In the case of the residents of the Village, an annual tax of one percent (1%) is imposed on all salaries, wages, commissions and other compensation earned and accrued on and after July 1, 1988. For the purpose of determining the tax on the earnings of the resident taxpayers taxed under Section 181.03, the source of the earnings and the place or places in or at which the services were rendered are immaterial. All such earnings, wherever earned or paid are taxable.
The following are items which are subject to the tax:
(a) Salaries, bonuses, or incentive payments received by an individual, whether directly or through an agent and whether in cash or in property for services rendered on and after July 1, 1988.
(1) As an officer or employee, or both, of a corporation (including charitable and other non-profit corporations), joint stock association or joint stock company.
(2) As an employee (as distinguished from a partner or member) of a partnership, limited partnership or any other form of unincorporated enterprise owned by one or more persons.
(3) As an employee (as distinguished from the proprietor) of a business, trade or profession conducted by individual owner.
(4) As an officer or employee (whether elected, appointed or commissioned) of a governmental administration, agency, arm, authority, board, body, branch, bureau, department, division, subdivision, section or unit of the State of Ohio or any of the political subdivisions thereof.
(5) As an officer or employee (whether elected, appointed or commissioned) of a governmental administration, agency, arm, authority, board, body, branch, bureau, department, division, subdivision, section or unit of the United States Government or of a corporation created and owned or controlled by the United States Government or any of its agencies.
(6) As an employee of any other entity or person.
(b) Wages, bonuses, or incentive payments received by an individual, whether directly or through an agent and whether in cash or in property, for services rendered on and after July 1, 1988.
(1) Whether based upon hourly, daily, weekly, semi-monthly, monthly, annual, unit of production or piecework rates.
(2) Whether paid by an individual, limited partnership, partnership, association, corporation (including charitable and other non-profit corporations), governmental administration, agency, arm, authority, board, body, branch, department, division, subdivision, section or unit or any other entity.
(c) Commissions received by a taxpayer whether directly or through an agent and whether in cash or in property, for services rendered on and after July 1, 1988, regardless of how computed, by whom or wheresoever paid.
(1) If amounts received as a drawing account exceed the commissions earned, the tax is payable on the gross amounts received.
(2) Amounts received from the employer by way of expenses and not by way of compensation, and used as such by the individual receiving them, are not deemed to be compensation if the employer deducts such expense advances as such from his gross income for the purpose of determining his net profits taxable under this chapter.
(3) If such commissions are included in the net earnings of a trade, business, profession, enterprise or activity regularly carried on by such individual and, therefore, subject to tax under Section 181.03(a). They shall not again be separately taxed, in such case, such net earnings shall be taxed as provided in Section 183.11.
(d) The receipt of fees and other compensation for personal services rendered shall be deemed to be subject to taxation under this chapter.
(e) Domestic servants are subject to Village tax under this chapter but are not subject to withholding provisions. That is to say, the domestic will report earnings and pay the tax directly to the Middleport Income Tax Department.
(f) The provisions of this chapter shall not be construed as levying a tax upon the following:
(1) Poor relief, unemployment insurance benefits, supplemental unemployment benefits, old age pensions or similar payments received from local, State or Federal governments or charitable or religious organizations.
(2) Proceeds of insurance, annuities, Workers' Compensation insurance, Social Security benefits, pensions, compensation for damages for personal injuries and like reimbursement, not including damages for loss of profits.
(3) Compensation for damages to property by way of insurance or otherwise.
(4) Interest and dividends from intangible property.
(5) Military pay and allowances received by a member of the Armed Forces of the United States.
(6) Any charitable, educational, fraternal or other type of non-profit association or organization enumerated in Ohio R.C. 718.01 which is exempt from payment of the tax imposed by this chapter.
(7) Any association or organization falling in the category listed in the preceding paragraph not exempt from the payment of real estate taxes is required to file declarations and final returns and remit the taxes levied under this chapter on all business activities of a type ordinarily conducted for profit by taxpayers operating for profit.
(8) Where such non-profit association or organization conducts income producing business both within and without the corporate limits, it shall calculate its profits allocable to the Village under the methods provided above. (Ord. 1195-88. Passed 4-11-88.)