161.03 IMPOSITION OF TAX.
(1) On all salaries, wages, commissions and other compensation earned during the effective period of this chapter by residents of the City.
(2) On all salaries, wages, commissions and other compensation earned during the effective period of this chapter by 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, professions or other entities, 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 owner of a resident unincorporated business entity not attributable to the City and not levied against such unincorporated business 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, 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 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 attributable to the City and not levied against such unincorporated business 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.
(Ord. 69-1966. Passed 5-13-96.)
(6) On gross winnings from lottery and other gambling activities.
(Ord. 36-2004. Passed 2-9-04.)
(b) Business Both Within and Outside City. 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 Ohio R.C. 718.02 and in accordance with the rules and regulations adopted by the Tax Administrator pursuant to this chapter.
(c) Operating Loss Carry-Forward.
(1) The portion of net operating loss sustained in any taxable year subsequent to April 1, 1967, allocable to the City may be applied against the portion of the profit of succeeding years allocable to the City, until exhausted but in no event for more than five taxable years. 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 allocated to the City in the same manner as provided herein for allocating 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.
(d) Consolidated Returns.
(1) Filing of consolidated returns may be permitted or required in accordance with rules and regulations prescribed by the Tax Administrator.
(2) 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 method, 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 allocated to the City. If the Administrator finds net profits are not properly allocated to the City by reason of transactions with stockholders or with other corporations related by stock ownership or interlocking directorates or transactions with such division, branch, factory, office, laboratory or activity or by some other method, he shall make such allocation as he deems appropriate to produce a fair and proper allocation of net profits to the City.
(e) Exemptions. The tax provided for herein shall not be levied upon:
(1) The military pay or allowances of members of the armed forces of the United States.
(2) Income of religious, charitable, fraternal, 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.
(3) Pensions, income from intangibles (interest and dividends from stocks and bonds), insurance proceeds, annuities, government allotments, social security benefits, compensation for personal injury or property damage, workmen's compensation or reimbursement for expenses.
(4) A corporation whose income is taxed by the State or income that is presently taxed by the State (that is, income earned by public utilities).
(5) Income of residents under eighteen years of age.
(6) Income of residents of the City age sixty-five or over to the amount of the first three thousand dollars ($3,000) of income.
(7) Scholarships, fellowships, gifts, and inheritances.
(Ord. 69-1996. Passed 5-13-96.)