The tax provided for in this chapter shall not be levied on the following:
(a) Pay or allowance of active members of the armed forces of the United States and of members of their reserve components, including the Ohio National Guard or the income of religious, fraternal, charitable, 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.
(b) Poor relief, unemployment insurance benefits, old age pensions or similar payments including disability benefits received from local, state or federal governments or charitable, religious or educational organizations.
(c) Proceeds of insurance paid by reason of the death of the insured, pensions, disability benefits, annuities or gratuities not in the nature of compensation for services rendered from whatever source derived.
(d) Receipts from seasonal or casual entertainment, amusements, sports events and health and welfare activities when any such are conducted by bona fide charitable, religious or educational organizations and associations.
(e) Alimony received.
(f) Personal earnings of any natural person under eighteen years of age.
(g) Compensation for personal injuries or for damages to property by way of insurance or otherwise.
(h) Interest, dividends and other revenue from intangible property.
(i) Gains from involuntary conversion, cancellation of indebtedness, interest on Federal obligations, items of income already taxed by the State from which the City is specifically prohibited from taxing, and income of a decedent's estate during the period of administration except such income from the operation of a business.
(j) Salaries, wages, commissions and other compensation and net profits, the taxation of which is prohibited by the United States Constitution or any act of Congress limiting the power of the states or their political subdivisions to impose net income taxes on income derived from interstate commerce.
(k) Salaries, wages, commissions and other compensation and net profits, the taxation of which is prohibited by the Constitution of the State or any act of the Ohio General Assembly limiting the power of the City to impose net income taxes.
(l) 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 tax.
(m) The income of a public utility when that public utility is subject to the tax levied under Ohio R.C. 5727.24 or 2727.30, except starting January 1, 2002, the income of an electric company or combined company, as defined in Ohio R.C. 5727.01 may be taxed by the City. For a combined company, only the income attributed from the activity of an electric company shall be subject to taxation by the City. The income of an electric company or combined company subject to a municipal corporation shall be computed by taking into account the adjustments provided by division (I)(16) of Ohio R.C. 5733.04.
(Ord. 2000-115. Passed 10-24-00.)
(n) Except as provided herein, on and after January 1, 2001, compensation paid to an individual for personal services performed within the City, if the individual does not reside in the City, performs such personal services in the City on twelve or fewer days in the calendar year. Any portion of a day will constitute one day.
Beginning with the thirteenth day, the employer of said individual shall begin withholding Eastlake income tax from the full remuneration paid by the employer to the individual, and shall remit the withheld income tax to Eastlake in accordance with Section 183.1302.
If the individual if self-employed, it shall be the responsibility of the individual to remit the appropriate income tax to the City of Eastlake.
The 12-day occasional entry exception is not available if two or more individuals of the same employer (even if they are independent contractors of that employer) perform work in Eastlake related to the service for which the employer has engaged, but said persons shall comply with the withholding rules of Section 183.1302.
The 12-day occasional entry exception is not available to entertainers or professional athletes, their employees or individuals who perform services on their behalf, or to promoters and booking agents of such entertainment events and sporting events, but said persons shall comply with the withholding rules of Section 183.1302.
(Ord. 2005-133. Passed 12-6-05.)
RETURNS