(a) Income of Members of Armed Forces and Certain Institutions.
(1) All military pay and allowances of any member of the armed forces of the United States are exempt from the tax imposed by the Ordinance. This exemption includes not only military pay and allowances received by the member himself, but also military pay and allowances, such as dependency allowances, received by another person by reason of the member's service.
(2) The income of religious, fraternal, scientific, literary or educational institutions is exempt from the tax imposed by the Ordinance only to the extent that such income is derived from tax-exempt real estate, tax-exempt tangible or intangible property of tax-exempt activities.
(b) Payments from Governments and Certain Organizations. Poor relief, unemployment insurance benefits, old age pensions or similar payments, including disability benefits received from local, state or federal governments or charitable, religious or educational organizations are exempt from the tax imposed by the Ordinance. The exempted benefits include all types of payments and allowances made or given by such governments and organizations for the relief or correction of poverty, unemployment, delinquency, problems of health or advanced age, lack of education and similar problems. The exempted benefits include, for example: aid to dependent children and the aged: rent, food and clothing allowances or subsidies; job training allowances: social security and Medicare benefits; and Workers’ Compensation benefits.
(c) Insurance and Annuity Proceeds, Certain Employee Benefits and Gifts.
(1) Proceeds of insurance paid by reason of the death of the insured, gratuities not in the nature of compensation for services rendered, pensions, disability benefits (not under a wage continuation plan), retirement benefits and annuities are exempt from the tax imposed by the Ordinance, irrespective of the source from which derived. The exemption includes gifts and inheritances. Disability benefits include the proceeds of health and accident insurance and similar benefits.
(2) Pensions, retirement benefits, annuities and similar payments made to an employee or to the beneficiary of an employee under a retirement program or plan (whether formal or informal) after termination of employment are exempt from the tax.
(d) Receipts of Certain Organizations and Associations. Receipts from seasonal or casual entertainment, amusement, sports events and health and welfare activities, when any such are conducted by charitable, religious or educational organizations or associations, are exempt from the tax imposed by the Ordinance. This exemption refers only to the receipts of the organization and not to the compensation of employees and entertainers.
(e) Alimony. Alimony received is exempted from the tax imposed by the Ordinance. Support payments made by one spouse for the benefit of the other spouse or children in connection with any divorce or separation, whether or not awarded by the court, shall be deemed alimony for the purposes of this exemption.
(f) Minors.
(1) Personal earnings of any natural person under eighteen (18) years of age are exempt from the tax imposed by the Ordinance.
(2) Certain disabled and handicapped persons, earning less than fifty dollars ($50.00) per week, and who are employed by a non-profit, charitable organization, upon application to the Board of Review, and approval by the said Board, may be exempt from paying tax.
(g) Personal Injuries and Damage to Property. Compensation for personal injuries or for damages to property by the way of insurance or otherwise is exempt from the tax imposed by the Ordinance.
(h) Income from Intangibles. Intangible property includes:
(1) Shares of stock in corporations.
(2) Interest-bearing obligations (notes, bonds and saving account).
(3) Annuities.
(4) Patents and copyrights.
(5) Qualified stock options.
(i) Involuntary Conversions and Other Exemptions.
Gains from involuntary conversion, cancellation of indebtedness, interest on Federal obligations, items of income already taxed by the State of Ohio, which this Municipality is specifically prohibited from taxing and income of a decedent's estate during the period of administration (except such income from the operation of a business), are exempt from the tax imposed by the Ordinance.
(j) Taxation Prohibited by Federal Government. Salaries, wages, commissions and other compensation and net profits, the taxation of which is prohibited by the United States Constitution or any act of Congress limiting the power of the states or their political subdivisions to impose net income taxes of income derived from interstate commerce, are exempt from the tax imposed by the Ordinance.
(k) Taxation Prohibited by the State of Ohio. Salaries, wages, commissions, or other compensation and net profits, the taxation of which is prohibited by the Constitution of the State of Ohio or any act of the Ohio General Assembly limiting the power of this Municipality to impose net income taxes, are exempt from the tax imposed by the Ordinance.
The examples set forth in this section are not all-inclusive.
(Ord. 152-94. Passed 12-19-94.)