880.01 Purposes; levy of tax.
880.02 Definitions.
880.03 Imposition of tax.
880.04 Consolidated returns.
880.05 Net operating loss (NOL) and business expenses.
880.06 Exceptions.
880.07 Effective period.
880.08 Return and payment of tax.
880.09 Collection at source.
880.10 Declarations.
880.11 Duties and powers of the Superintendent.
880.12 Investigative powers of the Superintendent; confidential information.
880.13 Interest and penalties.
880.14 Collection of unpaid taxes; refunds of overpayments.
880.15 Violations.
880.16 Board of Adjudication; Board of Tax Appeals.
880.17 Allocation of funds.
880.18 Credit for tax paid to another municipality.
880.19 Collection of tax after termination of chapter; authorization for collection agency and recovery of collection expenses.
880.20 Separability.
880.21 Registration of tenants of rented property for tax purposes; responsibility of property owners.
880.99 Penalty.
CROSS REFERENCES
Earned Income Tax (Effective for Tax Years Beginning January 1, 2016) - See Ch. 885
Power to tax - see Ohio Const., Art. XVIII, Sec. 3
Payroll deductions - see Ohio R.C. 9.42
Municipal income taxes - see Ohio R.C. Ch. 718
Responsibilities of Superintendent of Taxation - see ADM. 234.06(b)
Income tax bond for circuses and carnivals - see B.R. & T. 808.05
For the purpose of providing funds for the purposes of general Municipal operations, which includes maintenance, repair and upgrading of existing streets, new equipment, extension and enlargement of Municipal services and facilities and capital improvements of the City, there is hereby levied a tax on salaries, wages, commissions and other compensation, and on net profits, as hereinafter provided.
(Ord. 23-81. Passed 8-31-81.)
As used in this chapter, the following words shall have the meaning ascribed to them in this section, except if 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 Adjudication” means the Board created by and constituted as provided in Section 880.16(a).
(c) “Board of Tax Appeals” means the Board created by and constituted as provided in Section 880.16(b).
(d) “Business” means an enterprise, profession, undertaking or other activity of any nature conducted for profit or ordinarily conducted for profit, whether by an individual, partnership, association, corporation or any other entity.
(e) “Calendar year” means an accounting period of twelve months or less ending on December 31.
(f) “Corporation” means a C corporation, subchapter S corporation, 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.
(g) “Day” means any part of a twenty-four hour period.
(h) “Domicile” means a principal residence that an individual intends to use for an indefinite time and to which whenever he or she is absent he or she intends to return. An individual has only one domicile even though he or she may have more than one residence.
(i) “Employee” means one who works for wages, salary, commission or other type of compensation in the service of an employer.
(j) “Employer” means an individual, partnership, association, corporation, governmental body, unit or agency, or any other entity, whether or not organized for profit, having a place of business or doing business within the City and who or which employs one or more persons on a salary, wage, commission or other compensation basis.
(k) “Fiscal year” means an accounting period of twelve months or less ending on any day other than December 31.
(l) “Form 2106" means the Internal Revenue Service Form 2106 filed by a taxpayer pursuant to the Internal Revenue Code.
(m) “Gross receipts” means the total income from any source whatsoever required to be included in the return.
(n) “Intangible Income” means income of any of the following types: income yield, interest, 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.
(o) “Net profits” means the net gain from the operation and/or the complete or partial sale or disposition of a business, profession, enterprise or other activity, excluding capital gains and losses after provision for all ordinary and necessary expenses, paid or accrued in accordance with the accounting method or system used by the taxpayer for Federal income tax purposes, adjusted to the requirements of this chapter.
(p) “Nonresident” means any individual who is not a resident as herein defined.
(q) “Nonresident unincorporated business entity” means an unincorporated business entity not having a place of business within the City.
(r) “Other activity” means any undertaking, not otherwise specifically defined herein, which is normally entered into for profit, including, but not limited to, rental of real and personal property and a business conducted by a trust or guardianship estate.
(s) “Pass-Through Entity” means a partnership, subchapter 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.
(t) “Person” means every natural person, partnership, fiduciary, association or corporation. Whenever used in any section prescribing and imposing a penalty, the term “person” includes an officer or employee of a corporation, or a member or employee of an association, who, as such officer, employee or member, is under a duty to perform the act in respect of which the violation occurs.
(u) “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 the regular employees regularly in attendance.
(Ord. 30-70. Passed 7-13-70.)
(v) “Rental unit” means any physical space, including but not limited to any office, factory, retail store, warehouse, storage facility, residential dwelling, or other space, which is situated in the City and which is rented or leased to any person.
(w) “Resident” means:
i. An individual who is domiciled in the City;
ii. An individual who lives in and maintains a permanent place of abode in the City and who does not maintain a permanent place of abode elsewhere, unless such an individual, in the aggregate, lives more than 335 days outside the City.
(Ord. 94-75. Passed 1-5-76.)
(x) “Resident unincorporated business entity” means an unincorporated business entity having a place of business within the City.
(y) “Superintendent of Taxation” and “Superintendent” mean the Superintendent of Taxation of the City, or the person executing the duties of the aforesaid Superintendent of Taxation.
(z) “Taxable income” means qualifying wages, salaries, commissions, and other compensation paid by an employer or employers before any deductions, other than ordinary and necessary business expenses, in the same manner as provided by the Internal Revenue Code, and/or net profits as herein defined. “Taxable income” shall also include income received from gambling winnings as herein defined.
(aa) “Taxable year” means 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. Unless approved by the Superintendent, the taxable year of a wage earner shall be a calendar year.
(bb) “Taxpayer” means a person, whether an individual, partnership, association, or any corporation or other entity, required hereunder to file a return or pay a tax.
(cc) “Qualifying wages” means wages, as defined in section 3121(a) of the Internal Revenue Code, without regard to any wage limitations, adjusted in accordance with section 718.03(A) of the Ohio Revised Code. Qualifying wages include compensation arising from the sale, exchange, or other disposition of a stock option, the exercise of a stock option, and the sale, exchange, or other disposition of stock purchased under a stock option; as well as the compensation attributable to a nonqualified deferred compensation plan or program described in section 3121(v)(2)(C) of the Internal Revenue Code.
The singular shall include the plural, and the masculine shall include the feminine and the neuter.
(Ord. 30-70. Passed 7-13-70; Ord. 5-04. Passed 4-19-04; Ord. 9-04. Passed 7-19-04; Ord. 18-15. Passed 11-16-15.)
(1) On all salaries, qualifying wages, commissions and other compensation received during the effective period of this chapter by residents of the City.
(2) On all salaries, qualifying wages, commissions and other compensation received during the effective period of this chapter by nonresidents for work done or services performed or rendered in the City.
(3) On the portion attributable to the City of the net profits earned and accrued or received during the effective period of this chapter of all resident associations, unincorporated businesses, professions or other entities, derived from sales made, work done, services performed or rendered and business or other activities conducted in the City.
(4) On the portion of the distributive share of the net profits earned and accrued or received during the effective period of this chapter of a resident partner or owner of a resident unincorporated business entity not attributable to the City upon which the tax was not paid by the entity.
(5) On the portion attributable to the City of the net profits earned and accrued or received during the effective period of this chapter of all nonresident associations, unincorporated businesses, professions or other entities, derived from sales made, work done or services performed or rendered and business or other activities conducted in the City, whether or not such association or other unincorporated business entity has an office or place of business in the City.
(6) On the portion of the distributive share of the net profits earned and accrued or received during the effective period of this chapter of a resident partner or owner of a nonresident association or other incorporated business entity, not attributable to the City, on which the tax was not paid by the entity.
(7) On the portion attributable to the City of the net profits earned and accrued or received 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 a place of business in the City.
(8) On all income received as gambling winnings as reported on IRS Form W-2G, Form 5754 and/or any other form required by the Internal Revenue Service that reports winnings from gambling.
(9) On or after January 1, 2003, a pass-through entity residing in or doing business in the city shall be taxed at the entity level.
(b) The portion of the entire net profits of a taxpayer to be allocated as having been derived from within the City, in the absence of actual records thereof, shall be determined as follows:
(1) Multiply the entire net profits by a business allocation percentage to be an average ratio of:
A. The average net book value of the real and tangible personal property owned or used by the taxpayer in the business or profession in the City during the taxable period to the average net book value of all the real and tangible personal property owned or used by the taxpayer in the business or profession during the same period, wherever situated.
As used in the preceding paragraph, real property shall include property rented or leased by the taxpayer, and the value of such property shall be determined by multiplying the annual rental thereon by eight.
B. Wages, salaries and other compensation paid or accrued during the taxable period to persons employed in the business or profession for services performed in the City to wages, salaries and other compensation paid or accrued during the same period to persons employed in the business or profession, wherever their services are performed.
C. Gross receipts of the business or profession from sales made and services performed during the taxable period in the City to gross receipts of the business or profession during the same period from sales and services, wherever made or performed.
In the event that the foregoing allocation formula does not produce an equitable result, another basis may, under uniform regulations, be substituted so as to produce such result.
(2) As used in paragraph (b)(1)C. hereof, “sales made in the City” means:
A. All sales of tangible personal property which is delivered within the City regardless of where title passes if shipped or delivered from a stock of goods within the City.
B. All sales of tangible personal property which is delivered within the City regardless of where title passes, even though transported from a point outside the City, if the taxpayer is regularly engaged, through its own employees, in the solicitation or promotion of sales within the City and the sales result from such solicitation or promotion.
C. All sales of tangible personal property which is shipped from a place within the City to purchasers outside the City regardless of where title passes, if the taxpayer is not, through its own employees, regularly engaged in the solicitation or promotion of sales at the place where delivery is made.
(c) For the purpose of this section, the taxable base shall be determined in accordance with the Federal tax interpretations, when applicable, and with the accounting method used by the taxpayer for Federal income taxes, adjusted to the requirements of this chapter.
(Ord. 23-81. Passed 8-31-81; Ord. 5-04. Passed 4-19-04; Ord. 9-04. Passed 7-19-04; Ord. 18-15. Passed 11-16-15.)
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