§ 40.041  DETERMINING MUNICIPAL TAXABLE INCOME FOR INDIVIDUALS.
   (A)   Municipal Taxable Income for a resident of the Municipality is calculated as follows:
      (1)   “Income” reduced by “Exempt Income” to the extent such exempt income is otherwise included in income, reduced by allowable employee business expense deduction as found in § 40.03(20)(b) of this chapter, further reduced by any “Pre-2017 net operating loss carryforward” equals “Municipal taxable income”.
         (a)   INCOME is defined in § 40.03(14) of this chapter.
            1.   QUALIFYING WAGES is defined in § 40.03(34).
            2,   NET PROFIT is included in “income”, and is defined in § 40.03(23) of this chapter. This section also provides that the net operating loss carry- forward shall be calculated and deducted in the same manner as provided in § 40.03(1)(h). Treatment of net profits received by an individual taxpayer from rental real estate is provided in § 40.062(E).
            3.   Section 40.03(14) provides the following: offsetting and net operating loss carry-forward treatment in division (14)(a)2.a.; resident's distributive share of net profit from pass through entity treatment in division (14)(a)2.b.; treatment of S Corporation distributive share of net profit in the hands of the shareholder in division (14)(a)3.; restriction of amount of loss permitted to be carried forward for use by taxpayer in a subsequent taxable year in division (14)(a)4.
            4.   PASS THROUGH ENTITY is defined in § 40.03(27).
         (b)   EXEMPT INCOME is defined in § 40.03(11) of this chapter.
         (c)   Allowable employee business expense deduction is described in Section 40.03(20)(b) of this chapter, and is subject to the limitations provided in that Section.
         (d)   PRE-2017 NET OPERATING LOSS CARRY-FORWARD is defined in § 40.03(32) of this chapter.
         (e)   PRE-2017 NET OPERATING LOSS CARRYFORWARD is defined in § 40.03(32) of this chapter.
(Ord. 15-27, passed 12-28-2015)