(a) Method of Determination. 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 Administrator pursuant to this Taxation Code.
In the event that the foregoing allocation formula does not produce an equitable result, another basis may, under uniform regulations be substituted so as to produce such result
(b) Total Allocation. Add together the percentages determined in accordance with subparagraphs 1, 2, and 3 of Ohio R.C. 718.02(A) or such of the aforesaid percentages as are applicable to the particular taxpayer and divide the total so obtained by the number of percentages used in deriving such total in order to obtain the business allocation percentage referred to in subsection (a) of this section.
A factor is applicable even though it may be allocable entirely in or outside the City.
(Ord. 111-2001. Passed 9-18-01.)
(c) Rentals.
(1) Rental income received by a taxpayer shall be included in the computation of net profits from business activities under subparagraph (3), (4) and (5) of Section 181.03(a), only if and to the extent that the rental, ownership, management or operations of the real estate from which such rentals are derived (whether so rented, managed or operated by a taxpayer individually or through agents or other representatives) constitutes a business activity of the taxpayer in whole or in part.
(2) Where the gross monthly rental of any and all real properties, regardless of number and value, aggregates in excess of one hundred twenty five dollars ($125.00) per month, it shall be prima facie evidence that the rental, ownership, management or operation of such properties is a business activity of such taxpayer, and the net income of such rental property shall be subject to tax; provided that in the case of commercial property, the owner shall be considered engaged in a business activity when the rental is based on a fixed or fluctuating percentage of gross or net sales, receipts or profits of the lessee, whether or not such rental exceeds one hundred twenty-five dollars ($125.00) per month; provided further that in the case of farm property, the owner shall be considered engaged in a business activity when he shares in crops or when the rental is based on a percentage of the gross or net receipts derived from the farm, whether or not the gross income exceeds such one hundred twenty-five dollars ($125.00) per month; and provided further that the persons who operate a rooming house of five or more rental rooms, shall be considered in business whether or not the gross income exceeds one hundred twenty-five dollars ($125.00) per month.
(3) It shall be mandatory for every property owner subject to this section to submit a list to the Tax Administrator of names, addresses, social security and or federal identification number and such other pertinent statements, information returns or other information as the Administrator may require, of all persons, firms, corporations or other entities occupying, leasing, renting or otherwise using any premises within this Municipality in such a manner as to produce economic benefit to the property owner, whether or not such benefit is called "rent" and whether or not such benefits result in a profit or loss. The required list shall be prepared and submitted on or before last day of each and every month and at such other times as may be ordered by the Tax Administrator.
(d) Operating Loss.
Effective January 1, 2004, the City of Twinsburg will not allow net operating loss carry forwards.
(Ord. 38-2004. Passed 4-27-04.)
(e) Disallowing Offsetting of Schedules. A net loss from business activities may not offset or be used to offset earned income such as wages, salaries or other taxable compensation.
Income or loss represented by each Federal Income Tax schedule shall be considered a separate source of income or loss. Loss on one schedule may not be used to offset profit shown on any other schedule.
(Ord. 15-2006. Passed 2-28-06.)
(Ord. 15-2006. Passed 2-28-06.)