An annual tax for the purposes specified in Section 181.01 (a) shall be imposed after January 1, 1965, at the rate of one-half percent per year; an annual tax for the purposes specified in Section 181.01(b) shall be imposed on and after January 1, 1982, at the rate of one-half percent per year; an annual tax for the purposes specified in Section 181.01 (c) shall be imposed on and after June 1, 1987, at the rate of three-tenths percent per year; and an annual tax for the purposes specified in Section 181.01(d) shall be imposed on and after June 1, 2005, at the rate of two-tenths percent per year, for a total tax rate of one and one-half percent beginning June 1, 2005. Such taxes shall be imposed upon the following (see Section 181.08 for "Exceptions"):
(a) On all income, qualifying wages, commissions and other compensation earned and/or received by residents of the City.
(b) On all income, qualifying wages, commissions and other compensation earned and/or received by nonresidents of the City for work done or services performed or rendered in the City. Separation pay, termination pay, reduction-in-force pay, and other compensation paid as a result of an employee leaving the service of an employer shall be allocable only to the City.
(1) The City shall not, however, tax the compensation of a non-resident individual who will be deemed to be an occasional entrant if all of the following apply:
A. The compensation is paid for personal services performed by the individual in The City on twelve or fewer days during the calendar year, in which case the individual shall be considered an occasional entrant for purposes of the City income tax. A day is a full day or any fractional part of a day.
B. In the case of an individual who is an employee, the principal place of business of the individual's employer is located outside the City and the individual pays tax on compensation described in Section 181.03(b) to the municipality, if any, in which the employer's principal place of business is located, and no portion of that tax is refunded to the individual.
C. The individual is not 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 City.
(2) Beginning with the thirteenth day an individual deemed to have been an occasional entrant to the City performs services within the City, the employer of said individual shall begin withholding the City income tax from remuneration paid by the employer to the individual, and shall remit the withheld income tax to the City in accordance with the requirements of this ordinance. Since the individual can no longer be considered to have been an occasional entrant, the employer is further required to remit taxes on income earned in the City by the individual for the first twelve days.
(3) If the individual is self-employed, it shall be the responsibility of the individual to remit the appropriate income tax to the City.
(c) On the portion attributable to the City of the net profits earned by all resident associations, unincorporated business entities, professions or other activities, such net profits derived from sales made, work done, services performed or rendered and business or other activities conducted in the City.
(d) On the portion of the distributive share of the net profits earned and/or received by a resident partner or owner of a resident association or unincorporated business entity not attributable to the City and not levied against such unincorporated business entity;
(e) On the portion attributable to the City of the net profits earned by all nonresident associations, unincorporated business entities, professions or other activities, such net profits derived from sales made, work done, services performed or rendered and business and other activities conducted in the City, whether or not such association or unincorporated business entity has an office or place of business in the City;
(f) On the portion of the distributive share of the net profits earned and/or received by a resident partner or owner of a nonresident association or unincorporated business entity not attributable to the City and not levied against such association or unincorporated business entity; and
(g) On the portion attributable to the City of the net profits earned by all corporations, such net profits 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.
(h) Deductions on Federal form 2106 are permitted in accordance with Federal guidelines (including the 2% of Adjusted Gross Income formula), but is subject to review and audit by the Defiance Income Tax Department.
(Ord. 7087. Passed 11-10-09.)