793.01 Purpose; levy of tax.
793.02 Definitions.
793.03 Rate and income taxable.
793.04 Effective period.
793.05 Determination of tax.
793.06 Sales in City defined.
793.07 Business allocation percentage.
793.08 Rental income.
793.09 Operating loss carry-forward.
793.10 Exceptions.
793.11 Date of filing return; persons required to file returns.
793.12 Form and content of return.
793.13 Extension of time for filing returns.
793.14 Consolidated returns.
793.15 Amended returns.
793.16 Payment of tax on filing of return; overpayment.
793.17 Collection at source.
793.18 Declaration of income.
793.19 Filing of declaration.
793.20 Form of declaration.
793.21 Payment upon declaration.
793.22 Annual returns.
793.23 Extensions.
793.24 Recovery of unpaid taxes.
793.25 Taxes erroneously paid.
793.26 Amounts of less than one dollar.
793.27 Tax credit.
793.28 Disbursement of funds.
793.29 Powers and duties of Administrator.
793.30 Refusal to produce records.
793.31 Retention of records by taxpayers.
793.32 Authority to contract for central collection facilities.
793.33 Confidentiality of information.
793.34 Board of Review established.
793.35 Approval of rules and regulations by Board.
793.36 Appeals.
793.37 Separability.
793.38 Continuation of tax; collection after termination.
793.39 Interest on unpaid taxes.
793.40 Penalties on unpaid tax.
793.41 Exceptions to interest and penalty assessments.
793.42 Abatement of interest and penalties.
793.43 Violations.
793.44 Limitation on prosecution.
793.45 Failure to procure forms.
793.99 Penalty.
CROSS REFERENCES
Power to tax - see Ohio Const., Art. XVIII, 3; CHTR. Art. II
Payroll deductions - see Ohio R.C. 9.42
Municipal income taxes - see Ohio R.C. Ch. 718
Establishment and appointment of Tax Administrator - see ADM. 135.01
As used in this chapter:
(a) "Administrator" means the individual appointed by the Mayor to administer and enforce this chapter.
(b) "Association" means a partnership, limited partnership or any other form of unincorporated enterprise, owned by two or more persons.
(c) "Board of Review" means the Board established by and constituted as provided in Section 793.34.
(d) "Business" means an enterprise, activity, profession or undertaking of any kind conducted for profit or ordinarily conducted for profit, whether by an individual, partnership, association, corporation or any other entity, excluding, however, all nonprofit corporations which are exempt from the payment of Federal income tax.
(e) "Corporation" means a corporation or joint stock association organized under the laws of the United States, the State or any other state, territory, foreign country or dependency.
(f) "Employee" means one who works for wages, salary, commission or another type of compensation in the service of an employer.
(g) "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 basis of compensation.
(h) "Fiscal year" means an accounting period of twelve months or less ending on any day other than December 31.
(Ord. 1966-64. Passed 12-29-66.)
(i) "Fundamental change" means any substantial alteration by an employer, including liquidation, dissolution, bankruptcy and reorganizations such as merger, consolidation, acquisition, transfer or change in identity, form or organization.
(Ord. 1985-34. Passed 10-28-85.)
(j) "Gross receipts" means the total income from any source.
(Ord. 1966-64. Passed 12-29-66.)
(k) "Manager" means any of the employer's officers, responsible persons, employees having control or supervision and employees charged with the responsibility of filing the return, paying taxes and otherwise complying with this chapter.
(Ord. 1985-34. Passed 10-28-85.)
(l) "Net profits" means a net gain from the operation of a business, profession, enterprise or other activity after provision for all ordinary 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 and Federal, State and other taxes based on income and, in the case of an association, without deduction of salaries paid to partners and other owners.
(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 in the City.
(o) "Pension" means, for purposes of this chapter, any amount paid to an employee or former employee that is reported to the recipient on an IRS Form 1099-R, or successor form. Pension does not include deferred compensation, or amounts attributable to nonqualified deferred compensation plans, reported as FICA/Medicare wages on an IRS Form W-2, wage and tax statement, or successor form.
(Ord. 2014-25. Passed 11-10- 14.)
(p) “Person” means a natural person, partnership, fiduciary, association or corporation. When used in a clause prescribing and imposing a penalty, “person,” as applied to an unincorporated entity, means the partners or members thereof and, as applied to a corporation, the officers thereof.
(q) “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 or her regular employees regularly in attendance.
(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 in the City.
(t) “Taxable income” means wages, salaries and other compensation paid by an employer before any deduction and/or the net profits from the operation of a business, profession or other enterprise or activity adjusted in accordance with this chapter.
(u) “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.
(v) “Taxpayer” means a person, whether an individual, partnership, association, corporation or other entity, required by this chapter to file a return or pay a tax.
(Ord. 1966-64. Passed 12-29-66.)
An annual tax for the purposes specified in Section 793.01 shall be imposed on and after December 31, 1971, at the rate of one percent per year upon the following:
On all salaries, wages, commissions and other compensation earned after December 31, 1971, by residents of the City;
On all salaries, wages, commissions and other compensation earned after December 31, 1971, by nonresidents of the City for work done or services performed or rendered in the City;
On the portion attributable to the City of the net profits earned after December 31, 1971, by all resident unincorporated business entities, professions or other activities, such net profits derived from sales made, work done, services performed or rendered and business or other activities conducted in the City;
On the portion of the distributive share of the net profits earned after December 31, 1971, by a resident partner or owner of a resident unincorporated business entity not attributable to the City and not levied against such unincorporated business entity;
On the portion attributable to the City of the net profits earned after December 31, 1971, by all nonresident unincorporated business entities, professions or other activities, such net profits derived from sales made, work done, services performed or rendered and business and other activities conducted in the City, whether or not such unincorporated business entity has an office or place of business in the City;
On the portion of the distributive share of the net profits earned after December 31, 1971, by a resident partner or owner of a nonresident unincorporated business entity not attributable to the City and not levied against such unincorporated business entity;
On the portion attributable to the City of the net profits earned after December 31, 1971, by all corporations, such net profits derived from sales made, work done, services performed or rendered and business or other activities conducted in the City, whether or not such corporations have an office or place of business in the City;
On the portion attributable to the City pursuant to this chapter and including:
Income earned by a taxpayer from a royalty interest in the production of an oil or gas well, whether managed, extracted or operated by the taxpayer individually or through an agent or other representative, shall be included in the computation of net profits from a business activity to the extent that such royalty interest constitutes a business activity of the taxpayer. Where the gross income received by a taxpayer from a royalty interest in the production of an oil or gas well in a taxable year exceeds three thousand dollars ($3,000), it shall be prima-facie evidence that the income was derived from a business activity of such taxpayer, and the net income from such royalty interest shall be subject to tax.
An employer's income derived from finance and carrying charges associated with his or her consumers' accounts receivable shall be subject to tax.
(Ord. 1985-34. Passed 10-28-85.)
The tax levied by this chapter shall be levied, collected and paid with respect to all salaries, wages, commissions and other compensation, and with respect to all net profits of businesses, professions or other activities, earned on and after December 31, 1971.
(Ord. 1971-33. Passed 12-13-71.)
If the books and records of a taxpayer conducting a business or profession both within and outside of the boundaries of the City disclose with reasonable accuracy what portion of the net profit of such business or profession is attributable to that part of the business or profession conducted in the City, then only such portion shall be considered as having a taxable situs in the City for the purposes of the tax levied by this chapter. The portion of the entire net profits of a taxpayer to be allocated as having been derived from within the City, in the absence of actual records thereof, shall be determined by multiplying the entire net profits by a business allocation percentage to be determined by a three-factor formula of property, payroll and sales, each of which shall be given equal weight, as follows:
(1) The average net book value of the real and tangible personal property owned or used by the taxpayer in the business or profession in the City 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 the business or profession during the same period, wherever situated. As used in this section, "real property" includes property rented or leased by the taxpayer, the value of such property to be determined by multiplying the annual rental thereon by eight.
(2) Wages, salaries and other compensation paid during the taxable period to persons employed in the business or profession for services performed in the City to wages, salaries and other compensation paid during the same period to persons employed in the business or profession, wherever their services are performed; and
(3) Gross receipts of the business or profession from sales made and services performed during the taxable period in the City to gross receipts of the business or profession during the same period from sales and services, wherever made or performed.
If the formula does not produce an equitable result, another basis may, under uniform regulations, be substituted so as to produce such result.
(Ord. 1966-64. Passed 12-29-66.)
As used in Section 793.05(c), "sales made in the City" means:
All sales of tangible personal property which is delivered in the City, regardless of where title passes, if shipped or delivered from a stock of goods in the City;
All sales of tangible personal property which is delivered in the City, regardless of where title passes, even though transported from a point outside the City, if the taxpayer is regularly engaged through his or her own employees in the solicitation or promotion of sales in the City and the sales result from such solicitation or promotion; and
All sales of tangible personal property which is shipped from a place in the City to purchasers outside of the City, regardless of where title passes, if the taxpayer is not, through his or her own employees, regularly engaged in the solicitation or promotion of sales at the place where delivery is made.
(Ord. 1966-64. Passed 12-29-66.)
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