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(a) The one percent (1%) funds collected under the provisions of this chapter shall be used, applied and appropriated for the following purposes only, and in the following order:
(1) To the payment of all costs of collecting the taxes levied by this chapter and the expense of administering and enforcing the provisions thereof, including the payment of refunds and making of reciprocity payments to other municipalities in accordance herewith.
(2) To the General Fund of the city an amount equal to the cost of providing garbage and refuse collection disposal, provided, however, that such net amount shall be limited to the difference between the total cost of such service and the amount generated by the refuse collection and disposal fee set forth in Section 941.02(a).
(3) To the General Fund of the City an amount not to exceed Twenty-Five Percent (25%) of the year's net collection annually based on the previous year's net collection but in no event less than thirteen thousand three hundred dollars ($13,300) annually to defray part of the cost of operating and maintaining the Division of Police and improving the protection of life and property; provided, however, for the calendar year of 1983 and thereafter the one percent (1%) funds collected under the provisions of this chapter and allocated under this subsection (a)(3) shall be used, applied and appropriated as follows: if required, to the General Fund of the City an amount not to exceed ten percent (10%) of the year's net collection annually based on the previous year's net collection to defray part of the cost of operating and maintaining the Division of Police and improving the protection of life and property.
(4) Any costs of preparing and amending a Charter.
(5) The remainder of the one percent (1%) funds collected under the provisions of this chapter shall be used, applied and appropriated for the following purposes only and in the following order:
(a) Eight percent (8%) to the Capital Improvement Fund;
(b) Sixty-seven percent (67%) to the Income Tax Fund.
(b) The one-half percent (1/2%) funds collected under the provisions of this chapter shall be allocated as follows:
(a) Twenty-five percent (25%) to the General Fund;
(b) Eight percent (8%) to the Capital Improvement Fund;
(c) Sixty-seven percent (67%) to the Income Tax Fund.
(c) For the accomplishments and furtherance of all or any of the purposes specified in subsections (a)(2), (a)(4), (a)(5) and (b) hereof, Council may from time to time create and establish such funds and appropriate moneys collected under the provisions of this chapter at such times and in such amounts as it may deem necessary or expedient and in the public interest. (Ord. 67- 2015. Passed 12-7-15.)
(a) Each owner, or the duly designated agent thereof, of one or more units of real property located within the City and which are rented or available for rent shall submit to the Commissioner of Taxation, or the designee thereof, on or before January 1 and July 1 of each year a list of tenants presently occupying those rental units and those units vacant. For the purposes of this section, rented units includes any units of real property which is subject to a rental unit, whether oral or written, for residential, commercial or industrial purposes.
(b) Each owner, or the duly designated agent thereof, shall incur a penalty of five dollars ($5.00) per month, per tenant, up to a maximum of one thousand dollars ($1,000) for failure to comply with subsection (a) of this section. (Ord. 101-2022. Passed 04-17-23.)
(1) The state tax commissioner shall serve as the sole administrator of the municipal net profit tax for which the taxpayer as defined in 171.81(C) of the Codified Ordinances is liable for the term of the election;
(B) (1) A taxpayer shall make the initial election on or before the first day of the third month after the beginning of the taxpayer's taxable year by notifying the tax commissioner and the Municipality, on a form prescribed by the tax commissioner.
(2) (a) The election, once made by the taxpayer, applies to the taxable year in which the election is made and to each subsequent taxable year until the taxpayer notifies the tax commissioner and the Municipality of its termination of the election.
(b) A notification of termination shall be made, on a form prescribed by the tax commissioner, on or before the first day of the third month of any taxable year.
(1) Prescribe all forms necessary to administer those sections;
(2) Adopt such rules as the tax commissioner finds necessary to carry out those sections;
(3) Appoint and employ such personnel as are necessary to carry out the duties imposed upon the tax commissioner by those sections.
(D) The tax commissioner shall not be considered a tax administrator, as that term is defined in section 718.01 of the Revised Code and Section 171.02 of the Sylvania Codified Ordinances. (Ord. 15-2018. Passed 3-5-18.)
If a term used in sections 171.80 to 171.95 of the Codified Ordinances that is not otherwise defined in this chapter is used in a comparable context in both the laws of the United States relating to federal income tax and in Title LVII of the Revised Code and the use is not consistent, then the use of the term in the laws of the United States relating to federal income tax shall have control over the use of the term in Title LVII of the Revised Code, unless the term is defined in Chapter 5703. of the Revised Code, in which case the definition in that chapter shall control. Any reference in this chapter to the Internal Revenue Code includes other laws of the United States related to federal income taxes. If a term is defined in both this section and section 171.02 of the Codified Ordinances, the definition in this section shall control for all uses of that term in sections 171.80 to 171.95 of the Codified Ordinances.
(A) "Municipal taxable income" means income apportioned or sitused to the municipal corporation under section 171.82 of the Codified Ordinances, as applicable, reduced by any pre-2017 net operating loss carryforward available to the person for the municipal corporation.
(B) "Adjusted federal taxable income," for a person required to file as a C corporation, or for a person that has elected to be taxed as a C corporation as described in division (D)(5) of section 718.01 of the Revised Code and section 171.02 of the Codified Ordinances, 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 per cent of intangible income deducted under division (B)(1) of this section, but excluding that portion of intangible income directly related to the sale, exchange, or other disposition of property described in section 1221 of the Internal Revenue Code.
(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) (a) Except as provided in division (B)(4)(b) of this section, deduct income and gain included in federal taxable income to the extent the income and gain directly relate to the sale, exchange, or other disposition of an asset described in section 1221 or 1231 of the Internal Revenue Code.
(b) Division (B)(4)(a) of this section does not apply to the extent the income or gain is income or gain described in section 1245 or 1250 of the Internal Revenue Code.
(5) Add taxes on or measured by net income allowed as a deduction in the computation of federal taxable income.
(6) In the case of a real estate investment trust or regulated investment company, add all amounts with respect to dividends to, distributions to, or amounts set aside for or credited to the benefit of investors and allowed as a deduction in the computation of federal taxable income.
(7) Deduct, to the extent not otherwise deducted or excluded in computing federal taxable income, any income derived from a transfer agreement or from the enterprise transferred under that agreement under section 4313.02 of the Revised Code.
(8) Deduct exempt income to the extent not otherwise deducted or excluded in computing adjusted federal taxable income.
(9) Deduct any net profit of a pass-through entity owned directly or indirectly by the taxpayer and included in the taxpayer's federal taxable income unless an affiliated group of corporations includes that net profit in the group's federal taxable income in accordance with division (E)(3)(b) of section 171.86 of the Codified Ordinances.
(10) Add any loss incurred by a pass-through entity owned directly or indirectly by the taxpayer and included in the taxpayer's federal taxable income unless an affiliated group of corporations includes that loss in the group's federal taxable income in accordance with division (E)(3)(b) of section 171.86 of the Codified Ordinances.
If the taxpayer is not a C corporation, is not a disregarded entity that has made the election described in division (47)(B) of section 171.02 of the Codified Ordinances, and is not a publicly traded partnership that has made the election described in division (23)(E)(ii) of section 171.02 of the Codified Ordinances, the taxpayer shall compute adjusted federal taxable income under this section as if the taxpayer were a C corporation, except guaranteed payments and other similar amounts paid or accrued to a partner, former partner, shareholder, former shareholder, member, or former member shall not be allowed as a deductible expense unless such payments are in consideration for the use of capital and treated as payment of interest under section 469 of the Internal Revenue Code or United States treasury regulations. Amounts paid or accrued to a qualified self-employed retirement plan with respect to a partner, former partner, shareholder, former shareholder, member, or former member of the taxpayer, amounts paid or accrued to or for health insurance for a partner, former partner, shareholder, former shareholder, member, or former member, and amounts paid or accrued to or for life insurance for a partner, former partner, shareholder, former shareholder, member, or former member shall not be allowed as a deduction.
Nothing in division (B) of this section shall be construed as allowing the taxpayer to add or deduct any amount more than once or shall be construed as allowing any taxpayer to deduct any amount paid to or accrued for purposes of federal self-employment tax.
(C) "Taxpayer" has the same meaning as in section 171.02(47) of the Codified Ordinances, except that "taxpayer" does not include natural persons or entities subject to the tax imposed under Chapter 5745. of the Revised Code. "Taxpayer" may include receivers, assignees, or trustees in bankruptcy when such persons are required to assume the role of a taxpayer.
(E) "Taxable year" means the calendar year or the taxpayer's fiscal year ending during the calendar year, or fractional part thereof, upon which the calculation of the taxpayer's adjusted federal taxable income is based pursuant to this chapter. If a taxpayer's taxable year is changed for federal income tax purposes, the taxable year for purposes of sections 171.80 to 171.95 of the Codified Ordinances is changed accordingly but may consist of an aggregation of more than one taxable year for federal income tax purposes. The tax commissioner may prescribe by rule an appropriate period as the taxable year for a taxpayer that has had a change of its taxable year for federal income tax purposes, for a taxpayer that has two or more short taxable years for federal income tax purposes as the result of a change of ownership, or for a new taxpayer that would otherwise have no taxable year.
(F) "Assessment" means a notice of underpayment or nonpayment of a tax issued pursuant to section 171.90 of the Codified Ordinances.
(Ord. 15-2018. Passed 3-5-18.)
This section applies to any taxpayer that is engaged in a business or profession in the Municipality and that has made the election under section 171.80 of the Codified Ordinances.
(A) Except as otherwise provided in division (B) of this section, net profit from a business or profession conducted both within and without the boundaries of the Municipality shall be considered as having a taxable situs in the Municipality for purposes of municipal income taxation in the same proportion as the average ratio of the following:
(1) The average original cost of the real property and tangible personal property owned or used by the taxpayer in the business or profession in the Municipality 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, tangible personal or real property shall include 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 individuals employed in the business or profession for services performed in the Municipality to wages, salaries, and other compensation paid during the same period to individuals employed in the business or profession, wherever the individual's services are performed, excluding compensation from which taxes are not required to be withheld under section 171.052 of the Codified Ordinances;
(3) Total gross receipts of the business or profession from sales and rentals made and services performed during the taxable period in the Municipality to total gross receipts of the business or profession during the same period from sales, rentals, and services, wherever made or performed.
(B) (1) If the apportionment factors described in division (A) of this section do not fairly represent the extent of a taxpayer's business activity in the Municipality, the taxpayer may request, or the tax commissioner may require, that the taxpayer use, with respect to all or any portion of the income of the taxpayer, an alternative apportionment method involving one or more of the following:
(a) Separate accounting;
(b) The exclusion of one or more of the factors;
(c) The inclusion of one or more additional factors that would provide for a more fair apportionment of the income of the taxpayer to the municipal corporation;
(d) A modification of one or more of the factors.
(2) A taxpayer request to use an alternative apportionment method shall be in writing and shall accompany a tax return, timely filed appeal of an assessment, or timely filed amended tax return. The taxpayer may use the requested alternative method unless the tax commissioner denies the request in an assessment issued within the period prescribed by division (A) of section 171.90 of the Codified Ordinances.
(3) The tax commissioner may require a taxpayer to use an alternative apportionment method as described in division (B)(1) of this section only by issuing anassessment to the taxpayer within the period prescribed by division (A) of section 171.90 of the Codified Ordinances.
(C) As used in division (A)(2) of this section, "wages, salaries, and other compensation" includes only wages, salaries, or other compensation paid to an employee for services performed at any of the following locations:
(1) A location that is owned, controlled, or used by, rented to, or under the possession of one of the following:
(a) The employer;
(b) A vendor, customer, client, or patient of the employer, or a related member of such a vendor, customer, client, or patient;
(c) A vendor, customer, client, or patient of a person described in division (C)(1)(b) of this section, or a related member of such a vendor, customer, client, or patient.
(2) Any location at which a trial, appeal, hearing, investigation, inquiry, review, court-martial, or similar administrative, judicial, or legislative matter or proceeding is being conducted, provided that the compensation is paid for services performed for, or on behalf of, the employer or that the employee's presence at the location directly or indirectly benefits the employer;
(3) Any other location, if the tax commissioner determines that the employer directed the employee to perform the services at the other location in lieu of a location described in division (C)(1) or (2) of this section solely in order to avoid or reduce the employer's municipal income tax liability. If the tax commissioner makes such a determination, the employer may dispute the determination by establishing, by a preponderance of the evidence, that the tax commissioner's determination was unreasonable.
(D) For the purposes of division (A)(3) of this section, receipts from sales and rentals made and services performed shall be sitused to the Municipality as follows:
(1) Gross receipts from the sale of tangible personal property shall be sitused to the Municipality only if, regardless of where title passes, the property meets either of the following criteria:
(a) The property is shipped to or delivered within the Municipality from a stock of goods located within the Municipality.
(b) The property is delivered within the Municipality from a location outside the Municipality, provided the taxpayer is regularly engaged through its own employees in the solicitation or promotion of sales within the Municipality and the sales result from such solicitation or promotion.
(2) Gross receipts from the sale of services shall be sitused to the Municipality to the extent that such services are performed in the Municipality.
(3) To the extent included in income, gross receipts from the sale of real property located in the Municipality shall be sitused to the Municipality.
(4) To the extent included in income, gross receipts from rents and royalties from real property located in the Municipality shall be sitused to the Municipality.
(5) Gross receipts from rents and royalties from tangible personal property shall be sitused to the Municipality based upon the extent to which the tangible personal property is used in the Municipality.
(E) Commissions received by a real estate agent or broker relating to the sale, purchase, or lease of real estate shall be sitused to the Municipality in which the real estate is located. Net profit reported by the real estate agent or broker shall be allocated to the Municipality based upon the ratio of the commissions the agent or broker received from the sale, purchase, or lease of real estate located in the Municipality to the commissions received from the sale, purchase, or lease of real estate everywhere in the taxable year.
(F) If, in computing a taxpayer's adjusted federal taxable income, the taxpayer deducted any amount with respect to a stock option granted to an employee, and if the employee is not required to include in the employee's income any such amount or a portion thereof because it is exempted from taxation under divisions (C)(12) and (R)(1)(d) of section 171.02 of the Codified Ordinances by the Municipality or
substantially similar provision of the codified ordinances of another municipal corporation, the taxpayer shall add the amount that is exempt from taxation to the taxpayer's net profit that was apportioned to the Municipality. In no case shall a taxpayer be required to add to its net profit that was apportioned to the Municipality any amount other than the amount upon which the employee would be required to pay tax were the amount related to the stock option not exempted from taxation.
This division applies solely for the purpose of making an adjustment to the amount of a taxpayer's net profit that was apportioned to the Municipality under this section.
(G) When calculating the ratios described in division (A) of this section for the purposes of that division or division (B) of this section, the owner of a disregarded entity shall include in the owner's ratios the property, payroll, and gross receipts of such disregarded entity.
(Ord. 15-2018. Passed 3-5-18.)
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