Any term used in this chapter that is not otherwise defined in this chapter has the same meaning as when used in a comparable context in laws of the United States relating to federal income taxation, RC Chapter 718, or in RC Title LVII, unless a different meaning is clearly required. If a term used in this chapter that is not otherwise defined in this chapter is used in a comparable context in both the laws of the United States relating to federal income tax and in RC Title LVII or RC Chapter 718 and the use is not consistent, then the use of the term in the laws of the United States relating to federal income tax shall control over the use of the term in RC Title LVII.
For purposes of this section, the singular shall include the plural, and the masculine shall include the feminine and the gender-neutral.
As used in this chapter:
(a) “Adjusted federal taxable income” shall be used as defined in RC Chapter 718.
(b) (1) “Assessment” means any of the following:
A. A written finding by the Tax Administrator that a person has underpaid municipal income tax, or owes penalty and interest, or any combination of tax, penalty, or interest, to the municipal corporation;
B. A full or partial denial of a refund request issued under division (b)(2) of Section 192.14 of this chapter;
C. A Tax Administrator’s denial of a taxpayer’s request for use of an alternative apportionment method, issued under division (b)(2) of Section 192.14 of this chapter;
D. A Tax Administrator’s requirement for a taxpayer to use an alternative apportionment method, issued under division (b)(3) of Section 192.14 of this chapter; or
E. For purposes of division (b)(1) of this section, an assessment shall commence the person’s time limitation for making an appeal to the Local Board of Tax Review under Section 192.40 of this chapter, and shall have “ASSESSMENT” written in all capital letters at the top of such finding.
(2) “Assessment” does not include notice(s) denying a request for refund issued under division (b)(3) of Section 192.28 of this chapter, a billing statement notifying a taxpayer of current or past-due balances owed to the municipal corporation, a Tax Administrator’s request for additional information, a notification to the taxpayer of mathematical errors, or a Tax Administrator’s other written correspondence to a person or taxpayer that does not meet the criteria prescribed by division (b)(1) of this section.
(c) “Audit” means the examination of a person or the inspection of the books, records, memoranda, or accounts of a person, ordered to appear before the Tax Administrator, for the purpose of determining liability for a municipal income tax
(d) “Board of Review” has same meaning as “Local Board of Tax Review”.
(e) “Calendar quarter” means the three (3) month period ending on the last day of March, June, September, or December.
(f) “Casino operator” and “casino facility” have the same meanings as in RC 3772.01.
(g) “Certified mail”, “express mail”, “United States mail”, “postal service”, and similar terms include any delivery service authorized under RC 5703.056.
(h) “Compensation” means any form of remuneration paid to an employee for personal services.
(i) “Disregarded entity” means a single member limited liability company, a qualifying subchapter S subsidiary, or another entity if the company, subsidiary, or entity is a disregarded entity for federal income tax purposes.
(j) “Domicile” means the true, fixed and permanent home of the taxpayer to which, whenever absent, the taxpayer intends to return.
(k) “Exempt income” means all of the following:
(1) The military pay or allowances of members of the armed forces of the United States or members of their reserve components, including the national guard of any state;
(2) A. Except as provided in division (k)(2)B. of this section, intangible income;
B. A municipal corporation that taxed any type of intangible income on March 29, 1988, to Section 3 of S.B. 238 of the 116th General Assembly, may continue to tax that type of income if a majority of the electors of the municipal corporation voting on the question of whether to permit the taxation of that type of intangible income after 1988 voted in favor thereof at an election held on November 8, 1988.
(3) Social security benefits, railroad retirement benefits, unemployment compensation, pensions, retirement benefit payments, payments from annuities, and similar payments made to an employee or to the beneficiary of an employee under a retirement program or plan, long term disability payments received from private industry or local, state, or federal governments or from charitable, religious or educational organizations, and the proceeds of sickness, accident, or liability insurance policies. As used in division (k)(3) of this section, “unemployment compensation” does not include supplemental unemployment compensation described in Section 3402(o)(2) of the Internal Revenue Code;
(4) The income of religious, fraternal, charitable, scientific, literary, or educational institutions to the extent such income is derived from tax-exempt real estate, tax-exempt tangible or intangible property, or tax-exempt activities;
(5) Compensation paid under RC 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) for the taxable year. Such compensation in excess of one thousand dollars ($1,000.00) for the taxable year may be subject to taxation by a municipal corporation. A municipal corporation shall not require the payer of such compensation to withhold any tax from that compensation;
(6) Dues, contributions, and similar payments received by charitable, religious, educational, or literary organizations or labor unions, lodges, and similar organizations;
(7) Alimony and child support received;
(8) Awards for personal injuries or for damages to property from insurance proceeds or otherwise, excluding compensation paid for lost salaries or wages or awards for punitive damages;
(9) Income of a public utility when that public utility is subject to the tax levied under RC 5727.24 or 5727.30. Division (k)(9) of this section does not apply for purposes of RC Chapter 5745;
(10) Gains from involuntary conversions, interest on federal obligations, items of income subject to a tax levied by the state and that a municipal corporation is specifically prohibited by law from taxing, and income of a decedent’s estate during the period of administration except such income from the operation of a trade or business;
(11) Compensation or allowances excluded from federal gross income under Section 107 of the Internal Revenue Code;
(12) Employee compensation that is not qualifying wages as defined in division (hh) of this section;
(13) Compensation paid to a person employed within the boundaries of a United States air force base under the jurisdiction of the United States air force that is used for the housing of members of the United States air force and is a center for air force operations, unless the person is subject to taxation because of residence or domicile. If the compensation is subject to taxation because of residence or domicile, tax on such income shall be payable only to the municipal corporation of residence or domicile;
(14) Intentionally left blank;
(15) All of the municipal taxable income earned by individuals under eighteen (18) years of age;
(16) A. Except as provided in divisions (k)(16)B., C., and D. of this section, qualifying wages described in division (b)(1) or (e) of Section 192.11 of this chapter to the extent the qualifying wages are not subject to withholding for the municipality under either of those divisions.
B. The exemption provided in division (k)(16)A. of this section does not apply with respect to the municipal corporation in which the employee resided at the time the employee earned the qualifying wages.
C. The exemption provided in division (k)(16)A. of this section does not apply to qualifying wages that an employer elects to withhold under division (d)(2) of Section 192.11 of this chapter.
D. The exemption provided in division (k)(16)A. of this section does not apply to qualifying wages if both of the following conditions apply:
1. For qualifying wages described in division (b)(1) of Section 192.11 of this chapter, the employee’s employer withholds and remits tax on the qualifying wages to the municipal corporation in which the employee’s principal place of work is situated, or, for qualifying wages described in division (e) of Section 192.11 of this chapter, the employee’s employer withholds and remits tax on the qualifying wages to the municipal corporation in which the employer’s fixed location is located;
2. The employee receives a refund of the tax described in division (k)(16)D.1. of this section on the basis of the employee not performing services in that municipal corporation.
(17) A. Except as provided in division (k)(17)B. or C. of this section, compensation that is not qualifying wages paid to a nonresident individual for personal services performed in the municipality on not more than twenty (20) days in a taxable year.
B. The exemption provided in division (k)(17)A. of this section does not apply under either of the following circumstances:
1. The individual’s base of operation is located in the municipality.
2. The individual is a professional athlete, professional entertainer, or public figure, and the compensation is paid for the performance of services in the individual’s capacity as a professional athlete, professional entertainer, or public figure. For purposes of division (k)(17)B.2. of this section, “professional athlete”, “professional entertainer”, and “public figure” have the same meanings as in Section 192.11 of this chapter.
C. Compensation to which division (k)(17) of this section applies shall be treated as earned or received at the individual’s base of operation. If the individual does not have a base of operation, the compensation shall be treated as earned or received where the individual is domiciled.
D. For purposes of division (k)(17) of this section, “base of operation” means the location where an individual owns or rents an office, storefront, or similar facility to which the individual regularly reports and at which the individual regularly performs personal services for compensation.
(18) Compensation paid to a person for personal services performed for a political subdivision on property owned by the political subdivision, regardless of whether the compensation is received by an employee of the subdivision or another person performing services for the subdivision under a contract with the subdivision, if the property on which services are performed is annexed to a municipal corporation under RC 709.023 on or after March 27, 2013, unless the person is subject to such taxation because of residence. If the compensation is subject to taxation because of residence, municipal income tax shall be payable only to the municipal corporation of residence;
(19) Income the taxation of which is prohibited by the constitution or laws of the United States.
Any item of income that is exempt income of a pass-through entity under division (k) of this section is exempt income of each owner of the pass-through entity to the extent of that owner’s distributive or proportionate share of that item of the entity’s income.
(l) “Form 2106” means Internal Revenue Service Form 2106 filed by a taxpayer under the Internal Revenue Code.
(m) “Generic form” means an electronic or paper form that is not prescribed by a particular municipal corporation and that is designed for reporting taxes withheld by an employer, agent of an employer, or other payer, estimated municipal income taxes, or annual municipal income tax liability, including a request for refund.
(n) “Income” means the following:
(1) A. For residents, all income, salaries, qualifying wages, commissions, and other compensation from whatever source earned or received by the resident, including the resident’s distributive share of the net profit of pass-through entities owned directly or indirectly by the resident and any net profit of the resident, except as provided in division (w)(4) of this section.
B. For the purposes of division (n)(1)A. of this section:
1. Any net operating loss of the resident incurred in the taxable year and the resident’s distributive share of any net operating loss generated in the same taxable year and attributable to the resident’s ownership interest in a pass-through entity shall be allowed as a deduction, for that taxable year and the following five (5) taxable years, against any other net profit of the resident or the resident’s distributive share of any net profit attributable to the resident’s ownership interest in a pass-through entity until fully utilized, subject to division (n)(1)D. of this section;
2. The resident’s distributive share of the net profit of each pass-through entity owned directly or indirectly by the resident shall be calculated without regard to any net operating loss that is carried forward by that entity from a prior taxable year and applied to reduce the entity’s net profit for the current taxable year.
C. Division (n)(1)B. of this section does not apply with respect to any net profit or net operating loss attributable to an ownership interest in an S corporation unless shareholders’ distributive shares of net profits from S corporations are subject to tax in the municipal corporation as provided in division (n)(5) of this section.
D. Any amount of a net operating loss used to reduce a taxpayer’s net profit for a taxable year shall reduce the amount of net operating loss that may be carried forward to any subsequent year for use by that taxpayer. In no event shall the cumulative deductions for all taxable years with respect to a taxpayer’s net operating loss exceed the original amount of that net operating loss available to that taxpayer.
(2) In the case of nonresidents, all income, salaries, qualifying wages, commissions, and other compensation from whatever source earned or received by the nonresident for work done, services performed or rendered, or activities conducted in the municipality, including any net profit of the nonresident, but excluding the nonresident’s distributive share of the net profit or loss of only pass-through entities owned directly or indirectly by the nonresident.
(3) For taxpayers that are not individuals, net profit of the taxpayer;
(4) Lottery, sweepstakes, gambling and sports winnings, winnings from games of chance, and prizes and awards won by residents in any jurisdiction and by nonresidents when such winnings result from a purchase or activity conducted in the City of Cleveland. If the taxpayer is a professional gambler for federal income tax purposes, the taxpayer may deduct related wagering losses and expenses to the extent authorized under the Internal Revenue Code and claimed against such winnings. Credit for tax withheld or paid to another municipal corporation on such winnings paid to the municipal corporation where winnings occur is limited to the credit as specified in Section 192.19 of this chapter.
(5) For residents, an S corporation shareholder’s distributive share of net profits of the S corporation to the extent the distributive share would be allocated to this state under divisions (B)(1) and (B)(2) of RC 5733.05 if the S corporation were a corporation subject to taxes imposed under RC Chapter 5733, and the tax shall apply to the distributive share of a shareholder of an S corporation in the hands of the shareholder of the S corporation.
(o) “Intangible income” is used as it is defined in RC Chapter 718.
(p) “Internal Revenue Code” means the “Internal Revenue Code of 1986,” 100 Sta. 2085, 26 U.S.C.A. 1, as amended.
(q) “Limited liability company” means a limited liability company formed under RC Chapter 1705 or under the laws of another state.
(r) “Local Board of Tax Review” and “Board of Tax Review” means the entity created under Section 192.18 of this chapter.
(s) “Municipal corporation” means, in general terms, a status conferred upon a local government unit, by state law giving the unit certain autonomous operating authority such as the power of taxation, power of eminent domain, police power and regulatory power, and includes a joint economic development district or joint economic development zone that levies an income tax under RC 715.691, 715.70, 715.71, or 715.74.
(t) (1) “Municipal taxable income” means the following:
A. For a person other than an individual, income reduced by exempt income to the extent otherwise included in income and then, as applicable, apportioned or sitused to the municipality under Section 192.14 of this chapter, and further reduced by any pre-2017 net operating loss carryforward available to the person for the municipality.
B. 1. For an individual who is a resident of a municipality other than a qualified municipal corporation, income reduced by exempt income to the extent otherwise included in income, then reduced as provided in division (t)(2) of this section, and further reduced by any pre-2017 net operating loss carryforward available to the individual for the municipality.
2. For an individual who is a resident of a qualified municipal corporation, Ohio adjusted gross income reduced by income exempted, and increased by deductions excluded, by the qualified municipal corporation from the qualified municipal corporation’s tax on or before December 31, 2013. If a qualified municipal corporation, on or before December 31, 2013, exempts income earned by individuals who are not residents of the qualified municipal corporation and net profit of persons that are not wholly located within the qualified municipal corporation, such individual or person shall have no municipal taxable income for the purposes of the tax levied by the qualified municipal corporation and may be exempted by the qualified municipal corporation from the requirements of RC 718.03.
C. For an individual who is a nonresident of the municipality, income reduced by exempt income to the extent otherwise included in income and then, as applicable, apportioned or sitused to the municipality under Section 192.14 of this chapter, then reduced as provided in division (t)(2) of this section, and further reduced by any pre-2017 net operating loss carryforward available to the individual for the municipality.
(2) In computing the municipal taxable income of a taxpayer who is an individual, the taxpayer may subtract, as provided in division (t)(1)B.1. or C. of this section, the amount of the individual’s employee business expenses reported on the individual’s Form 2106 that the individual deducted for federal income tax purposes for the taxable year, subject to the limitation imposed by Section 67 of the Internal Revenue Code. For the municipal corporation in which the taxpayer is a resident, the taxpayer may deduct all such expenses allowed for federal income tax purposes. For a municipal corporation in which the taxpayer is not a resident, the taxpayer may deduct such expenses only to the extent the expenses are related to the taxpayer’s performance of personal services in that nonresident municipal corporation.
(u) “Municipality” means the City of Cleveland.
(v) “Net operating loss” means a loss incurred by a person in the operation of a trade or business. “Net operating loss” does not include unutilized losses resulting from basis limitations, at-risk limitations, or passive activity loss limitations.
(w) (1) “Net profit” for a person other than an individual means adjusted federal taxable income.
(2) “Net profit” for a person who is an individual means the individual’s net profit required to be reported on Schedule C, Schedule E, or Schedule F reduced by any net operating loss carried forward. For the purposes of this division, the net operating loss carried forward shall be calculated and deducted in the same manner as provided in RC Chapter 718.
(3) For the purposes of this chapter, and notwithstanding division (w)(1) of this section, net profit of a disregarded entity shall not be taxable as against that disregarded entity, but shall instead be included in the net profit of the owner of the disregarded entity.
(4) A. For purposes of this chapter, “publicly traded partnership” means any partnership, an interest in which is regularly traded on an established securities market. A “publicly traded partnership” may have any number of partners.
B. For the purposes of this chapter, and not withstanding any other provision of this chapter, the net profit of a publicly traded partnership that makes the election described in division (w)(4) of this section shall be taxed as if the partnership were a C corporation, and shall not be treated as the net profit or income of any owner of the partnership.
C. A publicly traded partnership that is treated as a partnership for federal income tax purposes and that is subject to tax on its net profits in one or more municipal corporations in this state may elect to be treated as a C corporation for municipal income tax purposes. The publicly traded partnership shall make the election in every municipal corporation in which the partnership is subject to taxation on its net profits. The election shall be made on the annual tax return filed in each such municipal corporation. Once the election is made, the election is binding for a five (5) year period beginning with the first taxable year of the initial election. The election continues to be binding for each subsequent five (5) year period unless the taxpayer elects to discontinue filing municipal income tax returns as a C corporation for municipal purposes under division (w)(4)D. of this section.
D. An election to discontinue filing as a C corporation must be made in the first year following the last year of a five (5) year election period in effect under division (w)(4)C. of this section. The election to discontinue filing as a C corporation is binding for a five (5) year period beginning with the first taxable year of the election and continues to be binding for each subsequent five (5) year period unless the taxpayer elects to discontinue filing municipal income tax returns as a partnership for municipal purposes. An election to discontinue filing as a partnership must be made in the first year following the last year of a five (5) year election period.
E. The publicly traded partnership shall not be required to file the election with any municipal corporation in which the partnership is not subject to taxation on its net profits, but division (w)(4) of this section applies to all municipal corporations in which an individual owner of the partnership resides.
F. The individual owners of the partnership not filing as a C corporation shall be required to file with their municipal corporation of residence, and report partnership distribution of net profit.
(x) “Nonresident” means an individual that is not a resident of the municipality.
(y) “Ohio Business Gateway” means the online computer network system, created under RC 125.30, that allows persons to electronically file business reply forms with state agencies and includes any successor electronic filing and payment system.
(z) “Other payer” means any person, other than an individual’s employer or the employer’s agent, which pays an individual any amount included in the federal gross income of the individual. “Other payer” includes casino operators and video lottery terminal sales agents.
(aa) “Pass-through entity” means a partnership not treated as an association taxable as a C corporation for federal income tax purposes, a limited liability company not treated as an association taxable as a C corporation for federal income tax purposes, an S corporation, or any other class of entity from which the income or profits of the entity are given pass-through treatment for federal income tax purposes. “Pass-through entity” does not include a trust, estate, grantor of a grantor trust, or disregarded entity.
(bb) “Pension” means a retirement benefit plan, as defined by RC Chapter 718 and Central Collection Agency (CCA) Rules and Regulations.
(cc) “Person” includes individuals, firms, companies, joint stock companies, business trusts, estates, trusts, partnerships, limited liability partnerships, limited liability companies, associations, C corporations, S corporations, governmental entities, and any other entity.
(dd) “Postal service” means the United States Postal Service, or private delivery service delivering documents and packages within an agreed upon delivery schedule, or any other carrier service delivering the item.
(ee) “Postmark date,” “date of postmark,” and similar terms include the date recorded and marked by a delivery service and recorded electronically to a database kept in the regular course if its business and marked on the cover in which the payment or document is enclosed, the date on which the payment or document was given to the delivery service for delivery.
(ff) (1) “Pre-2017 net operating loss carryforward” means any net operating loss incurred in a taxable year beginning before January 1, 2017, to the extent such loss was permitted, by a resolution or ordinance of the municipality that was adopted by the municipality before January 1, 2016, to be carried forward and utilized to offset income or net profit generated in such municipality in future taxable years.
(2) For the purpose of calculating municipal taxable income, any pre-2017 net operating loss carryforward may be carried forward to any taxable year, including taxable years beginning in 2017 or thereafter, for the number of taxable years provided in the resolution or ordinance or until fully utilized, whichever is earlier.
(gg) “Qualified municipal corporation” means a municipal corporation that, by resolution or ordinance adopted on or before December 31, 2011, adopted Ohio adjusted gross income, as defined by RC 5747.01, as the income subject to tax for the purposes of imposing a municipal income tax.
(hh) “Qualifying wages” means wages, as defined in Section 3121(a) of the Internal Revenue Code, without regard to any wage limitations, adjusted as follows:
(1) Deduct the following amounts:
A. Any amount included in wages if the amount constitutes compensation attributable to a plan or program described in Section 125 of the Internal Revenue Code.
B. Any amount included in wages if the amount constitutes payment on account of a disability related to sickness or an accident paid by a party unrelated to the employer, agent of an employer, or other payer.
C. Any amount included in wages that is exempt income.
(2) Add the following amounts:
A. Any amount not included in wages solely because the employee was employed by the employer before April 1, 1986.
B. Any amount not included in wages because the amount arises 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. Division (hh)(2)B. of this section applies only to those amounts constituting ordinary income.
C. Any amount not included in wages if the amount is an amount described in Section 401(k), 403(b), or 457 of the Internal Revenue Code. Division (hh)(2)C. of this section applies only to employee contributions and employee deferrals.
D. Any amount that is supplemental unemployment compensation benefits described in Section 3402(o)(2) of the Internal Revenue Code and not included in wages.
E. Any amount received that is treated as self-employment income for federal tax purposes under Section 1402(a)(8) of the Internal Revenue Code.
F. Any amount not included in wages if all of the following apply:
1. For the taxable year the amount is employee compensation that is earned outside of the United States and that either is included in the taxpayer’s gross income for federal income tax purposes or would have been included in the taxpayer’s gross income for such purposes if the taxpayer did not elect to exclude the income under Section 911 of the Internal Revenue Code;
2. For no preceding taxable year did the amount constitute wages as defined in Section 3121(a) of the Internal Revenue Code;
3. For no succeeding taxable year will the amount constitute wages; and
4. For any taxable year the amount has not otherwise been added to wages under either division (hh)(2) of this section or RC 718.03, as that section existed before the effective date of H.B. 5 of the 130th general assembly, March 23, 2015.
(ii) “Qualifying remote employee or owner”; “Qualifying remote work location”; “Reporting location”; and “Qualifying reporting location” shall have the same meaning as set forth in RC Chapter 718.
(jj) “Related entity” means any of the following:
(1) An individual stockholder, or a member of the stockholder’s family enumerated in Section 318 of the Internal Revenue Code, if the stockholder and the members of the stockholder’s family own directly, indirectly, beneficially, or constructively, in the aggregate, at least fifty percent (50%) of the value of the taxpayer’s outstanding stock;
(2) A stockholder, or a stockholder’s partnership, estate, trust, or corporation, if the stockholder and the stockholder’s partnerships, estates, trusts, or corporations own directly, indirectly, beneficially, or constructively, in the aggregate, at least fifty percent (50%) of the value of the taxpayer’s outstanding stock;
(3) A corporation, or a party related to the corporation in a manner that would require an attribution of stock from the corporation to the party or from the party to the corporation under division (jj)(4) of this section, provided the taxpayer owns directly, indirectly, beneficially, or constructively, at least fifty percent (50%) of the value of the corporation’s outstanding stock;
(4) The attribution rules described in Section 318 of the Internal Revenue Code apply for the purpose of determining whether the ownership requirements in divisions (jj)(1) to (3) of this section have been met.
(kk) “Related member” means a person that, with respect to the taxpayer during all or any portion of the taxable year, is either a related entity, a component member as defined in Section 1563(b) of the Internal Revenue Code, or a person to or from whom there is attribution of stock ownership under Section 1563(e) of the Internal Revenue Code except, for purposes of determining whether a person is a related member under this division, “twenty percent (20%)” shall be substituted for “5 percent” wherever “5 percent” appears in Section 1563(e) of the Internal Revenue Code.
(ll) “Resident” means an individual who is domiciled in the municipality as determined under Section 192.08 of this chapter.
(mm) “S corporation” means a person that has made an election under subchapter S of Chapter 1 of Subtitle A of the Internal Revenue Code for its taxable year.
(nn) “Schedule C” means Internal Revenue Service Schedule C (Form 1040) filed by a taxpayer under the Internal Revenue Code.
(oo) “Schedule E” means Internal Revenue Service Schedule E (Form 1040) filed by a taxpayer under the Internal Revenue Code.
(pp) “Schedule F” means Internal Revenue Service Schedule F (Form 1040) filed by a taxpayer under the Internal Revenue Code.
(qq) “Single member limited liability company” means a limited liability company that has one (1) direct member.
(rr) “Small employer” means any employer that had total revenue of less than five hundred thousand dollars ($500,000.00) during the preceding taxable year. For purposes of this division, “total revenue” means receipts of any type or kind, including, but not limited to, sales receipts; payments; rents; profits; gains, dividends, and other investment income; commissions; premiums; money; property; grants; contributions; donations; gifts; program service revenue; patient service revenue; premiums; fees, including premium fees and service fees; tuition payments; unrelated business revenue; reimbursements; any type of payment from a governmental unit, including grants and other allocations; and any other similar receipts reported for federal income tax purposes or under generally accepted accounting principles. “Small employer” does not include the federal government; any state government, including any state agency or instrumentality; any political subdivision; or any entity treated as a government for financial accounting and reporting purposes.
(ss) “Tax administrator” means the Commissioner of the Division of Taxation charged with direct responsibility for administration of an income tax levied by the municipality under this chapter.
(tt) “Tax return preparer” means any individual described in Section 7701(a)(36) of the Internal Revenue Code and 26 C.F.R. 301.7701-15 .
(uu) “Taxable year” means the corresponding tax reporting period as prescribed for the taxpayer under the Internal Revenue Code.
(vv) (1) “Taxpayer” means a person subject to a tax levied on income by a municipal corporation in accordance with this chapter. “Taxpayer” does not include a grantor trust or, except as provided in division (vv)(2)A. of this section, a disregarded entity.
(2) A. A single member limited liability company that is a disregarded entity for federal tax purposes may be a separate taxpayer from its single member in all Ohio municipal corporations in which it either filed as a separate taxpayer or did not file for its taxable year ending in 2003, if all of the following conditions are met:
1. The limited liability company’s single member is also a limited liability company.
2. The limited liability company and its single member were formed and doing business in one (1) or more Ohio municipal corporations for at least five (5) years before January 1, 2004.
3. Not later than December 31, 2004, the limited liability company and its single member each made an election to be treated as a separate taxpayer under division (L) of RC 718.01 as this section existed on December 31, 2004.
4. The limited liability company was not formed for the purpose of evading or reducing Ohio municipal corporation income tax liability of the limited liability company or its single member.
5. The Ohio municipal corporation that was the primary place of business of the sole member of the limited liability company consented to the election.
B. For purposes of division (vv)(2)A.5. of this section, a municipal corporation was the primary place of business of a limited liability company if, for the limited liability company’s taxable year ending in 2003, its income tax liability was greater in that municipal corporation than in any other municipal corporation in Ohio, and that tax liability to that municipal corporation for its taxable year ending in 2003 was at least four hundred thousand dollars ($400,000.00).
(ww) “Taxpayers’ rights and responsibilities” is used as defined in RC Chapter 718.
(xx) “Video lottery terminal” has the same meaning as in RC 3770.21.
(yy) “Video lottery terminal sales agent” means a lottery sales agent licensed under RC Chapter 3770 to conduct video lottery terminals on behalf of the state under RC 3770.21.
(Ord. No. 1344-2023. Passed 11-27-23, eff. 11-28-23)