(a) Taxable Income. Subject to Section 880.20, an annual tax for the purposes specified in this chapter shall be imposed on and after January 1, 1989, at the rate of one percent per year. On or after January 1, 1995, an annual tax for the purpose of improving police services shall be imposed at the rate of five-tenths of one percent per year upon the following:
(1) On all salaries, wages, commissions and other compensation earned during the effective period of this chapter by residents of the Municipality;
(2) On all salaries, wages, commissions and other compensation earned during the effective period of this chapter by nonresidents for work done or services performed or rendered in the Municipality;
(3) On the portion attributable to the Municipality of 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 the Municipality;
(4) 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 the Municipality and not levied against such unincorporated business entity by the Municipality;
(5) On the portion attributable to the Municipality of the net profits earned during the effective period of this chapter of all nonresident unincorporated businesses, professions or other entities, derived from sales made, work done, services performed or rendered and business or other activities conducted in the Municipality, whether or not such unincorporated business entity has an office or place of business in the Municipality;
(6) 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 nonresident unincorporated business entity not attributable to the Municipality and not levied against such unincorporated business entity by the Municipality;
(7) On the portion attributable to the 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 the Municipality, whether or not such corporations have an office or place of business in the Municipality, as defined in Ohio R.C. 718.01;
(8) On all stock options or other compensation received in the form of property when included on Form W-2 or Form 1099 for Federal purposes;
(9) On all contributions of (or premiums paid by) the employer in the case of nonqualified plans when made and reported on IRS Form W-2 or Form 1099;
(10) Capital gains and losses from sale, exchange or other disposition of property shall not be taken into consideration in arriving at net profits earned. However, any amount or value realized on a sale, exchange or other disposition of tangible personal property or real property used in business in excess of book value shall be treated as taxable income under this chapter to the extent of depreciation allowed or allowable.
(11) On all net gambling winnings in excess of one thousand dollars ($1,000). Gambling includes, but is not limited to, bingo, keno, slot machines, casino games, horse racing, dog racing, jai alai, sweepstakes, wagering pools, lotteries, prizes and any other wagering transactions.
(b) Exemptions. The Municipality shall not tax the compensation of an individual if all of the following apply:
(1) The individual does not reside in the Municipality;
(2) The compensation is paid for personal services performed by the individual in the Municipality on twelve or fewer days during the calendar year;
(3) In the case of an individual who is an employee, the principal place of business of the individual's employer is located outside the Municipality and the individual pays tax compensation described in this section to the Municipality, if any, in which the employer's principal place of business is located, and no portion of that tax is refunded to the individual; and
(4) The individual is not a professional entertainer or professional athlete, the promoter of a professional entertainment or sports event, or an employee of such a promoter, all as may be reasonably defined by the Municipality.
(c) Net Profits Attributable to the Municipality. The portion of the net profits attributable to the Municipality of a taxpayer conducting a business, profession or other activity both within and without the boundaries of the 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.
(d) Rental of Real Estate. As a general rule, rental of real estate for purposes of this chapter constitutes the operation of a business, and net profits earned are subject to taxation hereunder.
(Res. 29-00. Passed 12-12-00; Ord. 28-04. Passed 11-9-04; Ord. 7-14. Passed 7-22-14; Ord. 2-15. Passed 1-27-15.)