(1) On all gross salaries, gross wages, commissions, tips, gratuities, and other compensation earned during the effective period of this chapter by residents of this Municipality.
(2) On all gross salaries, gross wages, commissions, tips, gratuities, and other compensation earned during the effective period of this chapter by non- residents who are employees of a resident unincorporated business entity or resident incorporated business entity.
(3) On earnings, payments, bonuses, commissions and/or fees emanating from business or other activities conducted within the Municipality and received by professionals, brokers and others who are independent contractors and not employees and who are residents or non-residents of the Municipality.
(4) A. On the portion attributable to this Municipality of the net profits earned during the effective period of this chapter of all resident unincorporated businesses, professions or other entities, derived from sales made, work done, services performed or rendered and business or other activities conducted in or for this Municipality, the owners of which are not residents of the Municipality.
B. On the portion of the distributive share of the net profits earned during the effective period of this chapter of a resident partner or owner of a resident unincorporated business entity not attributable to this Municipality and not levied against such unincorporated business entity by this Municipality.
(5) A. On the portion attributable to this Municipality of the net profits earned during the effective period of this chapter of all non-resident unincorporated businesses, professions or other entities, derived from sales made, work done or services performed or rendered and business or other activities conducted in or for this Municipality, the owners of which are not residents of the Municipality and whether or not such unincorporated business entity has an office or place of business in this Municipality.
B. On the portion of the distributive share of the net profits earned during the effective period of this chapter of a resident partner or owner of a non-resident unincorporated business entity not attributable to this Municipality and not levied against such unincorporated business entity by this Municipality.
(6) On the portion attributable to this Municipality, of the net profits earned, during the effective period of this chapter, of all corporations derived from sales made, work done, services performed or rendered and business or other activities conducted in or for this Municipality, whether or not such corporations have an office or place of business in this Municipality.
(b) The portion of the net profits attributable to this Municipality of a taxpayer conducting a business, profession or other activity both within and without the boundaries of this Municipality shall be determined as provided in Ohio R.C. 718.02 and in accordance with the Rules and Regulations adopted by the Finance Director pursuant to this chapter.
(c) In the computation of any tax due under this chapter, a business loss of any tax year shall not be allowed or carried forward or backwards to reduce the tax due in any subsequent tax year.
(d) For no reason may a business loss be offset against salaries, wages, commissions or other personal service compensation.
(e) Consolidated Returns.
(1) Filing of consolidated returns may be permitted, required or denied in accordance with Rules and Regulations prescribed by the Finance Director. However, an affiliated group of corporations shall, subject to the provisions of this chapter, have the privilege of making a consolidated return with respect to the income tax imposed for the taxable year in lieu of separate returns. The making of a consolidated return shall be done, in the same way that a consolidated return for the affiliated group is filed with the Internal Revenue Service. All corporations that at any time during the taxable year have been members of the affiliated group must consent to all the prescribed consolidated return regulations prior to the last day prescribed by this chapter for the filing of such return. The filing of a consolidated return shall constitute such consent. In the case of a corporation which is a member of the affiliated group for a fractional part of the year, the consolidated return shall include the income of such corporation for such part of the year as it is a member of the affiliated group.
(2) In the case of a corporation that carried on transactions with its stockholders or with other corporations related by stock ownership, interlocking directorates, or some other method, or in case any person operates a division, branch, factory, office, laboratory or activity within this Municipality constituting a portion only of its total business, the Finance Director shall require such additional information as he may deem necessary to ascertain whether net profits are properly allocated to this Municipality. If the Finance Director finds net profits are not properly allocated to this Municipality by reason of transactions with stockholders or with other corporations related by stock ownership, interlocking directorates, or transactions with such division, branch, factory, office, laboratory or activity or by some other method, he shall make such allocations as he deems appropriate to produce a fair and proper allocation of net profits to this Municipality.
(f) Other Taxable Income.
(1) Contributions to an IRA, SEP, 401K, H.R. 10 Plan or any other deferred program that are subject to Social Security and/or Medicare Plans but may not W-2 Gross Income, are taxable.
(2) Income from Subchapter S Corporations, Limited Liability Companies and other Pass-Through Entities are taxable to a resident shareholder to the extent not subject to Municipality Income Tax. If you are a shareholder or member in such an entity, you must include in your income your share of the corporation's taxable income whether or not the amount was actually distributed to you.
(3) The premium value of group term life insurance coverage in excess of fifty thousand dollars ($50,000) which is purchased with employer contributions is taxable. This income is known as "imputed income".
(4) The ordinary income portion of a stock option or employee stock purchase plan, as defined by the Internal Revenue Service, is subject to the tax.
(5) Supplemental Unemployment Benefits received (SUB Payments) are subject to the tax.
(6) Winnings over five thousand dollars ($5,000) earned or derived from gaming, wagering, lotteries (including, but not limited to, the Ohio State Lottery) or games of chance are taxable.
(7) Early retirement incentives, wage continuation plans and severance plan payments received, are taxable.
(8) Executor, administrator and trustee fees are taxable.
(9) Royalties are taxable.
(g) Exemptions. The provisions of this chapter shall not be construed as levying a tax
upon the following:
(1) Funds received, directly or indirectly, from local, state, or federal governments because of service in the armed forces of the United States by the person rendering such service or as a result of the service of another person.
(2) Alimony payments, child support, poor relief, pensions, Social Security benefits, unemployment compensation (but not including Supplemental Unemployment Benefits) and disability benefits received from private industry or local, state or federal governments or from charitable, religious or educational organizations.
(3) Dues, contributions and similar payments received by charitable, religious, educational, or literary organizations or labor unions, lodges, and similar organizations.
(4) Receipts from casual entertainment, amusements, sports events, and health and welfare activities conducted by bona fide charitable, religious and educational organizations and associations.
(5) Any association, organization, corporation, club or trust, which is exempt from federal taxes on income by reason of its charitable, religious, educational, literary, scientific, et cetera, purposes.
(6) Gains from involuntary conversions, cancellation 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).
(7) Earnings and income of all persons under eighteen (18) years of age, whether residents or non-residents.
(8) On or after January 1, 2001, compensation paid to an individual for personal services performed in this Municipality.
A. If the individual does not reside in this Municipality; and
B. If they perform such personal services in this Municipality on twelve (12) or fewer days in the calendar year; and
C. If this individual is an employee and the principal place of business of the individual's employer is located outside this Municipal corporation, and the individual pays taxes on this compensation to the municipal corporation in which the employer's principal place of business is located and that no portion of that tax is refunded to this individual.
(9) The rental value of a home furnished to a minister of the gospel as part of his/her compensation or the rental allowance paid to him/her as compensation to the extent used by the minister to rent or provide a home.
(10) Proceeds of insurance paid by reason of death of the insured, annuities, workers compensation insurance benefits, compensation for personal injuries and like reimbursements, not including damages for the loss of profits.
(11) Compensation for damage to property received by way of insurance or otherwise.
(12) Interest and dividends as listed by individuals on Form 1040, Schedule B.
(Ord. 2013-37. Passed 11-20-13.)