191.01 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, adjusted as follows:
(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 trade or business or assets held for the production of income;
(2) Add an amount equal to five percent (5%) of intangible income deducted under division (a)(1) of this section, 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;
(3) 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;
(4) A. Except as provided in division (a)(4)B. of this section, 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;
B. Division (a)(4)A. of this section does not apply to the extent the income or gain is income or gain described in section 1245 or 1250 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 and regulated investment company, add all amounts with respect to dividends to investors, distributions to investors, 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:
A. 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
B. 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 for life insurance for an owner or owner-employee shall not be allowed as a deduction.
Nothing in division (a) of this section shall be construed as allowing the taxpayer to add or deduct any amount more than once or shall be construed as allowing any taxpayer to deduct any amount paid to or accrued for purposes of federal self-employment tax.
Nothing in this chapter shall be construed as limiting or removing the ability of any municipal corporation to administer, audit, and enforce the provisions of its municipal income tax.
(b) "Association" means a partnership, limited partnership, S-corporation or any other form of unincorporated enterprise, owned by two or more persons.
(c) "Business" means an enterprise, activity, profession or undertaking of any nature conducted for profit or ordinarily conducted for profit, whether by an individual, partnership, limited partnership, corporation, association or any other entity.
(d) "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, foreign country or dependency.
(e) "Employee" means an individual whose earnings are subject to the withholding of Federal Income Tax or Social Security Tax.
(f) "Employer" means an individual, partnership, limited partnership, association, corporation, governmental body, unit or agency, or any other entity which employs one or more persons on a salary, wage, third party sick pay, commission or other compensation basis.
(g) “Intangible income” means income of any of the following types: income yield, interest, capital gains, 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 Chapter 5701 of the Ohio Revised Code, and patents, copyrights, trademarks, trade names, investments in real estate investment trusts, investments in regulated investment companies, and appreciation on deferred compensation. “Intangible income” does not include prizes, awards, or other income associated with any lottery winnings or other similar games of chance.
(h) “In the City” as used in Section 191.02 shall include all City owned lands not situated within the boundaries of another municipality.
(i) "Net profit" for a taxpayer other than an individual means adjusted federal taxable income and “net profit” for a taxpayer who is an individual means the individual’s profit required to be reported on schedule C, schedule E, or schedule F.
(j) "Nonresident" means an individual, partnership, limited partnership, corporation, association or other entity domiciled outside the City of Mansfield.
(k) "Other compensation" as used in Section 191.02 shall include tips, gratuities and all types of deferred income, that is, insurance paid by the employer over fifty thousand dollars ($50,000), 401K, PERS, etc.
(l) "Other entity" means any person or unincorporated body not previously named or defined and includes, inter alia, fiduciaries located within the City of Mansfield.
(m) "Person" means every natural person, partnership, limited partnership, corporation, fiduciary or association. Whenever used in any clause prescribing and imposing a penalty, the term "person" as applied to an association, shall mean the partners or members thereof, and as applied to corporations, the officers thereof.
(n) “Qualifying wages” means wages, as defined in section 3121(a) of the Internal Revenue Code, without regard to any wage limitations, adjusted in accordance with section 718.03(A) of the Ohio Revised Code.
(o) "Resident" means an individual, partnership, limited partnership, corporation, association or other entity domiciled in the City of Mansfield.
(p) “Taxable income” as used in Section 191.02 shall include: qualifying wages, salaries and other compensation paid by an employer or employers before any deduction; and net profits from the operation of a business, profession or other enterprise or activity; and income derived or received from gaming, wagering, schemes of chance or lotteries, including the Ohio State Lottery, totaling $600 or more in a taxable year as adjusted in accordance with the provisions of this chapter.
(q) “Taxpayer” means a person, whether an individual, partnership, limited partnership, corporation, association or other entity, required hereunder to file a return or to pay a tax hereunder.
(r) The singular shall include the plural and the masculine shall include the feminine and the neuter.
(Ord. 13-082. Passed 4-2-13.)