(a) If the books and records of a Taxpayer conducting a Business both within and without the boundaries of the Municipality shall disclose with reasonable accuracy what portion of its Net Profit is attributable to the conduct of Business within the boundaries of the Municipality, then only such portion shall be considered as having a taxable situs within the Municipality for purposes of the tax. In the absence of such records, Net Profits from a Business conducted both within and without the boundaries of the Municipality shall be considered as having a taxable situs within the Municipality for the purpose of the tax in the same proportion as the average ratio of:
(1) The average net book value of the real and tangible personal property owned or used by the Taxpayer in the Business in the Municipality during the taxable period to the average net book value of all of the real and tangible personal property owned or used by the Taxpayer in the Business during the same period, wherever situated;
(2) As used in subsection (a)(1) hereof, 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 (8);
(3) Salaries, Wages, Commissions and Other Compensation paid by the Taxpayer during the taxable period to Persons employed in the Business for services performed in the Municipality to Salaries, Wages, Commissions and Other Compensation paid during the same period to Persons employed in the Business wherever their services are performed, excluding compensation that is not taxable by the Municipality under Section 718.011 of the Revised Code;
(4) As used in subsection (a)(3), Persons employed does not include any subcontractor or independent contractor;
(5) Gross Receipts of the Taxpayer’s Business from sales made and services performed during the taxable period in the Municipality to Gross Receipts of the Taxpayer’s Business during the same period from sales and services wherever made or performed.
(b) In the event that the foregoing allocation formula does not produce an equitable result, another basis may, under uniform regulations, be substituted by the Finance Director or his delegate so as to produce an equitable result.
(c) As used in this Chapter, “sales made in the Municipality” means:
(1) All sales of tangible personal property that is delivered within the Municipality regardless of where title passes if shipped or delivered from a stock of goods within the Municipality;
(2) All sales of tangible personal property that is delivered within the Municipality regardless of where title passes even though transported from a point outside of the Municipality if the Taxpayer is regularly engaged through its own Employees in the solicitation or promotion of sales within the Municipality and the sales result from such solicitation or promotion;
(3) All sales of tangible personal property that is shipped from a place within the Municipality to purchasers outside the Municipality 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.
(d) Subsections (a), (b) and (c) of Section 181.03 do not apply to electric companies or combined companies, or to electric light companies for which an election has been made under section 5745.031 of the Revised Code is in effect.
(e) An affiliated group of Corporations that files a consolidated Municipal income tax return pursuant to Section 181.06(g) of this Chapter shall determine the Municipal income tax liability of each member of the group properly included in the combined filing in accordance with the following steps:
Step 1: Determine the Net Profits of the affiliated group attributable to each member by applying the allocation factors set forth in Section 181.03 of this Chapter to the consolidated income of the affiliated group. For this purpose, the numerator of each of the factors shall consist of information pertaining solely to the individual member as if the numerator of each of the factors did not contain the phrase “in the Municipality” and the denominator of each of the factors shall consist of the information pertaining to all members of the group properly included in the combined return filed with the Village. The result is the Net Profits of each member of the affiliated group included in the consolidated Municipal income tax return.
Step 2: Determine the Net Profits of each member of the affiliated group attributable to the Municipality by applying the allocation factors set forth in Section 181.03 of this Chapter to the Net Profits of each member as determined in Step1.
Step 3: Apply the Municipal income tax rate to the Net Profits of each member of the affiliated group attributable to the Municipality as determined in Step 2.
(Ord. 28-01. Passed 4-16-01.)