(a) To provide funds for the purpose of general municipal operations and other municipal purposes of the city, therein is hereby levied a tax upon the following:
(1) On all salaries, wages, commissions, and other compensation earned on and after February 1, 1969, by resident individuals of the city;
(2) On all salaries, wages, commissions and other compensation earned on and after February 1, 1969, by nonresident individuals for work done or services performed or rendered in the city;
(3) On the net profits attributable to the city, earned on and after February 1, 1969, of all resident unincorporated business, professions, and other activities derived from work done, services rendered or performed and business or other activities conducted in the city;
(4) On the portion of the distributive share of the net profits earned on and after February 1, 1969, of a resident individual, partner, or owner of a resident unincorporated business entity attributable to the city and not levied against such unincorporated business entity;
(5) On the net profits attributable to the city earned on and after February 1, 1969, of all nonresident unincorporated businesses, professions, or other activities, derived from work done, services performed or rendered and business or other activities conducted in the city;
(6) On that portion of the distributive share of the net profits earned on and after February 1, 1969, of a resident individual, partner, or owner of a nonresident unincorporated business entity not attributable to the city and not levied against such unincorporated business entity; and
(7) On the net profits earned on and after February 1, 1969, of all corporations derived from work done, services performed or rendered, and business or other activities conducted in the city. The portion of the entire net profits of a taxpayer to be allocated as having been made within and attributable to the city may, in the absence of actual records or separate accounting thereof, be determined as follows:
A. Multiply the entire net profit by a business allocation percentage to be determined by:
1. Ascertaining the percentage which the average value of the taxpayer's real and tangible personal property within the city during the period covered by this report bears to the average value of all the taxpayer's real and tangible personal property wherever situated during such period. As used in this division, real property includes property rented or leased by the taxpayers and the value of such property shall be determined by multiplying the annual rental thereon by eight.
2. Ascertaining the percentage which the gross sales of the taxpayer within the city, plus the gross credits or charges for the work done and performed or services rendered in the city, bears to the total gross sales wherever made, plus the total gross credits or charges for the work done and performed or services rendered. "Within the city" sales shall be deemed to include:
a. All sales of tangible personal property delivered to purchasers in the city if shipped or delivered from an office, store, warehouse, factory, or place of storage located in the city;
b. All sales of tangible personal property delivered to purchasers in the city, even though transported from a point outside the city, if the taxpayer is regularly engaged through its own employees in the solicitation or promotion of sales within the city, and if the sale is directly or indirectly the result of the taxpayer's activities in the city in soliciting or promoting sales;
c. i. All sales of tangible personal property shipped from an office, store, warehouse, factory or place of storage in the city to purchasers in the other cities or villages, if the
taxpayer is not, through its own employees, regularly engaged in the solicitation or promotion of sales in such other cities or villages, or even if it is so engaged, if the sales are not directly or indirectly attributable to such activities.
ii. Gross sales shall be considered to mean gross receipts from sales in the case of a cash basis taxpayer.
3. Ascertaining the percentage which the total wages, salaries, and other personal service compensation, similarly computed during such period, of employees in the city, except general executive officers, bears to the total wages, salaries, and other personal service compensation, similarly computed during such period of all the taxpayer's employees within and without the city, except general executive officers; and
4. Adding together the percentages determined in accordance with divisions (a)(7)A.1., 2., and 3. of this section, or such of the aforesaid percentages as shall be applicable to the particular taxpayer's business, and dividing the total so obtained by the number of percentage used in deriving the total.
B. If a just and equitable result cannot be obtained by the use of the factors set forth in division (a)(7)A.1. of this section, the Tax Administrator may substitute factors calculated to effect a fair and proper allocation.
(b) There is hereby levied a tax upon earnings at the rate of 1% on or after February 1, 1969.
(Ord. 5365, passed 1-9-1969; Am. Ord. 88-52, passed 1-26-1989; Am. Ord. 15-40, passed 12-10-2015)
Statutory reference:
Authority to tax income and withhold tax, see R.C. § 718.04