890.02  DEFINITIONS.
   As used in this chapter:
   (a)   "Adjusted Federal Taxable Income."  For tax years prior to 2004, see definition of "Net Profits" as defined in this section. For taxable years 2004 and later, "Adjusted Federal Taxable Income" shall mean a C corporation's federal taxable income before net operating losses and special deductions as determined under the Internal Revenue Code, but including subsequent adjustments from required additions and deductions.  Pass-through entities must compute "Adjusted Federal Taxable Income" as if the pass-through entity was a C corporation. This definition does not apply to any taxpayer required to file a return under Ohio R.C. 5745.03 or to the net profit from a sole proprietorship. This definition is effective for tax years beginning on or after January 1, 2004.
   (b)   "Administrator" means the Tax Administrator of the Municipality.
   (c)   "Association" means any partnership, limited partnership or any other form of unincorporated enterprise, owned by two or more persons.
   (d)   "Board of Review" means the Board created by and constituted as provided in Section 890.47.
   (e)   "Business" means any enterprise, activity, profession or undertaking of any nature conducted for profit or ordinarily conducted for profit, whether by an individual, partnership, association, corporation or other entity, excluding, however, all nonprofit corporations which are exempt from the payment of Federal income tax.
   (f)   "Corporation" means a corporation or joint stock association organized under the laws of the United States, the State or any other state, territory, foreign country or dependency.
   (g)   "Employee" means one who works for a wage, salary, commission or any other type of compensation in the service of an employer.
   (h)   "Employer" means an individual, partnership, association, corporation, government body, unit or agency or any other entity, whether or not organized for profit, who or that employs one or more persons on a salary, wage, commission or other basis of compensation.
   (i)   "Fiscal year" means an accounting period of twelve months or less ending on any day other than December 31.
   (j)   "Generic Form" shall mean an electronic or paper form designed for reporting estimated municipal income taxes, and/or annual municipal income tax liability, and/or requests for refunds, which contain all the information required on the Municipality's regular tax return, estimated payment forms and request for refund forms, and are in a similar format that will allow processing of the generic forms without altering the Municipality's procedures for processing forms.
   (k)   "Gross receipts" means the total income from any source whatever.
   (l)   "Municipality" means the Village of Hudson.
   (m)   "Net profits" means a net gain from the operation of a business, profession, enterprise or other activity 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 or Federal, State and other taxes based on income, and, in the case of an association, without deduction of salaries paid to partners and other owners.  If the Tax Administrator approves the use of books and records as a substitute method, the following shall apply:
      (1)   The net profits allocable to the Municipality from business, professional or other activities conducted in the Municipality by corporations or unincorporated entities (whether resident or nonresident) may be determined from the records of the taxpayer only if the taxpayer has bona fide records which disclose with reasonable accuracy what portion of his or her net profits is attributable to that part of his or her activities conducted within the Municipality.
      (2)   If the books and records of the taxpayer are used as the basis for apportioning net profits, a statement must accompany the return explaining the manner in which such apportionment is made in sufficient detail to enable the Tax Administrator to determine whether the net profits attributable to the Municipality are apportioned with reasonable accuracy.
      (3)   In determining the income allocable to the Municipality from the books and records of a taxpayer, an adjustment may be made for the contribution made to the production of such income by headquarters activities of the taxpayer, whether such headquarters is within or without the Municipality.
   (n)   "Nonresident" means an individual domiciled outside the Municipality.
   (o)   "Nonresident unincorporated business entity" means an unincorporated business entity not having an office or place of business within the Municipality.
   (p)   "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, means the partners or members thereof, and as applied to corporations, the officers thereof.
   (q)   "Place of business" means any bona fide office (other than a mere statutory office), factory, warehouse or other space which is occupied and used by the taxpayer in carrying on any business activity individually or through one or more of his or her regular employees regularly in attendance.
   (r)   "Qualifying wage" means wages as defined in Section 3121(a) of the Internal Revenue Code, without regard to any wage limitations, but including subsequent adjustments from required additions and deductions. "Qualifying wage" represents employees' income (including non-qualified deferred compensation and stock options) from which municipal tax shall be deducted by the employer, and any wages not considered a part of "qualifying wage" shall not be taxed by the Municipality. This definition is effective January 1, 2004 for taxable years 2004 and later.
   (s)   "Resident" means an individual domiciled in the Municipality.
   (t)   "Resident unincorporated business entity" means an unincorporated business entity having an office or place of business within the Municipality.
(Ord. 79-55.  Passed 2-19-80.)
   (u)   "Taxable income" means wages, salaries and other compensation paid by an employer or employers before any deduction.  "Other compensation" includes, but is not limited to, bonuses; commission; incentive payments; directors fees; property in lieu of cash; tips; contest prizes and awards; tax shelter plans; vacation and sick pay, regardless of label, such as sick leave, vacation pay, etc.; wage continuation plans; non-qualified deferred compensation; and stock option plans given as compensation to the extent to which it is included on the taxpayer's annual W-2 or applicable 1099s.  "Other compensation" does not include dismissal or severance pay or supplemental income benefits for early retirement regardless of label.  "Taxable income" shall also include income from gaming, wagering and lotteries, including the Ohio State Lottery, 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.  "Taxable income" does not include intangible income, including patents, copyrights, trademarks, investments in real estate investment trusts, investments in regulated investment companies and appreciation on deferred income.
(Ord. 97-37.  Passed 4-23-97.)
   (v)   "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.
   (w)   "Taxpayer" means a person, whether an individual, partnership, association, corporation or other entity, required hereunder to file a return or pay a tax.
(Ord. 79-55. Passed 2-19-80; Ord. 05-14.  Passed 2-2-05.)