1. An annual tax for the purposes specified in Section 880.01 shall be imposed on and after July 1, 1993, at the rate of two percent (2%) per year (of which rate one and one-half percent (1-1/2%) is hereinafter referred to as the "Base Tax" and one-half of one percent (1/2%) is hereinafter referred to as the "Additional Tax") upon the following:
(a) On all qualifying wages, salaries, commissions and other compensation earned and/or received, and on each lottery prize award payment, gambling and sports winnings, games of chance, other prizes and/or awards of six hundred dollars ($600.00) or more received during the effective period of this chapter by residents of the City.
(1) No deductions are permitted against income from lottery, gambling and sports winnings, games of chance, or other prizes or awards, unless the taxpayer is considered a professional gambler for federal income tax purposes, in which event related deductions as permitted by the Internal Revenue Code shall be allowed against such items of income.
(b) On all salaries, qualifying wages, commissions, other compensation and other taxable income earned or received during the effective period of this chapter by nonresidents of the City for work done or services performed or rendered within the City; and on each lottery prize award payment of six hundred dollars ($600.00) or more received from any State of Ohio lottery or lottery in which the State of Ohio participates from a lottery ticket purchased in the City by nonresidents of the City during the effective period of this chapter.
(c) (1) On the portion attributable to the City of the net profits earned during the effective period of this chapter of all resident unincorporated business entities, pass-through entities, professions or other activities, derived from work done, services performed or rendered and business or other activities conducted in the City.
(2) On the portion of the distributive share of the net profits earned during the effective period of this chapter of a resident owner of a resident unincorporated business entity or pass-through entity not attributable to the City and not levied against such unincorporated business entity or pass-through entity.
(d) (1) On the portion attributable to the City of the net profits earned during the effective period of this chapter of all nonresident unincorporated businesses, pass-through entities, professions or other activities, derived from work done, services performed or rendered and business and other activities conducted in the City, whether or not such unincorporated business entity has an office or place of business in the City.
(2) On the portion of the distributive share of the net profits earned during the effective period of this chapter of a resident owner of a nonresident unincorporated business entity or pass-through entity not attributable to the City and not levied against such unincorporated business entity or pass-through entity.
(e) On the portion attributable to the City of the net profits earned during the effective period of this chapter of all corporations that are not pass-through entities derived from work done, services performed or rendered and business or other activities conducted in the City, whether or not such corporations have an office or place of business in the City.
2. Businesses Both In and Outside the Municipal Boundaries.
(a) This section does not apply to taxpayers that are subject to and required to file reports under Chapter 5745 of the Ohio Revised Code. Except as otherwise provided in paragraph 3 of this section, net profit from a business or profession conducted both within and without the boundaries of a municipal corporation shall be considered as having a taxable situs in such municipal corporation for purposes of municipal income taxation in the same proportion as the average ratio of the following:
(b) Multiply the entire net profits of the business by a business apportionment percentage formula to be determined by:
(1) The average original cost of the real and tangible personal property owned or used by the taxpayer in the business or profession in such municipal corporation during the taxable period to the average original cost of all of the real and tangible personal property owned or used by the taxpayer in the business or profession during the same period, wherever situated. As used in the preceding paragraph, real property includes property rented or leased by the taxpayer and the value of such property shall be determined by multiplying the annual rental thereon by eight;
(2) Wages, salaries and other compensation paid during the taxable period to persons employed in the business or profession for services performed in such municipal corporation to wages, salaries and other compensation paid during the same period to persons employed in the business or profession, wherever their services are performed, excluding compensation that is not taxable by the municipal corporation under Section 718.011 of the Ohio Revised Code;
(3) Gross receipts of the business or profession from sales made and services performed during the taxable period in such municipal corporation to gross receipts of the business or profession during the same period from sales and services, wherever made or performed.
(4) Adding together the percentages determined in accordance with subsections (2)(b) (1), (2), and (3) hereof, or such of the aforesaid percentages as are applicable to the particular taxpayer and dividing the total so obtained by the number of percentages used in deriving such total.
(i) A factor is applicable even though it may be apportioned entirely in or outside the City.
(ii) Provided however, that in the event a just and equitable result cannot be obtained under the business apportionment percentage formula provided for herein, the Tax Administrator, upon application of the taxpayer, shall have the authority to substitute other factors or methods calculated to effect a fair and proper apportionment.
3. Except as otherwise provided in this section, net profit from rental activity not constituting a business or profession shall be subject to tax only by the municipal corporation in which the property generating the net profit is located.
4. A non-resident individual, who works in the City twelve (12) or fewer days per year shall be considered an occasional entrant, and shall not be subject to the City municipal income tax for those twelve (12) days. For purposes of the 12-day calculation, any portion of a day worked in the City shall be counted as one (1) day worked in the City.
Beginning with the thirteenth (13th) day, the employer of said individual shall begin withholding the City income tax from remuneration paid by the employer to the individual, and shall remit the withheld income tax to the City in accordance with the requirements of this chapter, and shall remit taxes on income earned in the City by the individual for the first twelve (12) days.
If the individual is self-employed, it shall be the responsibility of the individual to remit the appropriate income tax to the City.
This section does not apply to entertainers or professional athletes, their employees or individuals who perform services on their behalf, or promoters and booking agents of such entertainment and sporting events.
5. This section does not apply to individuals who are residents of the Municipality and, except as otherwise provided in Section 718.01 of the Ohio Revised Code, the Municipality may impose a tax on all income earned by residents of the Municipality to the extent allowed by the United States Constitution.
(Ord. 2011-051. Passed 4-4-11.)
(Ord. 2011-051. Passed 4-4-11.)