Loading...
For purposes of this chapter the terms, phrases, words and their derivatives shall have the meanings respectively ascribed herein. The singular shall include the plural, and the masculine shall include the feminine and the neuter.
(a) "Administrator" means the individual designated to administer and enforce the provisions of the City income tax.
(b) "Association" means any partnership, limited partnership, or any other form of unincorporated enterprise, owned by two or more persons.
(d) "Business" means any 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, excluding, however, all nonprofit corporations which are exempt from the payment of Federal income tax.
(e) "Corporation" means 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.
(f) "Employee" means one who works for wages, salary, commission or other type of compensation in the service of any employer.
(g) "Employer" means an individual, partnership, association, corporation, government body, unit or agency, or any other entity, whether or not organized for profit, who or that employs one or more persons on a salary, wage commission or other basis of compensation.
(h) "Fiscal year" means an accounting period of twelve months or less, ending on any day other than December 31.
(i) "Gross receipts" means the total income from any source whatever.
(j) "Net profits" means 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 case of an association without deduction of salaries paid to partners and other owners.
(k) "Nonresident" means an individual domiciled outside the City.
(l) "Nonresident unincorporated business entity" means an unincorporated business entity not having an office or place of business within the City. (1978 Code Sec. 281.02)
(m) “Pension” is any amount paid to an employee or former employee that is reported to the recipient on an IRS Form 1099-R, or successor form. Pension does not include deferred compensation, or amounts attributable to nonqualified deferred compensation plans, reported as FICA/Medicare wages on an IRS Form W-2, Wage and Tax Statement, or successor form.
(Ord. 10-2015. Passed 3-10-15.)
(n) "Person" means 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 corporation, the officers thereof.
(o) "Place of business" means 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.
(p) "Resident" means an individual domiciled in the
City
.
(q) "Resident unincorporated business entity" means an unincorporated business entity having an office or place of business within the
City
.
(r) "Taxable income" means wages, salaries and other compensation paid by an employer or employers before any deduction and/or the net profits from the operation of the business, profession or other enterprise or activity adjusted in accordance with the provisions of this chapter.
(s) "Taxable year" means the calendar year, or the fiscal year upon the basis of which the net profits are to be computed under this 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.
(t) "Taxpayer" means a person, whether an individual, partnership, association, or any corporation or other entity, required hereunder to file a return or pay a tax. (1978 Code Sec. 281.02)
(a) An annual tax for the purposes specified in Section 191.01
hereof shall be imposed on and after July 1, 1998, at the rate of one and one-half percent (1.5) per annum upon the following:
(1) On all salaries, wages, commissions and other compensation earned or derived on and after July 1, 1998, by residents of the City. The term "other compensation" includes, but is not limited to, income earned or derived from gaming, wagering, lotteries, including the Ohio State Lottery, or schemes of chance, all of which shall not be taxed as business income unless the individual subject to this tax has a federal gamblers' permit effective during the tax year in which such income from gaming, wagering, lotteries, or schemes of chance is received.
(2) On all salaries, wages, commissions and other compensation earned on and after July 1, 1998, by nonresidents of the City for work done or services performed or rendered.
(3) A. On the portion attributable to the City on the net profits earned on and after July 1, 1998, of all resident unincorporated business entities or professions or other activities derived from sales made, work done, services performed or rendered and business or other activities conducted in the City.
B. On the portion of the distributive share of the net profits earned on and after July 1, 1998, 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.
(4) A. On the portions attributable to the City of the net profits earned on and after July 1, 1998, of all nonresident unincorporated business entities, professions or other activities derived from sales made, work done, services performed or rendered and business and other activities conducted in the City whether or not such unincorporated business entity has an office or place of business in the City.
B. On the portion of the distributive share of the net profits earned on and after July 1, 1998, of a resident partner or owners of a nonresident unincorporated business entity not attributable to the City and not levied against such unincorporated business entity.
(5) A. On the portion attributable to the City of the net profits earned on and after July 1, 1998, of all corporations derived from sales made, work done, services performed or rendered and business and other activities conducted in the City whether or not such corporations have an office or place of business in the City.
B. The tax shall be levied, collected, and paid with respect to the salaries, wages, commissions and other compensation, and with respect to the net profits of businesses, professions or other activities earned on and after July 1, 1998.
(Ord. 3-1998. Passed 5-12-98.)
(a) Method of Determination. In the taxation of income which is subject to the City income tax, if the books and records of a taxpayer conducting a business or profession both within and without the boundaries of the City shall disclose with reasonable accuracy what portion of its net profit is attributable to that part of the business or profession conducted within the boundaries of the City, then only such portion shall be considered as having a taxable situs in the City for the purposes of municipal income taxation. The portion of the entire net profits of a taxpayer to be allocated as having been derived from within the City in absence of actual records thereof, shall be determined as follows:
Multiply the entire net profits by a business allocation percentage to be determined by a three-factor formula of property, payroll and sales, each of which shall be given equal weight as follows:
(1) The average net book value of the real and tangible personal property owned or used by the taxpayer in the business or profession in the City, during the taxable period to the average net book value of all 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.
(2) Wages, salaries and other compensation paid during the taxable period to persons employed in the business or profession for services performed in the City to wages, salaries, and other compensation paid during the same period to persons employed in the business or profession, wherever their services are performed.
(3) Gross receipts of the business or profession from sales made and services performed during the taxable period in the City to gross receipts of the business or profession during the same period from+sales and services, wherever made or performed.
In the event that the foregoing allocation formula does produce an equitable result, another basis may, under uniform regulations, be submitted so as to produce such result.
(b) Sales Made in the City. As used in subsection (a) hereof "sales made in the City" means:
(1) All sales of tangible personal property which is delivered within the City regardless of where title passes if shipped or delivered from a stock of goods within the City.
(2) All sales of tangible personal property which is delivered within the City regardless of where title passes even though transported from a point outside of the City if the taxpayer is regularly engaged through its own employees in the solicitation or promotion of sales within the City and the sales result from such solicitation or promotion.
(3) All sales of tangible personal property which is shipped from a place within the City to purchasers outside of the City 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 place where delivery is made.
(c) Total Allocation. Add together the percentage determined in accordance with subsection (a) hereof or such of the aforesaid percentages as are applicable to the particular taxpayer and divide the total so obtained by the number of percentages used in deriving such total in order to obtain the business allocation percentage referred to in subsection (a) hereof.
A factor is applicable even though it may be allocable entirely in or outside the City.
(d) Rentals. Rental income received by a taxpayer shall be included in the computation of net profits from business activities under Section 191.03(a)(3), (4) and (5) 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.
Where a gross monthly rental of any and all real properties, regardless of number and value, aggregates in excess of two hundred fifty dollars ($250.00) 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 the 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 two hundred fifty dollars ($250.00) 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 crops or when the rental is based on a percentage of the gross or net profits derived from the farm, whether or not the gross income exceeds such two hundred fifty dollars ($250.00) per month; provided further, that the person who operates a licensed rooming house shall be considered in business whether or not the gross income exceeds two hundred fifty dollars ($250.00) per month.
(e) Operating Loss-Carry Forward.
(1) The portion of a net operating loss sustained in any taxable year subsequent to August 1, 1972, allocable to the City may be applied against the portion of the profit of succeeding tax taxable years allocable to the City until exhausted but in no event for more than five years immediately following the year in which the loss occurred. No portion of a net operating loss shall be carried back against net profits of any prior year.
(2) The portion of net operating loss sustained shall be allocated to the City in the same manner as provided herein for allocating net profits to the City.
(3) The Administrator shall provide by rules and regulations the manner in which such net operating loss carry-forward shall be determined. (1978 Code Sec. 281.04)
Loading...