171.02 DEFINITIONS.
(a) As used in this chapter, the following words shall have the meaning ascribed to them in this section, 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 (a)(1)A., of this section, but excluding that 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 a deduction 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 a 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.
H. 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) “Association” means a partnership, limited partnership, S corporation or any other form of unincorporated enterprise owned by one or more persons.
(4) “Business” means an enterprise, activity, profession or undertaking of any nature conducted for profit or ordinarily conducted for profit, whether by an individual, partnership, association, corporation or any other entity including but not limited to the renting or leasing of property, real, personal, or mixed. The ordinary administration of a decedent’s estate by the executor or administrator, and the mere custody, supervision and management of trust property under passive trust, whether interviews or testimony, unaccompanied by the actual operation of a business as herein defined shall not be construed as the operation of a business.
(5) “Business apportionment” means the portion of net profits to be apportioned to the City as having been made in the City, either under separate accounting method, or under the three factor formula of property, payroll, and sales, provided for in section 171.03(b).
(6) “Capital gains” means the net profits from the sale of any real or personal property if such property has been owned by the taxpayer for more than one year, and if the taxpayer is not regularly engaged in the business of selling such kind or character of property.
(7) “Corporation” means 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 the taxpayer may have more than one residence. A domicile once acquired is presumed to continue until it is shown to have been changed. Intention to change domicile will not effect such a change unless accompanied by actual removal. Where a change of domicile is alleged, the burden of proving it rests upon the person making the allegation.
(9) “Employee” means one who works for salaries, wages, commissions or other types of compensation in the services 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 Ohio Workman’s Compensation law shall prima facie be an employee.
(10) “Employer” means an individual, partnership, association, corporation, governmental body, unit or agency, or any other entity, whether or not organized for profit, and including the officers and resident managers, who or that employs one or more persons on a salary, wage, commission or other compensation basis whether or not such employer is engaged in business. It does not include a person who employs only domestic help for such person’s private residence.
(11) “Fiscal year” means an accounting period of twelve (12) months or less ending on any day other than December 31. Only fiscal years accepted by the Internal Revenue Service for federal income tax purposes may be used for municipal tax purposes.
(12) “Floater” means an employee who does not work at a place of business of his employer and/or who regularly works in two or more taxing municipalities during a year.
(13) “Form 2106” means Internal Revenue Service Form 2106 filed by a taxpayer pursuant to the Internal Revenue Code.
(14) “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. Any municipality that requires taxpayers to file income tax returns, reports, or other documents shall accept for filing a generic form of such a return, report, or document if the generic form, once completed and filed, contains all of the information required to be submitted with the municipality’s prescribed returns, reports, or documents.
(15) “Gross receipts” means the total income of taxpayers from whatever source derived.
(16) “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 other pass-through entities.
(17) “Income Tax Department” means the office administering the Income Tax Ordinance.
(18) “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, tradenames, 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 income associated with any lottery winnings or other similar games of chance.
(19) “Internal Revenue Code” means the Internal Revenue Code of 1986, 100 Stat. 2085, 26 U.S.C. 1, as amended.
(20) “Internet” means the international computer network of both federal and nonfederal interoperable packet switched data networks, including the graphical subnetwork known as the world wide web.
(21) “Joint Economic Development Zone or District” means a zone or district created under Ohio Revised Code Sections 715.69 through 715.83 as amended from time to time.
(22) “Limited liability company” means a limited liability company formed under Chapter 1705 of the Ohio Revised Code or under the laws of another state.
(23) “Municipality” or “City” means the City of Sharonville, Ohio.
(24) “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 171.03(e), required to be reported on schedule C, schedule E, or schedule F.
(25) “Nonqualified deferred compensation plan” means a compensation plan described in Section 3121(v)(2)(C) of the Internal Revenue Code.
(26) “Nonresident” means an individual domiciled outside of the City.
(27) “Nonresident incorporated business entity” means an incorporated business entity not having an office or place of business within the City.
(28) “Nonresident unincorporated business entity” means an unincorporated business entity not having an office or place of business within the City.
(29) “Ordinance” means the Income Tax Ordinance (Chapter 171) of the City of Sharonville Codified Ordinances.
(30) “Other payer” means any person, other than an individual’s employer or the employer’s agent, which pays an individual any amount included in the federal gross income of the individual.
(31) “Owner” means a partner of a partnership, a member of a limited liability company, a shareholder of an S corporation, or other person with an ownership interest in a pass-through entity.
(32) “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 that municipal corporation.
(33) “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.
(34) “Person” includes individuals, firms, companies, business trusts, estates, trusts, partnerships, limited liability companies, associations, corporations, governmental entities, and any other entity. Whenever used in any clause prescribing and imposing a penalty, the term “person” as applied to any association includes the partners or members thereof, and as applied to corporations, the officers thereof, and in the case of any unincorporated entity or corporation not having any partner, member or officer within the City, any employee or agent of such unincorporated entity or corporation who can be found within the corporate limits of the City.
(35) “Place of business” means 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 of his employees regularly in attendance.
(36) “Principal place of business” in the case of an employer having its headquarters’ activities at a place of business within a taxing municipality, the term shall mean the place of business at which the headquarters is situated. In the case of an employer not having its headquarters’ activities at a place of business within a taxing municipality, the term shall mean the largest place of business located in a taxing municipality.
(37) “Qualified plan” means a retirement plan satisfying the requirements under section 401 of the Internal Revenue Code, as amended.
(38) “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.
(39) “Resident” means an individual domiciled in the City. Continuous residence within the City for ninety (90) days or more shall prima facie constitute domiciliary residence.
(40) “Resident incorporated business entity” means an incorporated business entity whose office, place of operations or business situs is within the City.
(41) “Resident unincorporated business entity” means an unincorporated business entity having an office or place of business within the City.
(42) “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.
(43) “Rules and Regulations” means the Rules and Regulations as adopted and authorized or required by this chapter and which are incorporated as the rules of interpretation of this chapter.
(44) “Schedule C” means Internal Revenue Service schedule C filed by a taxpayer pursuant to the Internal Revenue Code.
(45) “Schedule E” means Internal Revenue Service schedule E filed by a taxpayer pursuant to the Internal Revenue Code.
(46) “Schedule F” means Internal Revenue Service schedule F filed by a taxpayer pursuant to the Internal Revenue Code.
(47) “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, treated as a corporation for purposes of the City tax.
(48) “Tax Administrator" means the individual appointed to administer the City’s Income Tax Ordinance and to direct the operation of the City Income Tax Department or the person executing the duties of the Tax Administrator.
(49) “Taxable income” means qualifying wages, including sick and vacation pay, bonuses, commissions, incentive payments, settlements, stock options, grievance pay, severance pay, any pay as part of an employee buyout or wage continuation plan and other compensation paid by an employer or employers, compensation for personal services, gambling winnings, 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.
(50) “Taxable year” means the calendar year or the fiscal year upon the basis of which 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.
(51) “Taxing municipality” means a municipality levying a tax on income earned by nonresidents working within such municipality and on income earned by its residents.
(52) “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.
(b) The singular shall include the plural and the masculine shall include the feminine and the neuter.
(Ord. 2003-96E. Passed 12-23-03; Ord. 2015-40. Passed 11-24-15.)
(Ord. 2003-96E. Passed 12-23-03; Ord. 2015-40. Passed 11-24-15.)