As used in this Chapter, the following words shall have the meanings ascribed to them in this section, except as and if the context clearly indicates or requires a different meaning:
(a) “Administrator” means the City Treasurer, or his authorized deputy, acting in his capacity as the administrative head of the Department of Income Taxation.
(b) “Board of Review” means the Board established by and constituted as provided in Section 181.12.
(c) “Business” means an enterprise, activity, profession or undertaking of any nature conducted for profit or ordinarily conducted for profit, whether by an individual, pass-through entity, corporation or any other entity.
(d) “Chapter” means Chapter 181 of the Codified Ordinances of the City.
(e) “City” means the City of Marietta, Ohio.
(g) “Compensation” means all salaries, wages, commissions and other remuneration for work done or services performed. For taxable years beginning on or after January 1, 2005, “compensation” of an employee means “qualifying wages,” within the meaning of Ohio Revised Code Section 718.03, including any amendments or successor provisions thereto.
(h) “Corporation” means a corporation, S 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, or any unincorporated entity treated as a corporation for federal income tax purposes. The term “corporation” does not include a limited liability company that is treated as a partnership for federal income tax purposes. For taxable years beginning on or after January 1, 2004, “corporation” includes a “combined company,” an “electric company” and a “telephone company,” all as defined in Ohio Revised Code section 5727.01, including any amendments or successor provisions thereto.
(i) “Deferred compensation” means earned compensation the receipt of which is delayed to a later date.
(j) “Department” means the Department of Income Taxation created by and constituted as provided in Section 181.08.
(k) "Domicile" means a principal residence that the taxpayer intends to use for an indefinite time and to which whenever he is absent he intends to return. A taxpayer has only one domicile even though he may have more than one residence.
(l) “Employee” means one who works for compensation in the service of an employer.
(m) “Employer” means a person, governmental body, unit, agency or any other entity, whether or not organized for profit, who or that employs one or more persons on a compensation basis.
(n) “Fiscal year” means an accounting period of twelve months or less ending on any day other than December 31.
(o) “Gross receipts” means the taxpayer’s total income from any source whatsoever.
(p) “Intangible income” means that income specified in Ohio Revised Code Section 718.01(A)(5), including any amendments or successor provisions thereto, and includes of any of the following types of income: 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, including any amendments or successor provisions thereto, 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.
(q) “Internal Revenue Code” means the Internal Revenue Code of 1986, 100 Stat. 2085, 26 U.S.C. 1, as amended.
(r) “Limited liability company” means a limited liability company formed under Ohio Revised Code Chapter 1705, including any amendments or successor provisions thereto, or under the laws of any other state.
(s) “Net operating loss” means the negative adjusted federal taxable income recognized by a taxpayer from the operation of a business for the taxable year.
(t) “Net profits” means: (i) in the case of a corporation, “adjusted federal taxable income,” as that term is defined in Ohio Revised Code Section 718.01(A)(1)(a)- (f), including any amendments or successor provisions thereto; (ii) in the case of a pass-through entity, “adjusted federal taxable income,” as that term is defined in Ohio Revised Code Section 718.01(A)(1)(g), including any amendments or successor provisions thereto; and (iii) in the case of a sole proprietorship, the profit shown by the individual on Internal Revenue Service Schedule C, Schedule E, and Schedule F. Adjusted federal taxable income shall be determined in accordance with (i) the accounting method used by the taxpayer for federal income tax purposes and (ii) the Internal Revenue Code, Treasury Regulations, federal case law interpreting these authorities and administrative authorities promulgated by the Internal Revenue Service.
(u) “Nonqualified deferred compensation plan” means a compensation plan described in Section 3121(v)(2)(C) of the Internal Revenue Code.
(v) “Nonresident” means an individual domiciled outside the City.
(w) “Owner” means an individual, partner, member, or any other person having an ownership interest in a pass-through entity.
(x) “Pass-through entity” means a partnership or a limited liability company that is treated as a partnership for federal income tax purposes, or any other class of entity the income or profits from which are given pass-through treatment under the Internal Revenue Code.
(y) “Person” means every natural person, pass-through entity, fiduciary, or corporation. Whenever used in any clause prescribing and imposing a penalty, the term “person” as applied to a pass-through entity shall mean the owners thereof and, as applied to corporations, the officers thereof.
(z) “Place of business” means any bona fide office, other than a mere statutory office, factory, warehouse or other space that is occupied and used by the taxpayer in carrying on any business activity individually or through one or more agents or employees regularly in attendance.
(aa) “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, including any amendments or successor provisions thereto. Qualifying wages includes compensation attributable to a nonqualified deferred compensation plan or program described in Section 3121(v)(2)(C) of the Internal Revenue Code and compensation from employment arising from the sale, exchange or other disposition of a stock option, the exercise of a stock option, or the sale, exchange or other disposition of stock purchased under a stock option. Qualifying wages does not include compensation deferred before January 1, 2004, to the extent that such deferred compensation would not be treated as wages within the meaning of Section 3121(a) of the Internal Revenue Code at the time such deferred compensation is paid or distributed.
(bb) “Resident” means an individual domiciled in the City.
(cc) “S corporation” means a corporation that has made an election under subchapter S of Chapter 1 of Subtitle A of the Internal Revenue Code for its taxable year.
(dd) “Taxable income” means the income specified in Section 181.03(a) as subject to the tax imposed under this Chapter.
(ee) “Taxable year” means the calendar year or the fiscal year upon the basis of which the 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. Unless approved by the Administrator, the taxable year of each taxpayer shall be the same as the taxable year used by the taxpayer for federal income tax purposes.
(ff) “Taxing municipality” means any municipal corporation, other than the City, that levies a municipal income tax on compensation earned by individuals and on the net profits earned from the operation of a business.
(gg) “Taxpayer” means a person required hereunder to file a return or pay City income tax. “Taxpayer” does not include any person that is a disregarded entity or a qualifying subchapter S subsidiary for federal income tax purposes, but “taxpayer” includes any other person who owns the disregarded entity or qualifying subchapter S subsidiary.
As set forth in this Chapter, the singular shall include the plural, the masculine shall include the feminine and the neuter, and all periods set forth shall be inclusive of the first and last mentioned dates.
(Ord. 147(04-05). Passed 2-17-05.)