As used in this ordinance, the following words shall have the meaning ascribed to them in this chapter, except as and if the context clearly indicates or requires a different
meaning.
ADJUSTED FEDERAL TAXABLE INCOME- means a C corporation's federal taxable income before net operating losses and special deductions as determined under the Internal Revenue Code, adjusted as follows:
(a) 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.
(b) Add an amount equal to five per cent of intangible income deducted under division (A)(1)(a) of Ohio Revised Code 718.01, 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;
(c) 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;
(d) (i) Except as provided in division (A)(1)(d)(ii) of Ohio Revised Code 718.01, 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 or 1231 of the Internal Revenue Code; (ii) Division (A)(1)(d)(i) of this section 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.
(e) Add taxes on or measured by net income allowed as a deduction in the computation of federal taxable income;
(f) 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;
(g) 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: (i) Guaranteed payments and other similar amounts paid or accrued to a partner, former partner, member, or former member shall not be allowed as a deductible expense; and (ii) 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.
ADMINISTRATOR- The individual designated by the ordinance, whether appointed or elected to administer and enforce the provisions of this chapter.
ASSOCIATION- A partnership, limited partnership, or any other form of unincorporated enterprise, owned by two or more persons.
BUSINESS - an enterprise, venture, transaction, 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.
CORPORATION - A corporation or joint stock association organized under the Jaws of the United States, the State of Ohio, or any other state, territory, or foreign country or dependency.
EMPLOYEE - One who works for wages, salary, commission or other type of compensation in the service of an employer.
EMPLOYER - 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.
FISCAL YEAR- An accounting period of twelve (12) months or Jess ending on any day other than December 31st.
GENERIC FORM - an electronic or paper form designed for reporting estimated municipal income taxes and annual municipal income tax liability that is not prescribed by a particular municipal corporation for the reporting of that municipal corporation's tax on income.
GROSS RECEIPTS - The total income from any source whatsoever.
INTERNET - the international computer network of both federal and nonfederal interoperable packet switched data networks, including the graphical subnetwork known as the world wide web.
NET PROFITS - A net gain from the operation of a business, profession, enterprise or other activity, venture or transaction after provision for all ordinary 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 ordinance, federal, state and other taxes based on income 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 ordinance.
For taxable years beginning on or after January 1, 2004, "net profit" for a taxpayer other than an individual means adjusted federal taxable income and "net profit" for a taxpayer who is an individual means the individual's profit, other than amounts described in section (A) immediately following this definition, required to be reported on schedule C, schedule E, or schedule F.
(A) The Village of Waverly shall not tax any of the following:
(1) The military pay or allowances of members of the armed forces of the United States and of members of their reserve components, including the Ohio National Guard;
(2) The income of religious, fraternal, charitable, scientific, literary, or educational institutions to the extent that such income is derived from tax- exempt real estate, tax-exempt tangible or intangible property, or tax-exempt activities;
(3) Except as otherwise provided in division (G) of Ohio Revised Code§ 718.01, intangible income;
(4) Compensation paid under section 3501.28 or 3501.36 of the Ohio Revised Code to a person serving as a precinct election official, to the extent that such compensation does not exceed one thousand dollars annually. Such compensation in excess of one thousand dollars may be subjected to taxation by a municipal corporation. A municipal corporation shall not require the payer of such compensation to withhold any tax from that compensation.
(5) Compensation paid to an employee of a transit authority, regional transit authority, or regional transit commission created under Chapter 306. of the Ohio Revised Code for operating a transit bus or other motor vehicle for the authority or commission in or through the municipal corporation, unless the bus or vehicle is operated on a regularly scheduled route, the operator is subject to such a tax by reason of residence or domicile in the municipal corporation, or the headquarters of the authority or commission is located within the municipal corporation;
(6) The income of a public utility, when that public utility is subject to the tax levied under section 5727.24 or 5727.30 of the Ohio Revised Code, except a municipal corporation may tax the following, subject to Chapter 5745. of the Revised Code: Beginning January 1, 2002, the income of an electric company or combined company; beginning January 1, 2004, the income of a telephone company.
(7) On and after January 1, 2003, items excluded from federal gross income pursuant to section 107 of the Internal Revenue Code;
(8) On and after January 1, 2001, compensation paid to a nonresident individual to the extent prohibited under section 718.011 of the Ohio Revised Code;
(9) (a) Except as provided in division (F)(9)(b) and (c) of Ohio Revised Code 718.01, an S corporation shareholder's distributive share of net profits of the S corporation, other than any part of the distributive share of net profits that represents wages as defined in section 3121(a) of the Internal Revenue Code or net earnings from self-employment as defined in section 1402(a) of the Internal Revenue Code. (b) :U: pursuant to division (H) of former section 718.01 of the Ohio Revised Code as it existed before the effective date of the amendment of that section by H.B. 127 of the 125th General Assembly, a majority of the electors of a municipal corporation voted in favor of the question at an election held on November 4, 2003, the municipal corporation may continue after 2002 to tax an S corporation shareholder's distributive share of net profits of an S corporation. (c). If on December 6, 2002, a municipal corporation was imposing, assessing, and collecting a tax on an S corporation shareholder's distributive share of net profits of the S corporation to the extent the distributive share would be allocated or apportioned to this state under divisions (B)(1) and (2) of section 5733.05 of the Ohio Revised Code if the S corporation were a corporation subject to taxes imposed under Chapter 5733. of the Revised Code, the municipal corporation may continue to impose the tax on such distributive shares to the extent such shares would be so allocated or apportioned to this state only until December 31, 2004, unless a majority of the electors of the municipal corporation voting on the question of continuing to tax such shares after that date vote in favor of that question at an election held November 2, 2004. If a majority of those electors vote in favor of the question, the municipal corporation may continue after December 31, 2004, to impose the tax on such distributive shares only to the extent such shares would be so allocated or apportioned to this state. (d) For the purposes of division (D) of section 718.14 of the Ohio Revised Code, a municipal corporation shall be deemed to have elected to tax S corporation shareholders' distributive shares of net profits of the S corporation in the hands of the shareholders if a majority of the electors of a municipal corporation vote in favor of a question at an election held under division (F)(9)(b) or (c) of this section. The municipal corporation shall specify by ordinance or rule that the tax applies to the distributive share of a shareholder of an S corporation in the hands of the shareholder of the S corporation.
(10) Employee compensation that is not "qualifying wages" as defined in section 718.03 of the Revised Code.
NON-RESIDENT - An individual domiciled outside the Village of Waverly.
NON-RESIDENT UNINCORPORATED BUSINESS ENTITY- An unincorporated business entity not having an office or place of business within the Village of Waverly.
OTHER PAYER - any person that pays an individual any item included in the taxable income of the individual, other than the individual's employer or that employer's agent
PERSON- Every natural person, partnership, fiduciary, association or corporation. Whenever used in any clause prescribing and imposing a penalty, the term "person" as applied to any unincorporated entity, shall mean the partners or members thereof; and as applied to corporations, the officers thereof.
PLACE OF BUSINESS - Any Bona Fide office (other than a mere statutory office), 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.
QUALIFYING WAGES- Wages, as defined in section 3121(a) of the Internal Revenue Code, without regard to any wage limitations, adjusted as follows:
(a) Deduct any amount included in wages if the amount constitutes compensation attributable to a plan or program described in section 125 of the Internal Revenue Code.
(b) Add the following amounts:
a. Any amount not included in wages solely because the employee was employed by the employer prior to April I, 1986;
b. Any amount not included in wages because the amount arises from the sale, exchange, or other disposition of a stock option, the exercise of a stock option, or the sale, exchange, or other disposition of stock purchased under a stock option and the municipal corporation has not, by resolution of ordinance, exempted the amount from withholding and tax. This section applies only to those amounts constituting ordinary income.
c. Any amount not included in wages if the amount is an amount described in section 401(k) or 457 of the Internal Revenue Code. This section only applies to employee contributions and employee deferrals.
d. Any amount that is supplemental unemployment compensation benefits described in section 3402(o)(2) of the Internal Revenue Code and not included in wages.
(c) Deduct any amount attributable to a nonqualified deferred compensation plan or program described in section 3121(v)(2)(C) of the Internal Revenue Code if the compensation is included in wages and has by resolution or ordinance been exempted from taxation by the municipal corporation.
(d) Deduct any amount included in wages if the amount arises from the sale, exchange, or other disposition of a stock option, the exercise of a stock option, or the sale, exchange, or other disposition of stock purchased under a stock option and the municipal corporation has, by resolution or ordinance, exempted the amount by withholding and tax.
RESIDENT- An individual domiciled in the Village of Waverly.
RESIDENT UNINCORPORATED BUSINESS ENTITY- An unincorporated business entity having an office or place of business within the Village of Waverly.
TAXABLE INCOME- Wages, salaries, and other compensations paid by an employer or employers before any deductions and/or the net profits from the operation of a business, profession or other enterprise or activity adjusted in accordance with the provisions of the ordinance.
TAXABLE YEAR- The calendar year, or the fiscal year upon the basis of which the net profits are to be computed under this ordinance and, in the case of a return for a fractional part of a year, the period for which such return is required to be made.
TAXPAYER- A person, whether an individual, partnership, association, or any corporation or other entity, required hereunder to file a return or pay a tax.
The singular shall include the plural, and the masculine shall include the feminine and the neuter.
(Ord. 78-2015. Passed 12-15-15.)
(Ord. 78-2015. Passed 12-15-15.)