191.03 IMPOSITION OF TAX.
   (a)   Tax to be Imposed on Certain Money.   Subject to the provisions of Section 191.19, an annual tax for the purposes specified in Section 191.01 shall be imposed at the rate specified therein upon the following:
(1)   On all Compensation and on Net Profits from the operation of a Business earned during the effective period of this Chapter by a Resident. 
(2)   On all Compensation and on Net Profits from the operation of a Business earned during the effective period of this Chapter by a Nonresident for work done or services performed or rendered or the conduct of a Business in the City, subject to the limitations provided in Ohio R.C. 718.011.
(3)   On the portion attributable to the City of the Net Profits earned during the effective period of this Chapter of a Resident Pass-Through Entity, derived from sales made, work done, services performed or rendered and Business conducted in the City. 
(4)   On the portion of the distributive share of the Net Profits earned during the effective period of this Chapter of a Resident who is an Owner of a Resident Pass-Through Entity not attributable to the City and not levied against such Resident Pass-Through Entity by the City, provided, however, that the liability of an individual Owner taxable hereunder on income attributable to another Taxing Municipality shall be subject to the relief and reciprocity provisions of Section 191.04.
(5)   On the portion attributable to the City of the Net Profits earned during the effective period of this Chapter of a Nonresident Pass-Through Entity, derived from sales made, work done or services performed or rendered and Business conducted in the City, whether or not such Nonresident Pass- Through Entity has an office or Place of Business in the City.
(6)   On the portion of the distributive share of the Net Profits earned during the effective period of this Chapter of a Resident who is an Owner of a Nonresident Pass-Through Entity engaged in Business not attributable to the City and not levied against such Nonresident Pass-Through Entity by the City, provided, however, that the liability of an individual Owner taxable hereunder on income attributable to another Taxing Municipality shall be subject to the relief and reciprocity provisions of Section 191.04.
(7)   On the portion attributable to the City of the Net Profits earned during the effective period of this Chapter of a Corporation, including for Taxable Years beginning on or after January1, 2003, an “electric company” and a “combined company,” as defined in Ohio R.C. 5727.01, derived from sales made, work done, services performed or rendered and Business conducted in the City, whether or not such Corporation, electric company or combined company has an office or Place of Business in the City.  The City Income Tax imposed on the Net Profits of an electric company or a combined company shall be subject to and in accord with Ohio R.C. Chapter 5745.
(8)   All income derived from gaming, wagering, lotteries, or schemes of chance:
A.   By Residents anywhere, but only to the extent includable on the Taxpayer’s Federal Income Tax return, and
B.   By Nonresidents only to the extent it is won or received from City sources and would be includable on the Taxpayer’s Federal Income Tax return if the Taxpayer’s income and losses derived from gaming, wagering, lotteries, or schemes of chance, was based solely on City sources.
(9)   On covenants not to compete and on cancellation of indebtedness to the extent includible on the Taxpayer’s Federal Income Tax return.
(10)   Guardian, executor, conservator, trustee, or administrator fees.
   (b)   Tax on Business Conducted Both In and Without the City. The portion of the Net Profits attributable to the City of a Taxpayer conducting a Business both in 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 Losses.  The calculation of Taxable Income for any Taxable Year shall not include a deduction for any net operating loss incurred by the Taxpayer.  Moreover, no portion of a net operating loss may offset the Taxpayer’s Taxable Income in any Taxable Year prior or subsequent to the Taxable Year in which the Taxpayer incurred the net operating loss.
   (d)   Consolidated Returns.
(1)   Filing of consolidated returns may be permitted or required in accordance with rules and regulations prescribed by the Administrator.  On and after January1, 2003, the Administrator shall accept for filing a consolidated return from an affiliated group of Corporations subject to the tax imposed by this Chapter if the affiliated group filed for the same Taxable Year a consolidated return for Federal Income Tax purposes pursuant to Section 1501 of the Code.  Only Corporations subject to the tax imposed by this Chapter may be included in such consolidated return filed for the City.  If an affiliated group of Corporations subject to the tax imposed by this Chapter properly files a consolidated return in accordance with this Section 191.03(d)(1) for any Taxable Year beginning on or after January 1, 2003, the affiliated group must file a consolidated return for each succeeding Taxable Year in which it files a consolidated return for Federal Income Tax purposes unless, on or before the due date (taking into account extensions of time properly granted) of the return for a Taxable Year, the affiliated group obtains the permission of the Administrator to cease filing a consolidated return for that Taxable Year.
(2)   In the case of a Corporation that carried 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 the Administrator deems necessary to ascertain whether Net Profits are properly allocated to the City.  If the Administrator finds the 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 a division, branch, factory, office, laboratory, or activity, or by some other method, the Administrator shall make an allocation of Net Profits to the City in such manner as the Administrator deems fair and reasonable in order to properly reflect the Net Profits of the Corporation allocable to the City.
   (e)   Expenses Not Deductible.  No deduction shall be permitted for the following expenses:
(1)   Health insurance premiums paid by self-employed Taxpayers.
(2)   Self-employment tax paid by self-employed Taxpayers.
(3)   Contributions by Taxpayers to IRA or Keogh (H.R. 10) plans.
         (Ord. 05-100.  Passed 6-13-05.)