(a) As used in this chapter, the following words shall have the meaning ascribed to them in this section, except as and if the context clearly indicates or requires a different meaning.
(b) Adjusted Federal Taxable Income. A “C” corporation’s federal taxable income before net operating losses and special deductions as determined under the Internal Revenue Code, but including subsequent adjustments from required additions and deductions. Pass-through entities must compute “Adjusted Federal Taxable Income” as if the pass-through entity was a “C” corporation. This definition does not apply to any taxpayer required to file a return under Ohio Revised Code section 5745.03 or to the net profit from a sole proprietorship. This definition is effective for tax years beginning on or after January 1, 2004.
(c) Association. A partnership, limited partnership, or any other form of unincorporated enterprise owned by two or more persons.
(e) Business. An enterprise, activity, profession, or undertaking of any nature conducted for profit or ordinarily conducted for profit, whether by an individual, partnership, association, corporation, or any other entity, including but not limited to renting or leasing property, whether real, personal or mixed.
(f) Compensation. Any form of remuneration earned and received by an employee for personal services.
(g) Corporation. A corporation, including a corporation making an “S corporation” election under 26 U.S.C. §1361, or joint stock association organized under the laws of the United States, the State of Ohio, or any other state territory, or foreign country or dependency.
(h) Director of Taxation. (Also referred to as “Director”) The Director of Taxation of the Village of Cardington, Ohio, or the person or organization executing the duties of the Director of Taxation.
(i) Domicile. The principal residence that the taxpayer intends to use for an indefinite time and to which, whenever he is absent, he intends to return. A taxpayer has only one domicile even though he may have more than one residence.
(j) Employee. An individual whose earnings are subject to the withholding of federal income tax or social security tax.
(k) Employer.
(1) An individual, partnership, limited partnership, association, corporation, governmental body, unit or agency, or any other entity, whether or not organized for profit who or that employs one or more persons on a salary, wage, commission, or other compensation basis.
(2) A person who employs one or more persons to provide domestic help for such person’s private residence shall not be consider an employer of the persons providing such domestic help for municipal income tax withholding purposes, and shall not be required to withhold and or remit municipal income tax on behalf of the domestic help. This provision does not affect any other responsibility or obligation such a person may have as an employer of others providing domestic help.
(l) Fiscal Year. An accounting period of twelve (12) months or less ending on any day other than December 31. Only the fiscal year accepted by the Internal Revenue Service for federal income tax purposes may be used for municipal income tax purposes.
(m) Generic Form. An electronic or paper form designed for reporting estimated municipal income taxes, and/or annual municipal income tax liability, and/or requests for refunds, which contain all the information required on Village of Cardington regular tax return, estimated payment forms, and request for refund forms, and are in a similar format that will allow processing of the generic forms without altering the Village of Cardington procedures for processing forms.
(n) Gross Receipts. The revenue derived from sales, work done, or services rendered before any deductions, exceptions or credits are claimed.
(o) Income. All monies, subject to limitation imposed by Chapter 718 of the Revised Code, derived from any source whatsoever, including but not limited to
(1) All income, salaries, qualifying wages, commissions, other compensation and other income from whatever source received by residents of the Village of Cardington,
(2) All income, salaries, qualifying wages, commissions, other compensation, and other income from whatsoever source received by nonresidents for work done or services performed or rendered or activities conducted in the Village of Cardington, and
(3) The portion attributable to the Village of Cardington of the net profits of all unincorporated businesses, associations, professions, corporations, or other entities, form sales made, work done, services performed or rendered, and business or other activities conducted in the Village of Cardington.
(p) Intangible Income. Income of any of the following types: income yield, interest, dividends, capital gains, or other income arising from the ownership, sale, exchange, or other disposition of intangible property including, but not limited to, investments, deposits, money, or credits as those terms are defined in Chapter 5701 of the Revised Code, and patents, copyrights, trademarks, tradenames, investments in real estate investment trusts, investments in regulated investment companies, and appreciation on deferred compensation.
(q) Net Profits.
(1) For tax years prior to 2004, “net profits” means a net gain from the operation of a business, profession, enterprise or other activity after provision for all ordinary and necessary expenses either paid or accrued in accordance with the accounting system used by the taxpayer for Federal Income Tax purposes, without deduction of taxes imposed by this Ordinance, federal, state, and other taxes based on income; and in the case of an association, without deduction of salaries paid to partners, and other owners; and otherwise adjusted to the requirements of this Ordinance.
(2) For tax years beginning on or after January 1, 2004, “net profits” for a taxpayer other than an individual natural person means “Adjusted Federal Taxable Income,” as defined above.
(r) Non-Resident. An individual, partnership, limited partnership, corporation, association or other entity domiciled outside the Village of Cardington.
(s) Non-Resident Unincorporated Business Entity. An unincorporated business entity not having an office or place of business within the Village of Cardington.
(t) Other Entity. Any person or unincorporated body not previously named or defined including inter alia, fiduciaries located within the Village of Cardington.
(u) Pass- Through Entity. A partnership, S corporation, Limited Liability Company or any other class of entity the income or profits from which are given pass-through treatment under the Internal Revenue Code. Limited Liability Company means a Limited Liability Company formed under chapter 1705 of the Ohio Revised Code or under a similar law of another state. Unless specified otherwise, any pass-through entity will be considered an “association” and shall be subject t the tax treatment accorded associations.
(v) Person. Every natural person, partnership, fiduciary, association, or corporation. Whenever used in any clause prescribing and imposing a penalty, the term Person as applied to any unincorporated entity, shall mean the partners or members thereof, and as applied to corporations, the officers thereof.
(w) Place of Business. Any bona fide office (other than a mere statutory office), factory, warehouse, or other space which is occupied and used by the taxpayer in carrying on any business activity individually or through one or more of his regular employees regularly in attendance.
(x) Qualifying wage. These are wages as defined in Section 3121(a) of the Internal Revenue Code, without regard to any wage limitations, but including subsequent adjustments from required additions and deductions. “Qualifying wage” represents employees’ income, including non-qualified deferred compensation and stock options, from which municipal tax shall be deducted by the employer, and any wages not considered a part of “qualifying” wage shall not be taxed by the Village of Cardington. This definition is effective for tax years beginning on and after January 1, 2004.
(y) Resident. An individual tenant, partnership, limited partnership, corporation, fiduciary, or association domiciled in the Village of Cardington.
(z) Resident Unincorporated Business Entity. An unincorporated business entity having an office or place of business within the Village of Cardington.
(aa) S Corporation. A corporation that has made an election under subchapter S of Chapter 1 of Subtitle A of the Internal Revenue Code (26 U.S.C. §§1361 et seq.) for its taxable year.
(bb) Taxable Income. Income, as defined above, minus the deductions and credits allowed by this chapter.
(cc) Taxable Year. The calendar year, or the fiscal year upon the basis of which the net profits are to be computed under this chapter and, in the case of a return for a fractional part of a year, the period for which such return is required to be made.
(dd) Taxpayer. A person, whether an individual, partnership, limited partnership, association, or any corporation or other entity, required hereunder to file a return or pay a tax hereunder.
(ee) Tax Year. The year in which the taxable year begins.
(ff) The singular shall include the plural, and the masculine shall include feminine and the neuter.
(Ord. 2005-27. Passed 11-7-05.)
(Ord. 2005-27. Passed 11-7-05.)