(1) On all qualifying wages, commissions, other compensation as defined in Section 193.02(ee) earned or received and from net profits from unincorporated business entities and professions and from any transaction, venture or activity whether permanent, temporary or nonrecurring in character, earned or received on and after January 1, 1968, by residents of the City of Maumee.
(2) On all qualifying wages, commissions and other compensation as defined in Section 193.02(ee) earned or received on and after January 1, 1968, by nonresidents for work done or services performed or rendered in the City of Maumee.
(3) On the portion attributable to the City of the net profits earned on and after January 1, 1968, of all resident unincorporated businesses, professions and other entities, derived from sales made, work done or services performed or rendered and business or other activities conducted in the City of Maumee.
(4) On the portion of the distributive share of the net profits earned on and after January 1, 1968, of a resident partner or owner of a resident unincorporated business entity not attributable to the City of Maumee and not levied against such unincorporated business entity; provided that such income of such resident partner or owner shall be subject to the relief and reciprocity provisions of Section 193.14.
(5) On the portion attributable to the City of Maumee of the net profits earned on and after January 1, 1968, of all nonresident persons, unincorporated businesses, professions and other entities, derived from sales made, work done or services performed or rendered and business or other activities conducted in the City of Maumee, whether or not such person, unincorporated business entity, profession or other entity has an office or place of business within the City of Maumee.
(6) On the net profits attributable to Maumee 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 Maumee, whether or not such businesses have an office in Maumee.
(7) On the portion of the distributive share of the adjusted federal taxable income earned by a resident individual from a Subchapter "S" Corporation, a limited liability corporation or company, or a similar business entity which is located outside of Maumee.
(8) On that portion of the distributive share of the net profits of a resident individual, partner or owner of a nonresident unincorporated business entity.
(9) On the portion attributed to Maumee of the adjusted federal taxable income earned during the effective period of this chapter of all corporations derived from sales made, work done or services performed or rendered and business or other activities conducted in Maumee whether or not such corporations have an office or place of business in Maumee.
(b) On the income associated with covenants not to compete to the extent subject to IRS tax.
(c) Tax on Business Doing Business Both Within and Without the City. This section does not apply to taxpayers that are subject to and required to file reports under Chapter 5745, of the Ohio Revised Code. The portion of the adjusted federal taxable income attributable to Maumee of a taxpayer conducting a business, profession or other activity both within and without the boundaries of Maumee shall be determined as provided in Ohio R.C. 718.02 which is reprinted at the end of the chapter and in accordance with the rules and regulations adopted by the Commissioner pursuant to this chapter.
(d) If a resident of Maumee operates a business or businesses (including rental) in another taxing municipality in Ohio and the business or businesses incur a loss, the amount of the loss is deemed primarily subject to the taxing jurisdiction of the other taxing municipality and may not be used to reduce the taxpayer’s Maumee tax base.
(e) On all income derived anywhere from gaming, wagering, lotteries, or schemes of chance by residents of Maumee or by nonresidents of Maumee when the income derived from gaming, wagering, lotteries or schemes of chance is won or received from Maumee sources.
(f) Operating Loss Carry Forward.
(1) The portion of a net operating loss sustained in any taxable year subsequent to January 1, 1968, allocable to Maumee may be applied against the portion of the profit of succeeding year(s) allocable to Maumee, until exhausted but in no event for more than five taxable years. No portion of a net operating loss shall be carried back against net profits of any prior year.
(2) For the purposes of subsection (f)(1) hereof, the portion of a net operating loss sustained shall be allocated to Maumee in the same manner as provided herein for allocating adjusted federal taxable income to Maumee.
(3) The Commissioner of Taxation shall provide by rules and regulations the manner in which such operating loss carry-forward shall be determined.
(g) Consolidated Returns.
(1) Filing of consolidated returns may be permitted or required in accordance with rules and regulations prescribed by the Commissioner of Taxation.
(2) In the case of a corporation that carries on transactions with its stockholders or with other corporations related by stock ownership, interlocking directorates or some other method, or in case any person operates a division, branch, factory, office, laboratory or activity within Maumee constituting a portion only of its total business, the Commissioner of Taxation shall require such additional information as may be deemed necessary to ascertain whether adjusted federal taxable income is properly allocated to Maumee. If the Commissioner finds adjusted federal taxable income is not properly allocated to Maumee by reason of transactions with stockholders or with other corporations related by stock ownership, interlocking directorates or transactions with such division, branch, factory, office, laboratory or activity or by some other method, the Commissioner shall make such allocation as the Commissioner deems appropriate to produce a fair and proper allocation of adjusted federal taxable income to Maumee.
(h) Business Losses. Operating losses from business or professional activity may not be used to reduce W-2 income subject to the tax. The said loss may be used against other sources of business or professional income subject to the tax.
(i) Exemptions - Sources of Income Not Taxed.
(1) Pay or allowance of active members of the armed forces of the United States because of active duty service or the income of religious, fraternal, charitable, scientific, literary or educational institutions to the extent that such income is derived from tax exempt real estate, tax exempt tangible or intangible property or tax exempt activities and only to the extent that the said income is exempt from Federal Income Tax.
(2) Poor relief, unemployment insurance benefits except for supplemental unemployment benefits, IRS qualified retirement plan or similar payments, disability benefits received from local, state or Federal governments or charitable religious or educational organizations. The disability benefits excludable must be of a permanent nature as determined by a physician or government entity.
(3) Proceeds of insurance paid by reason of death of the insured, pensions, including industrial pensions which are qualified by IRS and paid as a result of retirement; disability benefits paid for total and permanent disability, annuities or gratuities not in the nature of compensation for services rendered from whatever source derived.
(4) Receipts from seasonal or casual entertainment, amusement, sports events and health and welfare activities when any such are conducted by bona fide charitable, religious or educational organizations and associations and only to the extent that the said income is exempt from Federal Income Tax.
(5) Alimony.
(6) Compensation for personal injuries or for damages to property by way of insurance or otherwise but this exclusion does not apply to compensation paid for lost salaries or wages.
(7) Interest, dividends and other revenue from intangible property as set forth in Ohio R.C. 718.01.
(8) Amounts included in an employee W-2 Form for moving expense reimbursement when the taxpayer is moving into Maumee.
(9) Payments made to election workers.
(10) Qualifying wages, commissions and other compensation and adjusted federal taxable income, the taxation of which is prohibited by the United States Constitution or any act of Congress limiting the power of the states or their political subdivisions to impose net income taxes on income derived from interstate commerce.
(11) Qualifying wages, commissions and other compensation and adjusted federal taxable income, the taxation of which is prohibited by the Constitution of the State of Ohio or any act of the Ohio General Assembly limiting the power of a municipality to impose net income taxes.
(12) The amount of unreimbursed employee business expenses (2106 Expenses) which the employee deducted as an itemized deduction on his or her federal tax return. Taxpayer must furnish a copy of the form 2106 and Schedule "A" of form 1040 as filed with IRS.
(13) Effective January 1, 2001, the following is not subject to imposition of Maumee tax:
A. Compensation paid to a nonresident of Maumee for personal services (self-employment) performed within Maumee if the personal services are performed during twelve or fewer days during the calendar year.
B. Compensation paid to a nonresident individual who is an employee for work done or services performed in Maumee if the services or work are performed during twelve or fewer days during the calendar year and further provided that the individual's employer is located outside of Maumee and the individual pays tax on the compensation to the municipal corporation in which the employer's principal place of business is located and no portion of the tax paid is refunded to the individual.
C. The foregoing subsections A. and B. do not apply to professional entertainers, professional athletes, promoters of professional entertainment or sporting events, and the employees of any of the above.
D. For purposes of applying this section, a day is one calendar day or any fractional part thereof.
(14) Effective January 1, 2004, Over the Road Drivers and other similarly situated employees reporting to a terminal, warehouse, or office in a taxing community must have a minimum of 20% of qualifying wages withheld and allocated to the taxing community where the terminal, warehouse or office is located.
(j) Expenses Not Deductible.
(1) No deduction for health insurance premiums paid by self-employed taxpayers as permitted by IRS is permitted for the City of Maumee.
(2) No deduction for self-employment tax paid by self-employed taxpayers as permitted by IRS is permitted for the City of Maumee.
(3) No deduction for contributions to IRA or Keogh plans made by taxpayers as permitted by IRS is permitted for the City of Maumee.
(Ord. 258-2003. Passed 12-15-03.)