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§ 110.04 APPORTIONMENT.
   (A)   Except as provided in division (D) below, gross receipts shall be apportioned as follows:
      (1)   For business entities with both payroll and sales revenue in more than one tax district, by multiplying the gross receipts by a fraction, the numerator of which is the payroll factor, described in division (B) of this section, plus the sales factor, described in division (C) below, and the denominator of which is two; and
      (2)   For business entities with sales revenue in more than one tax district, by multiplying the gross receipts by the sales factor as set forth in division (C) below.
      (3)   For the purpose of divisions (A) through (E) of this section, the business entity shall file an apportionment form provided by the city.
   (B)   The payroll factor is a fraction, the numerator of which is the total amount paid or payable in the city during the tax period by the business entity for compensation, and the denominator of which is the total compensation paid or payable by the business entity everywhere during the tax period. Compensation is paid or payable in the city based on the time the individual’s service is performed within the city.
   (C)   The sales factor is a fraction, the numerator of which is the total sales revenue of the business entity in the city during the tax period, and the denominator of which is the total sales revenue of the business entity everywhere during the tax period.
      (1)   The sale, lease or rental of tangible personal property is in the city if:
         (a)   The property is delivered or shipped to a purchaser, other than the United States government, or to the designee of the purchaser within the city regardless of the f.o.b. point or other conditions of the sale; or
         (b)   The property is shipped from an office, store, warehouse, factory or other place of storage in the city and the purchaser is the United States government.      
      (2)   Sales revenue, other than revenues from the sale, lease or rental of tangible personal property or the lease or rental of real property, are apportioned to the city based upon a fraction, the numerator of which is the time spent in performing such income-producing activity within the city and the denominator of which is the total time spent, performing that income-producing activity.
      (3)   Sales revenue from the sale, lease or rental of real property is allocated to the tax district where the property is located.
   (D)   If the apportionment provisions of this section do not fairly represent the extent of the business entity’s activity in the city, the business entity may petition the city or the city may require, in respect to all or any part of the business entity’s business activity, if reasonable:
      (1)   Separate accounting;
      (2)   The exclusion of any one or more of the factors;
      (3)   The inclusion of one or more additional factors which will fairly represent the business entity’s business activity in the city; or
      (4)   The employment of any other method to effectuate an equitable allocation and apportionment of gross receipts.
   (E)   When compensation is paid or payable for work done or services performed or rendered by an employee, both within and without the city, the license tax shall be measured by that part of the compensation paid or payable as a result of work done or service performed or rendered within the city. The license tax shall be computed by obtaining the percentage that the compensation for work performed or services rendered within the city bears to the total wages and compensation paid or payable. In order for the city to verify the accuracy of a taxpayer’s reported percentages under this division (E), the taxpayer shall maintain adequate records.
   (F)   All partnerships, S corporations and all other entities where income is “passed through” to the owners are subject to this chapter. The occupational license tax imposed in this chapter is assessed against income before it is “passed through” these entities to the owners.
   (G)   If any business entity dissolves, ceases to operate or withdraws from the city during any taxable year, or if any business entity in any manner surrenders or loses its charter during any taxable year, the dissolution, cessation of business, withdrawal or loss or surrender of charter shall not defeat the filing of returns and the assessment and collection of any occupational license tax for the period of that taxable year during which the business entity had business activity in the city.
   (H)   If a business entity makes, or is required to make, a federal income tax return, the occupational license tax shall be computed for the purposes of this chapter on the basis of the same calendar or fiscal year required by the federal government, and shall employ the same methods of accounting required for federal income tax purposes.
(1992 Code, § 110.04) (Ord. 11-2004, passed 12-21-2004; Ord. 14-2005, passed 12-6-2005)
§ 110.05 EMPLOYERS TO WITHHOLD.
   (A)   Every employer making payment of compensation to an employee shall deduct and withhold upon the payment of the compensation an occupational license tax calculated under § 110.03 imposed against the compensation by the city. Amounts withheld shall be paid to the city in accordance with this chapter.
   (B)   Every employer required to deduct and withhold tax under this section shall, for the quarter ending after January 1 and for each quarter ending thereafter, on or before the end of the month following the close of each quarter, make a return and report to the city, and pay to the city, the tax required to be withheld under this section, unless the employer is permitted or required to report within a reasonable time after some other period as determined by the city.
   (C)   Every employer who fails to withhold or pay to the city any sums required by this chapter to be withheld and paid shall be personally and individually liable to the city for any sum or sums withheld or required to be withheld in accordance with the provisions of this section.
   (D)   The city shall have a lien upon all the property of any employer who fails to withhold or pay over to the city sums required to be withheld under this section. If the employer withholds, but fails to pay the amounts withheld to the city, the lien shall commence as of the date the amounts withheld were required to be paid to the city. If the employer fails to withhold, the lien shall commence at the time the liability of the employer is assessed by the city.
   (E)   Every employer required to deduct and withhold tax under this section shall annually on or before February 28 of each year complete and file on a form furnished or approved by the city a reconciliation of the occupational license tax withheld where compensation is paid or payable to employees. Either copies of federal forms W-2 and W-3, transmittal of wage and tax statements, or a detailed employee listing with the required equivalent information, as determined by the city, shall be submitted.
   (F)   Every employer shall furnish each employee a statement on or before January 31 of each year showing the amount of compensation and occupational license tax deducted by the employer from the compensation paid to the employee for payment to the city during the preceding calendar year.
   (G)   An employer shall be liable for the payment of the tax required to be deducted and withheld under this section.
   (H)   The president, vice-president, secretary, treasurer or any other person holding an equivalent corporate office of any business entity subject to this section shall be personally and individually liable, both jointly and severally, for any tax required to be withheld from compensation paid or payable to one or more employees of the business entity, and neither the corporate dissolution or withdrawal of the business entity from the city, nor the cessation of holding any corporate office, shall discharge that liability; provided that the personal and individual liability shall apply to each and every person holding the corporate office at the time the tax becomes or became obligated. No person shall be personally and individually liable under this section unless such person had authority to collect, truthfully account for, or pay over the tax imposed by this chapter at the time that the taxes imposed by this chapter become or became due.
   (I)   Not withstanding divisions (G) and (H) above, every employee receiving compensation in the city subject to the tax imposed under § 110.03 shall be personally liable for any amount due. In all cases where the employer does not withhold the tax levied under this chapter from the employee, such employee or employees shall be responsible for filing with the city each quarter in the same manner as if they were the employer or as otherwise required by the city. If an employer fails to or is not required to withhold, report or pay the license tax it shall become the duty of the employee to file with the city. The only employer that is not required to withhold, report and pay the occupational license tax is the federal government including the United States Postal Service. The payment required to be made by an employee can be made quarterly, for the periods ending March 31, June 31, September 30 and December 31 of each year, or at any time the employee wishes to make an estimated payment for the year in which wages are earned. All license fees must be received by February 28 for the preceding calendar year, together with a copy of the employee’s W-2 form. Employers not required to withhold, report or pay the license tax must annually, during the month of January of each year, make a return to the city, in which is set forth the name and Social Security number of each employee of the employer during the preceding calendar year, giving the amount of salaries, wages, commissions or other compensation earned during such preceding year by each such employee. This list shall include all current full time employees, part-time employees, temporary employees and terminated employees whether it be voluntary or involuntary.
(1992 Code, § 110.05) (Ord. 11-2004, passed 12-21-2004; Ord. 14-2005, passed 12-6-2005)
§ 110.06 RETURNS REQUIRED.
   (A)   All business entity returns for the preceding taxable year shall be made by April 15 of each year, except returns made on the basis of a fiscal year, which shall be made by the fifteenth day of the fourth month following the close of the fiscal year. Blank forms for returns shall be supplied by the city.
   (B)   Every business entity shall submit a copy of its federal income tax return and all supporting statements and schedules at the time of filing its occupational license tax return with the city. Whenever, in the opinion of the city, it is necessary to examine the federal income tax return of any business entity in order to audit the return, the city may compel the business entity to produce for inspection a copy of any statements and schedules in support thereof that have not been previously filed. The city may also require copies of reports of adjustments made by the federal government.
   (C)   Every business entity subject to a occupational license tax governed by the provisions of this chapter shall keep records, render under oath statements, make returns and comply with rules as the city from time to time may prescribe. Whenever the city deems it necessary, the city may require a business entity, by notice served to the business entity, to make a return, render statements under oath, or keep records, as the city deems sufficient to determine the tax liability of the business entity.
   (D)   The city may require, for the purpose of ascertaining the correctness of any return or for the purposes of making an estimate of the taxable income of any business entity, the attendance of a representative of the business entity or of any other person having knowledge on the premises.
   (E)   The full amount of the unpaid tax payable by any business entity, as appears from the face of the return, shall be paid to the city at the time prescribed for filing the occupational license tax return, determined without regard to any extension of time for filing the return.
   (F)   Every business entity making payments of $600 or more to persons other than employees for services performed within the city is responsible for maintaining the records of those payments and for completing IRS Form 1099 on or before February 28 of the year following the close of the calendar year in which such compensation was paid and to remit copies of the IRS Form 1099 or equivalent information to the city on or before February 28 of each year.
(1992 Code, § 110.06) (Ord. 11-2004, passed 12-21-2004)
§ 110.07 EXTENSIONS.
   (A)   The city may grant any business entity an extension of not more than six months, unless a longer extension has been granted by the Internal Revenue Service or is agreed to by the city and the business entity, for filing its return, if the business entity, on or before the date prescribed for payment of the occupational license tax, requests in writing the extension and pays the amount properly estimated as its tax. Extension request forms shall be supplied by the city.
   (B)   If the time for filing a return is extended, the business entity shall pay, as part of the tax, an amount equal to 12% per annum simple interest on the tax shown due on the return, but not been previously paid, from the time the tax was due until the return is actually filed and the tax paid to the city. A fraction of a month is counted as an entire month.
(1992 Code, § 110.07) (Ord. 11-2004, passed 12-21-2004)
§ 110.08 REFUNDS.
   (A)   Where there has been an overpayment of tax under § 110.05, a refund or credit shall be made to the employer only to the extent that the amount of the overpayment was not deducted and withheld under § 110.05 by the employer. Unless a written application for refund or credit is received by the city from the employer within two years from the date the overpayment was made no refund or credit shall be allowed. Where there has been an overpayment of the maximum tax due under § 110.05, a refund or credit shall be made to the employee to the extent of overpayment only if a written application for refund is received by the city from the employer or the employee within two years from the date the overpayment was made. All written applications for refunds shall be submitted to the city on a form furnished or approved by the city. Refunds may be withheld from an employee until the employer has filed all required forms and provided all required information to the city. Overpayments of less than $5 shall not be refunded.
   (B)   An employee who has compensation attributable to activities performed outside the city, based on time spent outside the city, whose employer has withheld and remitted to this city, the occupational license tax on the compensation attributable to activities performed outside the city, may file for a refund within two years of the date prescribed by law for the filing of a return. The employee shall provide a schedule and computation sufficient to verify the refund claim and the city may confirm with the employer the percentage of time spent outside the city and the amount of compensation attributable to activities performed outside the city prior to approval of the refund.
   (C)   Where there has been an overpayment of tax under § 110.03, a refund or credit shall be made to any person or business entity to the extent of overpayment only if a written application for refund or credit is received by the city from the person or business entity within two years from the date the overpayment was made. No refund shall be made of any tax paid unless a complete return is filed as required by § 110.03.
(1992 Code, § 110.08) (Ord. 11-2004, passed 12-21-2004; Ord. 14-2005, passed 12-6-2005)
§ 110.09 FEDERAL AUDIT PROVISIONS.
   (A)   As soon as practicable after each return is received, the city may examine and audit the return. If the amount of tax computed by the city is greater than the amount returned by the business entity, the additional tax shall be assessed and a notice of assessment mailed to the business entity by the city within five years from the date the return was filed, except as otherwise provided in this division (A).
      (1)   In the case of a failure to file a return or of a fraudulent return the additional tax may be assessed at any time.
      (2)   In the case of a return where a business entity understates gross receipts, or omits an amount properly includable in gross receipts, or both, which understatement or omission, or both, is in excess of 25% of the amount of gross receipts stated in the return, the additional tax may be assessed at any time within six years after the return was filed.
      (3)   In the case of an assessment of additional tax relating directly to adjustments resulting from a final determination of a federal audit, the additional tax may be assessed before the expiration of the times provided in this division (A), or six months from the date the city receives the final determination of the federal audit from the business entity, whichever is later.
      (4)   The times provided in this division (A) may be extended by agreement between the business entity and the city. For the purposes of this division (A), a return filed before the last day prescribed by law for filing the return shall be considered as filed on the last day. Any extension granted for filing the return shall also be considered as extending the last day prescribed by law for filing the return.
   (B)   Every business entity shall submit a copy of the final determination of the federal audit within 30 days of the conclusion of the federal audit.
   (C)   The city may initiate a civil action for the collection of any additional tax within the times prescribed in division (A) above.
(1992 Code, § 110.09) (Ord. 11-2004, passed 12-21-2004)
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