As used in this chapter, the following words shall have the meanings 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: means a C corporation’s federal taxable income before net operating losses and special deductions as determined under the Internal Revenue Code, adjusted as follows:
(1) Deduct intangible income to the extent included in federal taxable income. The deduction shall be allowed regardless of whether the intangible income relates to assets used in a trade or business or assets held for the production of income.
(2) Add an amount equal to five percent (5%) of intangible income deducted.
(3) Add any losses allowed as a deduction in the computation of federal taxable income if the losses directly relate to the sale, exchange, or other disposition of an asset described in Section 1221 or 1231 of the Internal Revenue Code.
(4) Add taxes on, or measured by, net income allowed as a deduction in the computation of federal taxable income.
(5) In the case of real estate investment trust and regulated investment company, add all amounts with respect to dividends to, distributions to, or amount set aside for or credited to the benefit of investors and allowed as a deduction in the computation of federal taxable income.
(6) If the taxpayer is not a C corporation and is not an individual, the taxpayer shall compute adjusted federal taxable income as if the taxpayer were a C corporation, except:
A. Guaranteed payments and other similar amounts paid or accrued to a partner, former partner, member, or former member shall not be allowed as a deductible expense; and
B. Amounts paid or accrued to a qualified self-employed retirement plan with respect to an owner or owner-employee of the taxpayer, amounts paid or accrued to or for health insurance for an owner or owner-employee, and amounts paid or accrued to or for life insurance for an owner or owner-employee shall not be allowed as a deduction.
(b) “Association” means a partnership, limited partnership, or any other form of unincorporated enterprise, owned by two or more persons.
(c) “Board of Review” means the Board created by and constituted as provided in Section 181.12 hereof.
(d) “Business” means an 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 activity, including but not limited to the renting or leasing of property, real, personal, or mixed.
(e) “Business allocation apportionment” means the portion of net profits to be allocated to St. Marys as having been made therein pursuant to Section 181.03 hereof.
(f) “City” means the City of St. Marys.
(g) “Corporation” mean a corporation or joint stock association organized under the laws of the United States, the State of Ohio, or any other state, territory or foreign country or dependency.
(h) “Domicile” means a principal residence that the taxpayer intends to use and whenever he is absent intends to return. A taxpayer has only one domicile even though he may have more than one residence.
(i) “Employee” means one who works for wages, salary, commission, or other types of compensation in the service of an employer. Any person upon whom an employer is required to withhold for either federal income or social security, or on whose account payments are made under the Workers’ Compensation Law, shall prima facie be an employee.
(j) “Employer” means an individual, partnership, association, corporation, governmental body, unit or agency, or any other entity, whether or not organized for profit, who or that employs one or more persons on a salary, wage, commission, or other compensation basis.
(k) “Fiscal year” means an accounting period of twelve months ending on any day other than December 31.
(l) “Form 2106" means Internal Revenue Service Form 2106 filed by a taxpayer pursuant to the Internal Revenue Code.
(m) “Generic form” means an electronic or paper form designed for reporting estimated municipal income taxes and annual municipal income tax liability or for filing a refund claim that is not prescribed by a particular municipal corporation for the reporting of that municipal corporation’s tax on income.
(n) “Gross receipts” means income from any source whatsoever excepting from intangible and capital gains from the sale of property used in the trade or business as defined in Section (1231-b) Internal Revenue Code.
(o) “Income from a pass-through entity” means partnership income of partners, membership interest of members of a limited liability company, distributive shares of shareholders of an S corporation, or other distributive or proportionate ownership shares of income from other pass-through entities.
(p) “Intangible income” means income of any of the following types: income yield, interest, capital gains, dividends, or other income arising from the ownership, sale, exchange, or other disposition of intangible property including, but not limited to, investments, deposits, money, or credits as those terms are defined in Chapter 5701 of the Ohio Revised Code, and patents, copyrights, trademarks, trade names, investments in real estate investment trusts, investments in regulated investment companies, and appreciation on deferred compensation. “Intangible income” does not include prizes, awards, or other similar games of chance.
(q) “Internal Revenue Code” means the Internal Revenue Code of 1986, 100 stat, 2085, 26 U.S.C.1, as amended.
(r) “Internet” means the international computer network of both Federal and nonfederal interoperable packet switched data networks, including the graphical subnetwork known as the world wide web.
(s) “Limited liability company” means a limited liability company formed under Chapter 1705 of the Ohio Revised Code or under the laws of another state.
(t) “Net profits” for a taxpayer other than an individual means adjusted federal taxable income and “net profit” for a taxpayer who is an individual means the individual’s profit, other than amounts described in Section 181.03(d), required to be reported on Schedule C. Schedule E, or Schedule F.
(u) “Non-qualified deferred compensation plan” means a compensation plan described in Section 3121(v)(2)(C) of the Internal Revenue Code.
(v) “Nonresident” means a person, whether an individual, association, corporation, or other entity, domiciled outside the City.
(w) “Nonresident unincorporated business entity” means an unincorporated business entity not having an office or place of business within the City.
(x) “Other entity” means a person or unincorporated body not previously named or defined, and includes inter alia fiduciaries.
(y) “Other payer” means any person, other than an individual’s employer or the employer’s agent that pays an individual any amount included in the federal gross income of the individual.
(z) “Owner” means a partner of a partnership, a member of a limited liability company, a shareholder of a S corporation, or other person with an ownership interest in a pass-through entity.
(aa) “Pass-through entity” means a partnership, limited liability company, S corporation, or any other class of entity the income or profits from which are given pass-through treatment under the Internal Revenue Code.
(bb) “Person” means individuals, firms, companies, business trusts, estates, trusts, partnerships, limited liability companies, associations, corporations, governmental entities, and any other entity.
(cc) “Place of business” means 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 employees regularly in attendance.
A taxpayer does not have a regular place of business outside St. Marys solely by consigning goods to an independent factor or other contractor outside of the City for sale.
(dd) “Principal place of business” means in the case of an employer having headquarters’ activities at a place of business within a taxing municipality, the place of business at which the headquarters is situated. In the case of any employer not having its headquarters’ activities at a place of business within a taxing municipality, the term means the largest place of business located in a taxing municipality.
(ee) “Qualified plan” means wages, as defined in Section 3121(a) of the Internal Revenue Code, without regard to any wage limitations, adjusted in accordance with Section 718.03(A) of the Ohio Revised Code.
(ff) “Qualifying wages” means wages, as defined in Section 3121(a) of the Internal Revenue Code, without regard to any wage limitations, adjusted in accordance with Section 718.03(A) of the Ohio Revised Code.
(gg) “Resident” means a person, whether an individual, association, corporation, or other entity, domiciled in the City of St. Marys.
(hh) “Tax Commissioner” means the person appointed to administer the City’s Income Tax Ordinance and to direct the operation of the Tax Department or the person executing the duties of the Tax Commissioner.
(ii) “Taxable income” means qualifying wages paid by an employer or employers, compensation for personal services, other income defined by statute as taxable, and/or adjusted federal taxable income from the operation of a business, profession, or other enterprise or activity adjusted in accordance with the provisions of this chapter.
(jj) “Taxable year” means the calendar year, or the fiscal year ending during such calendar 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 year, the period for which such return is made. Unless approved by the Income Tax Commissioner, the taxable year of an individual shall be a calendar year.
(kk) “Taxpayer” means an association, business, corporation, employer, person, or other entity required by this chapter to file a return on earnings or net profits or to pay a tax thereon.
(Ord. 2004-02. Passed 2-23-04.)