(a) On all income, qualifying wages, commissions, and other compensation earned and/or received, including tips, by residents of the City.
(b) On all income, qualifying wages, commissions, and other compensation earned and/or received, including tips, during the effective period of this chapter by non-residents for work done or services performed or rendered in the City. 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.
(1) Perrysburg shall not, however, tax the compensation of a non-resident individual who will be deemed to be an occasional entrant if all of the following apply:
A. The compensation is paid for personal services performed by the individual in the City on twelve or fewer days during the calendar year, in which case the individual shall be considered an occasional entrant for purposes of the City income tax. A day is a full day or any fractional part of a day.
B. 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 and the individual pays tax on compensation described in Section 890.03(b) to the municipality, if any, in which the employer's principal place of business is located, and no portion of that tax is refunded to the individual.
C. 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.
(2) Beginning with the thirteenth day an individual deemed to have been an occasional entrant to the City performs services within the City, the employer of said individual shall begin withholding the City income tax from remuneration paid by the employer to the individual, and shall remit the withheld income tax to the City in accordance with the requirements of this ordinance. Since the individual can no longer be considered to have been an occasional entrant, the employer is further required to remit taxes on income earned in the City by the individual for the first twelve days.
(3) If the individual is self-employed, it shall be the responsibility of the individual to remit the appropriate income tax to the City.
(c) On the portion attributable to Perrysburg of the net profits earned during the effective period of this chapter of all resident unincorporated businesses, professions, associations, or other entities, derived from sales made, work done, services performed or rendered and business or other activities conducted in Perrysburg.
(d) On the portion of the distributive share of the net profits earned and/or received during the effective period of this chapter of a resident partner or owner of a resident unincorporated business entity not attributable to Perrysburg and not levied against such unincorporated business entity.
(e) On the portion attributable to Perrysburg of the net profits earned during the effective period of this chapter of all nonresident unincorporated businesses, professions, associations, or other entities, derived from sales made, work done or services performed or rendered and business or other activities conducted in Perrysburg, whether or not such unincorporated business entity has an office or place of business in Perrysburg.
(f) On the portion of the distributive share of the net profits earned by a resident individual from a Subchapter S Corporation. This policy was ratified by the passage of a Perrysburg ballot issue on November 4, 2003.
(g) On that portion of the distributive share of the net profits of a resident individual, partner or owner of a nonresident unincorporated business entity.
(h) On the portion attributed to Perrysburg of the net profits earned during the effective period of this chapter of all corporations derived from sales made, work done or services performed or rendered and business or other activities conducted in Perrysburg whether or not such corporations have an office or place of business in Perrysburg.
(i) On all income derived anywhere from gaming, wagering, lotteries, or games of chance by residents of Perrysburg or by nonresidents of Perrysburg when the income derived anywhere from gaming, wagering, lotteries, or games of chance is won or received as a result of transactions conducted in Perrysburg. No deductions shall be permitted against these types of income.
(j) On covenants not to compete and on cancellation of indebtedness to the extent includable on the taxpayer's federal tax return.
(k) Determination of Net Profits Attributable to the City.
(1) The portion of the net profits attributable to Perrysburg of a taxpayer conducting a business, profession or other activity both within and without the boundaries of Perrysburg shall be determined as provided in Ohio R.C. 718.02. However, if the apportionment formula provided therein does not produce an equitable result then another basis may be substituted, including the use of the books and records method.
(2) Beginning with the tax year commencing after December 31, 1987, the net operating loss from a business entity may not be used to offset salaries, wages, commissions, or the net profit from any other entity or activity. However, like schedules can be netted, provided that net profit from a resident business is not offset by a loss from a non-resident business.
(3) A joint return may be filed but the tax imposed on each spouse's income will be calculated separately. Each W-2, schedule or other source of income will be calculated separately and no offsets against the other spouse's income will be allowed. A tax return may not be amended to change the form of filing from joint to separate or vice versa. Tax returns must be filed under the same status until a change in marital status occurs.
(l) Net Operating Loss Carry-Forward.
(1) The portion of a net operating loss sustained in any taxable year subsequent to the effective date of this chapter allocable to Perrysburg may be applied against the portion of the net profit of succeeding years allocable to Perrysburg, until exhausted, but in no event for more than five (5) taxable years. No portion of a net operating loss shall be carried back against net profits of any prior year. However, each business net profit that exceeds losses carried forward from the same entity must be included in taxable income.
(2) The portion of net operating loss sustained shall be allocated to Perrysburg in the same manner as provided for allocating net profits to Perrysburg. Losses sustained in another taxing municipality shall be first allocated to that other taxing municipality to the same extent that net profits would have been allocated had there been a net profit.
(m) 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.
(n) Exemptions - Source of Income Not Taxed. The tax provided for herein shall not be levied on the following:
(1) Military pay or allowance of members of the armed forces of the United States and of members of their reserve components, including the National Guard.
(2) Poor relief, social security benefits, unemployment insurance benefits except for supplemental unemployment benefits, proceeds from retirement plans or similar payments, disability benefits received from local, state or federal governments or charitable religious or educational organizations.
(3) Proceeds of insurance paid by reason of death of the insured, payments from pensions, including industrial pensions, disability benefits paid for total and permanent disability, annuities or gratuities not in the nature of compensation for services rendered from whatever source derived.
(4) Receipts by bona fide charitable, religious and educational organizations and associations, when those receipts are from seasonal or casual entertainment, amusement, sports events and health and welfare activities when any such are conducted by bona fide charitable, religious or educational organizations and associations and only to the extent that the said income is exempt from Federal income tax.
(5) The income of religious, fraternal, charitable, scientific, literary or educational institutions to the extent that such income is derived from tax exempt real estate, tax exempt tangible or intangible property or has tax exempt activities and only to the extent that the said income is exempt from federal income tax.
(6) Spousal support received.
(7) Compensation for personal injuries or for damages to property by way of insurance or otherwise, but this exclusion does not apply to compensation paid for lost salaries or wages or to compensation from punitive damages.
(8) Interest, dividends and other revenue from intangible property as set forth in Ohio R.C. 718.01.
(9) Amounts included in an employee W-2 form for moving expense reimbursement when the taxpayer is moving out of Perrysburg.
(10) Parsonage allowance to the extent of the rental allowance or rental value of a house provided as a part of an ordained clergy's compensation. The clergy must be duly ordained, commissioned, or licensed by a religious body constituting a religious denomination, and must have authority to perform all sacraments of the religious body.
(11) Payments to election workers, to the extent that such compensation does not exceed $1,000 annually.
(12) The amount of unreimbursed employee business expenses (2106 Expenses) which the employee deducted as an itemized deduction. The deduction must exceed two percent (2%) of the employees AGI on his/her Federal Income Tax return. Taxpayer must furnish a copy of the form 2106, Schedule "A" of form 1040 and the first page of the 1040 as filed with IRS. The expenses must be allocated in the same manner as the income to which the expenses are related.
(13) The income of a public utility, when that public utility is subject to the tax levied under Section 5725.24 or 5727.30 of the Ohio Revised Code, except a municipal corporation may tax the following, subject to Chapter 5745 of the Ohio Revised Code:
A. The income of an electric company or combined company;
B. The income of a telephone company.
C. "Combined Company", "Electric Company" and "Telephone Company" have the same meanings as in Ohio R.C. 5727.01.
(14) Income, salaries, wages, commissions and other compensation and net 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.
(15) Income, salaries, wages, commissions and other compensation and net profits, the taxation of which is prohibited by the Constitution of the State of Ohio or any act of the Ohio General Assembly limiting the power of a municipality to impose net income taxes.
(o) Expenses Not Deductible.
(1) No deduction for self-employment tax paid by self-employed taxpayers as permitted by IRS is permitted for the City of Perrysburg.
(2) No deduction for contributions to IRA or Keogh plans made by taxpayers as permitted by IRS is permitted for the City of Perrysburg.
(Ord. 104-2015. Passed 11-17-15.)