To provide funds for the purpose of general municipal operations, maintenance of equipment, new equipment, the extension, enlargement, and improvement of municipal services and facilities, and capital improvements of the City, and/or other legal municipal purpose, there hereby is levied a tax at the rate of one percent (1%) on the following:
(a) On all income salaries, wages, including severance, sick, wage continuation plans, and vacation pay, and supplemental unemployment pay, commissions and other compensation earned by resident individuals of the City.
(b) On all income, salaries, wages, including severance, sick, wage continuation plans, and vacation pay, and supplemental unemployment pay, commissions, and other compensation earned by nonresident individuals of the City for work done or services performed or rendered in the City.
(c) On the net profits attributable to the City of all resident unincorporated businesses, pass through entities, professions or other activities derived from sales made, work done or services rendered or performed and business or other activities conducted in the City.
(d) On the net profits attributable to the City earned by all nonresident unincorporated businesses, pass through entities, professions, or other activities derived from sales made, work done or services performed or rendered and business or other activities conducted in the City.
(e) On the net profits earned by all corporations derived from sales made, work done or services performed or rendered and business or other activities conducted in the City whether or not such corporations have a place of business in the City.
(f) (1) The City shall not tax the compensation paid to a nonresident individual for personal services performed by such individual in the City on twelve or fewer days in a calendar year unless one of the following applies:
A. The individual is an employee of another person; the principal place of business of the individual's employer is located in another municipal corporation in the state of Ohio that imposes a tax applying to compensation paid to the individual for services performed on those days; and the individual is not liable to that other municipal corporation for tax on the compensation paid for such services.
B. The individual is a professional entertainer or professional athlete, the promoter of a professional entertainment or sports event, or an employee of such a promoter, all as may be reasonably defined by the City.
(2) For purposes of the 12-day calculation, any portion of a day worked in Loveland shall be counted as one day worked in Loveland.
(3) Beginning with the thirteenth day, the employer of said individual shall begin withholding Loveland income tax from remuneration paid by the employer to the individual, and shall remit the withheld income tax to Loveland in accordance with Sections 183.05 and 183.06. Since the individual can no longer be considered to have been an occasional entrant, the employer is further required to remit taxes on income earned in Loveland by the individual for the first twelve (12) days. If the individual is self-employed or an independent contractor, it shall be the responsibility of the individual to remit the appropriate income tax to Loveland.
(g) A business loss shall not be used by a taxpayer to offset income taxes owing to the City as a result of his employment.
(h) Any amount or value realized on a sale, exchange or other disposition of tangible personal property or real property used in a business in excess of the original cost shall be treated as taxable income under this chapter to the extent of depreciation allowed or allowable.
(i) Net profits (i.e., “adjusted federal taxable income”) shall be calculated by adjusting the corporation’s federal taxable income before net operating losses and special deductions in the following manner:
(1) Deduct intangible income to the extent included in federal taxable income. The deduction shall be allowed regardless of whether the intangible income relates to assets used in a trade or business or assets held for the production of income.
(2) Deduct income and gain included in federal taxable income to the extent the income and gain directly relate to the sale, exchange, or other disposition of an asset described in Section 1221 or 1231 of the Internal Revenue Code, except to the extent the income or gain is income or gain described in Section 1245 of 1250 of the Internal Revenue Code.
(3) Add an amount equal to five percent of intangible income deducted under subsection (i)(1) hereof, but excluding that portion of intangible income directly related to the sale, exchange or other disposition of property described in Section 1221 of the Internal Revenue Code.
(4) Add any losses allowed as a deduction in the computation of federal taxable income if the losses directly relate to the sale, exchange or other disposition of an asset described in Section 1221 or 1231 of the Internal Revenue Code.
(5) Add taxes on or measured by net income allowed as a deduction in the computation of federal taxable income.
(6) In the case of a real estate investment trust or regulated investment company, add all amounts with respect to dividends to, distributions to, or amounts set aside for or credited to the benefit of investors and allowed as a deduction in the computation of federal taxable income.
(7) If the taxpayer is not a c-corporation and is not an individual, the taxpayer shall compute adjusted federal taxable income as if the taxpayer were a c- corporation, except that guaranteed payments and other similar amounts paid or accrued to a partner, former partner, member or former member shall not be allowed as a deductible expense, and amounts paid or accrued to a qualified self-employed retirement plan with respect to an owner or owner-employee of the taxpayer, amounts paid or accrued to or for health insurance for an owner or owner-employee, and amounts paid or accrued to or for life insurance for an owner or owner-employee shall not be allowed as a deduction.
(Ord. 2002-73. Passed 12-7-02; Ord. 2004-84. Passed 12-17-04.)