Loading...
“Person” means every natural person, partnership, fiduciary, association or corporation. Whenever used in any clause prescribing and imposing a penalty, the term “person”, as applied to any unincorporated entity, means the partners or members thereof, and as applied to corporations, the officers thereof.
(Ord. 1966-104. Passed 12-30-66.)
“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.
(Ord. 1966-104. Passed 12-30-66.)
“Taxable income” means qualifying wages, salaries and other compensation paid by an employer before any deduction. “Other compensation” includes, but is not limited to, bonuses; commissions; incentive payments; director's fees; property in lieu of cash; tips; dismissal or severance pay; supplemental income benefits for early retirement regardless of their label; contest prizes and awards; compensation attributable to qualified and non- qualified deferred compensation plans or programs described in Section 3121(v)(2)(c) of the Internal Revenue Code; tax shelter plans; vacation and sick pay regardless of label, such as sick leave, disability, vacation pay, etc.; wage continuation plans; supplemental unemployment benefits; depreciation recapture; gifts and gratuities in connection with employment; fellowships, grants and stipends; group term life insurance protection over fifty thousand dollars ($50,000) (taxed on the entire cost); benefits resulting from an employer's assumption of a tax; stock options, including compensation arising from the sale, exchange, or other disposition of a stock option, the exercise of a stock option, or the sale, exchange, or other disposition of stock purchased under a stock option given as compensation; income from gaming, wagering and lotteries, including the Ohio State Lottery; net profits from the operation of a business, profession or other enterprise or activity adjusted in accordance with the provisions of this chapter; and all other compensation earned, received or accrued.
(Ord. 1983-48. Passed 11-28-83; Ord. 2004-36. Passed 12-13-04.)
“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.
(Ord. 1966-104. Passed 12-30-66.)
An annual tax for the purposes specified in Section 193.01 shall be imposed at the rate of two percent per year for the years prior to 2005 and three percent effective January 1, 2005, upon the following:
(a) On all salaries, wages, commissions and other compensation earned by residents of the City;
(b) On all salaries, wages, commissions and other compensation earned by nonresidents of the City for work done or services performed or rendered within the City;
(c) (1) On the portion attributable to the City of the net profits earned of all resident unincorporated business entities, pass-through entities or professions or other activities derived from sales made, work done, services performed or rendered and business or other activities conducted in the City;
(2) On the portion of the distributive share of the net profits earned of a resident partner or owner of a resident unincorporated business entity or pass-through entity not attributable to the City and not levied against such unincorporated business or pass-through entity;
(d) (1) On the portion attributable to the City of the net profits earned of all nonresident unincorporated business or pass-through entities, professions or other activities, derived from sales made, work done, services performed or rendered and business and other activities conducted in the City, whether or not such unincorporated business or pass-through entity has an office or place of business in the City;
(2) On the portion of the distributive share of the net profits earned of a resident partner or owner of a nonresident unincorporated business or pass- through entity not attributable to the City and not levied against such unincorporated business or pass-through entity;
(e) On the portion attributable to the City of the net profits earned of all corporations derived from sales made, work done, services performed or rendered and business or other activities conducted in the City, whether or not such corporations have an office or place of business in the City; and
(f) On all taxable income of residents from gaming, wagering, lotteries, including the Ohio State Lottery, or schemes of chance which are not otherwise taxed as “net profits.”
(g) For the purposes of this section a shareholder's distributive share of net profits of an S Corporation shall be taxed only to the extent such shares would be so allocated or apportioned to this State.
(Ord. 1986-41. Passed 8-11-86; Ord. 2000-30. Passed 6-26-00; Ord. 2001-13. Passed 4-9-01; Ord. 2004-36. Passed 12-13-04.)
Such tax shall be imposed, levied, collected and paid with respect to the salaries, wages, commissions and other compensation, and with respect to the net profits of businesses, professions or other activities earned on or after January 1, 2001.
(Ord. 1986-41. Passed 8-11-86; Ord. 2000-30. Passed 6-26-00.)
In the taxation of income which is subject to City income taxes if the books and records of a taxpayer conducting a business or profession both within and without the boundaries of the City, shall disclose with reasonable accuracy what portion of its net profit is attributable to that part of the business or profession conducted within the boundaries of the City, then only such portion shall be considered as having a taxable sites in the City for the purposes of municipal income taxation. The portion of the entire net profits of a taxpayer to be allocated as having been derived from within the City, in the absence of actual records thereof, shall be determined as follows:
Multiply the entire net profits by a business apportionment percentage to be determined by a three-factor formula of property, payroll and sales, each of which shall be given equal weight as follows:
(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 during the taxable period to the average net book value of all the real and tangible personal property owned or used by the taxpayer in the business or profession during the same period, wherever situated;
As used in the preceding division, 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 the business or profession for services performed in the City to wages, salaries and other compensation paid during the same period to persons employed in the business or profession, wherever their services are performed;
(c) Gross receipts of the business or profession from sales made and services performed during the taxable period in the City to gross receipts of the business or profession during the same period from sales and services, wherever made or performed.
In the event that the foregoing apportionment formula does not produce an equitable result, another basis may, under uniform regulations, be substituted so as to produce such result.
(Ord. 1966-104. Passed 12-30-66; Ord. 2004-36. Passed 12-13-04.)
As used in division (c) of Section 193.24, “sales made in the City” means:
(a) All sales of tangible personal property which is delivered within the City regardless of where title passes if shipped or delivered from a stock of goods within the City;
(b) All sales of tangible personal property which is delivered within the City regardless of where title passes even though transported from a point outside the City if the taxpayer is regularly engaged through its own employees in the solicitation or promotion of sales within the City 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 to purchasers outside of the 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.
(Ord. 1966-104. Passed 12-30-66.)
(a) Add together the percentages determined in accordance with divisions (a), (b) and (c) of Section 193.24 or such of the aforesaid percentages as are applicable to the particular taxpayer and divide the total so obtained by the number of percentages used in deriving such total in order to obtain the business apportionment percentage referred to in Section 193.24.
(b) A factor is applicable even though it may be apportioned entirely in or outside the City.
(Ord. 1966-104. Passed 12-30-66; Ord. 2004-36. Passed 12-13-04.)
(a) Rental income received by a taxpayer shall be included in the computation of net profits from business activities under divisions (c), (d) and (e) of Section 193.22, only if and to the extent that the rental ownership, management or operations of the real estate from which such rentals are derived (whether so rented, managed or operated by a taxpayer individually or through agents or other representatives) constitutes a business activity of the taxpayer in whole or in part.
(b) Residents are required to file and report the status of all property located within and without the City. Nonresidents are required to file and report the status of all property within the City whether or not income is received. When the gross monthly rental of any and all real properties aggregates in excess of one hundred twenty-five dollars ($125.00) per month, the net income shall be subject to tax. City residents owning rental property located outside of the City are required to file the net profit or loss with the City and pay any tax due. In the case of commercial property, the owner shall be considered engaged in a business activity when the rental is based on a fixed or fluctuating percentage of gross or net sales, receipts or profits of the lessee, whether or not such rental exceeds one hundred twenty-five dollars ($125.00) per month; provided further that in the case of farm property, the owner shall be considered engaged in a business activity when he or she shares in crops or when the rental is based on a percentage of the gross or net receipts derived from the farm, whether or not the gross income exceeds such one hundred twenty- five dollars ($125.00) per month; and provided further that the person who operates a licensed rooming house shall be considered in business whether or not the gross income exceeds one hundred twenty-five dollars ($125.00) per month.
(Ord. 1966-104. Passed 12-30-66; Ord. 2004-36. Passed 12-13-04.)
Loading...