As used in this chapter, the following words shall have the meaning ascribed to them in this section, except as and if the context clearly indicates or requires a different meaning.
(a) “Adjusted federal taxable income” means a C corporations’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 under subsection (a)(1) hereof 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 subsection (a)(4)B. hereof, 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 and 1231 of the Internal Revenue Code;
B. Subsection (a)(4)A. hereof 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 and 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) 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 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.
Nothing in subsection (a)(1) hereof 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.
Nothing in this chapter shall be construed as limiting or removing the ability of any municipal corporation to administer, audit, and enforce the provisions of its municipal income tax.
(b) "Association" means a 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 173.12.
(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 entity, including, but not limited to, the renting or leasing of property, real, personal or mixed.
(e) "Corporation" means 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.
(f) “Domicile” means a principal residence that the taxpayer intends to use for an indefinite time and to which whenever he is absent he intends to return. A taxpayer has only one domicile even though he may have more than one residence.
(g) "Employee" means one who works for wages, salary, commission or other type of compensation in the service of an employer.
(h) "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.
(i) "Fiscal year" means an accounting period of twelve months or less ending on any day other than December 31.
(j) “Form 2106” means Internal Revenue Service Form 2106 filed by a taxpayer pursuant to the Internal Revenue Code.
(k) “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 income.
(l) "Gross receipts" means the total income from any source whatsoever.
(m) “Income from a pass through entity” means partnership income of partners, membership interests 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.
(n) “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 income associated with any lottery winnings or other similar games of chance.
(o) "Income tax supervisor" means the individual designated to administer and enforce the provisions of this chapter.
(p) “Internal Revenue Code” means the Internal Revenue Code of 1986, 100 Stat. 2085, 26U.S.C. 1, as amended.
(q) “Joint Economic Development District” means districts created under the Ohio R.C. 715.70 through 715.83 as amended from time to time.
(r) “Limited liability company” means a limited liability company formed under Chapter 1705 of the Ohio Revised Code or under the laws of another state.
(s) “Municipality” means the City of Urbana.
(t) "Net profits" means a net gain from the operation of a business, profession, enterprise or other activity after provisions for all ordinary, reasonable and necessary expenses either paid or accrued in accordance with the accounting system used by the taxpayer for federal income tax purposes, without deduction of taxes imposed by this chapter, federal, State and other taxes based on income exclusive of the amount of State franchise tax computed on the net worth basis; and in the case of an association, without deduction of salaries paid to partners and other owners; and otherwise adjusted to the requirements of this chapter.
(u) “Nonqualified deferred compensation plan” means a compensation plan described in section 3121(v)(2)(c) of the Internal Revenue Code.
(v) "Nonresident" means a person not domiciled in this Municipality.
(w) "Nonresident unincorporated business entity" means an unincorporated business entity not having an office or place of business within this Municipality.
(x) "Other compensation" includes payments made by an employer to an employee during periods of absence from work regardless of the fact that such payments may be labeled "sick leave," “sick pay,” "vacation pay," "terminal pay" or "supplemental unemployment pay," but does not include compensation, other than cash, such as employer-paid premiums for group term life insurance, whose cost is included on the employee's federal form W-2 as compensation.
(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 an S corporation, or other person with an ownership interest in a pass-through entity.
(aa) “Owner’s proportionate share”, with respect to each owner of a pass-through entity, means the ratio of:
(1) The owner’s income from the pass-through entity that is subject to taxation by the municipal corporation, to
(2) The total income from that entity of all owners whose income from the entity is subject to taxation by that municipal corporation.
(bb) “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.
(cc) "Person" means every natural person, partnership, fiduciary, association or corporation. Whenever used in any clause prescribing and imposing a penalty, "person" as applied to any unincorporated entity, shall mean the partners or members thereof, and as applied to a corporation, the officers thereof.
(dd) "Place of business" means any bona fide 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 of his regular employees regularly in attendance.
(ee) “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.
(ff) "Resident" means a person domiciled in this Municipality; or a person who maintains a place of residence in the City which he habitats more than 180 days annually.
(gg) "Resident unincorporated business entity" means any unincorporated business entity having an office or place of business within this Municipality.
(hh) “Schedule C’ means Internal Revenue schedule C filed by a taxpayer pursuant to the Internal Revenue Code.
(ii) “Schedule E” means Internal Revenue Service schedule E filed by a taxpayer pursuant to the Internal Revenue Code.
(jj) “Schedule F” means Internal Revenue Service schedule F filed by a taxpayer pursuant to the Internal Revenue Code.
(kk) "Taxable income" means wages, salaries and other compensation paid by an employer or employers before any deductions, or the net profits from the operation of a business, profession or other enterprise or activity adjusted in accordance with the provisions of this chapter.
(ll) "Taxable year" means the calendar year or the fiscal year upon the basis of which net profits are to be computed under this chapter and, in the case of a return for a fractional part of a year, the period for which the return is required to be made.
(mm) "Taxpayer" means a person required hereunder to file a return or pay a tax.
(Ord. 4173. Passed 12-9-03.)