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As used in this chapter, unless the context clearly indicates or requires a different meaning:
(a) Association" means a partnership, limited partnership or any other form of unincorporated enterprise owned by two or more persons.
(b) "Board of Review" means the Board of Review established by and constituted as provided in Section 880.14.
(c) "Business" means 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 other entity, including, but not limited to, the renting or leasing of property, real, personal or mixed.
(d) "Corporation" means a corporation or joint stock association organized under the laws of the United States, the State or any other state, territory or foreign country or dependency.
(e) "Domicile" means a 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.
(f) "Employee" means a person who works for a wage, salary, commission or other type of compensation in the service of an employer.
(g) "Employer" means an individual, partnership, association, corporation, governmental body, unit or agency or 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.
(h) "Finance Director" means the person designated by this chapter, whether appointed or elected, to administer and enforce this chapter.
(i) "Fiscal year" means an accounting period of twelve months or less ending on any day other than December 31.
(j) "Form 2106" means Internal Revenue Service Form 2106 filed by a taxpayer pursuant to the Internal Revenue Code.
(k) "Generic form" means an electronic or paper form designed for reporting estimated municipal income taxes and annual municipal income tax liability that is not prescribed by a particular municipal corporation for the reporting of that municipal corporation's tax on income.
(l) "Gross receipts" means the total income from any source.
(m) "Intangible income" means income of any of the following types: income yield, interest, capital gains, dividends, 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 Ohio Revised Code, and patents, copyrights, trademarks, trade names, investments in real estate investment trusts, investments in regulated investment companies, and appreciation on deferred compensation, not to include prizes, awards, or other income associated with any lottery or other similar games of chance provided by Ohio R.C. 718.01.
(n) "Internal Revenue Code" means the Internal Revenue Code of 1986, 100 Stat. 2085, 26 U.S.C. 1, as amended.
(o) "Internet" means the international computer network of both federal and nonfederal interoperable packet switched data networks, including the graphical subnetwork known as the world wide web.
(p) "Net profits" means a net gain from the operation of a business, profession, enterprise or other activity, after provision for all ordinary, reasonable 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 chapter or Federal, State and other taxes based on income, exclusive of the amount of the State franchise tax computed on the net worth basis, 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 chapter.
(q) "Nonresident" means a person domiciled outside the Municipality.
(r) "Nonresident unincorporated business entity" means an unincorporated business entity not having an office or place of business within the Municipality.
(s) "Ohio business gateway" means the online computer network system, initially created by the Department of Administrative Services, that allows private businesses to electronically file business reply forms with state agencies and includes any successor electronic filing and payment system as provided in Ohio R.C. 718.05.
(t) "Other payer" means any person other than an individual's employer or the employer's agent, that pays an individual any amount included in the federal gross income of the individual.
(u) "Person" means a natural person, partnership, fiduciary, association or corporation. Whenever used in any clause prescribing and imposing a penalty, "person," as applied to any unincorporated entity, means the partners or members thereof and, as applied to a corporation, the officers thereof.
(v) "Place of business" means 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 or her regular employees regularly in attendance.
(w) "Qualifying wages" means wages, as defined in section 3121(a) of the Internal Revenue Code, without regard to any wage limitations with adjustments as provided in Ohio R.C. 718.03.
(x) "Resident" means an individual domiciled in the Municipality.
(y) "Resident unincorporated business entity" means an unincorporated business entity having an office or place of business within the Municipality.
(z) "Return preparer" means any person other than a taxpayer that is authorized by a taxpayer to complete or file an income tax return, report, or other document for or on behalf of the taxpayer.
(aa) "Schedule C" means Internal Revenue Service Schedule C filed by a taxpayer pursuant to the Internal Revenue Code.
(bb) "Taxable income" means wages, salaries and other compensation paid by an employer before any deductions, and/or the net profits from the operation of a business, profession or other enterprise or activity adjusted in accordance with this chapter.
(cc) "Taxable year" means the calendar year or the fiscal year upon the basis of which 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" means a person, whether an individual, partnership, association, corporation or other entity, required hereunder to file a return or pay a tax.
(Res. 29-00. Passed 12-12-00; Ord. 28-04. Passed 11-9-04.)
(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.)
(a) The portion of a net operating loss sustained in any taxable year (subsequent to the effective date of the first ordinance permitting loss carry forwards) allocable to the Municipality, may be applied against the portion of the profit of succeeding years, apportioned to the Municipality, until exhausted, but in no event for more than three taxable years. No portion of a net operating loss shall be carried back against the net profits of any prior year.
(b) The portion of a net operating loss sustained shall be apportioned to the Municipality in the same manner as provided in this section for apportioning net profits to the Municipality.
(c) Net operating losses cannot be used to offset wages, salaries, commissions or other compensation.
(Res. 29-00. Passed 12-12-00; Ord. 28-04. Passed 11-9-04.)
(a) The filing of consolidated returns may be permitted, required or denied in accordance with the rules and regulations prescribed by the Finance Director.
(b) In the case of a corporation that carries on transactions with its stockholders or with other corporations related by stock ownership, interlocking directorates or some other method, or if any person operates a division, branch, factory, office, laboratory or activity within the Municipality constituting a portion only of its total business, the Finance Director shall require such additional information as he or she may deem necessary to ascertain whether or not net profits are properly apportioned to the Municipality. If the Finance Director finds net profits are not properly apportioned to the 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 or she shall make such allocation as he or she deems appropriate to produce a fair and proper apportionment of net profits to the Municipality.
(Res. 29-00. Passed 12-12-00; Ord. 28-04. Passed 11-9-04.)
The tax imposed by this chapter for the purposes specified in this chapter shall be levied, collected and paid with respect to salaries, wages, commissions and other compensation of employees, and with respect to the net profits of businesses, professions or other activities, earned on and after January 1, 1989. The five-tenths of one percent tax imposed by this chapter for the purpose of providing funds for police services shall be levied, collected and paid with respect to the salaries, wages, commissions and other compensation of employees, and with respect to the net profits of businesses, professions or other activities, earned on and after January 1, 1995, and the tax imposed by this chapter for the purpose for providing funds for police shall be levied, collected and paid with respect to the salaries, wages, commissions and other compensation of employees, and with respect to the net profits of businesses, professions or other activities, earned on and after January 1, 2016.
(Ord. 2-15. Passed 1-27-15.)
(a) Each resident natural person who is eighteen years of age or older, and every business which conducts business in the Municipality, shall file a return, whether or not a tax is due thereon, on or before April 15 of the year following the effective date of this chapter.
Any other person or business who or which earns taxable income in the Municipality, shall, whether or not a tax is due thereon, make and file a return on or before April 15 of the year following the effective date of this chapter except nonresident employees who work in the Municipality and whose employers withhold taxes from their wages in the amount specified by this chapter.
When the return is made for a fiscal year or other period different from the calendar year, the return shall be filed within four months from the end of such fiscal year or period. The Finance Director is hereby authorized to provide, by regulation, that the return of an employer, showing the amount of tax deducted by such employer from the salaries, wages, commissions or other compensation of an employee, and paid by him or her to the Finance Director, shall be accepted, unless otherwise specified, as the return required of any employee whose sole income, subject to tax under this chapter, is such salaries, wages, commissions or other compensation.
(b) The return shall be filed with the Finance Director on a form furnished by or obtainable upon request from such Finance Director setting forth:
(1) The aggregate amounts of salaries, wages, commissions and other compensation earned and gross income from the business, profession or other activity, less the allowable ordinary, reasonable and necessary expenses incurred in the acquisition of such gross income earned during the preceding year and subject to such tax;
(2) The amount of the tax imposed by this chapter on such earnings and profits; and
(3) Such other pertinent statements, information returns or other information as the Finance Director may require.
The Municipality shall accept a generic form of any return, report or document required to be filed if the generic form, once completed and filed, contains all of the information required to be submitted with the Municipality's prescribed returns, reports or documents, and if the taxpayer or return preparer filing the generic form otherwise complies with the rules or ordinances of the Municipality governing the filing of returns, reports or documents.
For taxable years beginning on or after January 1, 2005, a taxpayer subject to any municipal corporation's tax on the net profit from a business or profession may file any municipal income tax return or estimated municipal income return by using the Ohio business gateway.
(c) The Finance Director may extend the time of filing of the annual return based on the following:
(1) Any taxpayer who has requested an extension for filing a Federal income tax return may request an extension for the filing of an annual tax return. The taxpayer shall make the request by filing a copy of the taxpayer's request for a Federal filing extension with the Finance Director.
(2) Any taxpayer not required to file a Federal income tax return may request an extension for filing an annual tax return in writing.
(3) On or after January 1, 2005 any taxpayer that is subject to any municipal corporation's tax on the net profit from a business or profession and has received an extension to file the federal income tax return shall not be required to notify the municipal corporation of the federal extension and shall not be required to file any municipal income tax return until the last day of the month to which the date for filing the federal return has been extended, provided that, on or before the date for filing the Municipal income tax return, the person notifies the Tax Commissioner of the federal extension through the Ohio business gateway. An extension of time to file is not an extension of the time to pay any tax due as provided in Ohio R.C. 718.05.
(4) The request for extension shall be filed not later than the last day for filing the Municipal annual tax return as prescribed by ordinance or rule of the Municipality.
(5) The extended due date of the Municipal income tax return shall be the last day of the month following the month to which the due date of the federal income tax return has been extended.
(6) The Municipality may deny a taxpayer's request for extension if the taxpayer:
A. Fails to timely file the request;
B. Fails to file a copy of the Federal extension request or written request;
C. Owes the Municipality any delinquent income tax or any penalty, interest, assessment or other charge for the late payment or nonpayment of income tax; or
D. Has failed to file any required income tax return, report or other related document for a prior tax period.
(7) The granting of an extension for filing a Municipal income tax return does not extend the last date for payment of the tax; hence, penalty and interest may apply to any unpaid tax during the period of extension at the rate set out by Sections 880.11 and 880.99. No penalty shall be assessed in those cases in which the return is filed and the final tax paid within the extension period, provided that all other filing and payment requirements of the Tax Code have been met. Any extension by the Finance Director shall be granted with the understanding that declaration filing and payment requirements have been fulfilled; however, if, upon further examination it then becomes evident that declaration filing and payment requirements have not been fulfilled, penalty and interest may be assessed in full and in the same manner as though no extension had been granted.
(d) The taxpayer making a return shall, at the time of the filing thereof, pay to the Finance Director the amount of taxes shown as due thereon. However, where any portion of the tax so due has been deducted at the source pursuant to Section 880.07, or where any portion of the tax has been paid by the taxpayer pursuant to Section 880.08, or where an income tax has been paid to another municipality, credit for the amount so paid in accordance with Sections 880.07, 880.08 and 880.16 shall be deducted (not to exceed one and one-half percent) from the amount shown to be due and only the balance, if any, shall be due and payable at the time of filing the return.
(e) A taxpayer who has overpaid the amount of tax to which the Municipality is entitled under this chapter may have such overpayment applied against any subsequent liability under this chapter or, at his or her election indicated on the return, such overpayment (or part thereof) shall be refunded, provided that no additional taxes or refunds of less than five dollars ($5.00) shall be collected or refunded.
(f) Where necessary, a taxpayer must file an amended return in order to report additional income and pay any additional tax due, or to claim a refund of tax overpaid, subject to the requirements and/or limitations contained in Sections 880.12 and 880.16. Such amended return shall be on a form obtainable on request from the Finance Director. A taxpayer may not change the method of accounting or apportionment of net profits after the due date for filing the original return.
(g) Within three months from the final determination of any Federal tax liability affecting the taxpayer's tax liability to the Municipality, such taxpayer shall make and file an amended return showing income subject to the income tax of the Municipality, based upon such final determination of the Federal tax liability, shall pay any additional tax shown due thereon or make a claim for liability and shall pay any additional tax shown due thereon or make a claim for refund of any overpayment.
(Res. 29-00. Passed 12-12-00; Ord. 28-04. Passed 11-9-04.)
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