(a) In the case of the residents of the Municipality of Wauseon, an annual tax of one and one-half percent is imposed on all salaries, wages, commissions and other compensation earned or accrued on or after October 1, 1970. For the purpose of determining the tax on the earnings of the resident taxpayers, tax under Section 191.02
(a), the source of the earnings and the place or places in or at which the services were rendered are immaterial. All such earnings, wherever earned or paid, are taxable. (Ord. 2015-18. Passed 12-21-15.)
(b) The following items which are subject to the tax:
(Res. 1970-14. Passed 8-24-70.)
(1) Salaries, wages, bonuses or incentive payments received by an individual, whether directly or through an agent and whether in cash or in property, for services rendered on and after October 1, 1970, and for all deferred or accrued benefits received on and after January 1, 1974.
(Res. 1973-18. Passed 12-3-73.)
A. As an officer, director or employee of a corporation, including charitable and other nonprofit corporations, joint stock association or joint stock company;
B. As an employee, as distinguished from a partner or member, of a partnership, limited partnership or any other form of unincorporated enterprise owned by one or more persons;
C. As an employee, as distinguished from the proprietor, of a business, trade or profession conducted by an individual owner;
D. As an officer or employee, whether elected, appointed or commissioned, of a governmental administration, agency, arm, authority, board, body, branch, bureau, department, division, subdivision, section or unit of the State of Ohio or any of the political subdivision thereof;
E. As an officer or employee, whether elected, appointed or commissioned, of a governmental administration, agency, arm, authority, board, body, branch, bureau, department, division, subdivision, section or unit of the United States Government or of a corporation created and owned or controlled by the United States Government or any of its agencies;
F. As an employee of any other entity or person.
(2) Wages, bonuses, or incentive payments received by an individual whether directly or through an agent and whether in cash or in property, for services rendered on and after October 1, 1970.
A. Whether based upon hourly, daily, weekly, semimonthly, monthly, annual unit of production or piecework rates; and
B. Whether paid by an individual, limited partnership, partnership, association, corporation, including charitable and other nonprofit corporations, governmental administration, agency, arm, authority, board, body, branch, department, division, subdivision, section or unit, or any other entity.
(Res. 1970-14. Passed 8-24-70.)
C. The ordinary income portion of a stock option or employee stock purchase plan is subject to the tax as a salary, wage, commission, or other compensation to the extent to which it is included upon the taxpayer's federal tax return.
(3) Commissions received by a taxpayer directly or through an agent and whether in cash or in property including commissions of every real estate sales person whose license is registered with a broker whose business is located within the City of Wauseon, Ohio, for services rendered on and after October 1, 1970, regardless of how computed by whom or wheresoever paid.
A. If amounts received as a drawing account exceed the commissions earned, the tax is payable on the gross amounts received.
B. Amounts received from an employer by way of expenses and not by way of compensation, and used as such by the individual receiving them, are not deemed to be compensation if the employer deducts such expense advances as such from his gross income for the purpose of determining his net profits taxable under the income tax ordinance.
C. If such commissions are included in the net earnings of a trade, business, profession, enterprise or activity regularly carried on by such individual and therefore subject to tax under Section 191.02(a)(3), they shall not again be separately taxed. In such case, such net earnings shall be taxed as provided in Section 193.11.
(Ord. 1988-74. Passed 10-17-88.)
(4) The receipt of fees and other compensation for personal services rendered shall be deemed to be subject to taxation under the Ordinance.
(5) Domestic servants are subject to Wauseon tax under the Ordinance but are not subject to withholding provisions. That is to say, the domestic will report earnings and pay the tax directly to the Wauseon Income Tax Department.
(Res. 1970-14. Passed 8-24-70.)