(a) Imposition of Tax. Subject to the provisions of Section 191.14, an annual tax for the purposes specified in Section 191.01, shall be imposed at the rate of one and one-half percent per annum, for a five year period, from July 1, 2014 through June 30, 2019 and thereafter at a rate of one percent per annum, and an additional annual tax for law enforcement purposes only shall be imposed at the rate of one-quarter of one percent per annum, on and after January 1, 1992, upon the following:
(1) On all salaries, wages, commissions and other compensation and net profits from unincorporated business entities and professions 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 non-residents for work done or services performed or rendered in the City.
(3) 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 performed in the City.
(4) On the portion of the distributive shares 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; provided, however, that the liability of an individual partner or owner taxable hereunder on income attributable to another taxing municipality shall be subject to the provision of Section 191.14.
(5) On the portion attributable to the City of the net profits earned during the effective period of this chapter of all non-resident 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.
(6) 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 non-resident unincorporated business entity not attributable to the City and not levied against such incorporated business entity.
(7) 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. 98-169. Passed 7-6-98; Ord. 2008-113. Passed 8-4-08; Ord. 2013-53. Passed 6-3-13.)
(b) Operating Loss Carry-Forward.
(1) The portion of a net operating loss sustained in any taxable year subsequent to August 1, 1969, allocable to the City, may be applied against the portion of the profit of the succeeding year(s) 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 the 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 the allocating of net profits to the City.
(3) The Administrator shall provide, by rules and regulations, the manner in which such net operating loss carry-forward shall be determined.
(c) Consolidated Returns.
(1) The filing of consolidated returns may be permitted or required in accordance with the rules and regulations prescribed by the Administrator. Any affiliated group which files a consolidated return for Federal income tax purposes pursuant to section 1501 of the Internal Revenue Code may file a consolidated return with the City. However, once the affiliated group has elected to file a consolidated return or a separate return with the City, the affiliated group may not change their method of filing in any subsequent tax year without written approval from the City.
(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 Administrator shall require such additional information as he or she may deem necessary to ascertain whether the net profits are properly allocated to the City. If the Administrator finds that the 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 or she shall make such allocation of net profits to the City.
(d) Sources of Income Not Taxed. The tax provided for in this chapter shall not be levied on the following:
(1) Pay or allowance of active members of the Armed Forces of the United States 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.
(2) Poor relief, unemployment insurance benefits, old age pensions or similar payments, including disability benefits, received from local or state governments, or the Federal Government, or charitable, religious or educational organizations.
(3) Proceeds of insurance paid by reason of the death of the insured, pensions, including industrial pensions, disability benefits, annuities or gratuities not in the nature of compensation for services rendered, from whatever source derived.
(4) Receipts from seasonal or casual entertainment, amusements, sports events and health and welfare activities when any of the same are conducted by bona fide charitable, religious or educational organizations and associations.
(5) Alimony received.
(6) Personal earnings of any natural person under eighteen years of age.
(7) Compensation for personal injuries or for damage to property by way of insurance or otherwise.
(8) Interest, dividends and other revenue from intangible property.
(9) Gains from involuntary conversion, cancellation of indebtedness, interest on Federal obligations, items of income already taxed by the State 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.
(10) 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.
(11) Salaries, wages, commissions and other compensation and net profits, the taxation of which is prohibited by the Constitution of the State of Ohio or any act of the Ohio General Assembly limiting the power of a municipality to impose net income taxes.
(12) Parsonage allowance, to the extent of the rental allowance or rental value of a house provided as a part of an ordained minister's compensation. The ordained minister must be duly ordained, commissioned, or licensed by a religious body constituting a church or church denomination, and must have authority to perform all sacraments of the church.
(Ord. 69-54. Passed 5-26-69; Ord. 70-27. Passed 3-16-70; Ord. 94-25. Passed 2-16-94; Ord. 2003-16. Passed 2-3-03; Ord. 2005-7. Passed 1-18-05.)