(A) Amount of tax. Subject to the provisions of the saving clause of Ordinance No. 1202, an annual tax for the purposes specified in § 38.01 hereof shall be imposed on and after the first day of October 1977, at the rate of l% per annum upon the following.
(1) On all salaries, wages, commissions, and other compensation earned during the effective period of this chapter by residents of the village.
(2) On all salaries, wages, commissions, and other compensation earned during the effective period of this chapter by nonresidents for work done or services performed or rendered in the village.
(3) (a) On the portion attributable to the village of the net profits earned during the effective period of this chapter of all resident unincorporated businesses, professions, or other entities, derived from sales made, work done, services performed or rendered, and business or other activities conducted in the village.
(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 unincorporated business entity not attributable to this municipality and not levied against such unincorporated business entity by this municipality.
(4) (a) On the portion attributable to this municipality of the net profits earned during the effective period of this chapter of all nonresident unincorporated businesses, professions, or other entities, derived from sales made, work done, or services performed or rendered, and business or other activities conducted in this municipality, whether or not such unincorporated business entity has an office or place of business in the village.
(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 nonresident unincorporated business entity not attributable to this municipality and not levied against such unincorporated business entity by this municipality.
(5) On the portion attributable to this municipality, 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 this municipality, whether or not such corporations have an office or place of business in this municipality.
(6) An annual tax for the purpose specified in this division (A) shall be imposed upon all resident's hereinafter specified income on and after July 1, 2005, at the rate of 1% per annum and any additional rate that may be approved by the electors of the Village that may be in effect during the tax year in which the income from gaming, wagering, lotteries or schemes of chance is received. Such tax shall be imposed upon gaming, wagering, lotteries, including the Ohio State Lottery, or other schemes of chance. The term “other compensation” as stated in this division (A) shall be defined to include but not be limited to income earned or derived from gaming, wagering, lotteries, including the Ohio State Lottery, or other schemes of chance, all of which shall not be taxed as business income unless the individual subject to this tax has a federal gamblers' permit effective during the tax year in which the income from gaining, wagering, lotteries or schemes of chance is received.
(B) Calculation of attribution. On the portion attributable to the village of the net profits of a taxpayer conducting a business, profession, or other activity both within and without the boundaries of the village, such calculation of attribution shall be determined as provided in R.C. § 718.02 and in accordance with the rules and regulations adopted by the administrator pursuant to this chapter.
(C) Operating loss carry forward.
(1) The portion of a net operating loss sustained in any taxable year subsequent to October l, 1977, allocable to this municipality may be applied against the portion of the profit of succeeding years allocable to this municipality, until exhausted but in no event for more than 5 taxable years. No portion of a net operating loss shall be carried back against net profits of any prior year.
(2) The portion of a net operating loss sustained shall be allocated to this municipality in the same manner as provided herein for allocating net profits to this municipality.
(3) The administrator shall provide by rules and regulations the manner in which such net operating loss carry-over or carry-forwards shall be determined.
(4) Any loss from the operation of growing agricultural crops on land within the village zoned industrial can not be used to offset other income subject to the village’s income taxes.
(D) Consolidated returns.
(1) Filing of consolidated returns may be permitted, required, or denied in accordance with rules and regulations prescribed by the administrator.
(2) In the case of a corporation that carries 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 this municipality 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 this municipality. If the administrator finds net profits are not properly allocated to this municipality 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 this municipality.
(E) Exceptions. 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 R.C. § 718.01 to the extent that such net profits are exempted from municipal income taxes under said section, or on income from agricultural crops grown on land within the village zoned industrial.
(Ord. 1202, passed 8-15-77; Am. Ord. 2323, passed 4-18-05; Am. Ord. 2571, passed 4-6-09)