(A) Residents.
(1) In the case of the residents of the Village of Smithville an annual tax of 1.5% is imposed on all salaries, wages, commissions and other compensation earned or accrued on and after January 1, 1977. For the purpose of determining the tax on the earnings of the resident taxpayers, taxed hereunder, the source of the earnings and the place or places in or at which the services were rendered are immaterial. All such earnings, wherever earned or paid, are taxable.
(2) The following are items which are subject to the tax:
(a) Salaries, wages, bonuses or incentive payments received by an individual, whether directly or through an agent and whether in cash or in property, for services rendered on and after January 1, 1977.
1. As an officer, director or employee of a corporation (including charitable and other non-profit corporations), joint stock association or joint stock company;
2. As an employee (as distinguished from a partner or member) of a partnership, limited partnership, or any other form of unincorporated enterprise owned by one or more persons;
3. As an employee (as distinguished from the proprietor) of a business, trade or profession conducted by an individual owner;
4. As an officer of employee (whether elected, appointed or commissioned) of a governmental administration, agency, arm, authority, board, body, branch, bureau, department, division, subdivision, section or unit of the State of Ohio or any of the political subdivisions thereof;
5. As an officer or employee (whether elected, appointed or commissioned) of a governmental administration, agency, arm, authority, board, body, branch, bureau, department, division, subdivision, section or unit of the United States Government or of a corporation created and owned, or controlled by the United States Government or any of its agencies;
6. As an employee of any other entity or person.
(b) Wages, bonuses, or incentive payments received by an individual, whether directly or through an agent and whether in cash or in property, for services rendered on and after January 1, 1977.
1. Whether based upon hourly, daily, weekly, semi-monthly, monthly, annual, unit of production or piece work rates; and
2. Whether paid by an individual, limited partnership, partnership, association, corporation (including charitable and other non-profit corporations), governmental administration, agency arm, authority, board, body, branch, department, division, subdivision, section or unit, or any other entity.
(c) Commissions received by a taxpayer whether directly or through an agent and whether in cash or in property, for services rendered on and after January 1, 1977, regardless of how computed, by whom or wheresoever paid. If amounts received as a drawing account exceed the commissions earned, the tax is payable on the gross amounts received. Amounts received from an employer by way of expenses and not by way of compensation, and used as such by the individual receiving them, are not deemed to be compensation if the employer deducts such expense advances as such from his gross income for the purpose of determining his net profits taxable hereunder. If such commissions are included in the net earnings of a trade, business, profession, enterprise or activity regularly carried on by such individual and therefore subject to tax hereunder, they shall not again be separately taxed. In such case, such net earnings shall be taxed as provided herein.
(d) The receipt of fees and other compensation for personal services rendered shall be deemed to be subject to taxation hereunder.
(e) Domestic servants are subject to Smithville tax hereunder but are not subject to withholding provisions. That is to say, the domestic will report earnings and pay the tax directly to the Smithville Income Tax Department.
(f) Notwithstanding the provisions contained in subsections (a) through (d) above, if a municipal income tax payer's taxable income includes income against which the taxpayer has taken a deduction for federal income tax purposes as reportable on the taxpayer's FM 2106 and against which a like deduction has not been allowed by the village, the resident or nonresident employee taxpayer may deduct from his/her taxable income an amount equal to the deduction shown on the form allowable against the income, to the extent not otherwise so allowed. Unreimbursed employees business expenses shall not be allowed as a deduction unless the taxpayer shows compliance with the conditions contained in R.C. § 718.01(E) and substantiates the deduction by attaches IRS FM 2106 and Schedule A to FM 1040 to his/her village return.
(B) Non-residents.
(1) In the case of individuals who are non- residents of Smithville, there is imposed under the Ordinance an annual tax of 1.5% on all salaries, wages, commissions and other compensation, earned or accruing on and after January 1, 1977, for work done or services performed or rendered within the Village of Smithville, whether such compensation or remuneration is received or directly or through an agent and whether paid in cash or in property.
(2) The items subject to tax under this section are the same as those listed and defined herein. For methods of computing the extent of such work or services performed within the Village of Smithville, and cases involving compensation for personal services partly within and partly outside the Village of Smithville.
(Res. 1976-55, passed 12-13-1976; Am. Ord. 1992-34, passed 11-23-1992; Am. Ord. 2004-05, passed 2-23-2004)