The provisions of this chapter shall not be construed as levying a tax upon the following:
(a) The military pay or allowances of members of the armed forces of the United States or members of their reserve components, including the national guard of any state.
(b) Poor relief, pensions, social security, railroad retirement benefits, payments from annuities, and similar payments made to an employee or to the beneficiary of an employee under a retirement program or plan unemployment compensation except for supplemental unemployment benefits or similar payments, disability benefits received from private industry or local, state or Federal governments, or from charitable, religious or educational organizations, and the proceeds of sickness, accident, or liability insurance policies.
(c) Dues, contributions, and similar payments received by charitable, religious, educational, or literary organizations or labor unions, lodges, and similar organizations.
(d) The income of religious, fraternal, charitable, scientific, literary, or educational institutions to the extent such income is derived from tax-exempt real estate, tax-exempt tangible or intangible property, or tax-exempt activities recognized under federal or state law.
(e) Gains from involuntary conversions, interest on federal obligations, items of income subject to a tax levied by the state and that a municipal corporation is specifically prohibited by law from taxing, and income of a decedent's estate during the period of administration except such income from the operation of a trade or business.
(f) Earnings and income of all persons under eighteen years of age, whether residents or non-residents.
(g) "Intangible income," which shall mean 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 Chapter 5701. of the Revised Code, and patents, copyrights, trademarks, tradenames, 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, gambling winnings, or other similar games of chance.
(h) Unreimbursed employee business expenses (2106 expenses) which the employee has deducted as an itemized deduction on the Federal tax return, subject to the limitation imposed by section 67 of the Internal Revenue Code. For the municipal corporation in which the taxpayer is a resident, the taxpayer may deduct all such expenses allowed for federal income tax purposes. For a municipal corporation in which the taxpayer is not a resident, the taxpayer may deduct such expenses only to the extent the expenses are related to the taxpayer's performance of personal services in that nonresident municipal corporation. . Taxpayer must furnish a copy of the Form 2106 and Schedule "A" as filed with IRS.
(i) Compensation that is not qualifying wages paid to a nonresident individual for personal services performed in the municipal corporation on not more than twenty days in a taxable year, except and unless either the individual's base of operation is located within the Village; or the individual is a professional athlete, professional entertainer, or public figure, and the compensation is paid for the performance of services in the individual's capacity as a professional athlete, professional entertainer, or public figure. For these purposes, "professional athlete," "professional entertainer," and "public figure" have the same meanings as in section 718.011 of the Revised Code. Compensation to which this exemption applies shall be treated as earned or received at the individual's base of operation; or, if the individual does not have a base of operation, the compensation shall be treated as earned or received where the individual is domiciled. For these purposes "base of operation" means the location where an individual owns or rents an office, storefront, or similar facility to which the individual regularly reports and at which the individual regularly performs personal services for compensation.
(j) Items excluded from Federal gross income pursuant to Section 107 of the Internal Revenue Code, commonly referred to as "parsonage allowances".
(k) Compensation paid under Section 3501.28 or 3501.36 of the Revised Code to a person serving as a precinct election official, to the extent that such compensation does not exceed one thousand dollars annually. Such compensation in excess of one thousand dollars shall be subjected to taxation. A municipal corporation shall not require the payer of such compensation to withhold any tax from that compensation.
(l) The income of a public utility, when that public utility is subject to the tax levied under Section 5727.24 or 5727.30 of the Revised Code.
(m) Compensation paid to a person for personal services performed for a political subdivision on property owned by the political subdivision, regardless of whether the compensation is received by an employee of the subdivision or another person performing services for the subdivision under a contract with the subdivision, if the property on which services are performed is annexed to New London pursuant to Section 709.023 of the Revised Code, unless the person is subject to such taxation because of residence or domicile within New London. If the compensation is subject to taxation because of residence, municipal income tax shall be payable only to the municipal corporation of residence.
(n) Alimony and child support received.
(o) Compensation for personal injuries or for damages to property from insurance proceeds or otherwise, excluding compensation paid for lost salaries or wages or compensation from punitive damages.
(p) Employee compensation that is not qualifying wages as defined in Section 181.01.
(q) Compensation paid to a person employed within the boundaries of a United States air force base under the jurisdiction of the United States air force that is used for the housing of members of the United States air force and is a center for air force operations, unless the person is subject to taxation because of residence or domicile. If the compensation is subject to taxation because of residence or domicile, tax on such income shall be payable only to the municipal corporation of residence or domicile.
(r) An S corporation shareholder's distributive share of net profits of the S corporation, other than any part of the distributive share of net profits that represents wages as defined in section 3121(a) of the Internal Revenue Code or net earnings from self-employment as defined in section 1402(a) of the Internal Revenue Code.
(s) Any item of income that is exempt income of a pass-through entity under division (C) of this section is exempt income of each owner of the pass-through entity to the extent of that owner's distributive or proportionate share of that item of the entity's income.
(t) "Qualifying wages," to the extent that they are not subject to withholding for the Village, as specified in Section 181.02; provided, however, that this exemption does not apply if the employee resided in the Village of New London at the time the employee earned the wages; or if the employer elects to withhold taxes; or, if the employee's employer withholds and remits tax on the qualifying wages to the municipal corporation in which the employee's principal place of work is situated, or, the employee's employer withholds and remits tax on the qualifying wages to the municipal corporation in which the employer's fixed location is located, and the employee receives a refund of the tax on the basis of not performing services in the municipal corporation.
(u) Income the taxation of which is prohibited by the constitution or laws of the United States.
(v) Income of any member or employee of the Ohio general assembly including the lieutenant governor which income is received as a result of services rendered as such member or employee and is paid from appropriated funds of this state, unless such member or employee is a resident of New London.
(w) Income of the chief justice or a justice of the supreme court received as a result of services rendered as the chief justice or justice, unless such justice is a resident of New London.
(Ord. 2015-18. Passed 11-23-15.)