191.02 DEFINITIONS.

   (a)   Definitions Generally. For the purposes of this chapter, the terms, phrases, words, and their derivatives shall have the meanings given in the next succeeding sections.

   The singular shall include the plural, and the masculine shall include the feminine and the neuter.

      (1)   "Administrator" means the individual designated, by the Auditor, to administer and enforce the provisions of the Municipal Income Tax.

      (2)   "Association" means any partnership, limited partnership, limited liability corporations, limited liability partnerships, and Sub-Chapter S Corporation as defined in the federal tax code, 26 U.S.C. 1361, or any other form of unincorporated enterprise owned by one or more persons.

      (3)   "Board of Review" means the Board created by, and constituted as provided in Section 191.14(a).

      (4)   "Business" means any enterprise, activity, profession, or undertaking of any nature conducted for profit or ordinarily conducted for profit, whether by an individual, partnership, association, corporation or any other entity, excluding however, all nonprofit corporations which are exempt from the payment of Federal Income Tax.

      (5)   "Corporation" means a corporation or joint stock association organized under the laws of the United States, the State or any other state, territory, or foreign country or dependency but not a Chapter S Corporation.

      (6)   "Employee" means one who works for wages, salary, commission, or other types of compensation in the service of an employer.

      (7)   "Employer" means an individual, partnership, association, corporation, governmental body, unit or agency, or any other entity, whether or not organized for profit, who or that employs one or more persons on a salary, wage commission, or other basis of compensation.

      (8)   "Fiscal Year" means an accounting period of twelve months or less ending on any day other than December 31.

      (9)   "Gross Receipts" means the total income from any source whatever.

      (10)   "Net Profits" means a net gain from the operation of a business, profession, enterprise or other activity after provisions for all ordinary and necessary expenses either paid or accrued in accordance with the accounting system used by the taxpayer for Federal Income Tax purposes, but subject to adjustment in accordance with the regulations and rules adopted by the Administrator and without deductions of taxes imposed by this chapter, Federal, State, and other taxes based on income, and in the case of an association, without deduction of salaries paid to partners and other owners.

      (11)   "Nonresident" means an individual domiciled outside the City of Ontario.

      (12)   "Nonresident Unincorporated Business Entity" means an unincorporated business entity not having an office or place of business within the City.

      (13)   "Person" means every natural person, partnership, fiduciary, association or corporation. Whenever used in any clause prescribing and imposing a penalty, "person" as applied to any unincorporated entity, means the partners or members thereof, and as applied to corporations, the officers thereof.

      (14)   "Place of Business" means any bona fide office, other than a mere statutory office, factory, warehouse, or other space which is occupied and used by the taxpayer in carrying on any business activity individually or through one or more of his regular employees regularly in attendance.

      (15)   "Resident" means an individual partnership, limited partnership, corporation limited liability corporation, limited liability partnership, association or other entity domiciled or conducting business in the City.

      (16)   "Resident Unincorporated Business Entity" means an unincorporated business entity having an office or place of business within the City.
(Ord. 97-60. Passed 11-20-97.)

      (17)   " Taxable Income" means wages, salaries, and other compensation paid by an employer before any deductions and or the net profits from the operation of a business, profession or other enterprise or activjty adjusted in accordance with the provisions of this chapter. For purposes of this section, “profits from businesses” shall include a taxpayer’s distributive share of the net profits of an S corporation (meaning a corporation that has made an election to be treated for federal income tax purposes as a pass-through entity under subchapter S of Chapter 1, Subtitle A of the Internal Revenue Code), to the extent the distributive share would be allocated or apportioned to the State of Ohio under divisions (B)(1) and (2) of Section 5733.05 of the Ohio Revised Code if the S corporation were a corporation subject to taxes imposed under Chapter 5733 of the Revised Code.
(Ord. 04-39. Passed 8-5-04.)

      (18)   "Taxable Year" means the calendar year or the fiscal year upon the basis of which the net profits are to be computed under this chapter, and in the case of a return for a fractional part of a year, the period for which such return is required to be made.

      (19)   "Taxing municipality" means any municipal corporation levying a municipal income tax on salaries, wages, commissions and other compensation earned by individuals, and on the net profits earned from the operation of a business, profession or other activity.

      (20)   "Taxpayer" means a person, whether an individual, partnership, association, or any corporation or other entity, required hereunder to file a return or pay a tax including all residents of this City eighteen years of age or older during any part of the tax year whether or not earning income subject to tax under this chapter.

         (Ord. 97-60. Passed 11-20-97.)

      (21)   “Other Payer” means any person that pays an individual any item included in the taxable income of the individual, other than the individual’s employer or that employer’s agent.

      (22)   “Generic Form” means an electronic or paper form designed for reporting estimated municipal income taxes and annual municipal income tax liability that is not prescribed by a particular municipal corporation for the reporting of that municipal corporation’s tax on income.

      (23)   “Return Preparer” means any person other than a taxpayer that is authorized by a taxpayer to complete or file an income tax return, report, or other document for or on behalf of the taxpayer.

         (Ord. 00-39. Passed 11-16-00.)

      (24)   "S corporation" means a corporation that has made an election under subchapter S of Chapter 1 Subtitle A of the Internal Revenue Code for its taxable year.

      (25)   "Limited liability company" means a limited liability company formed under Chapter 1705 of the Revised Code or under the laws of another state.

      (26)   "Pass-through entity" means a partnership, S corporation, limited liability company, or any other class of entity the income or profits from which are given pass-through treatment under the Internal Revenue Code.

      (27)   "Income from a pass-through entity" means partnership income of partners, distributive shares of shareholders of an S corporation, membership interests of members of a limited liability company, or other distributive proportionate ownership shares of other pass-through entities.

      (28)   "Owner" means a partner of a partnership, a shareholder of an S corporation, a member of a limited liability company, or other person with an ownership interest in a pass-through entity.

      (29)   "Owner's proportionate share," with respect to each owner of a pass-through entity, means the ratio of (a) the owner's income from the pass-through entity that is subject to taxation by the municipal corporation, to (b) the total income from that entity of all owners whose income from the entity is subject to taxation by that municipal corporation.
(Ord. 02-37. Passed 8-1-02.)