191.02 LEVY.

   To provide funds for the purpose of general municipal operations and other municipal purposes of the City of Mansfield, there is hereby levied a tax upon earnings at the rate of one percent (1%), upon the following:

   (a)   (1)   On all salaries, qualifying wages, third party sick pay, commissions and other compensation earned on and after January 1, 1971, by resident individuals of the City of Mansfield.

      (2)   On income from all lottery, gambling, and sports winnings, and games of chance received by resident individuals of the City of Mansfield.

         A.   If taxpayer is considered a professional gambler under the Internal Revenue Code, then deductions for gambling losses shall be permitted according to the Internal Revenue Code for a professional gambler.

B.   If taxpayer is not considered a professional gambler under the Internal Revenue Code, a deduction equal to the amount of up to $2,500 of income combined from lottery gambling and sports winnings, and games of chance, or a deduction of $2,500 whichever is less, shall be allowed, provided that in case shall the deduction exceed the amount of combined income from lottery, gambling and sports winnings, and games of chance. If any of the said income is paid out over a period of more than one year, the deduction shall apply only to the first year.

   (b)   On all salaries, qualifying wages, third party sick pay, commissions and other compensation earned on and after January 1, 1971, by nonresident individuals of the City of Mansfield, for work done or services performed or rendered in the City of Mansfield.

   (c)   On the net profits attributed to City of Mansfield, earned on and after January 1, 1971, of all resident unincorporated businesses, professions and other activities derived from work done or services rendered or performed and business or other activities conducted in the City of Mansfield.

   (d)   On the portion of the distributive share of the net profit earned on and after January 1, 1971, of a resident individual, partner or owner of a resident unincorporated business entity attributable to the City of Mansfield and not levied against such unincorporated business entity.

   (e)   On the net profits attributable to the City of Mansfield earned on and after January 1, 1971, of all nonresident unincorporated businesses, professions or other activities, derived from work done or services performed or rendered and business or other activities conducted in the City of Mansfield.

   (f)   On that portion of the distributive share of the net profits earned on and after January 1, 1971, of a resident individual, partner or owner of a non-resident unincorporated business entity not attributable to the City of Mansfield and not levied against such unincorporated business entity.

   (g)   On the net profits earned on and after January 1, 1971, of all corporations derived from work done or services performed or rendered and business or other activities conducted in the City of Mansfield.

   (h)   Business Apportionment Percentage Formula. ( Ohio R.C. 718.02)

      (1)   In the taxation of income which is subject to municipal income taxes, if the books and records of a taxpayer conducting a business or profession both within and without the boundaries of a municipal corporation shall separately disclose with reasonable accuracy what portion of its net profit is attributable to that part of the business or profession conducted within the boundaries of the municipal corporation, then only such portion shall be considered as having a taxable situs in such municipal corporation for purposes of municipal income taxation. In the absence of such records, net profits from a business or profession conducted both within and without the boundaries of a municipal corporation shall be considered as having a taxable status in such municipal corporation for purposes of municipal income taxation in the same proportion as the average ratio of:

         A.   The average original cost of property of the real and tangible personal property owned or used by the taxpayer in the business or profession in such municipal corporation during the taxable period to the average net book value of all the real and tangible personal property owned or used by the taxpayer in business or profession during the same period, wherever situated.

            As used in the preceding paragraph, real property shall include property rented or leased by the taxpayer and the value of such property shall be determined by multiplying the annual rental thereon by eight.

         B.   Wages, salaries, third party sick pay, commissions and other compensation paid during the taxable period to persons employed in the business or profession for services performed in such municipal corporation to wages, salaries, third party sick pay and other compensation paid during the same period to persons employed in the profession, wherever their services are performed.

         C.   Gross receipts of the business or profession from sales made and services performed during the taxable period in such municipal corporation to gross receipts of the business or profession during the same period from sales and services wherever made or performed. In the event that the foregoing allocation formula does not produce an equitable result, another basis may, under uniform regulations, be substituted so as to produce such results.

      (2)   As used in subsection (h)(1) hereof, "sales made in a municipal corporation" means:

         A.   All sales of tangible personal property which is delivered within such municipal corporation regardless of where title passes if shipped or delivered from a stock of goods within such municipal corporation.

         B.   All sales of tangible personal property which is delivered within such municipal corporation regardless of where title passes even though transported from a point outside such municipal corporation if the taxpayer is regularly engaged through its own employees in the solicitation or promotion of sales within such municipal corporation and the sales result from such solicitation or promotion.

         C.   All sales of tangible personal property which is shipped from a place within such municipal corporation to purchasers outside such municipal corporation regardless of where title passes if the taxpayer is not, through its own employees, regularly engaged in the solicitation or promotion of sales at the place where delivery is made.

   (i)    In the computation of any tax due under this chapter, a business loss of a previous tax year shall not be allowed or carried forward to reduce the tax due in any subsequent tax year.

   (j)   In the event a just and equitable result cannot be obtained under the formula provided for herein, the Finance Director, upon application of the taxpayer, shall have the authority to substitute other factors or methods calculated to effect a fair and proper apportionment.

      (Ord. 04-253. Passed 12-21-04.)