CHAPTER 181
Income Tax
   EDITOR'S NOTE: Until the office of Clerk-Treasurer is abolished, the current Clerk-Treasurer shall perform the duties of the Director of Finance as set forth in this chapter.
   See Chapter 182 for income tax effective January 1, 2016.
181.01    Definitions.
181.02    Imposition of tax.
181.03    Allocations of net profits.
181.04    Levy of tax.
181.05    Return and payment of tax.
181.06    Amended returns; refunds for overpayment.
181.07    Collection at source.
181.08    Declarations.
181.09    Powers and duties of the Director of Finance.   
181.10    Investigative powers of the Director of Finance.
181.11    Tax information confidential.
181.12    Collection of unpaid taxes.
181.13    Credits, exemptions and City contracts.
181.14    Interest and penalties.
181.15    Allocation of funds.
181.99    Penalty.
 
CROSS REFERENCES
General taxing powers - see CHTR. §9.01
Payroll deductions - see Ohio R.C. 9.42
Municipal income taxes - see Ohio R.C. Ch. 718
State income tax - see Ohio R.C. Ch. 5747
 
181.01 DEFINITIONS.
   As used in this chapter, the following words shall have the meanings ascribed to them herein except as and if the context clearly indicates or requires a different meaning. The singular shall include the plural. The masculine gender shall include the feminine and the neuter genders.
   (a)    "Association" means a partnership, limited partnership or any other form of unincorporated enterprise owned by two or more persons.
   (b)    "Director of Finance" means the City Finance Director.
   (c)    "Business" means an enterprise, activity, profession or undertaking of any nature conducted for profit or ordinarily conducted for profit, whether by an individual, partnership, fiduciary, trust, association, corporation or any other entity.
   (d)    "City" means the City of Groveport, Ohio.
   (e)    "Corporation" means a corporation or joint stock association organized under the laws of the United States, State of Ohio or any other state, territory or foreign country or dependency.
   (f)    "Employee" means one who works for wages, salary, commissions or other type of compensation in the service of an employer.
   (g)    "Employer" means an individual, partnership, association, corporation, governmental body, unit or agency or any other entity, whether or not organized for profit, that employs one or more persons on a salary, wage, commission or other compensation basis.
   (h)    "Fiscal year" means an accounting period of twelve months or less ending on any day other than December 31.
   (i)    "Gross receipts" means the total income from any source whatsoever.
   (j)    "Net profits" means the net gain from the operation of a business, profession, enterprise or other activity (whether or not such business, profession, enterprise or other activity is conducted for profit or is ordinarily conducted for profit) 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 without deduction of taxes imposed by this chapter, federal, State or 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.
   (k)    "Nonresident individual" means an individual who is not domiciled in the City and whose usual place of abode is outside the City.
   (l)    "Nonresident unincorporated business entity" means an unincorporated business entity not having an office or place of business within the City.
   (m)    "Person" means every natural person, partnership, fiduciary, association or corporation. Whenever used in any clause prescribing and imposing a penalty, the term "person" as applied to any unincorporated entity shall mean the parties or members thereof, and as applied to corporations, the officers thereof.
   (n)    "Place of business" means any bona-fide office (other than a mere statutory office), factory, warehouse or other place which is occupied and used by the taxpayer in carrying on any business activity individually or through any one or more of his regular employees regularly in attendance.
   (o)    "Resident individual" means any individual who is domiciled in the City or whose usual place of abode is in the City.
   (p)    "Resident unincorporated business entity" means an unincorporated business entity having an office or place of business within the City.
   (q)    "Taxable income" means wages, salaries, commissions 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.
   (r)    "Taxable year" means the calendar year or the fiscal year upon the basis of which the 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.
      (Ord. 2-73. Passed 3-26-73.)
181.02 IMPOSITION OF TAX.
   To provide for the purposes of general Municipal operations, maintenance, new equipment and capital improvements of the City, there is hereby levied a tax at the rate of two percent (2%) per annum upon the following:
   (a)    On all salaries, wages, commissions and other compensation earned by residents of the City.
   (b)    On all salaries, wages, commissions and other compensation earned by nonresidents of the City for work done or services performed or rendered in the City.
   (c)    On the net profits earned of all unincorporated businesses, professions or other activities conducted by residents of the City.
   (d)    On the net profits earned of all unincorporated businesses, professions or other activities conducted in the City by nonresidents.
   (e)    For the purposes of subsections (c) and (d) hereof, an association shall not be taxable as an entity, but any member thereof who is a resident of the City shall be taxed individually on his entire share, whether distributed or not, of the annual net profits of the association, and any nonresident members thereof shall be taxed individually only on that portion of his share, whether distributed or not, of the annual net profits of the association as is derived from work done, services performed or rendered and business or other activities conducted in the City.
   (f)    On the net profits of all corporations, estates, trusts and limited partnerships derived from work done or services performed or rendered and business or other activities conducted in the City, whether or not such corporations, estates, trusts and limited partnerships have their principal or any place of business located in the City.
      (Ord. 19-84. Passed 8-27-84.)
181.03 ALLOCATIONS OF NET PROFITS.
   (a)    In the taxation of income which is subject to the tax, if the books and records of a taxpayer conducting a business or profession both within and without the boundaries of the City shall disclose with reasonable accuracy what portion of its net profit is attributable to that part of the business or profession conducted within the boundaries of the City , then only such portion shall be considered as having a taxable situs in the City for the purposes of the tax. In the absence of such records, 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 the purposes of the tax in the same proportion as the average ratio of:
      (1)    The average net book value 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 net book value 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.
      (2)    As used in the preceding paragraph, real property shall include property rented or leased by the taxpayer and the value of such property shall be determined by multiplying the annual rental thereon by eight.
      (3)    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.
      (4)    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.
   (b)    In the event that the foregoing allocation formula does not produce an equitable result, another basis may, under uniform regulations, be substituted by the Finance Director or his delegate so as to produce such result.
   (c)    As used in this chapter, "sales made in the City" mean:
      (1)    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.
      (2)    All sales of tangible personal property which is delivered within the City regardless of where title passes even though transported from a point outside of 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 such solicitation or promotion.
      (3)    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.
         (Ord. 2-73. Passed 3-26-73.)
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