An annual tax for the purposes specified in Section 181.01 shall be imposed, upon the following items of income, on and after January 1, 1984, at the rate of .50%, on and after January 1, 1996, at the rate of .75%, on and after January 1, 2001, at the rate of 1% and on and after January 1, 2004, at the rate of 1.1% (see subsection (i):
(a) On all income, qualifying wages, commissions, and other compensation earned or received on and after January 1, 1984 by residents of the Municipality.
(b) On all income, qualifying wages, commissions and other compensation earned or received on and after January 1, 1984, by nonresidents of the Municipality for work done or services performed or rendered within the Municipality.
(c) (1) On the portion attributable to the Municipality on the net profits earned on and after January 1, 1984, 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 Municipality.
(2) On the portion of the distributive share of the net profits earned on and after January 1, 1984, of a resident partner or owner of a resident unincorporated business entity not attributable to the Municipality and not levied against such unincorporated business entity by the Municipality.
(d) (1) On the portion attributable to the Municipality of the net profits earned on or after January 1, 1984, of all nonresident 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 Municipality, whether or not such unincorporated business entity has an office or place of business in the Municipality.
(2) On the portion of the distributive share of the net profits earned on and after January 1, 1984, or a resident partner or owner of a nonresident unincorporated business entity not attributable to the Municipality and not levied against such unincorporated business entity by the Municipality. However, effective for tax years 2004 and later, the distributive share of income paid to an S corporation shareholder shall be taxable in the following manner:
A. If no portion of the net profits of the S corporation are allocated or apportioned to the State of Ohio, the distributive share is taxable only to the extent that it represents wages or net earnings from self-employment.
B. If any portion of the net profits of the S corporation are allocated or apportioned to the State of Ohio, the full amount of the distributive share is taxable.
(e) On the portion attributable to the Municipality of the net profits earned on and after January 1, 1984, of all corporations, derived from sales made, work done, services performed or rendered, and business or other activities conducted in the Municipality, whether or not such corporations have an office or place of business in the Municipality.
(f) On the portion attributable to this Municipality pursuant to the terms of this chapter and including:
(1) Royalty income. Income earned by a taxpayer from royalty interest in the production of an oil or gas well, whether managed, extracted or operated by the taxpayer individually or through an agent or other representative, shall be included in the computation of net profits from a business activity to the extent that such royalty interest constitutes a business activity of the taxpayer. Where the gross income received by a taxpayer from a royalty interest in the production of an oil or gas well in a taxable year exceeds three thousand dollars ($3,000), it shall be prima facie evidence that the income was derived from a business activity of such taxpayer and the net income from such royalty interest shall be subject to tax.
(2) Finance carrying charges. The employer's income derived from finance and carrying charges associated with their consumer's accounts receivable.
(g) In determining income subject to taxation, losses from the operation of a business or profession cannot be used to reduce wages from employment or other non-business income.
(h) Every individual taxpayer who resides in Canal Fulton who receives income as specified in this section, if it be made to appear that he or she has paid a municipal income tax on the same income taxable under this chapter to another municipality or Joint Economic Development District, shall be allowed a credit against the tax imposed by this chapter of the amount so paid by him or her or on his or her behalf to such other municipality or Joint Economic Development District. The credit shall be 50% of the tax assessed by this chapter on such income earned in such other municipality or Joint Economic Development District where such tax is paid. This subsection shall be effective January 1, 2002. (See Section 181.33)
(i) Effective January 1, 2004, there shall be an additional tax of .1 percent levied for Police Department operations, for a total tax rate of 1.1%.
(j) There shall be levied an additional tax to the general fund for: the need to provide 24-hour fire and EMS staffing; the need to hire one additional full-time police officer and two part-time officers; the need to begin an asphalt paving program for city streets; traffic safety improvements; the need to establish an adequate replacement schedule for fire and EMS trucks, police cruisers, and snow plow and road maintenance trucks; to establish a managed reserve fund; the elimination of the 1 mill property levy for fire and EMS; the elimination of the 1 mill levy for police purposes; and other purposes on all income taxes under this section on and after January 1, 2008, at the rate of four-tenths of one percent (0.4%).
(Ord. 37-03. Passed 12-16-03; Res. 13-07. Passed 7-17-07.)