(1) On all qualifying wages, including sick, vacation, severance and any pay as part of an employee buyout or wage continuation plan, tips, commissions, gratuities other compensation, and other taxable income earned or received by residents of the City.
(2) On all qualifying wages, including sick, vacation, severance and any pay as part of an employee buyout or wage continuation plan, tips, gratuities commissions, other compensation, and other taxable income earned, received or accrued or any way set apart unto nonresidents for work done, or services performed or rendered, in the City.
(3) A. On the portion attributable to the City of the net profits, earned during the effective period of this Chapter, of all resident unincorporated businesses, unincorporated pass-through entities, professions or other activities, derived from sales made, work done, services performed or rendered and business or other activities conducted in the City.
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 owners of a resident unincorporated business entity or unincorporated pass-through entity not attributable to the City and not levied against such unincorporated business entity or unincorporated pass-through entity.
(4) A. On the portion attributable to the City of the net profits, earned during the effective period of this Chapter, of all nonresident unincorporated businesses, unincorporated pass-through entities, professions or other activities, derived from sales made, work done or services performed or rendered and business or other activities conducted in the City, whether or not such unincorporated business entity has an office or place of business in the City.
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 nonresident unincorporated business entity or unincorporated pass-through entity not attributable to the City and not levied against such unincorporated business entity or unincorporated pass-through entity.
(5) On the portion attributable to the City 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 City, whether or not such corporations have an office or place of business in the City.
(6) On all income received as gambling winnings as reported on IRS Form W- 2G, Form 5754, or any other form required by the Internal Revenue Service that reports winnings from gambling, prizes and lottery winnings. (Distributions received after 1/1/2005)
(b) The portion of the net profits attributable to the City of a taxpayer conducting a business, profession or other activity both within and without the boundaries of the City shall be determined as provided in Section 718.02 of the Revised Code of Ohio and in accordance with the Rules and Regulations adopted by the TAX Administrator pursuant to this Chapter. Any compensation exempt by subsection (f) hereof shall be excluded from the business apportionment formula calculation.
(c) Net Operating Loss Carry Forward.
(1) The portion of the net operating loss sustained in any taxable year subsequent to 1/1/1967, apportioned to the City may be applied against the portion of the profit of succeeding tax year(s) apportioned to the City, until exhausted, but in no event for more than five (5) taxable years immediately following the year in which the loss occurred. No portion of a net operating loss shall be carried back against net profits of any prior year.
(2) The portion of a net operating loss sustained shall be Apportioned to the City in the same manner as provided herein for apportioning net profits to the City.
(3) The Tax Administrator shall provide by Rules and Regulations the manner in which such net operating loss carry forward shall be determined.
(4) The net operating loss of a taxpayer that loses its legal identity, by any means such as merger or consolidation, shall not be allowed as a carry forward loss deduction to the surviving or new taxpayer.
(5) The net operating loss sustained by a business or profession is not deductible from employee W-2 earnings, but may be carried forward as provided in subsection (c)(1). However, if a taxpayer is engaged in two or more taxable business activities to be included in the same return, the net loss of one unincorporated business activity (except any portion of a loss reportable for city income tax purposes to another municipality) may be used to offset the profits of another municipality for purposes of arriving at overall net profits.
(d) Consolidated Returns.
(1) A consolidated return may be filed by a group of corporations who are affiliated through stock ownership, if that affiliated group filed for the same tax period a consolidated return for Federal income tax purposes pursuant to Section 1501 of the Internal Revenue Code. A consolidated return must include all companies that are so affiliated. (Effective with tax years beginning on or after 1/1/2003)
(2) Once a consolidated return has been filed for any taxable year, consolidated returns shall continue to be filed in subsequent years unless the applicable requirements of the rules and regulations for discontinuing the filing of consolidated returns have been met.
(3) 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 fashion, or in case any person operates a division, branch, factory, office, laboratory or activity within the City constituting a portion only of its total business, the Tax Administrator shall require such additional information as he may deem necessary to ascertain whether net profits are properly apportioned to the City. If the Tax Administrator finds net profits are not properly apportioned to the City by reason of transactions with stockholders or with other corporations related by stock ownership, interlocking directorates, or some other fashion, or transactions with such division, branch, factory, office, laboratory or activity or by some other method, he shall make such apportionment as he deems appropriate to produce a fair and proper apportionment of net profits to the City.
(e) Exception. The tax provided for herein shall not be levied upon the income of any civic, charitable, religious, fraternal or other type of nonprofit association or organization specified in Section 718.01 of the Ohio Revised Code to the extent that such income is derived from tax-exempt real estate, tax-exempt tangible property, or tax-exempt activities.
(f) Other Exceptions. On or after 1/1/2001, the City shall not tax the compensation paid to a nonresident individual for personal services performed by an individual in the city on twelve or fewer days in a calendar year unless one of the following applies:
(1) If an individual who is an employee of another person; the principal place of business of the individual's employer is located in another municipal corporation in this state that imposes a tax applying to compensation paid to the individual for services performed on those days; and the individual is not liable to that other municipality for tax on compensation paid for such services.
(2) 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 City.
(g) Additional Exceptions From Taxation (2003 and 2004).
(1) Parsonage allowance received pursuant to Section 107 of the Internal Revenue Code. (Effective with tax years beginning on or after 1/1/2003)
(2) Compensation paid under Ohio Revised Code, Section 3501.28 or 3501.26 to a person serving as a precinct election official, to the extent that such compensation does not exceed one thousand dollars ($1,000.00) annually. Such compensation in excess of one thousand ($1,000) dollars may be subjected to taxation. The payer of such compensation is not required to withhold City tax from that compensation. (Effective with tax years beginning on or after 1/1/2000)
(3) Compensation paid to an employee of a transit authority, regional transit authority, or a regional commission created by the Ohio Revised Code for operating a transit bus or other motor vehicle for the authority or commission in or through the municipality, unless the bus is operated on a regularly scheduled route, the operator is a resident or domiciled in the municipality, or the headquarters of the authority or commission is located within the municipality. (Effective with tax years beginning on or after 1/1/2000)
(4) The military pay or allowances of members of the armed forces of the United States and of members of their reserve components, including the Ohio National Guard. (Effective with tax years beginning on or after 1/1/2000)
(5) The income of a public utility when that public utility is subject to the tax levied under Section 5727.24 or 5727.30 of the Ohio Revised Code, except starting 1/1/ 2002, the income of an electric company, a combined company, and beginning 1/1/2004, that of a telephone company, as defined in Section 5727.01 of the Ohio Revised Code, shall be taxed by a City subject to Chapter 5745 of the Ohio Revised Code.
(6) The appreciation on deferred compensation distributions.
(7) Compensation deferred prior to 2004, that was not taxed upon deferral under the old law, may not be taxed upon payment or distribution, if the compensation does not show up in the adjusted medicare wages base set forth above at the time of payment or distribution.
(8) For taxable years after 2003, nonqualified deferred compensation must be taxed at the time of deferral and cannot be taxed upon payment or distribution.
(9) A qualifying loss credit, as provided by 718.02.1 of the Ohio Revised Code, allows for a refundable credit for tax paid with respect to a Nonqualified Deferred Compensation plan if taxpayer never actually receives the deferred compensation at issue due to:
A. The insolvency or bankruptcy of the employer or the employee’s failure or inability to satisfy all of the employer’s terms and conditions necessary to receive the nonqualified deferred compensation.
B. Such credit is pro-rated.
(Ord. 2-05-O. Passed 2-14-05.)