(A) Subject to the provisions of § 39.16 of this chapter, an annual tax for the purposes specified in § 39.01 hereof shall be imposed on and after January 1, 1974 at the rate of 1% per annum and after July 1, 1997 at the rate of 1.5% per annum, and after January 1, 2000 at the rate of 1.72% per annum upon the following:
(1) On all salaries, wages, commissions and other compensation earned during the effective period of this chapter by residents of this municipality.
(2) On all salaries, wages, commissions and other compensation earned during the effective period of this chapter by non-residents for work done or services performed or rendered in this municipality.
(3) (a) On the portion attributable to this municipality of the net profits earned during the effective period of this chapter of all resident unincorporated businesses, professions or other entities derived from sales made, work done, services performed or rendered and business or other activities conducted in this municipality.
(b) On the portion of the distributive share of the net profits earned during the effective period of this chapter of a resident partner or owner of a resident unincorporated business entity not attributable to this municipality and not levied against such unincorporated business entity by this municipality.
(4) (a) On the portion attributable to this municipality of the net profits earned during the effective period of this chapter of all non-resident unincorporated businesses, professions, or other entities derived from sales made, work done, or services performed or rendered and business or other activities conducted in this municipality, whether or not such unincorporated business entity has an office or place of business in this municipality.
(b) On the portion of the distributive share of the net profits earned during the effective period of this ordinance of a resident partner or owner of a non-resident unincorporated business entity not attributable to this municipality and not levied against such unincorporated business entity by this municipality.
(5) On the portion attributable to this municipality, of the net profits earned during the effective period of this chapter of all corporations derived from sales made, work done, services performed or rendered and business or other activities conducted in this municipality whether or not such corporations have an office or place of business in this municipality.
(B) The portion of the net profits attributable to this municipality of a taxpayer conducting a business, profession or other activity both within and without the boundaries of this municipality shall be determined as provided in R.C. § 718.02 and in accordance with the rules and regulations adopted by the Administrator pursuant to this chapter.
(C) Treatment of net operating loss.
(1) Commencing with tax returns for years beginning after December 31, 2008, the net less from a business entity may not be used to offset salaries, wages, commissions, or the net income from any other entity or activity.
(2) Commencing with tax returns for years beginning after December 31, 2008, no net operating loss carry forward will be allowed.
(3) The Administrator shall provide by rules and regulations the manner in which existing net operating loss carried-forward shall be determined.
(D) Consolidated returns.
(1) Filing of consolidated returns may be permitted, required or denied in accordance with rules and regulations prescribed by the Administrator.
(2) In the case of a corporation that carries on transactions with its stock holders or with other corporations related by stock ownership, interlocking directorates, or some other method, or in case any person operates a division, branch, factory, office, laboratory or activity within this municipality constituting a portion only of its total business, the Administrator shall require such additional information as he or she may deem necessary to ascertain whether net profits are properly allocated to this municipality by reason of transactions with stock holders or with other corporations related by stock ownership, interlocking directorates, or transactions with such division, branch, factory, office, laboratory or activity by some other method, he or she shall make such allocation as he or she deems appropriate to produce a fair and proper allocation of net profits to this municipality.
(E) Exceptions.
(1) The tax provided for herein shall not be levied upon the active military pay or allowances of members of the Armed Forces of the United States, or upon the net profits of any civic, charitable, religious, fraternal or other organization specified in R.C. § 718.01 to the extent that such net profits are exempted from municipal income taxes under said section;
(2) Interest and dividends from intangible property;
(3) Poor relief benefits, old age pensions or similar payments including disability benefits received from local, state or federal government or charitable, religious or educational organizations;
(4) Capital gains as described by the Federal Revenue Code, excluding recapture of depreciation and ordinary gains;
(5) Proceeds of insurance not in the nature of compensation for services rendered by an employee for or to an employer;
(6)Receipts from seasonal or casual entertainment activities, amusements, sports events and heath, welfare and educational activities;
(7) Winnings from games of chance including lotteries, bingo, raffles, gambling, promotions, etc. in an amount less than $10,000;
(8) Rental or leasing activity producing gross income of $1000 or less per year;
(9) Other business activities producing gross receipts of $500 or less per year or less per year. Business activities producing less than $500 in gross receipts per year will be considered hobbies for that tax year and the net profit or loss from such activities will not be subject to the tax on the net profit realized from such hobby activity nor will a net loss be allowed due to such hobby activity.
(Ord. 5818-82, passed 3-8-1982; Am. Ord. 6372-89, passed 1-8-1990; Am. Ord. 6398-90, passed 5-21-1990; Am. Ord. 6686-95, passed 11-27-1995; Am. Ord. 6749-96, passed 1-27-1997; Am. Ord. 7000-99, passed 8-9-1999; Am. Ord. 02-02-008, passed 2-11-2002; Am. Ord. 08-11-080, passed 12-8-2008)