As used in this chapter, 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.
(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 was 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.
A. Deduct intangible income to the extent included in federal taxable income. The deduction shall be allowed regardless of whether the intangible income relates to assets used in a trade or business or assets held for the production of income;
B. Add an amount equal to five percent (5%) of intangible income deducted under A. above, but excluding that portion of intangible income directly related to the sale, exchange, or other disposition of property described in Section 1221 of the Internal Revenue Code;
C. Add any losses allowed as a deduction in the computation of federal taxable income if the losses directly relate to the sale, exchange, or other disposition of an asset described in Section 1221 or 1231 of the Internal Revenue Code;
D. 1. Except as provided in subsection D.2. of this Section, deduct income and gain included in federal taxable income to the extent the income and gain directly relate to the sale, exchange, or other disposition of an asset described in Section 1221 or 1231 of the Internal Revenue Code;
2. Subsection D(1) of this Section does not apply to the extent the income or gain is income or gain described in Section 1245 or 1250 of the Internal Revenue Code.
E. Add taxes on or measured by net income allowed as a deduction in the computation of federal taxable income;
F. In the case of a real estate investment trust and regulated investment company, add all amount with respect to dividends to, distributions to, or amounts set aside for or credited to the benefit of investors and allowed as a deduction in the computation of federal taxable income;
G. If the taxpayer is not a C corporation and is not an individual, the taxpayer shall compute adjusted federal taxable income as if the taxpayer were a C corporation, except:
1. Guaranteed payments and other similar amounts paid or accrued to a partner, former partner, member, or former member shall not be allowed as a deductible expense; and
2. Amounts paid or accrued to a qualified self-employed retirement plan with respect to an owner or owner-employee of the taxpayer, amounts paid or accrued to or for health insurance for an owner or owner-employee, and amounts paid or accrued to or for life insurance for an owner or owner-employee shall not be allowed as a deduction.
H. Nothing in this section shall be construed as allowing the taxpayer to add or deduct any amount more than once or shall be construed as allowing any taxpayer to deduct any amount paid to or accrued for purposes of federal self-employment tax.
I. Nothing in this chapter shall be construed as limiting or removing the ability of any municipal corporation to administer, audit, and enforce the provisions of its municipal income tax.
(2) ADMINISTRATOR - The Clerk-Treasurer of the Village of Monroeville, Ohio.
(3) ASSOCIATION - A partnership, limited partnership, liability company, and Sub-S Corporation or any other form of unincorporated enterprise, owned by one or more persons.
(4) BOARD OF REVIEW - The Board created by and constituted as provided in Section 181.13.
(5) 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.
(6) CORPORATION - A corporation or joint stock association organized under the laws of the United States, the State of Ohio, or any other state, territory, or foreign country or dependency.
(7) DEPUTY ADMINISTRATOR – Any person appointed to assist the Administrator by the Administrator. The Deputy Administrator shall have all the rights of the Administrator under the law, unless otherwise set forth by the Administrator or the legislative authority.
(8) DOMICILE - A principal residence that the taxpayer intends to use for an indefinite time and to which whenever he is absent he intends to return.
(9) EMPLOYEE - One who works for wages, salary, commission or other type of compensation in the service of an employer.
(10) 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.
(11) ESTIMATED TAX LIABILITY - The amount that a taxpayer estimates to be the taxpayer’s liability for the municipal income tax for a year prior to applying any credits, estimated tax payments, or withheld taxes for the year.
(12) FISCAL YEAR - An accounting period of twelve (12) months or less ending on any day other than December 31st.
(13) FISCAL YEAR TAXPAYER - A taxpayer that reports municipal income tax on the basis of a twelve-month period that does not coincide with the calendar year.
(14) FORM 1040 - Includes all Internal Revenue Service 1040 forms filed by a taxpayer pursuant to the Internal Revenue Code.
(15) FORM 2106 - Internal Revenue Service Form 2106 filed by a taxpayer pursuant to the Internal Revenue Code.
(16) GAMBLING WINNINGS – The gross proceeds derived from state-conducted lotteries and non-state conducted sweepstakes, wagering, pools, or lotteries, and other wagering transactions such as para-mutual pool for horse races, dog races and other sporting events, and winnings from (including but not limited to) bingo, keno, slot machines, gaming tables and other games of chance.
(17) GENERIC FORM - An electronic or paper form designed for reporting estimated municipal income taxes and annual municipal income tax liability that is not prescribed by a particular municipality for the reporting of that municipality’s tax on income.
(18) GROSS RECEIPTS - The total income of taxpayers from whatever source derived.
(19) 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 Revised Code, and patents, copyrights, trademarks, trade names, investment in real estate investment 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.
(20) 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.
(21) INTERNAL REVENUE CODE - The Internal Revenue Code of 1986, 100 Stat. 2085, 26 U.S.C.1, as amended.
(22) 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.
(23) JOINT ECONOMIC DEVELOPMENT DISTRICTS - Districts created under the Ohio Revised Code Sections 715.70 through715.83, as amended from time to time.
(24) LIMITED LIABILITY COMPANY - A limited liability company formed under Chapter 1705 of the Ohio Revised Code or under the laws of another state.
(25) MUNICIPALITY - The Village of Monroeville.
(26) NET PROFITS - For a taxpayer other than an individual, net profit means adjusted federal taxable income. For an individual, net profit is the individual’s profit that is required to be reported on Schedule C, Schedule E, and Schedule F of the individual’s federal income tax return.
(27) NONQUALIFIED DEFERRED COMPENSATION PLAN - A compensation plan described in Section 3121 (v)(2)(C) of the Internal Revenue Code.
(28) NON-RESIDENT - An individual domiciled outside this municipality.
(29) NON-RESIDENT INCORPORATED BUSINESS ENTITY - An incorporated business entity not having an office or place of business within this municipality.
(30) NON-RESIDENT UNINCORPORATED BUSINESS ENTITY - An unincorporated business entity not having an office or place of business within this municipality.
(31) OTHER PAYER - Any person, other than an individual’s employer or the employer’s agent, that pays an individual any item included in the taxable income of the individual.
(32) OWNER - A partner of a partnership, a shareholder of an S corporation, a member of a limited liability company, or other person with an ownership interest in a pass- through entity.
(33) OWNER’S PROPORTIONATE SHARE - With respect to each owner of a pass- through entity, means the ration 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.
(34) PASS-THROUGH ENTITY - A partnership, S corporation, limited liability company, or any other class of entity the income or profits from which are given pass-through treatment under the Internal Revenue Code and Ohio Revised Code Section 718.14(A)(3).
(35) PENSION - Income earned or received as a result of retirement from employment from an IRS qualified retirement plan and which is generally, although not exclusively, reported to the taxpayer by the payer on a Form 1099-R or similar form.
(36) PERSON - Includes individuals, firms, companies, business trusts, estates, trusts, partnerships, limited liability companies, associations, corporations, governmental entities, and any other entity.
(37) 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.
(38) PRINCIPAL PLACE OF BUSINESS - In the case of an employer having headquarter 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 headquarter activities at a place of business within a taxing municipality, the term means the largest place of business located in the taxing municipality.
(39) QUALIFIED PLAN - A retirement plan satisfying the requirements under Section 401 of the Internal Revenue Code as amended.
(40) QUALIFYING WAGES - Wages, as defined in Section 3121(a) of the Internal Revenue Code, without regard to any wage limitations, adjusted in accordance with Section 718.03(A) of the Ohio Revised Code.
(41) RESIDENT - An individual domiciled in this municipality.
(42) RESIDENT INCORPORATED BUSINESS ENTITY - An incorporated business entity having an office or place of business within this municipality.
(43) RESIDENT UNINCORPORATED BUSINESS ENTITY - An unincorporated business entity having an office or place of business within this municipality.
(44) RETURN PREPARER - Any person other than a taxpayer who is authorized by a taxpayer to complete or file an income tax return, report, or other document for or on behalf of the taxpayer.
(45) SCHEDULE C - Internal Revenue Service schedule C filed by a taxpayer pursuant to the Internal Revenue Code.
(46) SCHEDULE E - Internal Revenue Service schedule E filed by a taxpayer pursuant to the Internal Revenue Code.
(47) SCHEDULE F - Internal Revenue Service schedule F filed by a taxpayer pursuant to the Internal Revenue Code.
(48) “S” CORPORATION - A corporation that has made an election under subchapter S of Chapter I of Subtitle A of the Internal Revenue Code for its taxable year.
(49) TAXABLE INCOME - Qualifying wages paid by an employer or employer, including, but not limited to the following: severance or termination pay; wage continuation payments made as a result of early retirement of employment termination; wage continuation payments made as a result of sickness or temporary disability and whether paid by the recipient’s employer or by a third party; vacation or holiday pay; tips or gratuities received; group term life insurance premiums paid on an employee’s behalf; employee contributions to tax sheltered annuities, non- qualified pension plans, or into employer or third party trusts or pension plans as permitted by IRS and which may be excludable from wages for federal tax purposes; ordinary income portion of stock options or employee stock purchase plans; supplemental unemployment benefits (SUB Pay); strike pay; jury duty pay; employer or employee contributions or amounts credited to nonqualified pension plans or deferred compensation plans at the time of deferral and to the extent subject to Medicare Tax; working conditions fringe benefits and unemployment compensation subject to tax by the IRS; guardian, executor, conservator, trustee, or administrator fees; bonuses; ordinary income portion of lump sum distributions which become subject to federal tax because the recipient did not roll over the distribution within the time required by the IRS; rental income as defined by Section 181.03; compensation for personal services, other income defined by statute as taxable, and/or adjusted federal taxable income from the operations of a business, profession, or other enterprise or activity adjusted in accordance with the provisions of this Chapter.
(50) TAXABLE YEAR - The calendar year, or the fiscal year upon the basis of which 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.
(51) TAXING MUNICIPALITY - A municipality levying a tax on income earned by nonresidents working within such municipality or on income earned by its residents.
(52) TAXPAYER - A person, whether an individual, partnership, association, or any corporation or other entity, required hereunder to file a return or pay a tax.
(53) A singular shall include the plural, and 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. 2008-30. Passed 11-11-08.)