(a) As used in this Chapter, the following words shall have the meanings ascribed to them in this section, unless the context clearly indicates or requires a different meaning:
(1) ADJUSTED FEDERAL TAXABLE INCOME. A C corporation’s federal taxable income before net operating losses and special deductions as determined under the Internal Revenue Code, but including subsequent adjustments from required additions and deductions. Pass-through entities must compute adjusted federal taxable income as if the pass-through entity were a C corporation. This definition does not apply to any taxpayer required to file a return under Ohio R.C. 5745.03 or to the net profit from a sole proprietorship.
(2) ASSOCIATION. A partnership, limited partnership, S corporation or any other form of unincorporated enterprise owned by one or more persons.
(3) BOARD OF REVIEW. The Board created by and constituted as provided in § 890.12.
(4) BUSINESS. An enterprise, 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, including but not limited to the renting or leasing of property, real, personal or mixed.
(5) CORPORATION. A corporation or joint stock association organized under the laws of the United States, the State of Ohio or any other state, territory, foreign country or dependency.
(6) DOMICILE. A principal residence that the taxpayer intends to use for an indefinite time and to which whenever he or she is absent he or she intends to return. A taxpayer has only one domicile even though he or she may have more than one residence.
(7) EMPLOYEE. One who works for wages, salary, commission or other type of compensation in the service of an employer.
(8) EMPLOYER. 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 compensation basis.
(9) FISCAL YEAR. An accounting period of twelve months or less ending on any day other than December 31.
(10) FORM 2106. Internal Revenue Service Form 2106 filed by a taxpayer pursuant to the Internal Revenue Code.
(11) GENERIC FORM. An electronic or paper form designed for reporting estimated municipal income taxes and annual municipal income tax liability or for filing a refund claim that is not prescribed by a particular municipal corporation for the reporting of that municipal corporation’s tax on income. Any municipality that requires taxpayers to file income tax returns, reports, or other documents shall accept for filing a generic form of such a return, report, or document if the generic form, once completed and filed, contains all of the information required to be submitted with the municipality’s prescribed returns, reports or documents.
(12) GROSS RECEIPTS. The total income from whatever source derived.
(Ord. O75-9, passed 1-14-1975)
(13) INCOME FROM A PASS-THROUGH ENTITY. Partnership income of partners, membership interests of members of a limited liability company, distributive shares of shareholders of an S corporation, or other distributive or proportionate ownership shares of income from other pass-through entities.
(14) INTANGIBLE INCOME. Income of any of the following types: 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 R.C., and patents, copyrights, trademarks, trade-names, investments in real estate investments 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.
(15) INTERNAL REVENUE CODE. The Internal Revenue Code of 1986, 100 Stat. 2085, 26 U.S.C. § 1, as amended.
(16) INTERNET. The international computer network of both Federal and nonfederal interoperable packet switched data networks, including the graphical sub-network known as the world-wide-web.
(17) JOINT ECONOMIC DEVELOPMENT DISTRICT. Districts created under the Ohio R.C. 715.70 through 715.83 as amended from time to time.
(18) LIMITED LIABILITY COMPANY. A limited liability company formed under Chapter 1705 of the Ohio R.C. or under the laws of another state.
(19) CITY. The City of Middletown.
(20) MUNICIPALITY or MUNICIPAL CORPORATION. A political subdivision of a state providing municipal government and services. The term does not refer to a county, school district, township or a specialized political subdivision.
(Res. R91-27, passed 8-6-1991)
(21) NET PROFIT. For a taxpayer other than an individual means adjusted federal taxable income and NET PROFIT for a taxpayer who is an individual means the individual’s profit, other than amounts described in division (f) of § 890.03, required to be reported on schedule C, schedule E or Schedule F.
(22) NONQUALIFIED DEFERRED COMPENSATION PLAN. A compensation plan described in § 3121(v)(2)(C) of the Internal Revenue Code.
(23) NONRESIDENT. An individual domiciled outside of the City.
(24) NONRESIDENT INCORPORATED BUSINESS ENTITY. An incorporated business entity not having an office or place of business within the City.
(25) NONRESIDENT UNINCORPORATED BUSINESS ENTITY. An unincorporated business entity not having an office or place of business within the City.
(26) OTHER COMPENSATION. All forms of earned income, including but not limited to tips, tax shelter plans, gifts of any type for services rendered, vacation and holiday pay, wage continuation benefits, director’s fees, jury duty fees, stock options granted in connection with the performance of service and not designated as capital gains, property in lieu of cash, sick pay, bonuses, incentive payments in whatever form, company closing benefits, supplemental unemployment benefits, severance pay, earnings designated as deferred compensation or compensation paid by an employer in whatever form for services rendered, employer paid premiums for group-term insurance in excess of fifty thousand dollars ($50,000.00), strike benefits, depreciation recapture or ordinary income shown on federal form 4797.
(27) OTHER PAYER. Any person, other than an individual’s employer or the employer’s agent, that pays an individual any amount included in the federal gross income of the individual.
(28) OWNER. A partner of a partnership, a member of a limited liability company, a shareholder of an S Corporation, or other person with an ownership interest in a pass-through entity.
(29) OWNER’S PROPORTIONATE SHARE. With respect to each owner of a pass-through entity, means the ratio of (a) the owner’s income from the pass-through entity that is subject to taxation by the municipal corporation, to (b) the total income from that entity of all owners whose income from the entity is subject to taxation by that municipal corporation.
(30) PASS-THROUGH ENTITY. A partnership, limited liability company, S corporation, or any other class of entity the income or profits from which are given pass-through treatment under the Internal Revenue Code.
(31) PERSON. Includes individuals, firms, companies, business trusts, estates, trusts, partnerships, limited liability companies, association, corporations, governmental entities and any other entity.
(32) PLACE OF BUSINESS. Any bona fide office (other than a mere statutory office), factory, warehouse or other space that is occupied or used by the taxpayer in carrying on any business activity individually or through one or more of his or her employees regularly in attendance.
(33) PRINCIPAL PLACE OF BUSINESS. In the case of an employer having headquarters’ activities at a place of business within a taxing municipality, the place of business at which the headquarters is situated. In the case of any employer not having its headquarters’ activities at a place of business within a taxing municipality, the term means the largest place of business located in a taxing municipality.
(34) QUALIFIED PLAN. A retirement plan satisfying the requirements under § 401 of the Internal Revenue Code as amended.
(35) QUALIFYING WAGES. Wages as deemed in § 3121(a) of the Internal Revenue Code, without regard to any wage limitations, adjusted in accordance with § 718.03(A) of the Ohio R.C.
(36) RESIDENT. An individual domiciled in the City. Any person who maintains a place of abode within the City for a total of 90 days or more within a 12-month period shall be deemed a resident.
(37) RESIDENT INCORPORATED BUSINESS ENTITY. An incorporated business entity whose office, place or operations or business situs is within the City.
(38) RESIDENT UNINCORPORATED BUSINESS ENTITY. An unincorporated business entity having an office or place of business within the City.
(39) RETURN PREPARER. Any person other than a taxpayer that is authorized by a taxpayer to complete or file an income tax return, report, or other document for or on behalf of the taxpayer.
(40) RULES AND REGULATIONS. The Rules and Regulations as authorized in § 890.08(b).
(41) SCHEDULE C. Internal Revenue Service schedule C filed by a taxpayer pursuant to the Internal Revenue Code.
(42) SCHEDULE E. Internal Revenue Service schedule E, filed by a taxpayer pursuant to the Internal Revenue Code.
(43) SCHEDULE F. Internal Revenue Service schedule F filed by a taxpayer pursuant to the Internal Revenue Code.
(44) S CORPORATION. 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.
(45) SUPERINTENDENT OF TAXATION. The person appointed by the City Manager and confirmed by the City Council to administer the City’s Income Tax Ordinance and direct the operation of the Municipal Income Tax Department or the person executing the duties of the Superintendent of Taxation. Wherever in this chapter, the word SUPERINTENDENT is used, it means such Superintendent of Taxation.
(46) TAXABLE INCOME. Qualifying wages paid by an employer or employers, compensation for personal services, other income defined by statute as taxable and/or adjusted federal taxable income from the operation of a business, profession, or other enterprise or activity adjusted in accordance with the provisions of this Chapter.
(47) TAXABLE YEAR. The corresponding tax reporting period as prescribed for the taxpayer under the Internal Revenue Code.
(48) TAXING MUNICIPALITY. A municipality levying a tax on income earned by nonresidents working within such municipality or on income earned by its residents.
(49) TAXPAYER. A person subject to a tax on income levied by a municipal corporation. 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.
(50) WORK DONE OR SERVICES PERFORMED OR RENDERED IN THE CITY. As used in § 890.03, includes work done or services performed by employees of the City who do not reside within the City and whose work for the City is performed on property owned by the City outside its territorial limits.
(b) 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. O2004-28, passed 4-6-2004)