The provisions of this chapter shall not be construed as levying the City tax upon the following:
(a) Compensation or allowances received from local, state or federal governments because of active duty service in the Armed Forces of the United States and members of their reserve components, including the Ohio National Guard;
(b) Poor relief, social security, unemployment compensation or from local, state or federal governments, or from charitable, religious or educational organizations (not including supplemental unemployment benefits and disability benefits due to total and permanent disability received from private industry);
(c) Pensions and all other payments from:
(1) A retirement plan that is tax-qualified under Code Section 401(a), 403(a), 403(b) or 457(b);
(2) A retirement plan that is a governmental plan described in Code Section 414(d); or
(3) A retirement plan that is a church plan described in Code Section 414(e); or
(4) Any individual retirement account described in Code Section 408(a) or individual retirement annuity described in Code Section 408(b), including, without limitation accounts or annuities described in Code Section 408(k) (a simplified employee pension), Code Section 408(p) (a Simple IRA), Code Section 408(q) (a deemed IRA), or
(5) A Roth IRA described in Code Section 408A;
(d) Dues, contributions and similar payments (whether in money or in kind) received by charitable, religious, educational or literary organizations or by labor unions, lodges and similar other entities;
(e) Receipts from casual entertainment, amusements, sports events and health and welfare activities conducted by bona-fide charitable, religious, educational, organizations;
(f) The income of any entity that is exempt from Federal Income Tax by reason of its charitable, religious, educational, literary, scientific or similar purposes, to the extent such income is excluded from Federal Income Tax;
(g) Earnings and income of all persons subject to this chapter while under 18 years of age;
(h) Intangible income as set forth as Ohio R.C. 718.01(A)(5), except as provided in the computation of Adjusted Federal Taxable Income under Section 191.02(a) and Ohio R.C. 718.01(A)(1);
(i) The amount of unreimbursed Employee business expenses that the Taxpayer deducted as an itemized deduction on his Federal Income Tax return, as shown on the IRS Form 2106 filed with the Taxpayer’s Federal Income Tax Return for the Taxable Year. For this exemption to be applicable, the Taxpayer must furnish a copy of the IRS Form 2106 and Schedule A as the same were filed with the Taxpayer’s Federal Income Tax return for the Taxable Year;
(j) Compensation and Net Profits the taxation of which is prohibited by the United States Constitution or any act of Congress limiting the power of the states or their political subdivisions to impose net income taxes on income derived from interstate commerce;
(k) Compensation and Net Profits the taxation of which is prohibited by the Constitution of the State or any act of the Ohio General Assembly limiting the power of a municipal corporation to impose net income taxes.
(l) Parsonage allowance, to the extent of the rental allowance or rental value of a house provided as part of an ordained minister’s compensation; the ordained minister must be duly ordained, commissioned, or licensed by a religious body constituting a church or church denomination, and must have authority to perform all sacraments of the church (for this purpose, the term “church” includes all religious bodies and is not limited to Christianity); and
(m) An S corporation shareholder’s distributive share of net profits or losses of the S corporation, except to the extent that the distributive share of net profits represents wages as defined in Section 3121(a) of the Internal Revenue Code or net earnings from self-employment as defined in Section 1402(a) of the Internal Revenue Code.
(Ord. 05-100. Passed 6-13-05.)