193.14  EXEMPTIONS.
   (a)   The provisions of this chapter shall not be construed as levying the City tax upon any of the following:
      (1)   Compensation or allowances received from local, state or federal governments because of active duty service in the armed forces of the United States by the person rendering such service or as a result of another person rendering such service;
(2)   Poor relief, pensions, social security, unemployment compensation, except for supplemental unemployment benefits or similar payments and disability benefits due to total and permanent disability received from private industry, or from local, state or federal governments, or from charitable, religious or educational organizations;
      (3)   Dues, contributions and similar payments (whether in money or in kind) received by charitable, religious, educational or literary organizations or by labor unions, lodges and similar other entities;
      (4)   Receipts from casual entertainment, amusements, sports events and health and welfare activities conducted by bona-fide charitable, religious or educational organizations;
      (5)   Any other entity which is exempt from federal income tax by reason of its charitable, religious, educational, literary, scientific or similar purposes;
      (6)   Intangible income as set forth at O.R.C. 718.01.
      (7)   Income due to occasional entry when:
         A.   Except as below provided in this division (a)(7), compensation paid to a nonresident of Napoleon for personal services performed within Napoleon if the personal services are performed during twelve (12) or fewer days during the calendar year; or,
         B.   Except as below provided in this division (a)(7), compensation paid to a nonresident individual of a nonresident employer in Ohio for work or services performed in Napoleon if the services or work is performed during twelve (12) or fewer days during the calendar year and further provided, that the individual pays tax on the compensation to the municipal corporation in which the employer's principal place of business is located and no portion of the tax paid is refunded to the individual.
(The exemption contained in this division (7) does not apply to professional entertainers, professional athletes, promoters of professional entertainment or sporting events and their employees; however, such professional entertainers, professional athletes, promoters of professional entertainment or sporting events and their employees, when earning income merely on a deminimis basis in napoleon as above described, may file a return and pay an amount of tax to be determined by the tax administrator, but said tax shall not be less than ten dollars ($10.00).  Such return and payment of tax shall be in lieu of the annual return and the withholding tax return which may otherwise be required under this chapter.  For purpose of applying this division (a)(7), a day is a full day or any fractional part of a day (ORC 718.011)
      (8)   Compensation paid to persons serving as precinct election officials;  moreover, exempt from City income taxation is any other income not permitted to be taxed by a municipality.
      (9)   Effective January 1, 2003, parsonage allowances paid to "ministers of the Gospel" in the form of a rental allowance as part of the minister's compensation to the extent excluded from federal or Ohio income tax.  (ORC 718.01(F)(7))
   (b)   Taxpayers may reduce their Napoleon income by an amount equal to that deducted on their tax returns as filed with IRS for employee business expenses as reported on IRS Form 2106.  The amount deductible from Napoleon income shall be the amount finally deducted on the taxpayer's IRS return without reduction of the expenses by a percentage of the taxpayer's adjusted gross income.  In support of such deduction, the taxpayer must furnish copies of Forms 2106 and Schedule A as filed with IRS. 
(Ord.  135-04.  Passed 12-6-04.)