As used in this subchapter, 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. In all definitions in these regulations the singular shall include the plural and the masculine shall include the feminine and the neuter.
ADMINISTRATOR. The individual designated by this subchapter to administer and enforce the provisions of the subchapter, regardless of the particular title assigned such individual.
ASSOCIATION. A partnership, general partnership, limited partnership, limited liability company (recognized or taxed as a partnership by the Federal Internal Revenue Service), limited liability partnership, or cooperative; or a form of unincorporated entity owned by two or more persons. ASSOCIATION also means a limited liability company owned by only one entity that is not an individual. A limited liability company owned by one individual is not an ASSOCIATION.
BUSINESS. An enterprise, cooperative activity, profession or undertaking of any nature conducted for profit or ordinarily conducted for profit whether by an individual, partnership, association, corporation or any other entity. The ordinary administration of a decedent's estate by the executor or administrator, and the mere custody, supervision and management of trust property under passive trust, whether intervivos or testamentary, unaccompanied by the actual operation of a business as herein defined shall not be construed as the operation of a BUSINESS.
(1) An activity or undertaking is considered a business if the deductions are allowable for federal income tax purposes under Internal Revenue Code sections 162, 212(1), and 212(2); and if it is determined that the taxpayer entered into and/or continued the activity with the objective of making a profit. In determining the taxpayer's objective, the factors that shall be taken into consideration include, but are not limited to:
(a) The manner in which the taxpayer carries on the activity;
(b) The expertise of the taxpayer or his advisors;
(c) The time and effort expended by the taxpayer in carrying on the activity;
(d) Expectation that assets used in the activity may appreciate in value;
(e) The success of the taxpayer in carrying on other similar or dissimilar activities;
(f) The taxpayer's history of income or losses with respect to the activity;
(g) The amount of occasional profits, if any, which are earned;
(h) The financial status of the taxpayer; and
(i) Elements of personal pleasure, personal use, or recreation.
(2) If, in the case of an audit, the Federal Internal Revenue Service determines or accepts that the taxpayer's activity or undertaking is a business, the activity or undertaking shall be considered a business by the village, subject to the provisions of these rules and regulations. Except in the case of an audit, the mere fact that the Federal Internal Revenue Service has not disputed a taxpayer's claim that an activity or undertaking is a business does not obligate the village to conclude that the activity or undertaking is a business. Subject to the provisions set forth in §§ 171.054 and 171.060 of these rules and regulations, the village shall use comparable guidelines as specified in U.S. Treasury Department Final Regulation §1.183-1 (c) regarding the presumption that the taxpayer is engaged in an activity with the objective of making a profit.
BUSINESS ALLOCATION. As used in these regulations, means the portion of net profits to be allocated to the village as having been made in the village, either under separate accounting method, or under the three factor formula of property, payroll, and sales, provided for in Section 3 of the Ordinance.
COMMITTEE. The Government Committee provided for by Section 12 of the Ordinance.
CORPORATION. An Internal Revenue Code Subchapter C corporation, an Internal Revenue Code Subchapter S corporation, a limited liability company (recognized or taxed as a corporation by the Federal Internal Revenue Service), a corporation, or other incorporated entity organized under the laws of the United States, the State of Ohio, or any other state, territory, or foreign country or dependency. A limited liability company owned by one individual is not a CORPORATION.
EMPLOYEE. One who works for wages, salary, commission or other types of compensation in the service of an employer. Any person upon whom an employer is required to withhold for either federal income or Social Security or on whose account payments are made under the Ohio Workers' Compensation law shall prima facie be an EMPLOYEE.
EMPLOYER. An individual, partnership, association, corporation (including a corporation not for profit), governmental agency, body, bureau, department, sub-division, or unit or any other entity, who or that employs one or more persons on a salary, wage, commission or other compensation basis whether or not such employer is engaged in business. It does not include a person who employs only domestic help for such person's private residence.
FISCAL YEAR. An accounting period of 12 months or less ending on any day other than December 31. Only fiscal years accepted by the Internal Revenue Service for federal income tax purposes may be used for village income tax purposes.
GROSS RECEIPTS. Total income from any source whatsoever. In the case of S corporations, general partnerships, limited partnerships, limited liability companies, limited liability partnerships, and other associations, gross receipts shall include income from rentals and leases of real and tangible personal property.
NET PROFITS. A net gain from the operation of a business, profession, enterprise or other activity carried on with a profit objective or ordinarily carried on with a profit objective after provision for all ordinary,
reasonable, 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 subchapter, federal, state, and other taxes based on income exclusive of the amount of Ohio franchise taxes computed on the net worth basis; and in the case of an association, without deduction of salaries paid and guaranteed payments issued to partners, members, and other owners; and otherwise adjusted to the requirements of this subchapter. See also definition of "Business" and §171.052(A)(7).
NON-RESIDENT. An individual domiciled outside the village and does not meet the definition of "resident" under this section of the rules and regulations.
NON-RESIDENT UNINCORPORATED BUSINESS ENTITY. One not having an office or place of business within the village.
PERSON. Every natural person, partnership, fiduciary, association, corporation, or other entity. Whenever used in a clause prescribing or imposing a penalty, the term PERSON as applied to any unincorporated entity shall mean the partners or members thereof, and as applied to a corporation not having any partner, member or officer within this village, or any employee or agent of such unincorporated entity or within this village, any employee or agent of such unincorporated entity or corporation who can be found within the village limits of McComb. A monetary penalty can be imposed on an entity that is not an individual.
PLACE OF BUSINESS. 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 regular employees regularly in attendance.
RESIDENT. An individual domiciled in McComb. The following criteria shall be used in determining residence or domicile:
(1) Mailing address;
(2) Voter registration;
(3) Location of school attended by children;
(4) Driver's license address;
(5) Automobile registration;
(6) Residence specified on Ohio Income Tax Return by school district;
(7) County in which personal property tax return is filed, if any; and
(8) Other evidence which is related to residency/domicile.
RESIDENT UNINCORPORATED BUSINESS ENTITY. An unincorporated business entity having an office or place of business within McComb.
TAXABLE INCOME. Wages, salaries and other compensation paid by an employer or employers before deductions of any kind except of qualified cafeteria plans, and/or the net profits from the operation of a business,
profession or other enterprise or activity adjusted in accordance with the provisions of this subchapter and these regulations.
TAXABLE YEAR. The calendar year, or the fiscal year, used as the basis on which net profits are to be computed under this subchapter, 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.
TAXPAYER. An individual, association, corporation or other entity required by this subchapter to file a return and/or to pay a tax.
VILLAGE. Village of McComb.
(Ord. O-2015-28, passed 11-23-2015; Am. Ord. passed 9-9-2019)