(a) To provide funds for the purpose of general municipal operations, maintenance of equipment, new extension, enlargement and improvement of municipal services and facilities and capital improvements of the Village, an annual tax, as provided in Ordinance No. 657, passed January 18, 1971 and as subsequently amended from time to time, shall be imposed on and after March 1, 1971, at the rate of one percent (1%) per annum upon the following:
(1) On all income, salaries, qualifying wages, commissions and other compensation earned or received on and after March 1, 1971, by residents of the Village. For further clarification "income" includes, but is not limited to, lottery, gambling and sports winnings, and games of chance, and no deductions shall be allowed against income from these sources. However, if the taxpayer is considered a professional gambler for federal income tax purposes, related deductions as permitted by the Internal Revenue Code shall be allowed against gambling and sports winnings.
(2) On all income, salaries, qualifying wages, commissions and other compensation earned or received on and after March 1, 1971, by nonresidents of the Village for work done or services performed or rendered in the Village.
(3) On the distributive shares of net profits attributable to the Village, earned on and after March 1, 1971, of all resident and nonresident unincorporated businesses, professions and other entities derived from sales made, work done or services rendered or performed and business or other activities conducted in the Village. On behalf of each owner, partner, or shareholder, the tax due on the distributive shares shall be collected and remitted by the resident and nonresident unincorporated businesses, professions and other entities in accordance with the provisions of this chapter and the rules and regulations.
(4) On the portion of the distributive share of the net profits earned or received on and after March 1, 1971, of an individual, partner, shareholder or owner of a resident unincorporated business entity with net profits attributable to the Village and for which tax due the Village was not collected and/or remitted by such unincorporated business entity.
(5) On the portion of the distributive share of the net profits earned on and after March 1, 1971, of a resident individual, partner or owner of a nonresident unincorporated business entity not attributable to the Village and not levied against such unincorporated business entity.
(6) Effective for tax years 2004 and later, the distributive share of income paid to an S corporation shareholder shall be taxable in the following manner:
A. If no portion of the net profits of the S corporation are allocated or apportioned to the State of Ohio, the distributive share is taxable only to the extent that it represents wages or net earnings from self-employment.
B. If any portion of the net profits of the S corporation are allocated or apportioned to the State of Ohio, the full amount of the distributive share is taxable.
(7) On the net profits earned or received on and after March 1, 1971, of all corporations derived from sales made, work done or services performed or rendered and business or other activities conducted in the Village.
(8) The portion of the net profits attributable to the Village of a taxpayer conducting a business profession or other activity both within and without the boundaries of the Village shall be determined as provided in Ohio R.C. 718.02 and in accordance with the Rules and Regulations adopted by the Village Council pursuant to this chapter.
(9) Any association, corporation, or other entity which is exempt from Federal tax on income by reason of its religious, charitable, educational, scientific, or other purpose, shall nevertheless be subject to tax on income from activities unrelated to the purpose for which the association, corporation, or other entity has been granted exemption from federal income tax. Such taxable income shall include, but not be limited to, rental income, and the association, corporation, or other entity is required to file declarations and final returns and remit the tax levied by the Village on such income. (See Section 181.04, divisions (d) and (e), for exemptions.)
(10) For purposes of calculating net profits attributable to the Village, amounts representing loss carried forward shall be excluded.
(b) Net profit from a business or profession conducted both within and without the boundaries of the Village shall be considered as having a taxable situs in the Village for purposes of income taxation in the same proportion as the average ratio of:
(1) The average original cost of the real and tangible personal property owned or used by the taxpayer in the business or profession in the Village 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 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.
(2) Wages, salaries and other compensation paid during the taxable period to persons employed in the business or profession for services performed in the Village to wages, salaries, and other compensation paid during the same period to persons employed in the business or profession, wherever their services are performed. Wages, salaries, and other compensation shall be included to the extent that they represent qualifying wages for taxable years 2004 and later.
(3) Gross receipts of the business or profession from sales made and services performed during the taxable period in the Village to gross receipts of the business or profession during the same period from sales and services, wherever made or performed.
(4) In the event that the foregoing allocation formula does not produce an equitable result, another basis may, under uniform regulations, be substituted so as to produce such result.
(c) As used in division (b) of this subsection, "sales made in the Village" means:
(1) All sales of tangible personal property which is delivered within the Village regardless of where title passes if shipped or delivered from a stock of goods within such village.
(2) All sales of tangible personal property which is delivered within the Village regardless of where title passes even though transported from a point outside such village if the taxpayer is regularly engaged through its own employees in the solicitation or promotion of sales within the Village and the sales result from such solicitation or promotion.
(3) All sales of tangible personal property which is shipped from a place within the Village to purchasers outside such village 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.
(d) Consolidated Returns.
(1) 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 Village. However, once the affiliated group has elected to file a consolidated return or a separate return with the Village, the affiliated group may not change their method of filing in any subsequent tax year without written approval from the Village.
(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 Village constituting a portion only of its total business, the Tax Administrator shall require such additional information as he may deem necessary to ascertain whether net profits are properly allocated to the Village. If the Tax Administrator finds net profits are not properly allocated to the Village, 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 shall make such allocation as he deems appropriate to produce a fair and proper allocation of net profits to the Village.
(Ord. 2002-18. Passed 11-4-02; Ord. 2004-08. Passed 5-6-04; Ord. 2004-35. Passed 12-20-04.)