(A) Generally. Subject to the provisions of § 36.17, an annual tax for the purposes specified in § 36.01 shall be imposed at the rate of 2% per annum. The first 1% of the tax shall be levied until repealed by the City Commission; the next .75% until repealed by the electorate; and the remaining .25% from January 1, 1991 through December 31, 2030, and upon:
(1) All qualifying wages, commissions, other compensation and other income earned or received during the effective period of this chapter by residents of the city.
(2) All qualifying wages, commissions, other compensation earned and other income earned or received during the effective period of this chapter by nonresidents for work done or services performed or rendered in the city.
(3) (a) The portion attributable to the city of the net profits earned or received during the effective period of this chapter, of all resident unincorporated businesses, professions or other entities, derived from sales made, work done, services performed or rendered and business or other activities conducted in the city.
(b) The portion of the distributive share of the net profits earned or received during the effective period of this chapter of a resident partner or owner of a resident unincorporated business entity not attributable to the city and not levied against such unincorporated business entity. Provided, however, that the liability of an individual partner or owner, taxable hereunder on income attributable to another taxing municipality, shall be subject to the relief and reciprocity provisions of § 36.14.
(4) (a) The portion attributable to the city of the net profits earned or received during the effective period of this chapter of all nonresident unincorporated businesses, professions or other entities, derived from sales made, work done or services performed or rendered and business or other activities conducted in the city, whether or not such unincorporated business entity has an office or place of business in the city.
(b) The portion of the distributive share of the net profits earned or received during the effective period of this chapter of a resident partner or owner of a nonresident unincorporated business entity not attributable to the city and not levied against such unincorporated business entity. Provided, however, that the liability of an individual partner or owner taxable hereunder on income attributable to another taxing municipality shall be subject to the relief and reciprocity provisions of § 36.14.
(5) The portion attributable to the city of net profits earned or received during the effective period of this chapter 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.
(6) All income received as gambling winnings as reported on IRS Form W-2G, Form 5754 and or any other form required by the Internal Revenue Service that reports winnings from gambling, prizes and lottery winnings. Gambling losses are not deductible unless losses are supported by an independent verifiable statement.
(B) Portion attributable. The portion of the net profits attributable to the city of a taxpayer conducting a business, profession or other activity, both within and without the boundaries of the city, shall be determined as provided in R.C. § 718.02 and in accordance with the rules and regulations.
(C) Operating losses.
(1) The municipality does not allow a net operating loss carry-back or carry-forward.
(2) (a) Losses from federal schedules and other sources reported for federal income tax purposes cannot be used to offset qualifying wages, commissions, other compensation and other taxable income earned or received by residents or nonresidents of the municipality.
(b) If an individual is engaged in two or more taxable business activities to be included in the same return, the net loss of one unincorporated business activity may be used to offset the profits of another (except any portion of a loss or profit separately reportable for municipal tax purposes to another taxing entity) for purposes of arriving at overall net profits or net operating loss.
(D) 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. However, once the affiliated group has elected to file a consolidated return or a separate return with the city, the affiliated group may not change its method of filing in any subsequent tax year without written approval from the city.
(2) In the case of a corporation that carried on transactions with its stockholders or with other corporations related by stock ownership, interlocking directorates or some other method, or in case any person operates a division, branch, factory, office, laboratory or activity within the city, constituting a portion only of its total business, the Administrator shall require such additional information as he or she may deem necessary to ascertain whether net profits are properly allocated to the city. If the Administrator finds net profits are not properly allocated to the city by reason of transactions with stockholders or with other corporations related by stock ownership, interlocking directorates, or transactions with such division, branch, factory, office, laboratory or activity or by some other method, the Administrator shall make such allocations as the Administrator deems appropriate to produce a fair and proper allocation of net profits to the city.
(Ord. 28-02, passed 12-16-02; Am. Ord. 1-11, passed 2-15-11; Am. Ord. 15-15, passed 12-15-15; Am. Res. 93-19, passed 12-3-19) Penalty, see § 36.99