For the purposes specified in Section 791.01, on and after January 1, 1968, an annual tax of one and one-half percent (1.5%) per annum shall be imposed upon the hereinafter specified income; provided that on an after July 1, 1968, the rate of tax shall be a total of one percent (1%) per annum. Such tax shall be imposed upon all taxable income as follows:
(a) On all qualifying wages, net profits and other taxable income earned and/or received on and after January 1, 1968 by residents of the Village;
(b) (1) On all qualifying wages, earned and/or received on and after January 1, 1968, by nonresidents of the Village for work done or services performed or rendered within the Village or attributable to the Village; on all net profits earned and/or received by a nonresident from the operation or conduct of any business or profession within the Village; and on all other taxable income earned and/or received by a nonresident derived from or attributable to sources, events or transactions within the Village;
(2) For nonresidents employed at a place of business or profession within the Village, only those qualifying wages earned and/or received by such nonresident that are specifically attributable to a place or location worked that is outside the Village will be treated as earned outside the Village;
(c) (1) On the portion attributable to the Village of the net profits earned and/or received on and after January 1, 1968, of all resident associations, pass- through entities or other unincorporated business entities treated as a pass- through entity for federal income tax purposes or professions or other activities, derived from sales made, work done, services performed or rendered, and business, or other activities conducted in the Village and/or derived from sales made, work done, services performed or rendered and business or other activities attributable to the Village;
(2) On the portion of the distributive share of the net profits earned and/or received on and after January 1, 1968, of a resident partner or owner of a resident association, pass-through entity or other unincorporated business entity treated as a pass-through entity for federal income tax purposes not attributable to the Village and upon which the Village’s income tax has not been imposed and levied;
(d) (1) On the portion attributable to the Village of the net profits earned and/or received on and after January 1, 1968, of all nonresident associations, pass- through entities or other unincorporated business entities treated as a pass- through entity for federal income tax purposes, professions or other activities, derived from sales made, work done, services performed or rendered, and business, or other activities conducted in the Village and/or derived from sales made, work done, services performed or rendered and business or other activities attributable to the Village, whether or not such association, pass-through entity or other unincorporated business entity treated as a pass-through entity for federal income tax purposes has an office or place of business in the Village;
(2) On the portion of the distributive share of the net profits earned and/or received on and after January 1, 1968, of a resident partner or owner of a nonresident association, pass-through entity or other unincorporated business entity treated as a pass-through entity for federal income tax purposes not attributable to the Village and upon which the Village’s income tax has not been imposed and levied from wherever such business is located;
(e) On the portion attributable to the Village of the net profits earned and/or received on and after January 1, 1968, of all corporations and all other entities and business activities not defined herein as associations, pass-through entity or unincorporated business entity treated as a pass-through entity for federal income tax purposes derived from sales made, work done, services performed or rendered, and business, or other activities conducted in the Village, and/or derived from sales made, work done, services performed or rendered, and business, or other activities attributable to the Village, whether or not such corporations, entities or business activities have an office or place of business in the Village;
(f) On the net profits of an electric company, combined company or telephone company apportioned and attributable to the Village in accordance with Section 718.01(F)(6) of the Revised Code and Chapter 5745 of the Revised Code;
(g) On all income derived from prizes, awards, gambling, wagering, lotteries or other similar games of chance by a resident or nonresident of the Village within the Village in an amount in excess of two hundred fifty thousand dollars ($250,000) or on the basis of activities conducted within the Village, on or after January 1, 2004. Lottery gambling and loses are deductible against lottery and gambling winnings. The Tax Administrator shall promulgate rules and regulations to determine the manner in which to determine such losses.
(h) On all income earned and/or received from covenants not to compete or similar agreements and on all income attributable to cancellation of indebtedness to the extent reported on the taxpayer’s federal income tax return;
(i) On all guardian, executor, conservator, trustee or administrator fees earned and/or received by a taxpayer in connection with the operation or conduct of a business or profession;
(j) On all other compensation, net profits and income earned and/or received by the taxpayer that is not specifically exempted from the tax imposed by this chapter as set forth in Section 791.06 of this Chapter and Section 718.01(F) of the Revised Code;
(k) For taxable years beginning on or after January 1, 2008, the net profits from a business or profession shall be taxed only to the extent of the taxpayer’s adjusted federal taxable income except that nothing shall be construed as limiting the ability of the Tax Administrator to administer, audit, or enforce the provisions of this Chapter including making all necessary adjustments and allocations to adjusted federal taxable income to produce a fair and proper allocation of net profits to the Village, except this Section 791.07(k) shall not apply to any taxpayer required to file a return under Section 5745.03 of the Revised Code or to the net profits from a sole proprietorship;
(l) For taxable years beginning on or after January 1, 2008, in the case of a taxpayer who has a net profit from a business or profession that is operated as a sole proprietorship, or in the case of a taxpayer who has a net profit from a business and the taxpayer is an individual, the Village shall not tax or use as the base for determining the amount of the net profit that shall be considered as having a taxable situs in the Village, an amount other than the net profit required to be reported on Internal Revenue Service Schedules C or F from such sole proprietorship for the taxable year; and
(m) For taxable years beginning on or after January 1, 2008, in the case of a taxpayer who has a net profit from rental activity required to be reported on Internal Revenue Service Schedule E, the Village shall not tax or use as the base for determining the amount of the net profit that shall be considered as having a taxable situs in the Village, an amount other than the net profit from rental activities required to be reported by the taxpayer on Schedule E for the taxable year.
(Ord. 2007-55. Passed 12-11-07.)
(n) Royalty income on and after January 1, 2009. (Ord. 2009-10. Passed 6-9-09.)