181.03 IMPOSITION OF TAX.
   (a)   Subject to provisions of Section 181.18, an annual tax for the purposes specified in Section 181.01 shall be imposed on and after January 1, 1978, at the rate of one percent (1%) per annum upon the following:
      (1)   On all salaries, wages, commissions and other compensation earned during the effective period of this chapter by residents of the City.
      (2)   On all salaries, wages, commissions and other compensation earned during the effective period of this chapter by non-residents for work done or services performed or rendered in this Municipality.
      (3)   A.   On the portion attributable to this Municipality of the net profits earned during the effective period of this chapter of all resident unincorporated businesses, professions or other entities, derived from sales made, work done, services performed or rendered and business or other activities conducted in this Municipality.
         B.   On the portion of the distributive share of the net profits earned during the effective period of this chapter of a resident partner or owner of a resident unincorporated business entity not attributable to this Municipality and not levied against such unincorporated business entity by this Municipality.
      (4)   A.   On the portion attributable to this Municipality of the net profits earned during the effective period of this chapter of all nonresident unincorporated businesses, professions or other entities, derived from sales made, work done, or services performed or rendered and business or other activities conducted in this Municipality, whether or not such unincorporated business entity has an office or place of business in this Municipality.
         B.   On the portion of the distributive share of the net profits earned during the effective period of this chapter of a resident partner or owner of a nonresident unincorporated business entity not attributable to this Municipality and not levied against such unincorporated business entity by this Municipality.
      (5)   On the portion attributable to this Municipality, of the net profits earned during the effective period of this chapter of all corporations derived from sales made, work done, services performed or rendered and business or other activities conducted in this Municipality, whether or not such corporations have an office or place of business in this Municipality.
   (b)   The portion of the net profits attributable to the City of a taxpayer conducting a business, profession or other activity both within and without the boundaries of the City shall be determined as provided in Ohio R.C. 718.02 and in accordance with the Rules and Regulations adopted by the Council of the City pursuant to this chapter.
(Ord. 77-9. Passed 11-7-77.)
   (c)   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 the net profits of any prior year.
         (Ord. 81-2. Passed 1-5-81.)
      (2)   The portion of a net operating loss sustained shall be allocated to this Municipality in the same manner as provided herein for allocating net profits to this Municipality.
      (3)   The Tax Clerk shall provide by rules and regulations the manner in which net operating loss carry-forward shall be determined.
   (d)   Consolidated Returns.
      (1)   Filing of consolidated returns may be permitted, required, or denied in accordance with rules and regulations prescribed by the Tax Clerk.
      (2)   In the case of a corporation that carries on transactions with its stockholders or with other corporations related by stock ownership, interlocking directorates, or some other method, or in case any person operates a division, branch, factory, office, laboratory or activity within this Municipality constituting a portion only of its total business, the Tax Clerk shall require such additional information as he may deem necessary to ascertain whether net profits are properly allocated to this Municipality. If the Tax Clerk finds net profits are not properly allocated to this Municipality by reason of transactions with stockholders or with other corporations related by stock ownership, interlocking directorates or transactions with such division, branch, factory, office, laboratory or activity or by some other method, he shall make such allocation as he deems appropriate to produce a fair and proper allocation of net profits to this Municipality.
         (Ord. 77-9. Passed 11-7-77; Ord. 81-2. Passed 1-5-81.)