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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.)
(a) The portion of a net operating loss sustained in any taxable year subsequent to January 1, 1967, allocable to the City may be applied against the portion of the profit of succeeding tax years allocable to the City, until exhausted, but in no event for more than five taxable years immediately following the year in which the loss occurred. No portion of a net operating loss shall be carried back against net profits of any prior year.
(b) The portion of net operating loss sustained shall be allocated to the City in the same manner as provided herein for allocating net profits to the City.
(c) The Administrator shall provide by rules and regulations the manner in which such net operating loss carry-forward shall be determined.
(Ord. 1966-104. Passed 12-30-66.)
The provisions of this chapter shall not be construed as levying a tax upon the following:
(a) Proceeds from welfare benefits, unemployment insurance benefits, social security benefits, and qualified retirement plans as defined by the Internal Revenue Service.
(b) Proceeds of insurance, annuities, workers' compensation insurance, permanent disability benefits received from local, State and Federal governments, compensation for damages for personal injury and like reimbursements.
(c) Dues, contributions and similar payments received by charitable, religious, educational organizations, or labor unions, trade or professional associations, lodges and similar organizations.
(d) Gains from involuntary conversion, interest on Federal obligations and income of decedent's estate during the period of administration (except such income from the operation of a business).
(e) Alimony.
(f) Compensation for damage to property by way of insurance or otherwise.
(g) Interest and dividends from intangible property.
(h) Active military pay or allowances of members of the Armed Forces of the United States and of members of their reserve components, including the Ohio National Guard, as set forth in Ohio R.C. 718.01.
(i) Income of any charitable, educational, fraternal or other type of nonprofit association or organization enumerated in Ohio R.C. 718.01 to the extent that such income is derived from tax-exempt real estate, tax-exempt tangible or intangible property, or tax-exempt activities.
(j) Any association or organization falling in the category listed in the preceding division (i) of this section receiving income from non-exempt real estate, tangible or intangible personal property, or business activities of a type ordinarily conducted for profit by taxpayers operating for profit shall not be excluded hereunder.
(k) In the event any association or organization receives taxable income as provided in division (j) of this section from real or personal property ownership or income- producing business located both within and without the corporate limits of the Municipality, it shall calculate its income apportioned to the Municipality under the method or methods provided in this chapter.
(l) If exempt for Federal income tax purposes, fellowship and scholarship grants are excluded from Municipal income tax.
(m) The rental value of a home furnished to a minister of the gospel as part of his or her compensation, or the rental allowance paid to a minister of the gospel as part of his or her compensation, to the extent used by him or her to rent or provide a home pursuant to section 107 of the Internal Revenue Code.
(n) Compensation paid under Ohio R.C. 3501.28 or 3501.36 to a person serving as a precinct official, to the extent that such compensation does not exceed one thousand dollars ($1,000.00) annually. Such compensation in excess of one thousand dollars ($1,000.00) may be subjected to taxation. The payer of such compensation is not required to withhold Municipal tax from that compensation.
(o) Compensation paid to an employee of a transit authority, regional transit authority, or a regional transit commission created under Ohio R.C. Chapter 306 for operating a transit bus or other motor vehicle for the authority or commission in or through the Municipality, unless the bus or vehicle is operated on a regularly scheduled route, the operator is subject to such tax by reason of residence or domicile in the Municipality, or the headquarters of the authority or commission is located within the Municipality.
(p) The Municipality shall not tax the compensation paid to a nonresident individual for personal service performed by the individual in the Municipality on 12 or fewer days in a calendar year unless one of the following applies:
(1) The individual is an employee of another person, the principal place of business of the individual's employer is located in another municipality in Ohio that imposes a tax applying to compensation paid to the individual for services paid on those days; and the individual is not liable to that other Municipality for tax on the compensation paid for such services.
(2) The individual is a professional entertainer or professional athlete, the promoter of a professional entertainment or sports event, or an employee of such promoter, all as may be reasonably defined by the Municipality.
(q) (1) The income of a public utility, when that public utility is subject to the tax levied under Ohio R.C. 5727.24 or 5727.30, except a municipal corporation may tax the following, subject to Ohio R.C. Chapter 5745:
A. The income of an electric company or combined company;
B. The income of a telephone company.
(2) As used in division (q)(1) of this section “combined company”, “electric company” and “telephone company” have the same meanings as in Ohio R.C. 5727.01.
(r) Earnings and income in the City of all persons under 18 years of age, whether resident or nonresidents.
(s) Salaries, wages, commissions and other compensation and not profits, the taxation of which is prohibited by the United States Constitution or any act of Congress limiting the power of the States or their political subdivisions to impose net income taxes on income derived from interstate commerce.
(t) Salaries, wages, commissions and other compensation and net profits, the taxation of which is prohibited by the Constitution of the State or any act of the Ohio General Assembly limiting the power of the City to impose net income taxes.
(u) Generally the above noted items in this section are the only forms of income not subject to the tax. Any other income, benefits, or other forms of compensation shall be taxable.
(Ord. 1966-104. Passed 12-30-66; Ord. 2004-36. Passed 12-13-04.)
Each taxpayer, except as herein provided, shall, whether or not a tax is due thereon, make and file a return on or before April 15 of the year following the effective date of this chapter, and on or before April 15 of each year thereafter. When the return is made for a fiscal year or other period different from the calendar year, the return must be filed on or before the fifteenth day of the fourth month following the close of the fiscal year. The Administrator is hereby authorized to provide by regulation that the return of an employer or employers, showing the amount of tax deducted by such employer or employers from the salaries, wages, commissions or other compensation of an employee, and paid by him or them to the Administrator shall be accepted as the return required of any employee whose sole income, subject to tax under this chapter, is such salary, wages, commissions or other compensation.
(Ord. 1966-104. Passed 12-30-66; Ord. 2004-36. Passed 12-13-04.)
The return shall be filed with the Administrator on a form or forms furnished by or obtainable upon request from such Administrator, setting forth:
(a) The aggregate amounts of salaries, wages, commissions and other compensation earned and gross income from business, professional or other activity, less allowable expenses incurred in the acquisition of such gross income earned during the preceding year and subject to such tax;
(b) The amount of the tax imposed by this chapter on such earnings and profits; and
(c) Such other pertinent statements, information returns or other information as the Administrator may require.
(Ord. 1966-104. Passed 12-30-66.)
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