(a) Basis of imposition. Subject to the provisions of section 16 of this chapter, an annual tax for the purposes specified in section 880.01 hereof shall be imposed on and after January 1, 1973, at the rate of one percent (1%) per annum (as amended by ordinance #1114 effective July 1, 1987) upon the following:
(1) On all qualifying wages, commissions, other compensation, and other taxable income earned or received by residents of the Village.
(2) On all qualifying wages, commissions, other compensation, and other taxable income earned or received by nonresidents for work done, or services performed or rendered, in the Village.
(3) A. On the portion attributable to the Village of the net profits earned during the effective period of this chapter by all resident unincorporated businesses, professions or other activities, derived from sales made, work done, services performed or rendered, and business or other activities conducted in the Village.
B. On the portion of the distributive share of the net profits earned during the effective period of this ordinance by a resident partner or owner of a resident unincorporated business entity not attributable to the Village and not levied against such unincorporated business entity.
(4) A. On the portion attributable to the Village, of the net profits earned during the effective period of this chapter by all non-resident unincorporated businesses, professions or other activities, derived from the sales made, work done or services performed or rendered and business or other activities conducted in the Village, whether or not such unincorporated business entity, profession or other entity has an office or place of business in the Village.
B. On the portion of the distributive share of the net profits earned during the effective period of this chapter by a resident partner or owner of a non-resident unincorporated business entity not attributable to the Village and not levied against such unincorporated business entity.
(5) On the portion attributable to the Village of the net profits earned during the effective period of this chapter by all corporations, including s corporations, derived from sales made, work done, services performed or rendered and business or other activities conducted in the Village, whether or not such corporations have an office or place of business in the Village.
(6) On all income received as gambling winnings as reported on internal revenue service form W-2G, form 5754 and/or any other form required by the Internal Revenue Service that reports winnings from gambling, prizes and lottery winnings.
(b) Businesses both in and outside the municipal boundaries. This section does not apply to taxpayers that are subject to and required to file reports under chapter 5745, of the Ohio Revised Code. Except as otherwise provided in paragraph (d) of this section, net profit from a business or profession conducted both within and without the boundaries of a municipal corporation shall be considered as having a taxable situs in such municipal corporation for purposes of municipal income taxation in the same proportion as the average ratio of the following:
(1) Multiply the entire net profits of the business by a business apportionment percentage to be determined by:
A. 1. The average original cost of the real and tangible personal property owned or used by the taxpayer in the business or profession in such municipal corporation during the taxable period to the average original cost of all of the real and tangible personal property owned or used by the taxpayer in the business or profession during the same period, wherever situated.
2. 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 during the taxable period to persons employed in the business or profession for services performed in such municipal corporation to wages, salaries, and other compensation paid during the same period to persons employed in the business or profession, wherever their services are performed, excluding compensation that is not taxable by the municipal corporation under Ohio R.C. 718.011;
C. Gross receipts of the business or profession from sales made and services performed during the taxable period in such municipal corporation to gross receipts of the business or profession during the same period from sales and services, wherever made or performed.
D. Adding together the percentages determined in accordance with subsection (b) (1) A., B., and C. hereof, or such of the aforesaid percentages as are applicable to the particular taxpayer and dividing the total so obtained by the number of percentages used in deriving such total.
1. A factor is applicable even though it may be apportioned entirely in or outside the Village.
2. Provided however, that in the event a just and equitable result cannot be obtained under the business apportionment percentage formula provided for herein, the administrator, upon application of the taxpayer, shall have the authority to substitute other factors or methods calculated to effect a fair and proper apportionment.
(c) Definition. As used in subsection (b) of this section, "sales made in a municipal corporation" mean:
(1) All sales of tangible personal property delivered within such municipal corporation regardless of where title passes if shipped or delivered from a stock of goods within such municipal corporation;
(2) All sales of tangible personal property delivered within such municipal corporation regardless of where title passes even though transported from a point outside such municipal corporation if the taxpayer is regularly engaged through its own employees in the solicitation or promotion of sales within such municipal corporation and the sales result from such solicitation or promotion;
(3) All sales of tangible personal property shipped from a place within such municipal corporation to purchasers outside such municipal corporation 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.
(d) Nonapplicability. This section does not apply to individuals who are resident of the Village and, except as otherwise provided in Ohio R.C. 718.01, the Village may impose a tax on all income earned by residents of the Village to the extent allowed by the United States Constitution.
(e) Net profit from rental activity. Except as otherwise provided in subsection (d) of this section, net profit from rental activity not constituting a business or profession shall be subject to tax only by the municipal corporation in which the property generating the net profit is located.
(f) Net operating loss (NOL) carry forward.
(1) The portion of a net operating loss sustained in any taxable year subsequent to January 1, 1973, apportioned to the Village, may be applied against the portion of the profit of succeeding tax year(s) apportioned to the Village, until exhausted, but in no event for more than five 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 Village, in the same manner as provided herein for apportioning net profits to the Village.
(3) The 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.
(g) 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.
(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.
(h) Exclusions. The provisions of this chapter shall not be construed as levying a tax upon the following:
(1) Proceeds from welfare benefits, unemployment insurance benefits, pensions, social security benefits, and qualified retirement plans as defined by the Internal Revenue Service.
(2) Proceeds of insurance, annuities, workers' compensation insurance, permanent disability benefits, compensation for damages for personal injury and like reimbursements, not including damages for loss of profits and wages.
(3) Dues, contributions and similar payments received by charitable, religious, educational organizations, or labor unions, trade or professional associations, lodges and similar organizations.
(4) Gains from involuntary conversion, cancellation of indebtedness, interest on Federal obligations and income of a decedent's estate during the period of administration (except such income from the operation of a business).
(5) Alimony.
(6) Compensation for damage to property by way of insurance or otherwise.
(7) Interest and dividends from intangible property.
(8) 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 (Ohio R.C. 718.01).
(9) Income of any charitable, educational, fraternal or other type of nonprofit association or organization enumerated in Ohio R.C. 718.01 to the extent that such income is derived from tax-exempt real estate, tax-exempt tangible or intangible property, or tax-exempt activities.
(10) Any association or organization falling in the category listed in the preceding paragraph receiving income from non-exempt real estate, tangible or intangible personal property, or business activities of a type ordinarily conducted for profit by taxpayers operating for profit shall not be excluded hereunder.
(11) In the event any association or organization receives taxable income as provided in the preceding paragraph from real or personal property ownership or income producing business located both within and without the corporate limits of the Village, it shall calculate its income apportioned to the Village under the method or methods provided above.
(12) If exempt for Federal income tax purposes, fellowship and scholarship grants are excluded from Village income tax.
(13) The rental value of a home furnished to a minister of the gospel as part of his compensation, or the rental allowance paid to a minister of the gospel as part of his compensation, to the extent used by him to rent or provide a home pursuant to Section 107 of the Internal Revenue Code.
(14) Compensation paid under Ohio 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) annually. Such compensation in excess of one thousand dollars ($1,000) may be subjected to taxation. The payer of such compensation is not required to withhold Village tax from that compensation.
(15) Compensation paid to an employee of a transit authority, regional transit authority or regional transit commission created under Ohio R.C. Chapter 306 for operating a transit bus or other motor vehicle for the authority or commission in or through the Village, unless the bus or vehicle is operated on a regularly scheduled route, the operator is subject to such tax by reason of residence or domicile in the Village, or the headquarters of the authority or commission is located within the Village.
(16) The Village shall not tax the compensation paid to a nonresident individual for personal services performed by the individual in the Village on twelve (12) or fewer days in a calendar year unless one of the following applies:
A. The individual is an employee of another person; the principal place of the business of the individual's employer is located in another municipal corporation in the state of Ohio that imposes a tax appplying to compensation paid to the 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.
B. 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, all as may be reasonably defined by the Village.
For purposes of this section, "day" means any part of a 24-hour calendar day where compensation is earned in the Village.
(17) The income of a public utility, when that public utility is subject to the tax levied under Ohio R.C. 5727.24 or 5727.30, except a municipal corporation may tax the following, subject to Ohio R.C. Chapter 5745:
A. The income of an electric company or combined company;
B. The income of a telephone company.
As used in subsection (h) (17) of this section, "combined company", "electric company", and "telephone company" have the same meanings as in Ohio R.C. 5727.01.
(18) An S corporation shareholder's distributive share of net profits or losses of the S corporation;
(19) Generally the above noted items in this section are the only forms of income not subject to the tax. Any other income, benefits, or other forms of compensation shall be taxable.
(i) Information by landlords.
(1) On January 1, 2005, and on every year thereafter, all landlords who rent property or dwellings within the Village must submit an up-to-date list to the administrator of present and former tenants of an apartment, room or other rental property. This list shall include the names of all tenants, addresses, and telephone numbers, if available, date of occupation and vacation date if applicable along with a forwarding address. This list is not required if the tenants are responsible for their own water utility payments.
(2) Any person who violates this section shall be subject to the provision of section 880.10 of this chapter.
(Ord. 813. Passed 11-13-72; Ord. 1114. Passed 6-22-87; Ord. 1451. Passed 12-27-01; Ord. 1494. Passed 12-8-03; Ord. 1503. Passed 4-26-04; Ord. 1509. Passed 11-22-04.)