181.02 DEFINITIONS.

   As used in this chapter, the following words shall have the meaning ascribed to them in this section, except as and if the context clearly indicates or requires a different meaning.

   (a)   “Adjusted federal taxable income” means a “C” corporation’s federal taxable income before net operating losses and special deductions as determined under the Internal Revenue Code, but including subsequent adjustments from required additions and deductions. Pass-through entities must compute “Adjusted Federal Taxable Income” as if the pass-through entity was a “C” corporation. This definition does not apply to any taxpayer required to file a return under Ohio Revised Code (ORC) Section 5745.03 or to the net profit from a sole proprietorship. This definition is effective for tax years beginning on or after January 1, 2004.

   (b)   "Administrator" means the individual designated by the chapter, whether appointed or elected, to administer and enforce the provisions of this chapter.

   (c)   "Association" means a partnership, limited partnership, or any other form of unincorporated enterprise, owned by two or more persons.

   (d)   "Board of Review" means the board created by and constituted as provided in Section 181.12.

   (e)   "Business" means an enterprise, activity, profession, or undertaking of any nature conducted for profit or ordinarily conducted for profit, whether by an individual, partnership, association, corporation or any other entity, including but not limited to the renting or leasing of property, real, personal or mixed.

   (f)   "Corporation" means a corporation or joint stock association organized under the laws of the United States, the State of Ohio, or any other state, territory or foreign country or dependency.

   (g)   "Employee" means one who works for wages, salary, commission or other type of compensation in the service of an employer.

   (h)   "Employer" means an individual, partnership, association, corporation, governmental body, unit or agency or any other entity, whether or not organized for profit, who or that employs one or more persons on a salary, wage, commission or other compensation basis.

   (i)   "Fiscal year" means an accounting period of twelve months or less ending on any day other than December 31.

   (j)   “Generic form” means an electronic or paper form designed for reporting estimated municipal income taxes, and/or annual municipal income tax liability, and/or requests for refunds, which contain all the information required on City regular tax return, estimated payment forms, and request for refund forms, and are in a similar format that will allow processing of the generic forms without altering the City procedures for processing forms.

   (k)   "Gross receipts" means the total income from any source whatsoever.

   (l)   "Net profits" for taxable years prior to 2004, means a net gain from the operation of a business, profession, enterprise or other activity after provision for all ordinary, reasonable and necessary expenses either paid or accrued in accordance with the accounting system used by the taxpayer for federal income tax purposes, without deduction of taxes imposed by this chapter, federal, State, and other taxes based on income exclusive of the amount of State franchise tax computed on the net worth basis; and in the case of an association, without deduction of salaries paid to partners and other owners; and otherwise adjusted to the requirements of this chapter. For taxable years 2004 and later, see “Adjusted Federal Income Tax Taxable Income”.

   (m)   "Nonresident" means an individual domiciled outside the City.

   (n)   "Nonresident unincorporated business entity" means an unincorporated business entity not having an office or place of business within the City.

   (o)   "Person" means every natural person, partnership, fiduciary, association, or corporation. Whenever used in any clause prescribing and imposing a penalty, the term "person" as applied to any unincorporated entity, shall mean the partners or members thereof, and as applied to corporations, the officers thereof.

   (p)   "Place of business" means any bona fide office, other than a mere statutory office, factory, warehouse, or other space which is occupied and used by the taxpayer in carrying on any business activity individually or through one or more of his regular employees regularly in attendance.

   (q)   “Qualifying wage” means wages as defined in Section 3121(a) of the Internal Revenue Code, without regard to any wage limitations, but including subsequent adjustments from required additions and deductions. “Qualifying wage” represents employees’ income from which municipal tax shall be deducted by the employer, and any wages not considered a part of “qualifying wage” shall not be taxed by the City. This definition is effective January 1, 2004, for taxable years 2004 and later.

   (r)   "Resident" means an individual domiciled in the City.

   (s)   "Resident unincorporated business entity" means an unincorporated business entity having an office or place of business within the City.

   (t)   "Taxable year" means the calendar year, or the fiscal year, upon the basis of which net profits are to be computed under this chapter and, in the case of a return for a fractional part of a year, the period for which such return is required to be made.

   (u)   "Taxpayer" means a person, whether an individual, partnership, association or any corporation or other entity, required hereunder to file a return or pay a tax.

   (v)   “Taxable income” means wages, salaries, and other compensation paid by an employer or employers before any deductions and/or the net profits from the operation of a business, profession or other enterprise or activity adjusted in accordance with the provisions of this chapter, and shall also include the following:

      (1)   “Business income” means income arising from transactions, activities, and sources in the regular course of a trade or business and includes income from tangible and intangible property if the acquisition, rental, management, and disposition of the property constitute integral parts of a trade or business operation.

      (2)   “Non-business income” means all income other than business income and may include, but is not limited to, compensation, rents and royalties from real or tangible personal property, or lottery winnings, prizes and awards.

      (3)   “Compensation” means any form of remuneration including, but not limited to wages, salaries, commissions, or other types of compensation in service of an employer, paid to an employee or individual for personal services.

      (4)   “Games of chance” as defined by Internal Revenue Service Code.

      (5)   “Games of chance winnings” means those monetary prizes received by an individual or an estate after playing a game of chance, these winnings are considered non-business income and are not considered to be intangible income. (Ord. 14-2005. Passed 8-28-14.)

      (6)   “Pension” means any amount paid to an employee or former employee that is reported to the recipient on an IRS Form 1099-R, or a successor form. Pension does not include deferred compensation, or amounts attributable to non-qualified deferred compensation plans reported as FICA/Medicare wages on an IRS Form W-2, Wage and Tax Statement or successor form. (Ord. 89-2014. Passed 8-28-14.)

   (w)   “Intangible income” means income of any of the following types: income yield interest, dividends or other income arising from the ownership, sale, exchange, or other disposition of intangible property including, but not limited to, investments, deposits, money, or credits as those terms are defined in Ohio R.C. Section 5701, patents, copyrights, trademarks, investments in real estate investment trusts, investments in regulated investment companies, and appreciation on deferred income. “Intangible income” does not include prizes, awards, or other income associated with any lottery winnings or other similar games of chance.

   The singular shall include the plural, and the masculine shall include the feminine and the neuter.
(Ord. 14-2005. Passed 1-27-05.)