The tax provided for herein shall not be levied on the following:
(a) 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;
(b) The income of religious, fraternal, charitable, scientific, literary, or educational institutions to the extent that such income is derived from tax-exempt real estate, tax-exempt tangible or intangible property, or tax-exempt activities;
(c) Except as otherwise provided in this Chapter, intangible income;
(d) Compensation paid under R.C. § 3501.28 or § 3501.36 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 dollars ($1,000.00) may be subjected to taxation by the Municipality. The Municipality shall not require the payer of such compensation to withhold any tax from that compensation;
(e) Compensation paid to an employee of a transit authority, regional transit authority, or regional transit commission created under R.C. Chapter 306, for operating a transit bus or other motor vehicle for the authority or commission in or through the municipal corporation, unless the bus or vehicle is operated on a regularly scheduled route, the operator is subject to such a tax by reason of residence or domicile in the Municipality, or the headquarters of the authority or commission is located within the Municipality;
(f) The income of a public utility, when that public utility is subject to the tax levied under R.C. § 5727.24 or § 5727.30 but subject to R.C. Chapter 5745, the tax provided for herein shall be levied on the following:
(1) Beginning January 1, 2002, the income of an electric company or combined company;
(2) Beginning January 1, 2004, the income of a telephone company.
As used in this division, “combined company,” “electric company,” and “telephone company” have the same meanings as in R.C. § 5727.01.
(g) On and after January 1, 2003, items excluded from federal gross income pursuant to § 107 of the Internal Revenue Code;
(h) On and after January 1, 2001, compensation paid to a nonresident individual to the extent prohibited under R.C. § 718.011;
(i) Employee compensation that is not “qualifying wages” as defined herein.
(j) Compensation arising from the sale, exchange, or other disposition of a stock option, the exercise of a stock option, or the sale, exchange, or other disposition of stock purchased under a stock option; or
(k) Compensation attributable to a nonqualified deferred compensation plan or program described in § 3121(v)(2)(C) of the Internal Revenue Code.
(l) Unemployment insurance benefits, Social Security benefits, welfare benefits, retirement pensions or similar payments, disability benefits received from local, State or Federal governments or charitable, religious or educational organizations.
(m) Proceeds of insurance paid by reason of the death of the insured; pensions, disability benefits, annuities or gratuities not in the nature of compensation for services rendered, from whatever source derived.
(n) Receipts from seasonal or casual entertainment, amusements, sports events and health and welfare activities when any such are conducted by bona-fide charitable, religious or educational organizations and associations.
(o) Alimony received.
(p) Personal earnings of any natural person under 18 years of age.
(q) Compensation for personal injuries or for damage to property by way of insurance or otherwise.
(r) Gains from involuntary conversions, cancellation of indebtedness to the extent exempt from Federal income tax; interest on Federal obligations, items of income already taxed by the State from which the Municipality is specifically prohibited from taxing and income of a decedent’s estate during the period of administration, except such income earned from the operation of a business.
(s) Salaries, wages, commissions and other compensation and net profits, the taxation of which is prohibited by the United States Constitution or any act of Congress limiting the power of the states or their political subdivisions to impose net income taxes on income derived from interstate commerce; or by the Ohio Constitution or any act of the General Assembly limiting the power of the Municipality to impose income taxes.
(t) If an individual’s taxable income includes income against which the taxpayer has taken a deduction for federal income tax purposes as reportable on the taxpayer’s form 2106, and against which a like deduction has not been allowed by the Municipality, the Municipality shall deduct from the taxpayer’s taxable income an amount equal to the deduction shown on such form allowable against such income, to the extent not otherwise so allowed as a deduction by the Municipality.
(u) In the case of a taxpayer who has a net profit from a business or profession that is operated as a sole proprietorship, the Municipality may not tax or use as the base for determining the amount of the net profit that shall be considered as having a taxable situs in the Municipality, an amount other than the net profit required to be reported by the taxpayer on schedule C or schedule F from such sole proprietorship for the taxable year.
(v) In the case of a taxpayer who has a net profit from rental activity required to be reported on schedule E, the Municipality may not tax or use as the base for determining the amount of the net profit that shall be considered as having a taxable situs in the Municipality, an amount other than the net profit from rental activities required to be reported by the taxpayer on schedule E for the taxable year.
(w) Compensation paid to a nonresident individual for personal services performed by the individual in the Municipality on twelve or fewer days in a calendar year unless one of the following applies:
(1) The individual 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 that individual for services performed on those days; and the individual is not liable to that other municipal corporation for tax on the compensation paid for such services.
(2) The individual is a professional entertainer or professional athlete, the promoter of a professional entertainment or sports event, or an employee of such a promoter.
(x) An S corporation shareholder's distributive share of net profits of the S corporation to the extent such distributive shares are allocated or apportioned to sources outside the State of Ohio other than any portion of the distributive shares of net profits that represents wages as defined in § 3121(a) of the Internal Revenue Code or net earnings from self-employment as defined in § 1402(a) of the Internal Revenue Service Code:
(y) Only the income items listed in this § 151.08
are not subject to the tax imposed by this chapter. All other compensation, net profits and other income earned and/or received by a taxpayer shall be subject to the tax imposed by this chapter unless prohibited by State or federal law.
(z) Earnings of a Resident Full-time Student on the First Three Thousand Dollars ($3,000.00) of Income per Year. Earnings of a resident full-time student shall be taxed only on the amount in excess of the three thousand dollars ($3,000.00) per year. A “resident full-time student” is defined as a person 18 years of age or older who is attending an accredited high school, college, trade school or university, with classes of at least 12 credit hours per quarter, and resides in the City.
(Ord. 512. Passed 12-15-69; Am. Ord. 2345. Passed 6-8-06; Am. Ord. 2460. Passed 4-10-08.)