(1) On all salaries, wages, commissions and other compensation earned during the effective period of the ordinance by residents of the City of Lancaster, Ohio, including income from lottery winnings and prize money in the amount of more than $5,000 won on or after January 1, 2001. On all income received as gambling winnings from gaming, wagering and other games of chance and reported on Internal Revenue Service Form W-2G, Form 5754 and/or any other form required by the Internal Revenue Service that reports winnings from gambling and prizes after September 30, 2012.
(Ord. 11-12. Passed 10-15-12.)
(2) On all salaries, wages, commissions and other compensation earned during the effective period of the ordinance by nonresidents for work done or services performed or rendered in the City of Lancaster, Ohio, subject to the 12-day occasional entry provision outline in subsection (e)(2) below.
(Ord. 22-05. Passed 5-9-05.)
(3) A. On the portion attributable to the City of Lancaster, Ohio, of the net profits earned during the effective period of this chapter of all resident associations, unincorporated businesses, professions or other entities, derived from sales made, work done, services performed or rendered and business or other activities conducted in the City of Lancaster, Ohio.
B. On the portion of the distributive share of the net profits earned during the effective period of this chapter of a resident partner or owner of a resident association or other unincorporated business entity not attributable to the City of Lancaster, Ohio, and not levied against such unincorporated business entity. Provided, however, that the liability of an individual partner or owner taxable hereunder on income attributable to another taxing municipality shall be subject to the Relief Provisions of Section 181.16 hereof.
(4) A. On the portion attributable to the City of Lancaster, Ohio of the net profits earned during the effective period of this chapter of all non-resident associations, unincorporated businesses, professions or other entities, derived from sales made, work done or services performed or rendered and business or other activities conducted in the City of Lancaster, Ohio, whether or not such association or unincorporated business entity has an office or place of business in the City of Lancaster, Ohio. For sole proprietors, this shall be subject to the 12-day occasional entry provision outlined in subsection (e)(2) below.
B. On the portion of the distributive share of the net profits earned during the effective period of this chapter of a resident partner or owner of a non-resident association or unincorporated business entity not attributable to the City of Lancaster, Ohio and not levied against such unincorporated business entity. Provided, however, that the liability of an individual partner or owner taxable hereunder on income attributable to another taxing municipality shall be subject to the Relief Provisions of Section 181.16 hereof.
(5) On the portion attributable to the City of Lancaster, Ohio of the net profits earned during the effective period of this chapter of all corporations derived from sales made, work done, services performed or rendered and business or other activities conducted in the City of Lancaster, Ohio, whether or not such corporations have an office or place of business in the City of Lancaster, Ohio.
(b) The portion of the net profits attributable to the City of Lancaster, Ohio of a taxpayer conducting a business, profession or other activity both within and without the boundaries of the City of Lancaster, Ohio shall be determined as provided in Section 718.02 of the Revised Code of Ohio and in accordance with the rules and regulations adopted by the Administrator pursuant to this chapter.
(c) Net Operating Loss.
(1) The portion of a net operating loss sustained in any taxable year starting prior to January 1, 2001, allocable to the City of Lancaster, Ohio may be applied against the portion of the profit of succeeding years allocable to the City of Lancaster, Ohio until exhausted but in no event for more than five (5) taxable years. The portion of a net operating loss sustained in any taxable year starting after December 31, 2000 but prior to January 1, 2004, allocable to the City of Lancaster, Ohio may be carried forward for not more than one (1) taxable year. The portion of a net operating loss sustained in any taxable year starting after December 31, 2003, allocable to the City of Lancaster, Ohio may not be carried forward. No portion of a net operating loss may be carried back against net profit of any prior year.
(Ord. 73-03. Passed 12-22-03.)
(Ord. 73-03. Passed 12-22-03.)
(2) Effective for taxable years starting after December 31, 2000, the net loss from an unincorporated business activity may not be used to offset other taxable income, salaries, wages, commissions or other compensation earned. If a taxpayer is engaged in two or more taxable business activities to be included on the same tax return, the net loss allocable to Lancaster from one unincorporated business activity may be used to offset the net profit of another unincorporated business activity for purposes of arriving at overall net profit.
(3) The portion of a net operating loss sustained shall be allocated to the City of Lancaster, Ohio in the same manner as provided herein for allocating net profits to the City of Lancaster, Ohio.
(4) The Administrator may provide by Rules and Regulations the manner in which such net operating loss carry-forward shall be determined.
(d) Consolidated Returns.
(1) Filing of a consolidated return from any affiliated group of corporations subject to Lancaster income tax is permitted if that affiliated group filed for the same tax reporting period a consolidated return for federal income tax purposes pursuant to Section 1501 of the Internal Revenue Code. Once a consolidated return has been filed with Lancaster, that same approach must be used in all subsequent tax years for as long as a federal consolidated return continues to be filed.
(2) In the case of a corporation that carried on transactions with its stockholders or with other corporations related by stock ownership, interlocking directorates, or some other method, or in case any person operates a division, branch, factory, office, laboratory or activity within the City of Lancaster, Ohio, constituting a portion only of its total business, the Administrator shall require such additional information as he may deem necessary to ascertain whether net profits are properly allocated to the City of Lancaster, Ohio. If the Administrator finds net profits are not properly allocated to the City of Lancaster, Ohio, by reason of transactions with stockholders or with other corporations related by stock ownership, interlocking directorates, or transactions with such division, branch, factory, office, laboratory or activity or by some other method, he shall make such allocation as he deems appropriate to produce a fair and proper allocation of net profits to the City of Lancaster, Ohio.
(e) Exceptions.
(1) The tax provided for herein shall not be levied upon the military pay or allowances of members of the armed forces of the United States, or upon the net profits of any civic, charitable, religious, fraternal or other organization specified in Section 718.01 of the Revised Code of Ohio to the extent that such net profits are exempted from municipal income taxes under said Section. It is also provided that this tax shall not be levied upon poor relief, unemployment insurance benefits, supplemental unemployment benefits, old age pensions or similar payments received from local, state or federal governments or charitable or religious organizations, worker’s compensation insurance and social security benefits. The tax provided for herein shall not be levied upon the earnings of any person under sixteen (16) years of age, whether a resident or nonresident.
(2) A. For tax years starting January 1, 2001 or later, a non-resident individual (if the non-resident is an employee, the principal place of employment of the non-resident’s employer must be outside of Lancaster) who works in Lancaster on 12 or fewer days per year shall be considered an occasional entrant and shall not be subject to Lancaster’s municipal income tax for those 12 (or fewer) days. For purposes of this 12-day calculation, any portion of a day worked in Lancaster shall be counted as one day worked in Lancaster.
B. If a non-resident individual works in Lancaster on 13 or more days per year, where a day is as defined in subsection (e)(2)A., no such exception shall apply.
(3) The 12-day occasional entry provision does not apply to professional entertainers or professional athletes, or to promoters of professional entertainment or sporting events and their employees.
(Ord. 38-00. Passed 11-27-00.)