(1) On all salaries, wages, commissions and other compensation earned and other taxable income earned or received on and after December 9, 1979, by resident individuals of the village;
(2) On all salaries, wages, commissions and other compensation and other taxable income earned or received during the effective period of the chapter by non-filers on and after December 9, 1979, for work done or services performed or rendered in the village;
(3) On the net profits attributable to the village earned on and after December 9, 1979, of all resident unincorporated businesses, professions and other activities, derived from work done or services rendered or performed and business or other activities conducted in the village;
(4) On the portion of the distributive share of the net profits earned on and after December 9, 1979, of a resident individual, partner or owner of a resident unincorporated business entity attributable to the village and not levied against such unincorporated business entity;
(5) On the net profits attributable to the village earned on and after December 9, 1979, of all nonresident unincorporated businesses, professions or other activities, derived from work done or services rendered or performed and business or other activities conducted in the village;
(6) On the portion of the distributive share of the net profits earned on and after December 9, 1979, of a resident individual, partner or owner of a nonresident unincorporated business entity not attributable to the village and not levied against such unincorporated business entity; and
(7) On the net profits earned on and after December 9, 1979, of all corporations, derived from work done or services rendered or performed and business or other activities conducted in the village.
(B) Businesses both inside and outside the municipal boundaries. The portion of the net profits attributable to this municipality of a taxpayer conducting a business; profession; pass-through entities including partnerships, S corporations, limited liability companies taxed as partnerships and trusts; or other activity both within and without the boundaries of this municipality shall be determined as provided in R.C. § 718.02 and in accordance with the rules and regulations adopted by the Administrator pursuant to this chapter. The net profits from a business or profession conducted both within and without the boundaries of a municipal corporation shall be considered as having a taxable status in such municipal corporation for purposes of municipal income taxation in the same proportion as the average ratio to the following:
(1) Multiply the entire net profits of the business by a business apportionment percentage to be determined by:
(a) The average original cost of the real and tangible personal property owned or used by the taxpayer in the business or profession in such municipal corporation during the taxable period to the average original cost of all of 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 paragraph, 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 salaries, and other compensation paid during the same period to persons employed in the business or profession, wherever their services are performed, excluding compensation that is not taxable by the municipal corporation under R.C. § 718.011.
(c) Gross receipts of the business or profession from sales made and services performed during the taxable period in such municipal corporation to gross receipts of the business or profession during the same period from sales and services, wherever made or performed.
(d) Adding together the percentages determined in accordance with above subsections (a), (b) or (c) hereof, or such of the aforesaid percentages as are applicable to the particular taxpayer and dividing the total so obtained by the number of percentages used in deriving such total.
1. A factor is applicable even though it may be apportioned entirely inside or outside the municipality.
2. Provided, however, that in the event a just and equitable result cannot be obtained under the formula provided for herein, the Administrator, upon application of the taxpayer, shall have the authority to substitute other factors or methods calculated to effect a fair and proper apportionment.
(2) As used in division (B) hereof, "SALES MADE IN MUNICIPAL CORPORATION" means:
(a) All sales of tangible personal property delivered within such municipal corporation regardless of where title passes if shipped or delivered from a stock of goods within such municipal corporation;
(b) All sales of tangible personal property delivered within such municipal corporation regardless of where title passes even though transported from a point outside such municipal corporation if the taxpayer is regularly engaged through its own employees in the solicitation or promotion of sales within such municipal corporation and the sales result from such solicitation or promotion;
(c) All sales of tangible personal property shipped from a place within such municipal corporation to purchasers outside such municipal corporation 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 pace where delivery is made.
(3) Except as otherwise provided, net profits from rental activity not constituting a business or profession shall be subject to tax only by the municipal corporation in which the property generating the net profit is located.
(4) This section does not apply to individuals who are residents of the municipality and, except as otherwise provided in R.C. § 718.01, the municipality may impose a tax on all income earned by residents of the municipality to the extent allowed by the United States Constitution.
(C) Operating loss carry forward. No portion of a net operating loss shall be carried back against net profits of any prior year nor allowed to be carried forward to a subsequent year.
(D) Exemptions. This chapter shall not be construed as levying a tax upon the following:
(1) Funds received from the local, state or federal government from military pay or allowances of the United States and Members of their reserve components, including the National Guard, and the Peace Corps.
(2) Poor relief, pensions, social security, unemployment compensation and disability benefits received from a private industry or the local, state or federal government, or from charitable, religious or educational organizations.
(3) Dues, contributions and similar payments received by charitable, religious, educational or literary organizations or labor unions, lodges and similar organizations;
(4) Receipts by bona fide charitable, religious and educational organizations and associations, when those receipts are from casual entertainment, amusements, sports events and health and welfare activities conducted;
(5) The gross income and gross receipts of any association, organization, corporation, club or trust that is exempt from federal income tax by reason of its charitable, religious, educational, literary, scientific, and the like, purposes.
(6) Gains from involuntary conversions, cancellation of indebtedness, interest on federal obligations, items of income already taxed by the state, and income of a decedent's estate during the period of administration (except such income from the operation of a business).
(7) Unemployment insurance benefits, welfare benefits, workers' compensation, child support, alimony, pensions paid as a result of retirement.
(8) Parsonage allowance, to the extent of the rental allowance or rental value of a house provided as part of an ordained minister's compensation.
(9) Expenses reported in accordance with federal guidelines for federal Form 2106, subject to audit and approval by the village Income tax Office.
(10) Earnings and income of all persons under 18 years of age, whether residents or nonresidents.
(11) Earnings and income of all persons, employed by other public entities, for services rendered within the village, pursuant to a mutual aid agreement with the village or otherwise performing mutual aid at the request.
(12) The tax provided for herein shall not be levied on the first $1,000 of income received on mentally handicapped or developmentally disabled employee from a sheltered workshop for adults with metal retardation and developmental disabilities operating in compliance with rules, regulations and standards set by the Ohio Department of Mental Retardation and Developmental Disabilities.
(13) The municipality shall not tax the compensation paid to an individual for personal services performed within this municipality if the individual does not reside in this municipality and performs such personal services in this municipality on 12 or fewer days in the calendar year, and, if the individual is an employee, the principal place of business of the individual's employer is located outside this municipality. This exemption does not apply to professional entertainers or professional athletes or to promoters of professional entertainment or sports events and their employees, as reasonably defined by this municipality.
(14) An S corporation shareholder's distributive share of net profits or losses of an S corporation.
(15) Qualifying wages as defined by this chapter.
(Ord. 31-2007, passed 12-18-07)