To provide funds for the purposes as shown in Section 181.13, there be and hereby islevied a tax at the rate of one and nine-tenths percent (1- 9/10%) upon the following:
(a) ) (1) On all income, qualifying wages, commissions, net rentals and other compensation earned and/or received during the effective period of this chapter by resident individuals of the City of Oberlin. For further clarification "income" includes, but is not limited to, lottery, gambling winnings, sports winnings, and games of chance in a combined amount per year of one million dollars ($1,000,000.00) or more. In no circumstance shall deductions be allowed against lottery, gambling and sports winnings, and games of chance. However, deductions shall be allowed against gambling and sports winnings if the taxpayer is considered a professional gambler for federal income tax purposes.
(2) Effective January 1, 2010, the City of Oberlin income tax shall not be levied on stock options exercised on or after January 1, 2010.
(b) On all income, qualifying wages, commissions, net rentals and other compensation earned and/or received during the effective period of this chapter by nonresident individuals for work done or services performed in the City of Oberlin. With the exception that, effective January 1, 2010, the City of Oberlin income tax shall not be levied on stock options exercised on or after January 1, 2010. Income earned and/or received as holiday, sick, and/or vacation pay is taxable to the City of Oberlin. Separation pay, termination pay, reduction-in-force pay, and other compensation paid as a result of an employee leaving the service of an employer shall be allocable only to the City of Oberlin. However, the City of Oberlin shall not tax the compensation of an individual if all of the following apply:
(1) The individual does not reside in the City of Oberlin.
(2) The compensation is paid for personal services performed by the individual in the City of Oberlin on twelve or fewer days during the calendar year. A day is a full day or any fractional part of a day.
(3) In the case of an individual who is an employee, the principal place of business of the individual's employer is located outside the City of Oberlin and the individual pays tax on compensation described in subsection (b) hereof to the City, if any, in which the employer's principal place of business is located, and no portion of that tax is refunded to the individual.
(4) The individual is not a professional entertainer or professional athlete; the promoter of a professional entertainment or sports event, or an employee of such a promoter, all as may be reasonably defined by the City of Oberlin.
(Ord. 09-22AC. Passed 3-16-09.)
(Ord. 09-22AC. Passed 3-16-09.)
(c) On the net profits attributable to Oberlin, earned during the effective period of this chapter, of all resident unincorporated business, professions and other activities derived from work done or service and/or facilities rendered or performed and business or other activities conducted in the City of Oberlin.
(d) On the portion of the distributive share of the net profit earned during the effective period of this chapter, of a resident individual, partner or owner of a resident unincorporated business entity attributable to Oberlin and not levied against such unincorporated business entity.
(e) On the net profits attributable to Oberlin earned during the effective period of this chapter, of all nonresident unincorporated business, professions and other activities, derived from work done or services performed or rendered and business or other activities, conducted in the City of Oberlin.
(f) On the portion of the distributive share of the net profit earned during the effective period of this chapter, of a resident individual, partnership or owner of a nonresident unincorporated business entity not attributable to Oberlin and not levied against such unincorporated business entity.
(g) On the net profits earned during the effective period of this chapter, of all corporations derived from work done or services performed or rendered and business or other activities conducted in the City of Oberlin, whether or not such corporations have an office or place of business in the City of Oberlin.
(h) Business Allocation Percentage Formula (Ohio R.C. 718.02).
(1) Net profits from a business or profession conducted both within and without the boundaries of the City of Oberlin shall be considered as having a taxable situs in the City of Oberlin for the purpose of income taxation in the same proportion as the average ratio of:
A. The average original cost of the real and tangible personal property owned or used by the taxpayer in the business or profession in the City of Oberlin during the taxable period to the average original cost of all of the real tangible personal property owned or used by the taxpayer in the business or profession during the same period, wherever situated. As used in this subsection, real property shall include property rented or leased by the taxpayer and the value of such property shall be determined by multiplying the annual rental thereon by eight.
B. Wages, salaries and other compensation paid during the taxable period to persons employed in business or profession for services performed in the City of Oberlin to wages, salaries and other compensation paid during the same period to persons employed in the business or profession, wherever their services are performed. Wages, salaries, and other compensation shall be included to the extent that they represent qualifying wages.
C. Gross receipts of the business or profession from sales made and services performed during the taxable period in the City of Oberlin to gross receipts from sales and services, wherever made or performed.
In the event that the allocation formula in 181.02(h)(1) does not produce an equitable result another basis may, under uniform regulations, be substituted so as to produce such result.
(2) As used in subsection (h)(1), "sale made in the City of Oberlin" means:
A. All sales of tangible personal property which is delivered within the City of Oberlin regardless of where title passes if shipped or delivered from a stock of goods within such City;
B. All sales of tangible property which is delivered within the City of Oberlin regardless of where title passes even though transported from a point outside such City if the taxpayer is regularly engaged through its own employees in the solicitation or promotion of sales within the City of Oberlin and the sales result from such solicitation or promotion;
C. All sales of tangible personal property which is shipped from a place within the City of Oberlin to purchasers outside such City regardless of where title passes if the taxpayer is not, through its own employees, regularly engaged in the solicitation or promotion of sales at the place where delivery is made.
(i) Consolidated Returns.
(1) Any affiliated group which files a consolidated return for federal income tax purposes pursuant to Section 1501 of the Internal Revenue Code may file a consolidated return with the City of Oberlin. However, once the affiliated group has elected to file a consolidated return or a separate return with the City of Oberlin, the affiliated group may not change their method of filing in any subsequent tax year without written approval from the City of Oberlin.
(2) In the case of a corporation that carried on transactions with its stockholders or with other corporations related by stock ownership, interlocking directorates or some other method, the Finance Director shall require such information, in addition to the return hereinafter provided for, ashe/shemay deem necessary to ascertain whether net profits are properly allocated to the City of Oberlin. If the Commissioner finds net profits are not properly allocated to the City of Oberlin by reason of transactions with stockholders or with other corporations related by stock ownership, interlocking directorates or some other method,he/shemay require the filing of a consolidated return or adjust such transactions so as to produce a fair and proper allocation of net profits to the City of Oberlin.
(Ord. 06-49AC CMS. Passed 6-19-06.)
(Ord. 06-49AC CMS. Passed 6-19-06.)