As used in this chapter, the following words defined herein shall have the meaning ascribed to them herein. In all definitions contained in this chapter, the singular shall include the plural and the masculine shall include the feminine and the neuter with regard to the terms, phrases, words and their derivatives herein.
(a) "Adjusted federal taxable income." 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 R.C. § 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." Any partnerships, limited partnerships, limited liability corporations and limited liability partnerships as defined in the federal tax code, or any other form of unincorporated business or enterprise, owned by one or more persons. The terms "association" and "unincorporated business" are interchangeable terms.
(c) "Board of Review." The Board created by and constituted as provided for in the income tax ordinance of the city.
(d) "Business." An enterprise, activity, profession or undertaking of any nature conducted for profit or ordinarily conducted for profit, whether by an individual, partnership, proprietorship, limited partnership, corporation, association or any other entity; excluding, however, all nonprofit corporations or associations which are exempt from the payment of federal income tax.
(e) "Corporation." A corporation, Subchapter S corporation, 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.
(f) "Dishonored check." Any check received in payment of taxes, penalty, interest or service charges that is returned unpaid by the bank.
(g) "Domicile." The permanent legal residence of a individual taxpayer. Actual residence is not necessarily the "domicile" of a taxpayer. A taxpayer may have more than one residence but not more than one "domicile". In the event of a business or association, the "domicile" is that place considered as the center of business affairs and the place where its functions are primarily discharged.
(h) "Employee." One who works for income, wages, salary, commission or other type of compensation in the service of and under the control of an employer, and shall include temporary, provisional, casual or part-time employment. The term includes any current or former employee who received a federal Form W-2 from an employer for the preceding calendar year or years. Any person from whom an employer is required to withhold for federal income tax purposes shall, prima facie, be deemed an "employee".
(i) "Employer." An individual, proprietorship, association, corporation or other entity, including nonprofit associations or corporations, that employs one or more persons on a salary, wage, commission or other compensation basis, whether or not the employer is engaged in business as hereinbefore defined. The term "employer" includes the State of Ohio, its political subdivisions and its agencies, instrumentalities, boards, bureaus, departments, and any and all other governmental units, as well as other governmental subdivisions, agencies, instrumentalities, boards, bureaus, departments and any and all other governmental units to the extent that any such body withholds tax on a mandatory or voluntary basis. No rights, duties or obligations are imposed with respect to any such body not otherwise authorized by law. An individual, partnership, association, corporation or any other entity who books or contracts for individuals and/or groups to perform or entertain at their place of business or rents facilities for the purpose of providing such entertainment shall be considered an "employer". "Employer" does not include any person who employs domestic help only for the person's private residence.
(j) "Final return." A return signed by the taxpayer complete with the necessary schedules and attachments. A "final return" has the same meaning as a complete return.
(k) "Finance Director." The City of Shelby Finance Director.
(l) "Fiscal year." An accounting period of 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 income tax purposes.
(m) "Generic form." 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 the city's regular tax return, estimated payment forms and request for refund forms, and are in a similar format that will allow processing of the generic forms without altering the city's procedures for processing forms.
(n) "Gross receipts." The total revenue derived from sales, work done or service rendered.
(o) "Income." All moneys, subject to limitations imposed by R.C. Chapter 718, derived from any source whatsoever, including but not limited to:
(1) All income, qualifying wages, commissions, other compensation and other income from whatever source received by residents of the city.
(2) All salaries, wages, commissions, other compensation and other income from whatever source received by nonresidents for work done or services performed or rendered or activities conducted in the city. Payments received as a result of employment also include but are not limited to all types of separation pay.
(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.
(p) "Independent contractor." A person who, while performing services for another, is not under the direction and/or control of the other person as to the result to be accomplished by his or her work and as to the details and means by which that result is accomplished.
(q) "Net profits." For taxable years prior to 2004, means the net gain from the operation of a business, profession or enterprise after provision for all cost and expense incurred in the conduct thereof, including reasonable allowance for depreciation, depletion, amortization and reasonable additions to reserve for bad debt, either paid or accrued in accordance with recognized principles of accounting applicable to the method of accounting regularly employed and without deduction of federal taxes based on income, and without deducting taxes imposed by this chapter. For taxable years 2004 and later, see "adjusted federal taxable income" defined above.
(r) "Nonresident." An individual domiciled outside the city.
(s) "Nonresident unincorporated business entity." An unincorporated business entity not having an office or place of business within the city.
(t) "Ordinance." The municipal income tax ordinance of the city. Employee contributions to retirement plans by way of salary reduction are taxable to the employee when deferred. No tax is to be assessed when payments are made from these plans.
(u) "Person." Every natural person, partnership, fiduciary, association, corporation, S corporation or other entity. Whenever the term "person" is used in any clause prescribing or imposing a penalty, the term as applied to an unincorporated entity shall mean the partners or members thereof, and as applied to a corporation, the officer thereof.
(v) "Place of business." 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 or her regular places of business outside the city solely by consigning goods to an independent factor or contractor outside the city for sale.
(w) "Qualifying wage." Wages as defined in IRC § 3121(a), 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. This definition is effective January 1, 2004, for taxable years 2004 and later.
(x) "Rental income." Payments received from the use or occupancy of property. Included in "rental income" are lease cancellation payments, advance rent, interest, expenses paid by a tenant in lieu of rent, and property or services provided in lieu of rent. The value of the property or services paid in lieu of rent must be reported as rental income. All necessary expenses, i.e., depreciation, property taxes and repairs, are deductible from "rental income".
(y) "Resident." An individual domiciled in the city.
(z) "Resident unincorporated business entity." An unincorporated business entity having an office or place of business within the city.
(aa) "Salaries, wages, commissions and other compensation." Shall include salaries, wages, commissions, bonuses, incentive payments, fees and tips or other income, including distributive share income from an unincorporated business entity or association against which municipal income tax is not already levied that may be earned, accrued or received by an individual, whether directly or through an agent and whether in cash or in property, for services rendered.
(bb) "Tangible property." All property not defined as intangible property.
(cc) "Taxable income." Income minus the deductions and credits allowed by this chapter and rules and regulations. See "income" as defined in this section.
(dd) "Taxable year." The calendar year or the fiscal year used as the basis on which net profits or other taxable income are to be computed under the chapter, and in the case of a return for a fractional part of a year, the period for which the return is required to be made.
(ee) "Taxpayer." A person, whether an individual, partnership, association or any other entity, required by this chapter to file a return of income earned or received or of net profit. It does not include any person that is a disregarded entity or a qualifying Subchapter S (if the Subchapter S is a subsidiary entity). The term "taxpayer" does include any other person who owns the disregarded entity or Subchapter S subsidiary.
(ff) "Unincorporated businesses." All businesses not specifically incorporated.
(gg) "Wage continuation plans." Include all types of plans in displacement and/or termination of employees, voluntarily chosen by the employee and revocable by the employee, paid by installments or in a lump sum payment.
(hh) "Working day." A full day or any fractional part of a day for which an employee receives compensation, whether the services are performed or not performed.
(Ord. 43-2004, passed 12-20-2004)