in cash or in property for services rendered, regardless of how computed or by whom or where so ever paid.
               a.   If amounts received as a drawing account exceed the commissions earned, and the excess is not subject to the demand of the employer for repayment, the tax is payable on the amounts received as a drawing account.
               b.    Amounts received from an employer for expenses, and not as compensation and used as such by the individual receiving them, are not deemed to be compensation if the employer deducts such expenses or advances as such from his gross income for the purpose of determining his net profits taxable under federal law, and the employee is not required to include such receipts as income on his federal tax return.
               c.   If commissions are included in the net earnings of the trade, business, profession, enterprise or activity carried on by an unincorporated entity of which the individual receiving such commission is owner or part owner, they shall not be taxed under § 95.03(A)(1).
            3.   Fees, unless such fees are properly includable as part of the net profits of a trade, business, profession or enterprise regularly carried on by an unincorporated entity owned or partly owned by said individual.
            4.   Other compensation, including tips, bonuses or gifts of any type, and including compensation paid to domestic servants, casual employees and other types of employees.
            5.   Payments made to an employee by an employer as vacation pay or wages under any other wage continuation plan during periods of disability or sickness are taxable when paid. Payments made by third parties (insurance companies) to an employee for sick or disability pay are taxable if the amount appears on a W-2 form and the employer has paid the premium for this insurance coverage.
            6.   Sums deducted from gross wages or other compensation for retirement purposes (deferred compensation) are taxable.
            7.   If the income appears on a W-2 form and is not shown to be an exception in accordance with division (F) of this section. Exceptions, it shall be considered other compensation and therefore taxable to the individual. This includes, but is not limited to:
               a.   Tips, bonuses, fees, gifts in lieu of pay, gratuities.
               b.    Supplemental unemploy-ment pay, severance pay.
               c.    Incentive payments, no matter how described, including, but not limited to payments to induce early retirement.
               d.   Car allowance, personal use of employer provided vehicle.
               e.    Employer paid group term life insurance premiums to the extent that they are taxable to the federal government.
               f.   Sick pay whether paid by the employer to the employee or through a third party.
               g.    Contributions by an employee or on behalf of an employee from gross wages, into an employee or third party trust or pension plan as permitted by any provision of the Internal Revenue Code which may be excludable from gross wages for federal income tax purposes (401K plans and similar plans).
               h.   The value of employer sponsored plans which permit the participant to reduce his taxable income for federal tax purposes. Such a reduction does not cause the gross wage or salary to lose its character as a gross wage or salary subject to the provisions of § 95.03(A) Basis of Imposition (cafeteria plans and the like).
               i.   The ordinary income portion of a stock option or employee stock purchase plan to the extent that it is shown on the W-2 as ordinary income and is includable on the taxpayer’s federal income tax return.
         (c)   Where compensation is paid or received in property, its fair market value, at the time of receipt, shall be subject to the tax and to withholding. Board, lodging and similar items received by an employee in lieu of additional cash compensation shall be included in earnings at their fair market value. In the case of domestic and other employees whose duties require them to live at their place of employment or assignment, board, and lodging shall not be considered as wages or compensation earned.
      (2)   Non resident employee.
          (a)   In the case of individuals who are not residents, there is imposed under § 95.03(A)(2) a tax on all gross salaries, wages, commissions and other compensation earned for work done or services
performed or rendered within the municipality whether such compensation or remuneration is received or earned directly or through an agent and whether paid in cash or in property. The location of the place from which payment is made is immaterial.
         (b)   The items subject to tax under § 95.03(A)(2) are the same as those listed and defined respecting a resident employee.
         (c)   A non-resident individual who works in the city 12 or fewer days per year shall be considered an itinerant as defined in the general regulations of this subchapter. However, beginning with the thirteenth day, the itinerant employee shall be no longer considered to have been an occasional entrant to the city and the employer shall be required to remit taxes on income earned in the city by the itinerant employee for the first 12 days thereon.
      (3)   (a)   Imposition of tax on resident unincorporated businesses.
            1.   The tax imposed on resident associations or other unincorporated entities owned by two or more persons is upon the entities rather that the individual members or owners thereof, but the tax imposed on an unincorporated resident entity owned by one person is upon the individual owner.
            2.   The tax imposed by § 95.03(A)(3) is imposed on all resident unincorporated entities having net profits attributable to the municipality under the method of allocation provided for, regardless of where the owner or owners of such resident unincorporated business entity reside.
            3.   Resident associations or unincorporated entities owned exclusively by residents of the municipality may elect to disregard the method of allocation provided for and pay the tax on their entire net profits if no allocation by the entity to another municipality exists. In such case, the tax paid by the entity shall constitute all tax due from the owners or members of the entity for their distributive share of such net profits; however, an additional return shall be required from any such owner or member having taxable income other than the distributive share of the net profits from the entity.
            4.   The tax imposed shall not apply to income derived within the municipality by any person from interstate commerce if the only business activities within the state by or on behalf of such person are either or both of the following.
               a.    Solicitation of orders by such person, or his representative, in the state for sales of tangible personal property, which orders are sent outside the state for approval or rejection, and, if approved, are filled by shipment or delivery from a point outside the state; and
               b.   The solicitation of orders by such person, or his representative in the state, in the name of or for the benefit of a prospective customer of such person, if orders by such customer to such person to enable such customer to fill orders resulting from such solicitations are orders described in division (3)4.a. above; provided however, that the provisions of this subsection shall not apply to any corporation which is incorporated under the laws of the state or any individual who is domiciled in or a resident of the state. For the purpose of this subsection a person shall not be considered to have engaged in a business activity within the state during any taxable year merely by reason of sales in the state, or the solicitation of orders for sales within the state, of tangible personal property on behalf of such person by one or more independent contractors or by reason of the maintenance of an office within the state by one or more independent contractors whose activities on behalf of such person in the state consist solely of making sales or soliciting orders for sales of tangible personal property. For the purpose of this subsection the term INDEPENDENT CONTRACTOR means a commission agent, broker, or other independent contractor who is engaged in selling or soliciting orders for sales of tangible personal property for more than one principal and who holds himself out as such in the regular course of his business activities. For the purpose of this subsection, the term REPRESENTATIVE does not include an independent contractor.
         (b)   Imposition of tax on resident’s distributive share of profits of a resident unincorporated business entity not attributable to the municipality.
            1.   A resident individual who is an owner of a resident unincorporated entity shall pay the tax on his entire share of net profits of the resident unincorporated business entity unless allocation to another municipality exists. See § 95.15 for credits.
            2.   In the case of a resident individual partner or part owner of a resident unincorporated entity, the tax is imposed on such individual’s distributive share of net profits not attributable to the municipality under the method of allocation provided for in § 95.03, and not taxed against the entity.
      (4)   (a)   Imposition of tax on nonresident unincorporated businesses.
            1.   In the case of non-resident associations or other unincorporated entities, whether or not they have an office or any place of business in the municipality, the tax is imposed on net profits attributable to the municipality under the method of allocation provided for in § 95.03.
            2.   The tax imposed on non resident associations or other unincorporated entities is upon the entities rather than the individual owners thereof.
            3.   The tax imposed by § 95.03(A)(3)a. is imposed on all non- resident associations and other unincorporated entities having net profits attributable to the municipality under the method of allocation provided for, regardless of where the owner or owners of such non resident associations or unincorporated entities reside.
            4.   Non-resident unincorporated entities owned exclusively by residents of the municipality may elect to disregard the method of allocation provided for and pay the tax on their entire net profits if no allocation by the entity to another municipality exists. In such case, the tax paid by the entity shall constitute all tax due from the owners or members of the entity for their distributive share of the net profits; however, a return shall be required from such owner or member having taxable income other than the distributive share of the net profits from the entity.
         (b)   Imposition of tax on resident’s share of profits of a non resident unincorporated business entity not attributable to the municipality.
            1.   A resident individual who is an owner of a non-resident unincorporated business entity shall pay the tax on his entire share of net profits of the unincorporated entity, unless allocation to another municipality exists.
            2.   In the case of a resident individual partner or part owner of a non resident unincorporated entity, the tax is imposed on such individual’s distributive share of net profits not attributable to the municipality under the method of allocation provided for in § 95.03, and not taxed against the entity.
      (5)   Imposition of tax on corporations.
         (a)   In the case of corporations, including S Corporations, whether domestic or foreign and whether or not such corporations have an office or place of business in the municipality, the tax is imposed on the net profits attributable to the municipality under the formula or separate accounting method provided for.
         (b)   In determining whether a corporation is conducting a business or other activity in the municipality, the provisions of these regulations shall be applicable.
         (c)   Corporations which are required by the provisions of Ohio R.C. §§ 5727.33 to 5727.41, inclusive, to pay an excise tax in any taxable year, may exclude that part of their gross receipts upon which the excise tax is paid. In such case, expenses incurred in the production of such gross receipts shall not be deducted in computing net profits subject to the tax imposed by § 95.03.
      (6)   Amplification. In amplification of the definition contained herein, but not in limitation thereof, the following additional information respecting net business profits is furnished.
         (a)   Net profits. Net profits shown on returns filed pursuant to this subchapter must be reconciled, with the income reported to the Federal Internal Revenue Service.
         (b)   Gross receipts.
            1.   Gross receipts shall include but not be limited to income in the form of commissions, fees, rentals from real and tangible personal property, and other compensation for work or services performed or rendered as well as income from sales of stock in trade.
            2.   From gross receipts there shall be deducted allowable expenses to arrive at the net profits subject to tax.
         (c)   Expenses.
            1.   All ordinary and necessary expenses of doing business, including reasonable compensation paid employees, shall be allowed but no deduction may be claimed for salary or withdrawal of a proprietor or of the partners, members or other owners of an unincorporated business, or enterprise.
               a.   If not claimed as part of the cost of goods sold or elsewhere in the return filed, there may be claimed and allowed a reasonable deduction for depreciation, depletion, obsolescence, losses resulting from theft or casualty not compensated for by insurance or otherwise of property used in the trade or business, but the amount may not exceed that recognized for the purpose of the federal income tax. Provided however, that loss on the sale, exchange or other disposition of depreciable property or real estate, used in the taxpayer’s business shall not exceed that recognized for the purpose of the federal income tax.
               b.    Current amortization of emergency facilities under the provisions of the Internal Revenue Code, if recognized as such for federal income tax purposes, may be included as an expense deduction hereunder.
               c.   Where depreciable property is voluntarily destroyed the cost of demolition of the building, less any increase in the value of the land caused by such demolition, will be allowed as an expense and may be completely taken in the year of demolition or over a period of not to exceed five years.
               d.   Bad debts in a reasonable amount may be allowed in the year ascertained worthless and charged off, or at the discretion of the Tax Administrator (if the reserve method is used), as reasonable addition to the reserve may be claimed, but in no event shall the amount exceed the amount allowable for federal income tax purposes.
               e.   Only taxes directly connected with the business may be claimed as a deduction. If for any reason the income from property is not subject to the tax, then taxes on and other expenses of said property are not deductible. In any event, the following taxes are not deductible from income: (1) the tax under this subchapter; (2) federal or other taxes based upon income; (3) gift, estate or inheritance taxes; and (4) taxes for local benefit or improvements to property which tend to appreciate the value thereof.
               f.   In general non-taxable income and expenses incurred in connection therewith are not to be considered in determining net profits. Income from intangibles, by way of dividends, interest and the like, shall not be included if such income is subject to taxation under the intangible personal property laws of the state or is specifically exempt from taxation under said law.
               g.    Expenses attributable to non-taxable income shall not be allowed. Where no record of such expenses is kept, 5% of the non- taxable income will be considered as expenses applicable. However, where interest income is equal to or greater than 25% of net income, and interest expenses are claimed, the expenses attributable to non- taxable income shall be 50% of the interest income or 5% of the total non-taxable income reported, whichever is greater.
               h.   An employee who is paid on a commission or other compensation basis and who pays his business expense from his commissions or other compensation without reimbursement from his employers may deduct from his gross commissions or other compensations, business expenses allowed by the Internal Revenue Service for federal income tax purposes but only incurred in earning commissions or other compensations subject to the tax imposed by this subchapter.
               i.    Income from the sale or lease of mineral rights are not taxable and expenses or loss in connection therewith are not deductible for tax purposes except in cases where the taxpayer conducts the activities by which the minerals are extracted from the land.
               j.   Funds allocated by an employer to an employees’ qualified profit sharing, pension or retirement fund are not taxable to the employee.
      (7)   Rental from real property.
         (a)   1.   The rental of real estate is ordinarily a business activity, and the income from such rentals is taxable, provided however, where the taxpayer’s entire rental activity produces gross rentals of less than $300 per month, it will be prima facie evidence that such rental activities are not a business activity. (If gross rentals equal or exceed $300 per month, the entire net income from rentals is taxable.)
            2.   In determining the amount of gross monthly rental of any real property, periods during which (by reason of vacancy or any other cause) rentals are not received shall not be taken into consideration by the taxpayer.
         (b)   Rentals received by a taxpayer engaged in the business of buying and selling real estate shall be considered as part of business income.
         (c)   Real property, as the term is used in this regulation, shall include commercial property, residential property, farm property and any and all other types of real estate.
         (d)   In determining the taxable income from rentals, the deductible expenses shall be of the same nature, extent and amount as are allowed by the Internal Revenue Service for federal income tax purposes.
         (e)   Residents of the municipality are subject to taxation upon the net income from rentals (to the extent above specified), regardless of the location of the real property owned. However, if any such property is located outside the municipality and is subject to another municipal income tax, credit shall be claimed in accordance with § 95.15.
         (f)   Non-residents of the municipality are subject to such taxation only if the real property is situated within the municipality.
         (g)   Corporations owning or managing real estate are taxed only on that portion of income derived from property located in the municipality.
      (8)   Patents and copyrights. Income from patents or copyrights is not to be included in net profits subject to tax if the income from such patents or copyrights is subject to state intangible tax. Conversely, such a state intangible tax is not deductible in determining the municipal tax. Such items shall be clearly disclosed on an attachment to be filed with the municipal tax return.
      (9)   Royalties. Income in the form of royalties is taxable if the taxpayer’s activities produced the publication or other product the sale of which produces the royalties.
   (B)   Allocation of business profits. A request to change the method of allocation must be made in writing before the end of the tax year.
      (1)   Separate accounting method.
         (a)   The net profits allocable to the municipality from business, professional or other activities conducted in the municipality by corporations or unincorporated entities (whether resident or non-resident) may be determined from the records of the taxpayer if taxpayer has bona fide records which disclose with reasonable accuracy what portion of his net profits is attributable to that part of his activities conducted within the municipality.
         (b)   If the books and records of the taxpayer are used as the basis of apportioning net profits rather than the business allocation formula, a statement must accompany the return explaining the manner in which such apportionment is made in sufficient detail to enable the Tax Administrator to determine whether the net profits attributable to the municipality are apportioned with reasonable accuracy.
         (c)   In determining the income allocable to the municipality from the books and records of a taxpayer, an adjustment may be made for the contribution made to the production of such income by headquarters activities of the taxpayer, whether such headquarters is within or without the municipality.
      (2)   Business allocation percentage method.
         (a)   STEP 1.    Ascertain the percentage which the average net book value of real and tangible personal property, including leasehold improvements, owned or used in the business and situated within the municipality is of the average net book value of all real and tangible personal property including leasehold improvements, owned or used in the business wherever situated, during the period covered by the return.
            1.   The percentage of the taxpayer’s real and tangible personal property within the municipality is determined by dividing the average net book value of such property within the municipality (without deduction of any encumbrances) by the average net book value of all such property within and without the municipality. In determining such percentage, property rented to the taxpayer as well as real and tangible personal property owned by taxpayer must be considered.
               a.   The net book value of real and tangible personal property rented by the taxpayer shall be determined by multiplying gross annual rents by eight.
               b.   Gross rents means the actual sum of money or other consideration payable, directly or indirectly by the taxpayer for the use or possession of property and includes:
                  i.    Any amount payable for the use or possession of real and tangible personal property or any part thereof, whether designated as a fixed sum of money or as a percentage of sales or profits or otherwise.
                  ii.    Any amount payable as additional rent or in lieu of rent such as interest, taxes, insurance, repairs or other amounts required to be paid by the terms of a lease or other arrangement.
               c.   Non- resident professional persons shall use the factor of number of offices everywhere to the number of offices located in the municipality. A residence may not be considered an office unless a portion thereof is used exclusively for business purposes and is reached by a separate entrance in an exterior wall which does not serve as the entrance to the balance of the building.
         (b)   STEP 2. Ascertain the percentage which the gross receipts of the taxpayer derived from sales made and services rendered in the municipality is of the total gross receipts wherever derived during the period covered by the return. All resident corporations, unincorporated businesses, or other entities whose principal place of business is within the municipality, shall be considered a resident municipal business and be subject to the following provision: If the sales allocation percentage is less than 100%, a statement must be submitted with the return indicating: other municipalities to which sales are allocated; percentage of sales allocated to each municipality; whether or not a return was filed and tax paid on the sales allocated to each municipality. Failure to submit this statement (or when the statement indicates no other municipal tax was filed and paid), will result in all sales being considered as municipality sales.
            1.   The following sales shall be considered municipality sales:
               a.   All sales made through retail stores located within the municipality to purchasers within or without the municipality except such of said sales to purchasers outside the municipality that are directly attributable to regular solicitations made outside the municipality personally by the taxpayer’s employees.
               b.   All sales of tangible personal property delivered to purchasers within the municipality if shipped or delivered from an office, store, warehouse, factory or place of storage located within the municipality.
               c.   All sales of tangible personal property delivered to purchasers within the municipality even though transported from a point outside the municipality if the taxpayer is regularly engaged through its own employees in the solicitation or promotion of sales within the municipality and the sale is directly or indirectly the result of such solicitation.
               d.   All sales of tangible personal property shipped from an office, store, warehouse, factory or place of storage within the municipality to purchasers outside the municipality if the taxpayer is not, through its own employees regularly engaged in the solicitation or promotion of sales at the place of delivery.
               e.    Charges for work done or services performed incident to a sale, whether or not included in the price of the property shall be considered gross receipts from such sale.
            2.   In the application of the foregoing divisions a carrier shall be considered the agent of the seller, regardless of the FOB point or other conditions of the sale. The place at which orders are accepted or contracts legally consummated shall be immaterial. Solicitation of customers outside the municipality by mail or phone from an office or place of business within the municipality shall not be considered a solicitation of sales outside the municipality.
            3.   Non-resident professional persons shall use the factor of municipality billings over total billings.
         (c)   STEP 3. Ascertain the percentage which the total wages, salaries, commissions and other compensation of employees within the municipality is of the total wages, salaries, commissions and other compensation of all the taxpayer’s employees within and without the municipality during the period covered by the return.
            1.   Salaries and reasonable compensation paid owners or credited to the account of owners or partners during the period covered by the return are considered wages for the purpose of this computation.
            2.   Qualifying wages, salaries and other compensation shall be computed on the cash or accrual basis in accordance with the method of accounting used in the computation of the entire net income of the taxpayer.
            3.   In the case of an employee who performs services both within and without the municipality the amount treated as compensation for services performed within the municipality shall be deemed to be:
               a.   In the case of an employee whose compensation depends directly on the volume of business secured by him, such as a salesman on a commission basis, the amount received by him for the business attributable to his efforts within the municipality.
               b.   In the case of an employee whose compensation depends on other results achieved, the proportion of the total compensation received which the value of his services within the municipality bears to the value of all his services; and
               c.   In the case of an employee compensated on a time basis, the proportion of the total amount received by him which his working time within the municipality is of his total working time.
               d.    Provided however, an employee regularly connected with or working out of a place of business maintained by the taxpayer in the municipality who performs 75% or more of his services within the municipality be considered an employee within the municipality.
            4.   a.   Non- resident professional persons shall use the factor of days spent within the municipality to total working days.
               b.   All employees regularly connected with or working out of a place of business maintained by the taxpayer outside the municipality who perform 25% or less of their services within the municipality shall be considered employees outside the municipality. (The provisions of this division are not applicable in determining the tax liability of a non-resident who works in and outside the municipality.)
         (d)   STEP 4. Add the percentages determined in accordance with Steps 1, 2 and 3 or such of the aforesaid percentages as may be applicable to the particular taxpayer’s business and divide the total so obtained by the number of percentages used in ascertaining said total. The result so obtained is the business allocation percentage. In determining the average percentage, a factor shall not be excluded from the computation merely because said factor is found to be allocable entirely in or outside the municipality. A factor is excluded only when it does not exist anywhere.
         (e)   STEP 5. The business allocation percentage determined in Step 4 above shall be applied to the entire taxable net profits of the taxpayer wherever derived to determine the net profits allocable to the municipality.
      (3)   Substitute method.
         (a)   In the event a just and equitable result cannot be obtained under the formula, the Tax Administrator, upon application of the taxpayer, may substitute other factors in the formula or prescribe other methods of allocating net income calculated to effect a fair and proper allocation.
         (b)   Application to the Tax Administrator to substitute other factors in the formula or to use a different method to allocate net profits must be made in writing and shall state the specific grounds on which the substitution of factors or use of a different method is requested and the relief sought to be obtained. A copy thereof shall be served at the time of filing upon the taxpayer or the Tax Administrator as the case may be. No specific form need be followed in making such application. Once a taxpayer has filed under a substitute method he must continue to so file until given permission to change by the Tax Administrator.
         (c)   The decision of the Tax Administrator on divisions (3)(a) and (b) above may be appealed by the taxpayer to the Board of Appeals, which shall have the power to adjust, modify or overrule said decision of the Tax Administrator.
      (4)   Prima facie. In the case of professional people and others furnishing personal services, if their only place of business is within the municipality all their net profits shall prima facie be attributable to the municipality.
      (5)   Net operating loss. The portion of a net operating loss, based on income taxable under this subchapter, sustained in the taxable year beginning after December 31, 2002, allocable to the city may be applied against the portion of succeeding years allocable to the city, until exhausted, but in no event for more than three years immediately following the year in which the loss was sustained. No portion of a net operating loss shall be carried back against the net profits of any prior year.
   (C)   Consolidated returns.
       (1)   Consolidated returns may be filed by a group of corporations who are affiliated through stock ownership. For a corporation to be included in a consolidated return 80% of its stock must be owned by the other members of the affiliated group. A consolidated return must include all companies which are so affiliated.
      (2)   Once a consolidated return has been filed for any taxable year the consolidated group must continue to file consolidated return in subsequent years unless:
         (a)   Permission in writing is granted by the Tax Administrator to file separate returns.
         (b)   A new corporation other than a corporation created or organized by a member of the group has become a member of the group during the taxable year.
         (c)   A corporation member of the group is sold or exchanged. Liquidating a corporation or merging one of the corporations of the group into another will not qualify the group for filing separate returns.
   (D)   Exceptions. The following shall not be considered taxable:
      (1)   Poor relief, unemployment insurance benefits, old age pensions or similar payments received from local, state or federal government or charitable or religious organizations.
      (2)   Proceeds of insurance, annuities, workers’ compensation insurance, social security benefits, pensions, compensation for damages for personal injuries and like reimbursement, not including damages for loss of profits.
      (3)   Compensation for damage to property by way of insurance or otherwise.
      (4)   Interest and dividends from intangible property, and distributions from a decedent’s estate or a trust.
      (5)   Military pay and allowances received as a member of the Armed Forces of the United States.
      (6)   Any charitable, educational, fraternal or other type of non profit association or organization enumerated in Ohio R.C. § 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.
      (7)   Compensation earned by itinerants.
      (8)   Income from a fellowship is exempt only when given for attendance as a student at a recognized college or university and exempt for federal income tax purposes.
      (9)   Alimony is not taxed to the recipient nor is it allowed as a deduction by the payor.
      (10)   Capital gains and losses (including gains or losses from the sale, exchange, or other disposition of depreciable business property, and real property used in the taxpayer’s trader business) shall not be taken into consideration in arriving at net profits earned.
   (E)   Any taxpayer not exempt by subdivisions (D)(1) through (D)(9) is required to file a declaration and final return and remit the taxes levied under this subchapter.
(Ord. 1-05, passed 1-24-05; Am. Ord. 65-07, passed 10-9-07)