As used in this chapter, the following words shall have the meaning ascribed to them in this section, except as and if the context clearly indicates or requires a different meaning.
ADJUSTED FEDERAL TAXABLE INCOME. A C corporation’s federal taxable income before net operating losses and special deductions as determined under the Internal Revenue Code, adjusted as follows:
(1) Deduct intangible income to the extent included in federal taxable income. The deduction shall be allowed regardless of whether the intangible income relates to assets used in a trade or business or assets held for the production of income.
(2) Add an amount equal to 5% of intangible income deducted under division (1) above, but excluding that portion of intangible income directly related to the sale, exchange, or other disposition of property described in Section 1221 of the Internal Revenue Code;
(3) Add any losses allowed as a deduction in the computation of federal taxable income if the losses directly relate to the sale, exchange, or other disposition of an asset described in Section 1221 or 1231 of the Internal Revenue Code;
(4) (a) Except as provided in division (4)(b) of this definition, deduct income and gain included in federal taxable income to the extent the income and gain directly relate to the sale, exchange, or other disposition of an asset described in Section 1221 or 1231 of the Internal Revenue Code;
(b) Division (4)(a) above does not apply to the extent the income or gain is income or gain described in Section 1245 of 1250 of the Internal Revenue Code.
(5) Add taxes on or measured by net income allowed as a deduction in the computation of federal taxable income;
(6) In the case of a real estate investment trust and regulated investment company, add all amounts with respect to dividends to, distributions to, or amounts set aside for or credited to the benefit of investors and allowed as a deduction in the computation of federal taxable income;
(7) If the taxpayer is not a C corporation and is not an individual, the taxpayer shall compute adjusted federal taxable income as if the taxpayer were a C corporation, except:
(a) Guaranteed payments and other similar amounts paid or accrued to a partner, former partner, member, or former member shall not be allowed as a deductible expense; and
(b) Amounts paid or accrued to a qualified self-employed retirement plan with respect to an owner or owner-employee of the taxpayer, amounts paid or accrued to or for health insurance for an owner or owner-employee, and amounts paid or accrued to or for life insurance for an owner or owner- employee shall not be allowed as a deduction.
Nothing in this section shall be construed as allowing the taxpayer to add or deduct any amount more than once or shall be construed as allowing any taxpayer to deduct any amount paid to or accrued for purposes of federal self-employment tax.
Nothing in this chapter shall be construed as limiting or removing the ability of any municipal corporation to administer, audit, and enforce the provisions of its municipal income tax.
ADMINISTRATOR. The individual designated by the Director of Finance, with the approval of the City Manager, to administer and enforce the provisions of the chapter.
ASSIGNMENT. The assignment made by a resident of the city of a claim for refund due from another taxing municipality granting credit to non-residents thereof.
ASSOCIATION. A partnership, limited partnership, limited liability company (including a single owner LLC), Chapter S corporation as defined in the federal tax code, 26 U.S.C. 1361, or any other form of unincorporated enterprise owned by two or more persons.
BUSINESS. An 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, including but not limited to the renting or leasing of property, real, personal or mixed.
CORPORATION. A corporation or joint stock association organized under the laws of the United States, the State of Ohio or any other state, territory or foreign country or dependency, but not including Chapter S corporations.
DIRECTOR OF FINANCE. The Director of Finance of the City of Piqua, Ohio.
DOMICILE. The permanent legal residence of a taxpayer. A taxpayer may have more than one residence, but not more than one domicile.
EMPLOYEE. One who works for qualifying wages, commission or other type of compensation in the service of an employer.
EMPLOYER. 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 qualifying wage, commission or other compensation basis.
FISCAL YEAR. An accounting period of 12 months or less ending on any day other than December 31, and used by the taxpayer for federal income tax purposes.
FORM 2106. The Internal Revenue Service Form 2106 filed by a taxpayer pursuant to the Internal Revenue Code.
GROSS RECEIPTS. The total revenue derived from sales, work done, or service rendered before any deductions, exceptions or credits are claimed.
INCOME. Shall include all monies derived from any source whatsoever, including but not limited to:
(1) All qualifying wages, commissions, other compensation and other income from whatever source received by residents of the city.
(2) All qualifying wages, commission, other compensation and other income from whatsoever source received by nonresidents for work done or services performed or rendered or activities conducted in the city.
(3) The portion attributable to the city of the net profits of all unincorporated businesses, associations, professions, corporations or other entities from sales made, work done, services performed or rendered, and business or other activities conducted in the city.
INTANGIBLE INCOME. Income of any of the following types: income yield, interest, capital gains, dividends, or other income arising from the ownership, sale, exchange, or other disposition of intangible property including, but not limited to, investments, deposits, money, or credits as those terms are defined in R.C. Chapter 5701, and patents, copyrights, trademarks, trade names, investments in real estate investment trusts, investments in regulated investment companies, and appreciation on deferred compensation. INTANGIBLE INCOME does not include prizes, awards, or other income associated with any lottery winnings or other similar games of chance.
INTERNAL REVENUE CODE. The Internal Revenue Code of 1986, 100 Stat. 2085, 26 U.S.C. § 1, as amended.
JOINT ECONOMIC DEVELOPMENT DISTRICT. Districts created under R.C. §§ 715.70 through 715.83, as amended from time to time.
LIMITED LIABILITY COMPANY. A limited liability company formed under R.C. Chapter 1705 or under the laws of another state.
MUNICIPALITY. The City of Piqua.
NET PROFITS. A net gain from the operation of a business, profession, enterprise or other activity after provision 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, without deduction of taxes imposed by this chapter, federal, state and other taxes based on income; and in the case of an association, without deduction of qualifying wages paid to partners and other owners; and otherwise adjusted to the requirements of this chapter. NET PROFITS shall include any amount or value received, realized or recognized in a sale or other disposition of tangible personal property or real property used in business, in excess of book value.
NON-RESIDENT. An individual domiciled outside the city.
NON-RESIDENT UNINCORPORATED BUSINESS ENTITY. An unincorporated business entity not having an office or place of business within the city.
NONQUALIFIED DEFERRED COMPENSATION PLAN. A compensation plan described in Section 3121(v)(2)(C) of the Internal Revenue Code.
PERSON. 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, shall mean the partners or members thereof, and as applied to corporations, the officers thereof.
PLACE OF BUSINESS. 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.
QUALIFIED PLAN. A retirement plan satisfying the requirements under Section 401 of the Internal Revenue Code as amended.
QUALIFYING WAGES. Wages, as defined in Section 3121(a) of the Internal Revenue Code, without regard to any wage limitations, adjusted in accordance with R.C. § 718.03(A).
RESIDENT. An individual domiciled in the city.
RESIDENT UNINCORPORATED BUSINESS ENTITY. An unincorporated business entity having an office or place of business within the city.
RULES AND REGULATIONS. Administrative directives promulgated by the Administrator and approved by the Board of Review for the purpose of administering this chapter.
SCHEDULE C. The Internal Revenue Service schedule C filed by a taxpayer pursuant to the Internal Revenue Code.
SCHEDULE E. The Internal Revenue Service schedule E filed by a taxpayer pursuant to the Internal Revenue Code.
SCHEDULE F. The Internal Revenue Service schedule F filed by a taxpayer pursuant to the Internal Revenue Code.
S CORPORATION. A corporation that has made an election under subchapter S of Chapter 1 of Subtitle A of the Internal Revenue Code for its taxable year.
TAXABLE INCOME. Qualifying wages, and other compensation paid by an employer or employers before any deductions and/or the net profits from the operation of a business, profession or other enterprise or activity adjusted in accordance with the provisions of the chapter. Please refer to INCOME.
TAXABLE YEAR. The calendar year, or the fiscal year upon the basis of which the net profits are to be computed under the 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.
TAXING MUNICIPALITY. Any municipal corporation levying a municipal income tax on income, qualifying wages, commissions and other compensation earned by individuals, and on the net profits and other taxable income earned from the operation of a business, profession or other activity.
TAXPAYER. A person, whether an individual, partnership, association or any corporation or other entity, required under this chapter to file a return or pay a tax.
(Ord. 28-02, passed 12-16-02; Am. Ord. 1-11, passed 2-15-11; Am. Ord. 15-15, passed 12-15-15)