111.0703 TOTAL ALLOCATION.

   (a)   Add together the percentages determined in accordance with subsections (a), (b) and (c) of Section 111.0701 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 Section 111.0701.

   (b)   A factor is applicable even though it may be allocable entirely in or outside the City of Shaker Heights.

(Ord. 66-135. Enacted 12-27-66.)

111.0704 RENTALS.

   (a)   Rental income received by a taxpayer shall be included in the computation of net profits from business activities under subsections (c), (d) and (e) of Section 111.0501, 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.

   (b)   Where the 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 of profits of the lessee, whether or not such rental exceeds two hundred fifty dollars ($250.00) per month.

   (c)   Property owners who are considered to have a business activity under the provisions of this section shall submit or cause to be submitted to the Administrator a list of names and addresses of all persons, firms, corporations or other entities occupying, leasing or renting any premises belonging to the property owner within this City. The required list shall be prepared as of December 31 of each year and submitted on or before January 31 of the following year.

(Ord. 66-135. Enacted 12-27-66; Ord. 71-125. Amended 11-22-71; Ord. 72-68. Amended 6-26-72.)

111.0705 OPERATING LOSS CARRY-FORWARD.

   (a)   The portion of a net operating loss sustained in any taxable year subsequent to January 1, 1967 allocable to the City of Shaker Heights may be applied against the portion of the profit of succeeding tax years allocable to the City of Shaker Heights, until exhausted but in no event for more than five (5) taxable 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.

   (b)   The portion of net operating loss sustained shall be allocated to the City of Shaker Heights in the same manner as provided herein for allocating net profits to the City of Shaker Heights.

   (c)   The Administrator shall provide by rules and regulations the manner in which such net operating loss carry-forward shall be determined.

(Ord. 66-135. Enacted 12-27-66.)

EXEMPTIONS

111.0901 SOURCES OF INCOME NOT TAXED.

   The tax provided for herein shall not be levied on the following:

   (a)   Pay or allowance of active members of the Armed Forces of the United States, or the income of religious, fraternal, charitable, scientific, literary or educational institutions to the extent that such income is derived from tax exempt real estate, tax exempt tangible or intangible property, or tax exempt activities.

   (b)   Poor relief, unemployment insurance benefits, old age pensions or similar payments including disability benefits received from local, State or Federal governments, or charitable, religious or educational organizations.

   (c)   Proceeds of insurance paid by reason of the death of the insured, pensions, disability benefits, annuities, or gratuities not in the nature of compensation for services rendered from whatever source derived.

   (d)   Receipts from seasonal or casual entertainment, amusements, sports events and health and welfare activities when any such are conducted by bona fide charitable, religious or educational organizations and associations.

   (e)   Alimony received.

   (f)   Personal earnings of any natural person under eighteen (18) years of age.

   (g)   Compensation for personal injuries or for damages to property by way of insurance or otherwise.

   (h)   Interest, dividends and other revenue from intangible property.

   (i)   Gains from involuntary conversion, cancellation of indebtedness, interest on Federal obligations, items of income already taxed by the State of Ohio from which the City is specifically prohibited from taxing, and income of a decedent's estate during the period of administration, except such income from the operation of a business.

   (j)   Salaries, wages, commissions, and other 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)   Salaries, wages, commissions, and other compensation and net profits, the taxation of which is prohibited by the Constitution of the State of Ohio or any act of the Ohio General Assembly limiting the power of the City of Shaker Heights to impose net income taxes.

      (Ord. 66-135. Enacted 12-27-66.)

RETURNS

111.1101 WHEN RETURN REQUIRED TO BE MADE.

   Each taxpayer shall, whether or not a tax be due thereon, make and file a return on or before April 30 of the year following the effective date of this chapter and on or before April 30 of each year thereafter. When the return is made for a fiscal year or other period different from the calendar year, the return shall be filed within four (4) months from the end of such fiscal year or period.

(Ord. 66-135. Enacted 12-27-66; Ord. 71-125. Amended 11-22-71.)

111.1102 FORM AND CONTENTS OF RETURN.

   The return shall be filed with the Administrator on a form or forms furnished by or obtainable upon request from such Administrator, setting forth:

   (a)   The aggregate amount of salaries, wages, commissions and other compensation earned, income derived or received from gaming, wagering, schemes of chance or lotteries, including the Ohio State Lottery, totaling $600.00 or more in a taxable year, and gross income from business, profession or other activity, less allowable expenses incurred in the acquisition of such gross income earned during the preceding year and subject to such tax;

   (b)   The amount of the tax imposed by this chapter on such earnings, income and profits; and

   (c)   Such other pertinent statements, information returns or other information as the Administrator may require.

      (Ord. 04-08. Enacted 1-26-04.)

111.1103 EXTENSION OF TIME FOR FILING RETURNS.

   The Administrator may extend the time for filing of the annual return upon the request of the taxpayer for a period of not to exceed six (6) months, or one (1) month beyond any extension requested of or granted by the Internal Revenue Service for the filing of the Federal Income Tax Return. The Administrator may require a tentative return, accompanied by payment of the amount of tax shown to be due thereon by the date the return is normally due. No penalty or interest shall be assessed in those cases in which the return is filed and the final tax paid within the period as extended.

(Ord. 66-135. Enacted 12-27-66.)

111.1104 CONSOLIDATED RETURNS.

   (a)   Filing of consolidated returns may be permitted or required in accordance with rules and regulations prescribed by the Administrator.

   (b)   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 of Shaker Heights constituting a portion only of its total business, the Administrator shall require such additional information as he may deem necessary to ascertain whether net profits are properly allocated to the City of Shaker Heights. If the Administrator finds that net profits are not properly allocated to the City of Shaker Heights by reason of transactions with stockholders or with other corporations related by stock ownership, interlocking directorates, or transactions with such division, branch, factory, office, laboratory or activity or by some other method, he shall make allocation as he deems appropriate to produce a fair and proper allocation of net profits to the City of Shaker Heights.

(Ord. 66-135. Enacted 12-27-66.)