(A) An annual tax for the purposes specified in § 93.02 shall be imposed at the rate of 0.525% per annum upon the following:
(1) Resident individuals. On the individual’s adjusted gross income.
(2) Part-year- resident individuals. On a prorated portion of the individual’s adjusted gross income, which proration shall be based on the number of days that the individual resides in the village during the taxable year; provided that in the case of an individual who claims the Part- Year Resident Credit on Nonresident Credit on his or her Ohio income tax return for the taxable year, it shall be presumed that the portion of the individual’s adjusted gross income that is subject to the tax is equal to the individual’s adjusted gross income for the taxable year minus the portion that was not earned or received in Ohio, as that portion not earned or received in Ohio is reported on the individual’s Ohio income tax return for the same taxable year.
(3) Resident C corporations. On all net profits earned during the effective period of this chapter of all resident C corporations.
(4) S corporation shareholder’s distributive share. On an S corporation shareholder’s distributive share of net profits of an S corporation.
The tax is imposed on the owners of a pass-through entity rather than on the pass-through entity. No tax shall be imposed under § 93.03(A)(1), (A)(2), and (A)(3) if the adjusted gross income of an individual or net profits of a C Corporation does not exceed $5,000 in the taxable year.
(B) Consolidated returns.
(1) For taxable years beginning on or after January 1, 2016, a taxpayer that is a member of an affiliated group of corporations may elect to file a consolidated municipal income tax return for a taxable year if at least one member of the affiliated group of corporations is subject to the tax imposed by this chapter in that taxable year and if the affiliated group of corporations filed a consolidated federal income tax return with respect to that taxable year.
(a) The election is binding for a five-year period beginning with the first taxable year of the initial election unless a change in the reporting method is required under federal law;
(b) The election continues to be binding for each subsequent five-year period unless the taxpayer elects to discontinue filing consolidated municipal income tax returns under division (B)(2) of this section; or
(c) A taxpayer received permission from the tax commissioner. The tax commissioner shall approved such a request for good cause shown.
(2) An election to discontinue filing consolidated municipal income tax returns under this section must be made in the first year following the last year of a five-year consolidated municipal income tax return election period in effect under division (B)(1) of this section. The election to discontinue filing a consolidated municipal income tax return is binding for a five-year period beginning with the first taxable year of the election.
(3) An election made under division (B)(1) or (2) of this section is binding on all members of the affiliated group of corporations subject to a municipal income tax.
(4) A taxpayer that is a member of an affiliated group of corporations that filed a consolidated federal income tax return for a taxable year shall file a consolidated municipal income tax return for that taxable year if the tax commissioner determines, by a preponderance of the evidence, that intercompany transactions have not been conducted at arm’s length and that there has been a distortive shifting of income or expenses with regard to allocation of net profits to the municipal corporation. A taxpayer that is required to file a consolidated municipal income tax return for a taxable year shall file a consolidated municipal income tax return for all subsequent taxable years unless the taxpayer requests and receives written permission from the tax commissioner to file a separate return or a taxpayer has experienced a change in circumstances.
(5) Each corporation filing a consolidated municipal income tax return is jointly and severally liable for any tax, interest, penalties, fines, charges, or other amounts imposed by the village in accordance with this chapter on the corporation, an affiliated group of which the corporation is a member for any portion of the taxable year, or any one or more members of such an affiliated group.
(6) Corporations and their affiliates that made an election or entered into an agreement with the village before January 1, 2016, to file a consolidated or combined tax return with the village may continue to file consolidated or combined tax returns in accordance with such election or agreement for taxable years beginning on or after January 1, 2016.
(Ord. 07-15, passed 12-14-15; Am. Ord. 11-16, passed 12-12-16; Am. Ord. 16-17, passed 12-18-17; Am. Ord. 13-18, passed 12-17-18; Am. Ord. 17-19, passed 12-16-19; Am. Ord. 17-20, passed 12-21-20; Am. Ord. 27-21, passed 12-13-21)