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As used in this chapter, unless the context clearly indicates or requires a different meaning:
(a) "Adjusted Federal Taxable Income" means a C corporation's federal taxable income before net operating losses and special deductions as determined under the Internal Revenue Code, but including subsequent adjustments from required additions and deductions. Pass-through entities must compute "Adjusted Federal Taxable Income" as if the pass-through entity was a C corporation. This definition does not apply to any taxpayer required to file a return under Ohio R.C. 5745.03 or to the net profit from a sole proprietorship. This definition is effective for tax years beginning on or after January 1, 2004.
(b) "Administrator" means the individual designated by this chapter, appointed by the Mayor and approved by Council, to administer and enforce the provisions of this chapter.
(c) "Assignment" means the assignment made by a resident of the City of a claim for a refund due from another taxing municipality granting credit to nonresidents thereof.
(d) "Association" means a partnership, limited partnership or any other form of unincorporated enterprise, owned by two or more persons.
(e) "Board of Review" means the Board established by and constituted as provided in Section 191.13.
(f) "Business" means an enterprise, activity, profession or undertaking of any nature conducted for profit, or ordinarily conducted for profit, whether by an individual, partnership, association, corporation or any other entity.
(g) "Corporation" means a corporation or joint stock association organized under the laws of the United States, the State of Ohio or any other state, territory or foreign country of dependency.
(h) "Employee" means a person who works for wages, a salary, commissions or other type of compensation in the service of an employer.
(i) "Employer" means an individual, partnership, association, corporation, governmental body, unit or agency, or any other entity, whether or not organized for profit, who or that employs one or more persons on a salary, wage, commission or other compensation basis.
(j) "Fiscal year" means an accounting period of twelve months or less ending on any day other than December 31.
(k) "Generic form" means an electronic or paper form designed for reporting estimated municipal income taxes, and/or annual municipal income tax liability, and/or requests for refunds, which contains all the information required on City regular tax return, estimated payments forms, and request for refund forms, and are in a similar format that will allow processing of the generic forms without altering City procedures for processing forms.
(l) "Gross receipts" means the total income from any source whatsoever.
(m) "Net profits" for taxable years prior to 2004, means the net gains from the operation of a business, profession, enterprise or other activity after provision for all ordinary and necessary expenses, either paid or accrued, in accordance with the accounting system used by the taxpayer for Federal income tax purposes, or a system approved by the Administrator, without deduction of taxes imposed by this chapter or of Federal, State and other taxes based on income, and, in the case of an association, without deduction of salaries paid to partners and other owners, and otherwise adjusted to the requirements of this chapter. For taxable years 2004 and later, see "Adjusted Federal taxable income", as defined in this section.
(n) "Nonresident" means an individual domiciled outside of the City.
(o) "Nonresident unincorporated business entity" means an unincorporated business entity not having an office or place of business within the City.
(p) "Person" means every natural person, partnership, fiduciary, association or corporation. Whenever used in any clause prescribing and imposing a penalty, "person," as applied to any unincorporated entity, shall mean the partners or members thereof, and, as applied to corporations, the officers thereof.
(q) "Place of business" means any bona fide office (other than a mere statutory office), factory, warehouse or other space, which is occupied and used by the taxpayer in carrying on any business activity individually or through one or more of his or her regular agents or employees regularly in attendance.
(r) "Qualifying wage" means wages as defined in section 3121(a) of the Internal Revenue Code, without regard to any wage limitations, but including subsequent adjustments from required additions and deductions. "Qualifying wage" represents employees' income, including non-qualified deferred compensation and stock options, from which municipal tax shall be deducted by the employer, and any wages not considered a part of "qualifying wage" shall not be taxed by the City. This definition is effective January 1, 2004, for taxable years 2004 and later.
(s) "Reciprocity credit" means the credit granted by a municipality to its residents and to nonresidents whose city of residence grants a similar credit to nonresidents thereof, based on twenty-five percent of the lesser of the two rates.
(t) "Rental income" means income received by a taxpayer from the rental of real estate, which shall be included in the computation of net profits from business activities only if and to the extent that the rental, ownership, management or operations of the real estate from which such rentals are derived (whether so rented, managed or operated by a taxpayer individually or through agents or other representatives) constitutes a business activity of the taxpayer, in whole or in part.
Where the gross monthly rental of any and all real properties, regardless of number and value, equals the sum of two hundred and fifty dollars ($250.00) or more per month, it shall be prima-facie evidence that the rental, ownership, management or operation of such properties is a business activity of such taxpayer, and the net income of such rental property shall be subject to tax, provided that in the case of commercial property, the owner shall be considered engaged in a business activity when the rental is based on a fixed or fluctuating percentage of gross or net sales, receipts or profits of the lessee, whether or not such rental equals the sum of two hundred and fifty dollars ($250.00) or more per month, and provided, further, that in the case of farm property, the owner shall be considered engaged in a business activity when he or she shares crops or when the rental is based on a percentage of the gross or net receipts derived from the farm, whether or not the gross income equals two hundred and fifty dollars ($250.00) or more per month, and provided, further, that the person who operates a licensed rooming house shall be considered in business, whether or not the gross income equals two hundred and fifty dollars ($250.00) or more per month.
(u) "Resident" means an individual domiciled in the City.
(v) "Resident unincorporated business entity" means an unincorporated business entity having an office or place of business within the City.
(w) "Taxable income" means wages, salaries and other compensation paid by an employer or employers before any deductions, and/or the net profits from the operation of a business, profession or other enterprise or activity adjusted in accordance with the provisions of this chapter.
(x) "Taxable year" means the calendar year, or the fiscal year upon the basis of which net profits are to be computed under this chapter, and, in the case of a return for a fractional part of a year, the period for which such return is required to be made.
(y) "Taxing municipality" means any municipal corporation levying a municipal income tax on salaries, wages, commissions and other compensation earned by individuals and on net profits earned from the operation of a business, profession or other activity.
(z) "Taxpayer" means a person, whether an individual, partnership, association, corporation or other entity, required hereunder to file a return or pay a tax.
(Ord. 69-54. Passed 5-26-69; Ord. 73-303. Passed 12-17-73; Ord. 2005-7. Passed 1-18-05.)