(Ord. 1405-01. Passed 2-22-01.)
(1) On all salaries, wages, including vacation pay, commissions and other compensation, excluding qualified §125 Cafeteria Plans under the Internal Revenue Code, earned during the effective period of this chapter, by residents, as shown on Federal statements of earnings.
(2) On all salaries, wages, including vacation pay, commissions and other compensation, excluding qualified §125 Cafeteria Plans under the Internal Revenue Code, earned during the effective period of this chapter, by nonresidents for work done or service performed in the City, as shown on Federal statements of earnings.
(Ord. 1553-04. Passed 10-14-04.)
(3) A. On the portion attributable to the City of the net profits, earned during the effective period of this chapter of all resident associations, unincorporated businesses, professions and other entities, derived from sales made, work done or services performed or rendered, or business or other activities conducted in the City.
B. On a resident partner's or owner's share of the net profits, earned during the effective period of this chapter, of a resident association or other unincorporated entity not attributable to the City and not levied against such association or other unincorporated entity.
(4) A. On the portion attributable to the City of the net profits, earned during the effective period of this chapter, of all nonresident associations, unincorporated businesses, professions or other entities derived from sales made, work done or services performed or rendered, or business or other activities conducted in the City, whether or not such association or other unincorporated entity has an office or place of business in the City.
B. On a resident partner's or owner's share of the net profits, earned during the effective period of this chapter, of a nonresident association or other unincorporated entity not attributable to the City and not levied against such association or other unincorporated entity.
(5) On the net profits, earned during the effective period of this chapter, of all corporations derived from sales made, work done or services performed or rendered, and business or other activities conducted in the City, whether or not such corporations have an office or place of business in the City, exclusive of income from trusts and estates.
(Ord. 1405-01. Passed 2-22-01.)
(6) On all income received as gambling winnings as reported on Internal Revenue Service form W-2G, Form 5754 and or any other form required by the Internal Revenue Service that reports winnings from gambling, prizes, and lottery winnings, if the winnings were $5,000 or more.
(b) Allocation of Net Profits. Except as otherwise provided in the provisions of subsection (b)(4) hereof and division (g) of this section, net profit from a business or profession conducted both within and without the boundaries of a municipal corporation shall be considered as having a taxable situs in such municipal corporation for purposes of municipal income taxation in the same proportion as the average ratio of the following:
(1) The average original cost of the real and tangible personal property owned or used by the taxpayer in the business or profession in such municipal corporation during the taxable period to the average original cost of all of the real and tangible personal property owned or used by the taxpayer in the business or profession during the same period, wherever situated.
As used in the preceding paragraph, real property shall include property rented or leased by the taxpayer and the value of such property shall be determined by multiplying the annual rental thereon by eight;
(2) Wages, salaries, and other compensation paid during the taxable period to persons employed in the business or profession for services performed in such municipal corporation to wages, salaries, and other compensation paid during the same period to persons employed in the business or profession, wherever their services are performed, excluding compensation that is not taxable by the municipal corporation under section 718.011 of the Ohio Revised Code;
(3) Gross receipts of the business or profession from sales made and services performed during the taxable period in such municipal corporation to gross receipts of the business or profession during the same period from sales and services, wherever made or performed.
(4) However, if a just and equitable result cannot be obtained under the formula provided herein, the Board of Review, upon application of the taxpayer, or the Director, shall, under uniform regulations adopted by the Board, have the authority to substitute other factors or methods calculated to effect a fair and proper allocation,
(c) As used in division (b) of this section, "sales made in a municipal corporation" mean:
(1) All sales of tangible personal property delivered within such municipal corporation regardless of where title passes if shipped or delivered from a stock of goods within such municipal corporation;
(2) All sales of tangible personal property delivered within such municipal corporation regardless of where title passes even though transported from a point outside such municipal corporation if the taxpayer is regularly engaged through its own employees in the solicitation or promotion of sales within such municipal corporation and the sales result from such solicitation or promotion;
(3) All sales of tangible personal property shipped from a place within such municipal corporation to purchasers outside such municipal corporation regardless of where title passes if the taxpayer is not, through its own employees, regularly engaged in the solicitation or promotion of sales at the place where delivery is made.
(d) Except as otherwise provided in division (g) of this section, net profit from rental activity not constituting a business or profession shall be subject to tax only by the municipal corporation in which the property generating the net profit is located.
(Ord. 1553-04. Passed 10-14-04.)
(e) Operating Loss Carry Forward.
(1) The portion of a net operating loss sustained in any taxable year, allocable to the City, may be applied against the portion of the profit of succeeding tax years, allocable to the City, until exhausted, but in no event for more than the five taxable years immediately following the year in which the loss occurred. No portion of a net operating loss shall be carried back against net profits of any prior year.
(2) The portion of a net operating loss sustained shall be allocated to the City in the same manner as provided herein for allocating net profits to the City.
(3) The Director shall provide by rules and regulations the manner in which such net operating loss carry forward shall be determined.
(f) Consolidated Returns.
(1) Filing of consolidated returns may be permitted or required in accordance with rules and regulations prescribed by the Director.
(2) For a corporation that carried on transactions with its stockholders or with other corporations related by stock ownership, interlocking directorates or some other method, the Director shall require such information, in addition to the return hereinafter provided for, as he may require the filing of a consolidated return or adjust such transactions so as to produce a fair and proper allocation of net profits to the City.
(g) Exception. The tax provided for herein shall not be levied upon any compensation, net profits or other income that the city is precluded from taxing under Ohio R.C. Chapter 718.
(Ord. 1405-01. Passed 2-22-01; Ord. 1553-04. Passed 10-14-04.)