An annual tax for the purposes specified in this chapter shall be imposed on and after January 1, 1993, at the rate of two percent (2%) per annum upon the following:
(a) On all salaries, wages, commissions and other compensation earned during the effective period by residents of the Village. “Other compensation” includes but is not limited to:
(1) Bonuses.
(2) Incentive payments.
(3) Directors fees.
(4) Property in lieu of cash.
(5) Tips, dismissal or severance pay.
(6) Supplemental income benefits regardless of label such as sick leave, vacation pay, third party sick pay are taxable whether paid while employed or upon retirement.
(7) Wage continuation plans.
(8) Supplemental unemployment benefits.
(9) Depreciation recapture.
(10) Gifts and gratuities in connection with employment.
(11) Fellowships, grants and stipends.
(12) Group term life insurance protection over the federal tax threshold as prescribed in the Internal Revenue Code as a taxable fringe benefit. (Taxed on the cost of insurance in excess of threshold).
(13) Benefits resulting from an employer’s assumption of a tax.
(14) Stock options given as compensation and when exercised.
(15) Income from gaming, wagering and lotteries, including the Ohio State Lottery.
(16) Tax shelter plans (including contributions to retirement plans, annuities or Individual Retirement Accounts (IRA’s) and all other deferred compensation plans).
(17) Contributions made by, or on behalf of employers to “cafeteria” plans (i.e. Section 125 IRC plans) and other similar employee benefit plans (reduction of income) reported on Federal Income Tax Forms W-2 or 1099.
(18) Royalty income earned from a royalty interest in the production of an oil or gas well, whether managed, extracted or operated by the taxpayer individually or through an agent.
(19) All other compensation earned, received or accrued and not excluded at Section 171.10 herein as reported on Federal Income Tax Forms W-2 or 1099.
(b) On all salaries, wages, commissions and other compensation earned during the effective period by non-residents of the Village for work done or services performed or rendered within the Village. The items subject to tax under the Rate and Income Taxable Section are the same as those listed and defined in Section 171.03(a) hereof.
(c) (1) On the portion attributable to the Village on net profits earned during the effective period, of all resident unincorporated business entities or professions or other activities, derived from sales made, work done, services performed or rendered and business or other activities conducted in the Village.
(2) On the portion of the distributive share of the net profits earned during the effective period, of a resident, partner or owner of a resident unincorporated business entity not attributable to the Village and not levied against such unincorporated business entity by the Village.
(d) (1) On the portion attributable to the Village of the net profits earned during the effective period, of all nonresident unincorporated business entities, professions or other activities, derived from sales made, work done, services performed or rendered and business and other activities conducted in the Village, whether or not such unincorporated business entity has an office or place of business in the Village.
(2) On the portion of the distributive share of the net profits earned during the effective period, of a resident, partner or owner of a nonresident unincorporated business entity not attributable to the Village and levied against such unincorporated business entity by the Village;
(e) On the portion attributable to the Village of the net profits earned during the effective period, of all corporations derived from sales made, work done, services performed or rendered and business or other activities conducted in the Village, whether or not such corporations have an office or place of business in the Village.
(f) 12-day occasional entrant rule:
(1) A non-resident individual who works in the Village of Silver Lake twelve (12) or fewer days per year shall be considered an occasional entrant, and shall not be subject to the Village of Silver Lake municipal income tax for those 12 days. For purposes of the 12-day calculation, any portion of a day worked in the Village of Silver Lake shall be counted as one day worked in the Village.
(2) Beginning with the thirteenth day, the employer of said individual shall begin withholding the Village of Silver Lake income tax from remuneration paid by the employer to the individual, and shall remit the withheld income tax to the Village in accordance with the requirements of this chapter. Since the individual can no longer be considered to have been an occasional entrant, the employer is further required to remit taxes on income earned in the Village of Silver Lake by the individual for the first twelve days.
(3) If the individual is self-employed, it shall be the responsibility of the individual to remit the appropriate income tax to the Village.
(4) The 12-day occasional entry rule does not apply to entertainers or professional athletes, their employees or individuals who perform services on their behalf, or to promoters and booking agents of such entertainment events and sporting events.
(Ord. 16-2005. Passed 2-7-05.)