(1) On all salaries, wages, commissions and other compensation earned on and after March 1, 1983 by residents of the City.
(2) On all salaries, wages, commissions and other compensation earned on and after March 1, 1983, by nonresidents of the City for work done or services performed or rendered in the City excluding those deemed occasional entrant on or after 01-01-01.
(3) On the net profits earned on and after March 1, 1983 of all businesses, professions or other activities conducted by residents of the City.
(4) On the net profits earned on and after March 1, 1983 of all businesses, professions or other activities conducted in the City by nonresidents.
(5) On the net profits earned on and after March 1, 1983 by all corporations having their principal office and place of business in the City, or an office or place of business in the City, such tax being levied on the part of the net profit as is earned by such corporation as a result of work done or services performed or rendered and business or other activities conducted in the City. (Approved by voters 2-8-83)
(6) Employee Business Expense Deduction (Form 2016): Employee Business Expense Deduction will be recognized only when the expense incurred applies to gross earnings that are in the jurisdiction of the City of Struthers. This deduction is permitted only to the extent allowed on the Taxpayers Federal Income Tax Return (pursuant to ORC 718.01E). Information required: Federal Income Tax Return (1040).
Federal Schedule A and Form 2106. Allowable Expenses will be reduced by the appropriate portion of 2% of the Taxpayers Adjusted Gross Income. (Ord. 06-081. Passed 9-27-06.)
(b) The portion of the entire net profits of a taxpayer to be allocated as having been made within the City, in the absence of actual records or separate accounting thereof, shall be determined as follows:
(1) Multiply the entire net profit by a business allocation percentage to be determined by:
A. Ascertaining the percentage which the average value of the taxpayers’ real and tangible property within the City during the period covered by its report, bears to the average value of all taxpayers’ real and tangible personal property wherever situated during such period.
B. Ascertaining the percentage which the gross receipts of the taxpayer from sales within the City, plus the gross credits or charges for work done and performed or services rendered.
Receipts from the following are allocable to the City:
1. Sales of the taxpayer’s tangible personal property:
a. Located in the City at the time of the receipt of or appropriation to the orders, irrespective of where the orders have been received or accepted.
b. Not located, at the time of the receipt of or appropriation to the orders, at any permanent or continuous place of business maintained by the taxpayer outside of the City where the orders were received or accepted in the City.
2. Work done and performed or service rendered in the City.
3. Rentals from property situated in the City where the rental of such property is a usual or normal part of the taxpayer's business activity.
4. All other business receipts earned in the City for the purpose of determining allocation percentage, no account shall be given to receipts within or without the City of income derived from intangible, including stocks, bonds, royalties, and the like, the income of which is taxable under the statutes of the State. All receipts of the period covered by the report, computed on the cash or accrual basis, in accordance with the method of accounting used in the computation of the taxpayer's entire net income, must be taken into account.
C. Ascertaining the percentage which the total wages, salaries and other personal service compensation, similarly computed during such period of employment within the City, except general executive officers, bears to the total wages, salaries and other personal services, compensation similarly computed, during such period of all taxpayer's employees within and without the City, and those exempt under Ohio R.C. 718.011; and
D. Adding together the percentage determined in accordance with subparagraphs A. B. and C. hereof or such of the aforesaid percentages as shall be applicable to the particular taxpayer's business, and dividing the total so obtained by the number of percentages used in deriving such total.
(2) However, in the event a just and equitable result cannot be obtained by the use of the factors that are set forth herein, the Board of Review shall have the authority to substitute factors calculated to effect a fair and proper allocation.
(3) Provided further, each such taxpayer shall have the option of paying, in lieu of the tax measured as herein provided, a tax computed in accordance with the rate schedule outlined in subsection (a) hereof of the taxpayer's payroll paid during the taxable period to employees who perform services for the taxpayer within the City, if the tax thus calculated on the taxpayer's payroll shall be as large as, or be greater than the tax which the taxpayer would pay as levied and calculated in the manner set forth in the foregoing provisions.
(c) The portion of the net profits attributable to the City of a taxpayer conducting a business, profession or other activity both within and without the boundaries of the City shall be determined as provided in Ohio R. C. 718.02 and in accordance with the rules and regulations adopted by the Commissioner of Taxation pursuant to this chapter.
(d) The tax provided for herein shall not be levied on the net profits of any civic, charitable, religious, fraternal or other organization specified in Ohio R. C. 718.01 to the extent that such net profits are exempted from municipal income taxes under that Section.
(Approved by voters 2-18-69.)
(e) Such tax shall first be levied, collected and paid with respect to the salaries, wages, commissions and other compensation earned on and after March 1, 1983 and with respect to the net profits of businesses, professions or other activities earned on and after March 1, 1983, provided, however, that where the fiscal year of the business, profession or other activity differs from the calendar year, the tax shall be applied to that part of the net profits for the fiscal year as shall be earned on and after March 1, 1983. (Ord. 01-10037. Passed 10-10-01.)