(a) As used in these rules and regulations, the following words shall have the meaning ascribed to them in this article, except as and if the context clearly indicates or requires a different meaning.
(1) Adjusted Federal Taxable Income. Means a C corporation's federal taxable income before net operating losses and special deductions as determined under the Internal Revenue Code, adjusted as follows:
A. 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.
B. Add an amount equal to five percent (5%) of intangible income deducted under division (1)A. of this section but excluding the portion of intangible income directly related to the sale, exchange, or other disposition of property described in section 1221 of the Internal Revenue Code.
C. 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.
D. 1. Except as provided in division (a)(1)D.2. of this section, 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
2. Division (a)(1)D.1. of this section does not apply to the extent the income or gain is income or gain described in section 1245 or 1250 of the Internal Revenue Code.
E. Add taxes on or measured by net income allowed, as deducted in the computation of federal taxable income.
F. 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.
G. 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:
1. Guaranteed payments and other similar amounts paid or accrued to a partner, former partner, member, or former member shall not be allowed as deductible expense; and
2. 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 division (a)(1) of 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.
(2) Administrator. “Administrator” means the individual designated to administer and enforce the provisions of the City Income Tax.
(3) Association. A partnership, limited partnership, or any other form of unincorporated enterprise, owned by two or more persons.
(5) Business. An enterprise, activity, profession, or undertaking of any nature conducted for profit or ordinarily conducted for profit, whether by an individual, co-partnership, association, corporation or any other activity.
(6) Business Allocation. The portion of net profits to be allocated to the Village as having been made therein pursuant to Section 181.03
.
(7) 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.
(8) Domicile. Means a principal residence that the taxpayer intends to use for an indefinite time and to which whenever he is absent he intends to return. A taxpayer has only one domicile even though he may have more than one residence.
(9) Employee. Means one who works for wages, salary, commission, or other types of compensation in the service of an employer. Any person upon whom an employer is required to withhold for either federal income or social security, or on whose account payments are made under the Workers' Compensation Law, shall prima facie be an employee.
(10) Employer. An individual, co-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 salary, wage, commission, or other compensation basis.
(11) Fiscal Year. An accounting period of twelve (12) months ending on any day other than December 31.
(12) Generic Form. Means an electronic or paper form designed for reporting estimated municipal income taxes and annual municipal income tax liability or for filing a refund claim that is not prescribed by a particular municipal corporation for the reporting of that municipal corporation's tax on income.
(13) Gross Receipts. Income from any source whatsoever, excepting intangible and capital gains from the sale of property used in the trade or business as defined in Section 1231-B, Internal Revenue Code.
(14) Income from a Pass-Through Entity. Means partnership income of partners, membership interests of members of a limited liability company, distributive shares of shareholders of an S Corporation, or other distributive or proportionate ownership shares of income from other pass-through entities.
(15) Income Tax Commissioner. The Income Tax Commissioner of the Income Tax Department of the Village, or the person executing the duties of the aforesaid Commissioner.
(16) Intangible Income. Means 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 Chapter 5701 of the Ohio Revised Code, 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 similar games of chance.
(17) Internet. Means the international computer network of both Federal and nonfederal interoperable packet switch data networks, including the graphical sub network known as the world wide web.
(18) Joint Economic Development District. Means a JEDD (district) created under Ohio Revised Code 715.70, 715.71, and 715.72 as amended from time to time.
(19) Limited Liability Company. Means a limited liability company formed under Chapter 1705 of the Ohio Revised Code or under the laws of another state.
(20) Municipality. Means the Village of Russells Point, or may be referred to as City.
(21) Net Profit. For a taxpayer other than an individual means adjusted federal taxable income and "net profit" for a taxpayer who is an individual means the individual's profit, other than amounts described in Section 181.03
, required to be reported on Schedule C, Schedule E, or Schedule F.
(22) Nonqualified Deferred Compensation Plan. Means a compensation plan described in section 3121(v)(2)(C) of the Internal Revenue Code.
(23) Nonresident. A person, whether an individual, association, corporation, or other entity, domiciled outside the Municipality.
(24) Nonresident Incorporated Business Entity. Means an incorporated business entity not having an office or place of business within the Municipality.
(25) Nonresident Unincorporated Business Entity. Means an unincorporated business entity not having an office or place of business within the Municipality.
(26) Other Entity. A person or unincorporated body not previously named or defined and includes, inter alia, fiduciaries.
(27) Owner. Means a partner of a partnership, a member of a limited liability company, a share holder of an S corporation, or other person with an ownership interest in a pass-through entity.
(28) Owner's Proportionate Share. With respect to each owner of a pass-through entity, means the ratio of:
A. The owner's income from the pass-through entity that is subject to taxation by the municipal corporation, to
B. The total income from that entity of all owners whose income from the entity is subject to taxation by the municipal corporation.
(29) Pass-Through Entity. Means a partnership, limited liability company, S corporation, or any other class of entity the income or profits from which are given pass-through treatment under the Internal Revenue Code.
(30) Person. Every natural person, co-partnership, fiduciary, association, or corporation or other entity; whenever used in any clause prescribing and imposing a penalty, the term person as applied to associations, shall mean the partners or members thereof, and as applied to corporations, the officers thereof.
(31) 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 employees regularly in attendance. A taxpayer does not have a regular place of business outside the Village solely by consigning goods to an independent factor or other contractor outside of the Village for sale.
(32) Qualifying Wages. Means wages, as defined in section 3121(a) of the Internal Revenue Code, without regard to any wage limitations, adjusted in accordance with section 718.03(A) of the Ohio Revised Code.
(33) Resident. A person, whether an individual, association, corporation, or other entity, domiciled in the Village.
(34) Resident Incorporated Business Entity. Means an incorporated business entity whose office, place or operations or business situs is within the Municipality.
(35) Resident Unincorporated Business Entity. Means an unincorporated business entity having an office or place of business within the Municipality.
(36) Return Preparer. Means any person other than a taxpayer that is authorized by a taxpayer to complete or file an income tax return, report, or other document for or on behalf of the taxpayer.
(37) Schedule C. Means Internal Revenue Service schedule C filed by a Taxpayer pursuant to the Internal Revenue Code.
(38) Schedule E. Means Internal Revenue Service schedule E filed by a Taxpayer pursuant to the Internal Revenue Code.
(39) Schedule F. Means Internal Revenue Service schedule F filed by a Taxpayer pursuant to the Internal Revenue Code
(40) S Corporation. Means 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.
(41) Tax Commissioner. Means the person appointed to administer the Municipality's Income Tax Ordinance and to direct the operation of the Municipal Income Tax Department or the person executing the duties of the Tax Commissioner.
(42) Taxable Income. Means qualifying wages paid by an employer or employers, compensation for personal services, other income defined by statute as taxable, and/or adjusted federal taxable income from the operation of a business, profession, or other enterprise or activity adjusted in accordance with the provisions of this Chapter.
(43) Taxable Year. The calendar year, or fiscal year ending during such calendar year, upon the basis of which the net profits are to be computed under this ordinance and, in the case of a return for a fractional part of a year, the period for which such return is made. Unless approved by the Income Tax Commissioner, the taxable year of an individual shall be a calendar year.
(44) Taxpayer. Means a person subject to a tax on income levied by a municipal corporation. "Taxpayer" does not include any person that is a disregarded entity or a qualifying subchapter S subsidiary for federal income tax purposes, but "taxpayer" includes any other person who owns the disregarded entity or qualifying subchapter S subsidiary.
(45) Village. The Village of Russells Point, also referred to as City.
(b) The singular shall include the plural, the masculine shall include the feminine and the neuter, and all periods set forth shall be inclusive of the first and last mentioned dates.
(Ord. 04-967. Passed 11-15-04.)