(1) On all salaries, wages, including sick and vacation pay, commissions and any other form of compensation earned during the effective period of this Chapter by residents of the City.
(2) On all salaries, wages, including sick, vacation, severance, and any pay as part of an employee buyout or wage continuation plan, commissions and any other form of compensation earned during the effective period of this Chapter by nonresidents for work or services performed or rendered within 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 not 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.
(b) Allocation of net profits, where a taxpayer conducts a business both within and outside the Municipality, the portion of the entire net profits of such business to be allocated as having been made within the Municipality shall be determined as follows:
(1) From the records of such business, if such records disclose with reasonable accuracy and reliability that portion of net profits attributable to the business activity conducted within the Municipality; or
(2) In the event such taxpayer has no reasonably accurate and reliable records showing net profits from the business activity conducted within the Municipality, subject to the provisions of subsection (d)(2) herein, such allocation shall be determined as follows. Multiply the entire net profits of the business by a business allocation percentage to be determined by:
A. Ascertaining the percentage which the average net book value of the real and tangible personal property owned or used in the business and situated within the Municipality, during the period covered by the return, is of the average net book value of all the real and tangible personal property owned or used in business, wherever situated, during such period.
B. Ascertaining the percentage which the gross receipts of the business from sales made and services performed in the Municipality, during the period covered by the return, are of the total gross receipts from all sales and services, wherever made or performed, during such period.
C. Ascertaining the percentage which the total wages, salaries, commissions and other compensation paid, during the period covered by the return, to employees for services performed in the Municipality is of the total wages, salaries, commissions and other compensation paid during such period to all employees within and outside the Municipality.
D. Adding together the percentages determined in accordance with subsections (b)(2)A., B., and C. herein, or such of the aforesaid percentages as are applicable to particular taxpayer, and dividing the total so obtained by the number of percentages used in deriving such total.
(3) Any factor is applicable to the formula set forth within this subsection even though it may be allocable entirely in or outside the Municipality.
(4) In the event a just and equitable result cannot be obtained under the formula provided for within this subsection, the Tax Commissioner, upon application of the taxpayer, shall have the authority to substitute other factors or methods calculated to effect a fair and proper allocation. Should the taxpayer object to or disagree with any such Tax Commissioner determination, an appeal may be filed with the Board of Review which shall have the power to adjust, modify, or overrule such decision by the Tax Commissioner.
(c) Operating Loss Carry Forward.
(1) The portion of a net operating loss sustained in any taxable year subsequent to January 1, 1960, allocable to the City may be applied against the portion of the profit of succeeding year(s) allocable to the City, until exhausted but in no event for more than five 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 Commissioner 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 Commissioner.
(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 Commissioner shall require such additional information as he may deem necessary to ascertain whether net profits are properly allocated to the City. If the Commissioner finds net profits are not properly allocated to the City by reason of transactions with stockholders or with other corporations related by stock ownership, 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) Exception. The tax provided for herein shall not be levied upon the military pay or allowance of members of the armed forces of the United States, or upon the net profits of any civic, charitable, religious, fraternal or other organization specified in Ohio R.C. 718.01 to the extent that such net profits are exempted from municipal income taxes under such section. (Ord. 99-47. Passed 12-27-99.)