193.03 IMPOSITION.
Subject to the provisions of Section 193.16, an annual tax shall be imposed on and after January 1, 2013, at the rate of one percent (1%) per annum, on the following:
(a) On all qualifying salaries, wages, commissions and other compensation, as defined in Section 718.03 of the Ohio Revised Code (Am. Sub. H.B. 95, 125th Ohio General Assembly, effective January 1, 2004), earned or received on and after January 1, 2013, by resident individuals of the City.
(b) On all qualifying salaries, wages, commissions and other compensation, as defined in Section 718.03 of the Ohio Revised Code (Am. Sub. H.B. 95, 125th Ohio General Assembly, effective January 1, 2004), earned or received on and after January 1, 2013, by nonresident individuals of the City for work done or services performed or rendered in the City.
(c) On the net profits attributable to the City, earned or received on and after January 1, 2013, of all resident S corporations and resident unincorporated businesses, professions and other activities derived from work done, rentals or services rendered or performed, and business or other activities conducted in the City.
(d) On the portion of the distributive share of the net profits earned or received on and after January 1, 2013, of a resident individual, S corporation shareholder, partner, or owner of a resident unincorporated business entity not attributable to the City, and not levied against the unincorporated business entity.
(e) On the net profits attributable to the City earned or received on and after January 1, 2013, of all nonresident S corporations and nonresident unincorporated businesses, professions or other activities, derived from work done, rentals or sales made, or services performed or rendered, and business or other activities conducted in the City.
(f) On the portion of the distributive share of the net profits earned or received on and after January 1, 2013, of a resident individual, S corporation shareholder, partner, or owner of a nonresident unincorporated business entity not attributable to the City, and not levied against the unincorporated business entity.
(g) On the net profits earned or received on and after January 1, 2013, of all corporations derived from work done, sales made, or services performed or rendered, and business or other activities conducted in the City.
(h) Business allocation percentage formula.
(1) Except as otherwise provided in paragraph (d) of this section, net profit from a business or profession conducted both within and without the boundaries of the City shall be considered as having a taxable situs in the City for purposes of municipal taxation in the same proportion as the average ratio of the following:
A. The average original cost of the real and tangible personal property owned or used by the taxpayer in the business or profession in the City during the taxable period to the average original cost of all of the real and tangible personal property owned or used by the taxpayer in the business or profession during the same period, wherever situated. As used in this subsection, real property includes property rented or leased by the taxpayer, and the value of such property shall be determined by multiplying the annual rental thereon by eight.
B. Wages, salaries and other compensation paid during the taxable period to persons employed in the business or profession for services performed in the City to wages, salaries and other compensation paid during the same period to persons employed in the business or profession, wherever their services are performed.
C. Gross receipts of the business or profession from sales made and services performed during the taxable period in the City to gross receipts of the business or profession during the same period from sales and services, wherever made or performed.
(2) In the event the foregoing allocation formula does not produce an equitable result, another basis may, under uniform regulations, be substituted to produce that result.
(3) As used in subsection (h)(1) hereof, "sales made in the City" means:
A. All sales of tangible personal property which is delivered within the City regardless of where title passes, if shipped or delivered from a stock of goods within the City.
B. All sales of tangible personal property which is delivered within the City, regardless of where title passes, even though transported from a point outside the City, if the taxpayer is regularly engaged through its own employees in the solicitation or promotion of sales within the City, and the sales result from that solicitation or promotion.
C. All sales of tangible personal property which is shipped from a place within the City to purchasers outside the City, regardless of where title passes, if the taxpayer is not, through its own employees, regularly engaged in the solicitation or promotion of sales at the place where delivery is made.
(i) The portion of a net operating loss sustained in any taxable year subsequent to the effective date of this section as allocable to the City may be applied against the pro rata portion of the profit of succeeding years 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 net profits of any prior year.
(j) 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.
(k) On all third party sick pay earned or received on and after January 1, 2013, by resident individuals of the City or by nonresident individuals who receive such payments as a result of their employment within the corporate limits of the City.
(l) On the gross lottery winnings received by resident individuals on and after January 1, 2013 from a lottery commissioned, conducted, or administered by, but not limited to, the State of Ohio, any other state, United States territory, government-benefit multi-state lottery association, or other similar agency.
(Ord. 2012-101. Passed 12-18-12.)