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. The singular shall include the plural and the masculine shall include the feminine and the neuter.
(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) ADMINISTRATOR or INCOME TAX ADMINISTRATOR. The individual designated to administer and enforce the provisions of the city income tax.
(c) ASSOCIATION. Any partnership, limited partnership, limited liability company or any other form of unincorporated enterprise, including S corporations as defined in the Federal Tax Code, 26 U.S.C. § 1361.
(d) BOARD OF REVIEW. The Board created by and constituted as provided in § 890.20.
(e) BUSINESS. Any 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.
(f) CITY. The City of Solon, Ohio.
(g) CORPORATION. A corporation, but not including S corporations as defined in the Federal Tax Code, 26 U.S.C. § 1361, or joint stock association organized under the laws of the United States, the state, or any other state, territory or foreign country or dependency.
(h) DOMICILE. The permanent legal residence of a taxpayer. A taxpayer may have more than one residence but not more than one DOMICILE.
(i) EMPLOYEE. One who works for income, wages, salary, commission or other type of compensation in the service and under the control of an employer.
(j) EMPLOYER. An individual, partnership, association, corporation, government body, unit or agency, or any other entity, whether or not organized for profit, who or that employs one or more persons on income, salary, wage, commission or other basis of compensation.
(k) FISCAL YEAR. An accounting period of 12 months or less ending on any day other than December 31.
(l) 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 Solon’s regular tax return, estimated payment and refund request forms, and are in a similar format that will allow processing of the generic forms without altering Solon’s procedures for processing forms.
(m) GROSS RECEIPTS. The total revenue derived from sales, work done or service rendered.
(n) INCOME. All monies and compensation in any form, 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 Solon;
(2) All salaries, wages, commissions, other compensation and other income from whatsoever source received by nonresidents for work done or services performed or rendered or activities conducted in Solon; and
(3) The portion attributable to the city of the net profits of all businesses, associations, professions, corporations or other entities, from sales made, work done, services performed or rendered, and business or other activities conducted in Solon.
(o) NET PROFITS. For taxable years prior to 2004, a net gain from the operation of a business, profession, enterprise or other activity after provision for all ordinary and necessary expenses either paid or accrued in accordance with the accounting system (i.e., cash or accrual) used by the taxpayer for federal income tax purposes, without deduction of taxes imposed by this chapter, federal, state and other taxes based on income, and, in the case of an association, without deduction of salaries paid to partners and other owners. For taxable years 2004 and later, see ADJUSTED FEDERAL TAXABLE INCOME.
(p) NONRESIDENT. An individual domiciled outside the City of Solon.
(q) NONRESIDENT UNINCORPORATED BUSINESS ENTITY. An unincorporated business entity not having an office or place of business within the City of Solon.
(r) PERSON. Every natural person, partnership, fiduciary, association or corporation. Whenever used in any clause prescribing and imposing a penalty, the term PERSON, as applied to any unincorporated entity, shall mean the partners or members thereof, and as applied to corporations, the officers thereof.
(s) 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 employees regularly in attendance.
(t) 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 a municipality. This definition is effective January 1, 2004, for taxable years 2004 and later.
(u) RESIDENT. An individual domiciled in the City of Solon.
(v) RESIDENT UNINCORPORATED BUSINESS ENTITY. An unincorporated business entity having an office or place of business within the City of Solon.
(w) TAXABLE INCOME. Income minus the deductions and credits allowed by this chapter. (See INCOME definition.)
(x) TAXABLE YEAR. The calendar year, or the fiscal year upon the basis of which the 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.
(y) TAXPAYER. A person, whether an individual, partnership, association, corporation or other entity, required hereunder to file a return and/or pay a tax.
(Ord. 2007-217, passed 10-15-2007)