(a) To provide funds for the purposes of general Municipal operations, maintenance of equipment, new equipment, extension, enlargement and improvement of Municipal services and facilities and capital improvements of the Village of North Kingsville, there is hereby levied a tax upon income and net profits at the rate of (1.3%) upon the following:
(1) On all income, qualifying wages, commissions and other compensation earned or received on and after January 1, 2015, by resident individuals of the Village of North Kingsville;
(2) On all income, qualifying wages, commissions and other compensation earned or received on and after January 1, 2015, by nonresident individuals for work done or services performed or rendered in the Village of North Kingsville;
(3) On the portion of the distributive share of the net profits attributable to the Municipality earned on and after January 1, 2015, of a resident partner or owner of a resident unincorporated business, association (excluding a Sub-S corporation) professions and/or other activity, derived from work done or services rendered or performed and business or other activities conducted in the Village of North Kingsville;
(4) On the net profits attributable to the Village of North Kingsville earned on and after January 1, 2015, of all nonresident unincorporated businesses, associations (excluding a Sub-S corporation), professions or other entities, derived from work done or services rendered or performed and business or other activities conducted in the Village of North Kingsville, whether or not such unincorporated business entity, profession or other entity has an office or place of business in the Village of North Kingsville;
(5) On the portion of the net profits earned on and after January 1, 2015, of a resident individual, partner or owner of a nonresident unincorporated business entity not attributable to the Village of North Kingsville and not levied against such unincorporated business entity;
(6) On the portion of the distributive share of the net profit of an individual, partner or owner of a resident unincorporated enterprise or association attributable to North Kingsville, but only if the tax was not paid by such unincorporated enterprise or association on behalf of the individual, partner, or owner.
(7) Effective for tax years 2004 and later, the distributive share of income paid to an S corporation shareholder shall be taxable in the following manner:
A. If no portion of the net profits of the S corporation is allocated or apportioned to the State of Ohio, the distributive share is taxable only to the extent that it represents wages or net earnings from self- employment.
B. If any portion of the net profits of the S corporation is allocated or apportioned to the State of Ohio, the full amount of the distributive share is taxable.
(8) On the net profits earned on and after January 1, 2015, of all corporations, derived from work done or services rendered or performed and business or other activities conducted in the Village of North Kingsville.
(9) On all income derived anywhere from gaming, wagering, lotteries, or schemes of chance by residents of the Village of North Kingsville.
(b) Business Losses.
(1) Losses incurred from the operation of a business, including rental, may not be carried forward or backward.
(2) Business losses incurred by a taxpayer who may also have income from employment as shown on the taxpayer's W-2 form, may not be used to reduce the taxpayer's income as shown on the W-2 form.
(3) A taxpayer who incurs a combination of losses and profits from the operation of two or more resident businesses, including rental, during the same tax year, may offset the business losses against the business profits to compute the taxpayer's taxable Village of North Kingsville income.
(4) If a resident of the Village of North Kingsville operates a business or businesses, including rental, in another taxing municipality in Ohio and the business or businesses incur a loss, the amount of the loss is deemed primarily subject to the taxing jurisdiction of the other taxing municipality and may not be used to reduce the taxpayer's Village of North Kingsville tax base. (Ord. O-04-038. Passed 7-6-04; Ord. 0-14-002. Passed 1-24-14.)