As used in these Rules and Regulations, the following words shall have the meaning ascribed to them in this section, unless the context clearly indicates or requires a different meaning.
(a) "Business" means an enterprise, activity, profession, trade or undertaking of any nature conducted for profit or ordinarily conducted for profit, whether by an individual, partnership, association, corporation or any other entity. The ordinary administration of a decedent's estate by the administrator or executor is not to be construed as a business within this definition.
(b) "Business apportionment" means the portion of net profits to be allocated as having been earned within the City of Vandalia. That percentage may be determined by actual books and records verifying such amounts or, in the absence of actual books and records, by the application of the three-factor formula of property, payroll, and sales as provided in the Income Tax Ordinance.
(c) "City" means the City of Vandalia, Ohio.
(d) "Domicile" means that place where an individual has his or her true, fixed, and permanent home, and principal establishment, and to which whenever he or she is absent he or she has the intention of returning. A "domicile" is a permanent legal residence that a taxpayer intends to use for an indefinite period and continues in one place until another permanent home and principal establishment is acquired. Some factors used to determine domicile are: addresses used for federal and state income tax filings; business, social and family ties to a community; voting registration and place actually voted; automobile registrations and driver's license; where children attend school and length of time there; social security records; employer records; being shown as a dependent on the tax return of a parent or guardian; and, if married, where the family resides. This is not an all- inclusive list and other factors may be considered as necessary. A domicile once acquired is presumed to continue until it is shown to have been changed. Temporary changes of residence do not usually affect changes in domicile. College students whose parents are in the City, although they may be away from the home in which they maintain a room or significant presence for indefinite periods, are normally considered to be domiciled in the City until such time as they become self-supporting and meet other domicile determination factors as listed above. When a taxpayer has previously been domiciled in the City but whose domicile has changed, such change may be indicated as a part of the filing of their final Vandalia return. If a return is not required, a written notice should be submitted to the tax division with both current and previous addresses.
(e) "Employee" means one who works for wages, salary, commission or any other types of compensation in the service of an employer. Anyone for whom an employer is required to withhold for Federal, State or Social Security or Medicare purposes, or for whom worker's compensation premiums or unemployment tax contributions are required to be paid shall be considered an employee.
(f) "Employer" means an individual, partnership, corporation, including not-for-profit corporations, association, governmental agency or any other entity who or that employs one or more persons and pays, allocates or sets aside a salary, wage, commission or any other type of compensation. To be an employer does not require that business be conducted.
(g) "Federal Income Tax" means the tax required to be paid by a taxpayer pursuant to the Internal Revenue Code.
(h) "Federal Income Tax return" means the tax return filed by the taxpayer pursuant to the Internal Revenue Code.
(i) "Fiscal year" means an accounting period of 12 months or less ending on any day other than December 31. Only fiscal years accepted by the Internal Revenue Service for Federal income tax purposes may be used for City tax purposes.
(j) "Gross receipts" means total income from any source whatsoever. Gross receipts shall include, but not be limited to, income in the form of commissions, fees, rentals from real estate and tangible personal property, and other compensation for work done or services provided as well as income from sales of stock-in-trade.
(k) "Joint Economic Development District" means districts created under Ohio R.C. 715.70 and 715.71, as amended from time to time.
(l) "Net profit" for a taxpayer other than an individual means adjusted federal taxable income as defined in the Ohio Revised Code. "Net profit" for a taxpayer that is an individual means the profit required for federal tax purposes to be reported on Schedule C, Schedule E, Schedule F or any other schedule of income and expenses as reportable for federal income tax purposes. Such net profit generally is comprised of the net gain from the operation of a business, profession, enterprise or other activity carried on for profit or normally carried on for profit after provisions for ordinary and necessary expenses either paid or accrued in accordance with the accounting system used by the taxpayer for federal income tax purposes but without the deduction of taxes imposed by the Income Tax Ordinance or Federal, State or other taxes based on income, and in the case of an association or partnership, without the deduction of salaries, wages or other compensation or payments to partners or other owners. Net profits, as disclosed on any return filed pursuant to the Income Tax Ordinance and these Rules and Regulations, shall be calculated using the same accounting method used in reporting net income to the Federal Internal Revenue Service, provided that such method does not conflict with any provisions of the Income Tax Ordinance or the Ohio Revised Code; and such net profits must be reconciled with the income reported to the Federal Internal Revenue Service.
(m) "Ordinance", "this Ordinance", "the Ordinance" or "the Income Tax Ordinance" means Chapter 880 of the Codified Ordinances of the City of Vandalia, Ohio and any amendments or supplements thereto.
(n) "Other activity" means any undertaking, not otherwise specifically defined herein, which is normally entered into for profit, including, but not limited to, rental of real and personal property and a business conducted by a trust or guardianship estate.
(o) "Other entity" means any person, business or enterprise not otherwise specifically defined herein.
(p) "Partnership" means an association, joint venture or any form of unincorporated enterprise owned by two or more persons.
(q) "Person" means every natural person, partnership, fiduciary, association or corporation. Whenever used in any section prescribing and imposing a penalty or interest, the term "person" includes an officer or employee of a corporation, or a member or employee of a partnership, or in the case of an unincorporated entity not having a partner, member or officer, any employee or agent of such entity, who, as such officer, employee, agent or member, has control, supervision or is charged with the responsibility of tax law compliance or is under a duty to perform the act in respect of which the violation resulting in said penalty or interest occurs.
(r) "Place of business" means any office, factory, warehouse, storage area, distribution center, building or other space which is occupied or used by the taxpayer in carrying out any business activity.
(s) "Resident" means an individual domiciled in the City of Vandalia or any person who maintains a place of abode within the City for a total of 183 days or more within any 12-month period.
(t) "Resident unincorporated business entity" means an unincorporated business entity having a place of business within the City of Vandalia.
(u) "Taxable income" means qualifying wages, salaries, commissions and any other compensation earned, received, accrued or in any other way set apart by an employer or employers before any deduction other than ordinary and necessary business expenses as properly reported for federal income tax purposes and actually deducted for federal income tax purposes, and/or the net profits from the operation of a business, profession or other activity or enterprise adjusted in accordance with provisions of the Income Tax Ordinance and with these Rules and Regulations, and/or all other income from whatever source that is not exempt from municipal taxation per the Ohio Revised Code.
When used in these Rules and Regulations, the singular shall include the plural and the masculine shall include the feminine and neuter.
(Ord. 67-28. Passed 12-4-67; Ord. 02-24. Passed 12-23-02.)