(a) 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" means a C corporation's federal taxable income before net operating losses and special deductions as determined under the Internal Revenue Code, adjusted as follows:
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 per cent of intangible income deducted under subsection (a)(1)A., 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 (a)(1)D.2., 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 (a)(1)D.1. 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 amounts 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.
Nothing in division (a)(1) of 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.
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.
(Ord. 1553-04. Passed 10-14-04.)
(2) "Association" means a partnership, limited partnership or any other form of unincorporated enterprise, owned by two or more persons.
(3) "Board of Review" means the Board created by and constituted as provided in Section 181.13.
(4) “Business” means 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.
(5) "City" means the City of Moraine, Ohio.
(6) "Corporation" means 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) "Director" means the Director of Finance of the City of Moraine.
(8) "Employee" means one who works for wages, salary, commission or other types of compensation in the service of an employer.
(9) "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 compensation basis.
(10) "Fiscal year" means an accounting period of twelve months ending on any day other than December 31.
(11) "Gross receipts" means total income of taxpayers from whatever source derived.
(12) "Net profits" mean the net gain from all operations including those pertaining to capital gains and losses of a business, profession or enterprise after provision for all ordinary and necessary expense, except taxes imposed by this chapter and Federal and other taxes based on income, paid or accrued in accordance with the accounting system used by the taxpayer for Federal income tax purposes and, in the case of an association, without deduction of salaries paid to partners or other owners.
(12.1) “Non-Qualified Deferred Compensation Plan or Program” means any compensation amount from such Plan or Program described in Section 3121(v)(2)C) of the Internal Revenue Code.
(13) "Nonresident" means a person, whether an individual, association, corporation, or other entity, domiciled outside the City of Moraine.
(14) "Person" means every natural person, partnership, fiduciary, association, corporation or other entity. Whenever used in any clause prescribing and imposing a penalty, the term "person" as applied to any association includes the partners or members thereof, and as applied to corporation, the officers thereof.
(15) "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 employees, regularly in attendance.
(16) "Resident" means a person, whether an individual, association, corporation or other entity, domiciled in the City of Moraine.
(16.1) “Stock Option” means any compensation amount arising from the sale, exchange or other disposition of a stock option, the exercise of a stock option, or the sale, exchange or other disposition of stock purchased under a stock option.
(17) "Tax year" means 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.
(18) "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. 273B. Passed 8-24-78; Ord. 1553-04. Passed 10-14-04; Ord. 1923-15. Passed 9-10-15.)
(b) The singular shall include the plural, and the masculine shall include the feminine and the neuter. (Ord. 273B. Passed 8-24-78.)