890.02  DEFINITIONS.
   For the purpose of this chapter the following definitions shall apply, unless the context clearly indicates or requires a different meaning. The singular shall include the plural. The masculine gender shall include the feminine and the neuter genders.
   (a)   “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:
      (1)   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;
      (2)   Add an amount equal to 5% of intangible income deducted under division (4) of this definition, 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;
      (3)   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;
      (4)   A.   Except as provided in division (7)(2) of this definition, 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
         B.   Division (7)A. of this definition 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.
      (5)   Add taxes on or measured by net income allowed as a deduction in the computation of Federal taxable income;
      (6)   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;
      (7)   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:
         A.   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
         B.   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.
      (8)   Nothing in this definition 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.
      (9)   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. 05-48. Passed 9-6-05)
   (b)   “Association.” A partnership, limited partnership, limited liability company, Subchapter S corporation (S Corporation) as defined by the Internal Revenue Code (I.R.C.), 26 U.S.C. 1361, or any other form of unincorporated enterprise owned by one or more persons. NOTE: For purposes of a JEDZ or JEDD income tax levy, an S corporation will be treated as a corporation.
   (c)   “Banking day.”  Means that part of any day on which a bank is open to the public for carrying on substantially all of its banking functions.
   (d)   “Board of Directors.”  Means the Board of Directors of a JEDZ or JEDD.
   (e)   “Board of Tax Appeals.”  The Board created by and constituted as provided in Section 890.12.
   (f)   “Business.” An enterprise, activity, profession or undertaking of any nature conducted for profit or ordinarily conducted for profit, whether by an individual, partnership, association, fiduciary, trust, corporation or any other entity, including but not limited to the renting or leasing of property, real, personal or mixed.
   (g)   “Business allocation.”  That portion of net profits to be allocated to the City or a JEDZ or JEDD as having been made therein pursuant to Section 890.03.
   (h)   “Chapter.”  Means Chapter 890 of the Codified Ordinances of the City of Newark, Ohio.
   (i)   “City.”  Means the City of Newark, Ohio.
   (j)   “Compensation.”  Shall include, but not limited to qualifying wages and/or salaries, commissions, vacation pay, sick pay (including third party), holiday pay, bonuses, monetary value of awards and prizes related to employment, tips or gratuities, severance or termination pay, supplemental unemployment pay, strike pay, wage continuation payments made as a result of early retirement, employment termination, or for purposes of health, rest, recuperation or other reward, 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, group term life insurance premiums paid on an employee's behalf for coverage of fifty thousand dollars ($50,000) or more, ordinary income portion of stock options or employee stock purchase plans, or any other remuneration paid in cash or in property, or any other income from any source not specifically exempted by this chapter or Ohio R.C. Chapter 718. The term compensation as used in this chapter shall not be limited to the items specifically set forth in this section.
   (k)   “Corporation.”  Means a corporation of joint stock association organized under the laws of the United States, the State of Ohio, or any other state or territory or foreign country or dependency, but not an S corporation. NOTE: For purposes of a JEDZ or JEDD income tax levy, an S corporation does mean a corporation as organized under the law. (Ord. 67-80. Passed 6-40-67; Ord. 69-150. Passed 12-1-69; Ord. 75-8. Passed 1-6-75; Ord. 92-59. Passed 11-2-92; Ord. 05-48 passed 9-6-05.)
   (l)   “Domicile.”  Means a principal place of residence, employment or business within the City, JEDZ or JEDD. A place where an individual has his true, fixed and permanent legal residence. An individual may have more than one residence but not more than one domicile. “Domicile” is that property that is held out as the “home” address for one or more of the following: 1. Federal and State tax returns. 2. Employment, credit or banking purposes. 3. Auto registration. 4. Drivers license. 5. Children's education. 6. Voter registration. (Ord. 78-28. Passed 3-23-78.)
   (m)   “Employee.”  Means one who works for wages, salary, commission or any other type of compensation in the service and/or under the control of an employer. Any person for whom an employer is required to withhold either Federal income tax or social security tax or on whose account payments are made under the worker's compensation law shall prima facie be an employee.
   (n)   “Employer.” Means an individual, partnership, association, corporation, governmental body, unit or agency, or any other entity, whether or not organized for profit, that employs one or more persons on a salary, wage commission or other compensation basis.
   (o)   “Fiscal year.”  An accounting period of 12 months or less ending on any other day other than December 31.
   (p)   “Form 1099-MISC, Miscellaneous Income.”  Means Internal Revenue Service Form 1099-MISC filed by a taxpayer pursuant to the Internal Revenue Code.
   (q)   “Form 2106, Employee Business Expenses.”  Means Internal Revenue Service Form 2106 filed by a taxpayer pursuant to the Internal Revenue Code.
   (r)   “Form 5754, Statement by Person(s) Receiving Gambling Winnings.”  Means Internal Revenue Service Form 5754 filed by a taxpayer pursuant to the Internal Revenue Code.
   (s)   “Form W-2, Wage and Tax Statement.”  Means Internal Revenue Service Form W-2 filed by a taxpayer pursuant to the Internal Revenue Code.
   (t)   “Form W-2G, Certain Gambling Winnings.”  Means Internal Revenue Service Form W-2G filed by a taxpayer pursuant to the Internal Revenue Code.
   (u)   “Generic form.”  Means an electronic or paper form designed for reporting estimated municipal, JEDZ or JEDD income taxes and annual municipality, JEDZ or JEDD income tax liability or for filing a refund claim that is not prescribed by a particular municipal corporation, JEDZ or JEDD for the reporting of that municipal corporation, JEDZ or JEDD tax on income. Any municipality, JEDZ or JEDD 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, JEDZ or JEDD prescribed returns, reports, or documents.
   (v)   “Gross receipts.”  Means the total income of taxpayers from whatever source derived, before any deductions, exceptions or credits are claimed.
   (w)   “Income from a pass-through entity.”  Means a corporation of joint stock association organized under the laws of the United States, the State of Ohio, or any other state or territory or foreign country or dependency, but not an S corporation. NOTE: For purposes of a JEDZ or JEDD income tax levy, an S corporation does mean a corporation as organized under the law. (Ord. 67-80. Passed 6-40-67; Ord. 69-150. Passed 12-1-69; Ord. 75-8. Passed 1-6-75; Ord. 92-59. Passed 11-2-92).
   (x)   “Intangible income.”  Means 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 Ohio R.C. Chapter 5701, and patents, copyrights, trademarks, trade names, investments 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.
   (y)   “Internal Revenue Code (I.R.C.).”  Means the Internal Revenue Code of 1986, 100 Stat. 2085, 26 U.S.C. 1, as amended.
   (z)   “Internet.” Means the international computer network of both Federal and non- federal interoperable packet switched data networks, including the graphical subnetwork known as the World Wide Web.
   (aa)   “JEDZ” or “JEDD.” Means a Joint Economic Development Zone or JEDD created under Ohio R.C. 715.70, 715.71, 715.72 or 715.69(H), as amended from time to time.
   (bb)   “JEDZ or JEDD contract.”  Means the Joint Economic Development Zone Contract or the Joint Economic Development District Contract entered into by and between the City and a political subdivision duly authorized to form a Joint Economic Development Zone or Joint Economic Development District under Ohio law.
   (cc)   “Limited Liability Company.”  Means a limited liability company formed under Ohio R.C. Chapter 1705 or under the laws of another state.
   (dd)   “Municipality.”  Means the City of Newark, Ohio.
   (ee)   “Net profits.”  Means the net gain from the operation of a business, profession, enterprise or other activity (whether or not such business, profession, enterprise or other activity is conducted for profit or is ordinarily conducted for profit), after provision for all ordinary and necessary expenses either paid or accrued in accordance with the accounting method used by the taxpayers for Federal income tax purposes without deduction of taxes imposed by this chapter, Federal, State and other taxes based on income; and in the case of an association, without deduction of salaries/draws paid to partners and other owners; and otherwise adjusted to the requirements of this chapter. “Net profits” shall include any amount recognized as ordinary gains from recapture of accelerated depreciation from the sale or other disposition of tangible personal property or real property used in business. A R.E.I.T. shall be taxed as an entity on net profits before deduction of net operating loss or dividends paid to owners/members.  Effective January 1, 2004 “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 the amounts described in Section 890.03, required to be reported on Federal schedules C, E or F.
   (ff)   “Nonqualified deferred compensation plan.”  Means a compensation plan described in Section 3121(v)(2)(C) of the Internal Revenue Code.
   (gg)   “Nonresident.”  Means an individual who is not domiciled within the municipality, JEDZ or JEDD.
   (hh)   “Nonresident incorporated business entity.”  Means an incorporated business entity not having an office or place of business within the municipality, JEDZ or JEDD.
   (ii)   “Nonresident unincorporated business entity.”  Means an unincorporated business entity not having an office or place of business within the municipality, JEDZ or JEDD.
   (jj)   “Organization.”  A corporation for profit or not for profit, a partnership, limited partnership, limited liability company, joint venture, unincorporated association, estate, trust or other commercial or legal entity organized as or by a governmental agency for the execution of a government program.
   (kk)   “Other entity.”  Means a person or anybody not previously named or defined and including inter alia, fiduciaries.
   (ll)   “Other payer.”  Means any person that pays an individual any amount included in the taxable income of the individual, other than the individual's employer or that employer's agent.
   (mm)   “Owner.”  Means a partner of a partnership, a shareholder of an S corporation, a member of a limited liability company, or any other person with an ownership interest in a pass-through entity.
   (nn)   “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,
   (oo)   “Pass-through entity.”  Means a partnership, limited liability company, S corporation (not to include an S corporation entity located or working within a JEDZ or JEDD, or any other class of entity the income or profits from which are given pass-through treatment under the Internal Revenue Code.
   (pp)   “Person.”  Every natural person, individual, firm, company, organization, partnership, fiduciary, association, business, business trust, corporation, governmental entity or any other entity.  Whenever used in any clause prescribing and imposing a penalty, the term “person” as applied to any unincorporated entity shall mean the parties, owners or members thereof, and as applied to corporations, the officers thereof.
   (qq)   “Place of business.”  Any bona fide office (other than a mere statutory office), factory, warehouse or other place, which is occupied and used by the taxpayer in carrying on any business activity individually or through any one or more of his regular employees regularly in attendance.
   (rr)   “Principal place of business.”  Means in the case of an employer having headquarters' activities at a place of business within a taxing municipality, JEDZ or JEDD 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, JEDZ or JEDD, the term means the largest place of business located in a taxing municipality, JEDZ or JEDD.
   (ss)   “Qualified  plan.”  Means  a retirement plan satisfying the requirements under Section 401 of the Internal Revenue Code.
   (tt)   “Qualifying wages.”  Means wages, as defined in Section 3121(a) of the Internal Revenue Code, without regard to any wage limitations, adjusted in accordance with Ohio R.C. 718.03(A). This definition is effective January 1, 2004.
   (uu)   “Resident.”  Means a person domiciled in the City, JEDZ or JEDD, having an office or place of business within the City, JEDZ or JEDD.
   (vv)   “Resident incorporated business entity.”  Means an incorporated business entity whose office, place of operations or business situs is within the City, JEDZ or JEDD.
   (ww)   “Resident unincorporated business entity.”  Means an unincorporated business entity within the City, JEDZ or JEDD having an office, place of operations or business within the City, JEDZ or JEDD.
   (xx)   “Return preparer.”  Means 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.
   (yy)   “Schedule C.”  Means Internal Revenue Service Schedule C filed by a taxpayer pursuant to the I.R.C.
   (zz)   “Schedule E.”  Means Internal Revenue Service Schedule E filed by a taxpayer pursuant to the I.R.C.
   (aaa)   “Schedule F.”  Means Internal Revenue Service Schedule F filed by a taxpayer pursuant to the I.R.C.
    (bbb)   “Subchapter S Corporation (S Corporation).”  Means 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. Taxed as a pass-through entity for purposes of filing with the City. For purposes of a JEDZ or JEDD income tax levy, an S corporation will be treated as a corporation.
   (ccc)   “Tax Administrator.”  The individual designated by this chapter to administer and enforce the provisions of this chapter.
   (ddd)   “Taxable income.”  Means qualifying salaries and wages, commissions, or any other compensation paid by an employer and/or net profits from the operation of a business, profession, enterprise or activity, including the renting of property. Other compensation includes, but is not limited to, tips, tax shelter plans, gifts of any type for services rendered, vacation and holiday pay, wage continuation benefits (including plans paid by the employer for purpose of health, rest, recuperation or other reward and are deemed to have the same tax status as the primary job assignment or job location of the employee and are taxable on the same ratio as the normal earnings of such employee for his primary job assignment), 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, 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), strike benefits, depreciation recapture, ordinary income shown on Federal Form 4797, income from a non-qualified pension plan when reported on Form W-2, income from a covenant not to compete agreement, income for services performed as a guardian, executor, conservator, trustee or administrator and a resident partner's, member's or shareholder's distributive share of a nonresident partnership, LLC and/or S Corporation's net profits (whether received as wages paid or an draw from a capital account, and whether received or accrued); the term shall also include gross income received by a resident of the City as winnings derived from gaming, wagering, lotteries or other games of chance and shall be taxable in the year in which it is received (after August 6, 2004). The term “taxable income” may not be limited to the items set forth in this section. NOTE: For purposes of a JEDZ or JEDD income tax levy, a resident of a JEDZ or JEDD receiving pass-through income (distributive share of net profits) as a member or shareholder of an S corporation, such income will not be taxable unless it constitutes wages or salaries.
   (eee)   “Tax period.”  Shall be the following:
      (1)   For the purpose of the initial 1% levy imposed by Section 890.03(a), the period beginning July 1, 1967, and having no termination date; and
      (2)   For the purpose of the additional 0.25% levy imposed by Section 890.03, the period beginning April 1, 1975, and having no termination date; and
      (3)   For the purpose of the additional 0.5% levy imposed by Section 890.03, the period beginning January 1, 2002, and having no termination date.
      (4)   For the purpose of a JEDZ or JEDD income tax levy imposed by Section 890.01(d), the tax period shall be as proscribed by each respective JEDZ or JEDD formed pursuant to Ohio law, unless repealed.
   (fff)   “Taxable year.”  Means the corresponding tax-reporting period as prescribed for the taxpayer under the I.R.C. In the case of a return for a fractional part of a year, the period for which such return is required to be made.
   (ggg)   “Taxpayer.”  Means an association, business, organization, corporation, employer, or a person subject to a tax on income levied by a municipal corporation or a JEDZ or JEDD. 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, or a person who is required by this chapter to file a return, form or other document, whether or not a tax is due thereon.
(Ord. 67-80. Passed 6-30-67; Ord. 69-150. Passed 12-1-69; Ord. 75-8. Passed 1-6-75; Ord. 01-52. Passed 11-19-01; Ord. 05-48.  Passed 9-6-05; Ord. 08-39.  Passed 12-1-08; Ord. 09-71.  Passed 12-21-09.)