(a) An annual tax for the purposes specified in Section 880.01 is imposed on and after January 3, 1958, at the rates indicated, during the years indicated:
(1) 0.50% - per year during each calendar years 1958 to 1965, inclusive;
(2) 1.00% - per year during each calendar years 1966 to 1974, inclusive;
(3) 1.10% - per year during each calendar years 1975 to 1978 inclusive, and the months of January 1, 1979 to June 30,1979;
(4) 1.35 % - per the months of July 1, 1979 to December 31, 1979;
(5) 1.25 % - per the months of January 1, 1980 to March 31, 1980;
(6) 1.35 % - per the months of April 1, 1980 to July 31, 1980;
(7) 1.43% - per the months of August 1, 1980 to December 31, 1980, and per the year during each calendar years 1981 to 1984, inclusive, and the months of January and February 1985;
(8) 1.75 % - per the months of March 1, 1985 to December 31, 1985, and per the year during each calendar years 1986 to 1989, inclusive;
(9) 1.80% - per year during each calendar years 1990 to 1994, inclusive;
(10) 1.75% - per the calendar year of 1995, and the months of January 1, 1996 to June 30, 1996;
(11) 1.80% - per the months of July 1, 1996 to December 31, 1996.
(12) 2.0% - per March 1, 2005 until December 31, 2009.
(13) 2.0% per calendar year of 2010 until modified by ordinance on all taxable income, and such tax to be distributed as set forth in Section 880.18, upon the following: (Ord. 2009-024. Passed 2-2-09.)
A. On all salaries, wages, commissions and other compensation earned during the effective period of this chapter by residents of the City.
B. On all salaries, wages, commissions and other compensation earned during the effective period of this chapter by nonresidents for work done or services performed or rendered in the City.
C. 1. On the portion attributable to the City of the net profits earned 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;
2. On the portion of the distributive share of the net profits earned 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.
D. 1. On the portion attributable to the City of the net profits earned 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 businesses or other activities conducted in the City, whether or not such unincorporated business entity has an office or place of business in the City;
2. On the portion of the distributive share of the net profits earned 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.
E. On the portion attributable to the City of the net profits earned 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.
F. 1. Rental income received by a taxpayer, all of which shall be included in the computation of net profits from business activities under division (a)(12)D. through F. of this section, 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.
2. Where the gross monthly rental of any and all real properties, regardless of number and value, aggregates in excess of one hundred dollars ($100.00) per month, it shall be prima facie evidence that the rental, ownership, management or operation of such properties is a business activity of such taxpayer, and the net income of such rental property shall be subject to tax; provided that in 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 dollars ($100.00) per month; provided further that in the case of farm property, the owner shall be considered engaged in a business activity when he shares in the 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 one hundred dollars ($100.00) 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 dollars ($100.00) per month.
3. In determining the taxable income from rentals, the deductible expenses shall be of the same nature, extent and amount as are allowed by the Internal Revenue Service for Federal income tax purposes.
4. All persons engaged in the rental of real property shall, in filing their annual return, provide a copy of the Schedule E of the Federal income tax return, and shall provide such other information relative to the rental activities as the Administrator may request, if known.
(b) Attribution of Net Profits. The portion of 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 Ohio R.C. 718.02 and in accordance with the rules and regulations adopted by the Administrator pursuant to this chapter.
(c) Net Operating Loss Carry-Forward shall be as follows:
(1) The portion of a net operating loss sustained in any taxable year subsequent to January 1, 1991, allocable to the City, may be applied against the portion of the profit of succeeding years allocable to the City, until exhausted, but in no event for more than five taxable years. No portion of a net operating loss shall be carried back against net profits of any prior years.
(2) The portion of net operating loss sustained shall be allocated to this City in the same manner as provided herein for allocating net profits to the City.
(3) A business or rental loss is not allowed as an offset against Federal form W-2 income from salaries, wages and other compensation.
(4) The Administrator shall provide rules and regulations for the manner in which such net operating loss carry-forward shall be determined.
(d) Consolidated Returns.
(1) Filing of consolidated returns may be permitted or required in accordance with rules and regulations prescribed by the Administrator.
(2) In the case of a corporation that carries 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 only a portion of its total business, the Administrator shall require such additional information as he deems necessary to ascertain whether net profits are properly allocated to the City. If the Administrator finds that 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, he shall make such allocation as he deems appropriate to produce a fair and proper allocation of net profits to the City.
(Ord. 2001-010. Passed 2-5-01; Ord. 2004-167. Passed 2-28- 04;Ord. 2006-156. Passed 9-5-06.)