As used in this chapter, the following words shall have the meanings ascribed to them in this section, except as and if the context clearly indicates or requires a different meaning.
(a) “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, but including subsequent adjustments from required additions and deductions. Pass-through entities must compute “Adjusted Federal Taxable Income” as if the pass-through entity was a “C” corporation. This definition does not apply to any taxpayer required to file a return under Ohio Revised Code (ORC) section 5745.03 or to the net profit from a sole proprietorship. This definition is effective for tax years beginning on or after January 1, 2004.
(b) “Association” means a partnership, limited partnership, limited liability company, Chapter S Corporations as defined in the federal tax code, 26 U.S.C. 1361, or any other form of unincorporated enterprise.
(d) “Business” means an enterprise, activity, profession or undertaking of any nature conducted for profit or ordinarily conducted for profit, whether by an individual, partnership, limited partnership, corporation, association or any other entity.
(e) “City” means the City of Salem, Ohio.
(f) “Corporation” means a corporation (excluding Chapter S Corporations as defined in the federal tax code, 26 U.S.C. 1361) or joint stock association organized under the laws of the United States, the State of Ohio, or any other state, territory, foreign country or dependency.
(g) “Domicile” means the permanent legal residence of a taxpayer. An individual may have more than one residence but not more than one domicile.
(h) “Employee” means one who works for income, wages, salary, commission or other type of compensation in the service of and under the control of an employer. Any person upon whom an employer is required to withhold for federal income tax or social security or PERS on whose account payments are made under the Worker’s Compensation Law shall be an employee.
(i) “Employer” means an individual, partnership, limited partnership, association, corporation, governmental body, unit or agency, or any other entity who or that employs one or more persons on an income, salary, wage, commission or other compensation basis.
(j) "Fiscal year" means an accounting period of twelve months or less, ending on any day other than December 31st.
(k) “Generic form” means an electronic or paper form designed for reporting estimated municipal income taxes, and/ or annual municipal income tax liability, and/or separate requests for refunds that contain all the information required on Salem’s regular tax return and estimated payment forms ,and are in a similar format that will allow processing of the generic forms without altering the City’s procedures for processing forms..
(l) "Gross receipts" means the total revenue derived from sales, work done, or service rendered.
(m) “Income” means all monies and compensation in any form, subject to limitations imposed by ORC 718, derived from any source whatsoever, including but not limited to:
(1) All wages (prior to tax year 2004), qualifying wages (for tax years 2004 and later), commissions, other compensation and other income from whatever source received by residents of the City.
(2) All salaries, wages (prior to tax year 2004), qualifying wages (for tax years 2004 and later), commissions, other compensation and other income from whatsoever source received by nonresidents for work done or services performed or rendered or activities conducted in the City.
(3) The portion attributable to the city of the net profits of all unincorporated businesses, associations, professions, corporations, or other entities, from sales made, work done, services performed or rendered, and business or other activities conducted in the City.
(n) “Net Profits” for taxable years prior to 2004, means the net gain from the operation of and/or the complete or partial sale or disposition of the assets of a business, profession or enterprise after provision for all cost and expense incurred in the conduct thereof, including reasonable allowance for depreciation, for bad debts, either paid or accrued in accordance with recognized principles of accounting applicable to the method of accounting regularly employed, and without deduction of federal and state taxes based on income, and without deducting taxes imposed by this chapter. (For taxable years 2004 and later, see “adjusted federal taxable income”.)
(o) “Nonresident” means an individual, partnership, limited partnership, corporation, unincorporated business, association or other entity domiciled outside the City.
(p) “Other entity” means any person or unincorporated body not previously named or defined and includes fiduciaries located within the City.
(q) “Person” means every natural person, partnership, limited partnership, corporation, fiduciary or association. Whenever used in any clause prescribing and imposing a penalty, the term “person” as applied to an association, shall mean the partners or members thereof, and as applied to a corporation, the officers thereof.
(r) “Place of business” means any bona fide office, other than a mere statutory office, factory, warehouse, or other space with 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. A taxpayer does not have a regular place of business outside the City solely by consigning goods to an independent factor or contractor outside the City for sale.
(s) “Qualifying wage” means Wages as defined in Section 3121(a) of the Internal Revenue Code, without regard to any wage limitations, but including subsequent adjustments from required additions and deductions. “Qualifying wage” represents employees’ income from which municipal tax shall be deducted by the employer, and any wages not considered a part of “qualifying wage” shall not be taxed by the City of Salem. This definition is effective January 1, 2004, for taxable years 2004 and later.
(t) “Resident” means an individual, partnership, limited partnership, corporation, unincorporated business, association or other entity domiciled in the City.
(u) “Tax Administrator” means the individual, designated by the chapter, who is responsible for administering and enforcing the provisions of the chapter. The Tax Administrator shall be appointed by the Treasurer of the City of Salem. In the absence of the Tax Administrator the duties of that office shall be the responsibility of the Treasurer.
(v) "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.
(w) “Taxpayer” means a person, whether an individual, partnership, limited partnership, corporation, association or other entity, required hereunder to file a return or to pay a tax.
(Ord. 051206-85. Passed 12-20-05.)