111.0501 RATE AND INCOME TAXABLE.

   An annual tax for the purposes specified in Section 111.0101 hereof shall be imposed on and after January 1, 2007, at the rate of two percent (2%) per annum upon the following:
(Ord. 15-2006. Passed 11-7-06.)

   (a)    On all salaries, wages, commissions, lottery winnings of one million dollars ($1,000,000) or more, and other compensation earned on and after January 1, 1972, by residents of the Municipality of Highland Heights.

   (b)    On all salaries, wages, commissions and other compensation earned on and after January 1, 1972, by nonresidents of the Municipality for work done or services performed or rendered within the Municipality of Highland Heights.

      (Ord. 5-2004. Passed 2-10-04.)

   (c)   (1)    On the portion attributable to the Municipality on the net profits earned on and after January 1, 1972, of all resident unincorporated business entities or professions or other activities, derived from sales made, work done, services performed or rendered and business or other activities conducted in the Municipality of Highland Heights.

      (2)    On the portion of the distributive share of the net profits earned on and after January 1, 1972, of a resident partner or owner of a resident unincorporated business entity not attributable to the Municipality of Highland Heights and not levied against such unincorporated business entity.

   (d)    (1)    On the portion attributable to the Municipality of the net profits earned on and after January 1, 1972, of all nonresident unincorporated business entities, professions or other activities, derived from sales made, work done, services performed or rendered and business and other activities conducted in the Municipality, whether or not such unincorporated business entity has an office or place of business in the Municipality of Highland Heights.

      (2)    On the portion of the distributive share of the net profits earned on and after January 1, 1972, of a resident partner or owner of a nonresident unincorporated business entity not attributable to the Municipality of Highland Heights, Ohio, and not levied against such unincorporated business entity by the Municipality.

   (e)    On the portion attributable to the Municipality of the net profits earned on and after January 1, 1972, of all corporations derived from the sales made, work done, services performed or rendered and business or other activities conducted in the Municipality, whether or not such corporations have an office or place of business in the Municipality of Highland Heights.

      (Ord. 51-1971. Passed 11-23-71.)

   (f)   Effective January 1, 2009, and retroactive thereto, “royalty income” means income earned by a taxpayer from a royalty interest in the production of an oil or gas well, whether managed, extracted or operated by the taxpayer individually or through an agent or other representative, shall be included in the computation of net profits from a business activity to the extent that such royalty interest constitutes a business activity of the taxpayer. The gross income received by a taxpayer from royalty interest in the production of an oil or gas well shall be prima facie evidence that the income was derived from a business activity of such taxpayer and the income from such royalty interest shall be subject to tax. (Ord. 19-2009. Passed 10-13-09.)