1. On all salaries, wages, commissions and other compensation earned during the effective period of the ordinance by residents of the Village of Waverly.
2. On all salaries, wages, commissions and other compensation earned during the effective period of the ordinance by nonresidents for work done or services performed or rendered in the Village of Waverly.
A. 12-day Occasional Entry Rule.
The Village of Waverly shalt not tax the compensation of an individual if all the following apply:
1) The individual does not reside in the Village of Waverly;
2) The compensation is paid for personal services performed by the individual in the Village of Waverly on twelve (12) or fewer days during the calendar year;
3) In the case of an individual who is an employee, the principal place of business of the individual's employer is located outside the Village of Waverly and the individual pays tax on compensation described in division (B) of this section to the Village, if any, in which the employer's principal place of business is located, and no portion of that tax is refunded to the individual;
4) The individual is not a professional entertainer or professional athlete, the promoter of a professional entertainment or sports event, or an employee of such a promoter, all as may be reasonably defined by the Village of Waverly.
B. For purposes of the 12-day calculation, "Day" means any part of a 24-hour calendar day where compensation is earned in the Village of Waverly.
C. Beginning with the thirteenth (13th) day, the individual shall no longer be considered an occasional entrant and is liable for taxes on income earned for the first twelve (12) days.
3. (a) On the portion attributable to the Village of Waverly of the net profits earned during the effective period of this ordinance 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 the Village of Waverly.
(b) On the portion attributable to the Village of Waverly of the net profits earned during the effective period of this ordinance of a resident partner or owner of a resident unincorporated business entity not attributable to the Village of Waverly and not levied against such unincorporated business entity.
4. (a) On the net profits attributable to the Village of Waverly of the net profits earned during the effective period of this ordinance on 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 the Village of Waverly, whether or not such unincorporated business entity has an office or place of business in the Village of Waverly.
(b) On the portion of the distributive share of the net profits earned during the effective period of the ordinance of a resident partner or owner of a non-resident unincorporated business entity not attributable to the Village of Waverly and not levied against such unincorporated business entity.
5. On the portion attributable to the Village of Waverly, of the net profits earned during the effective period of this ordinance of all corporations derived from sales made, work done, services performed or rendered and business or other activities conducted in the Village of Waverly, whether or not such corporations have an office or place of business in the Village of Waverly.
6. Amount received as gambling winnings and reported on IRS Form W-2G or Form 5754 and/or any other form from the Internal Revenue Service that reports winnings from gambling. Gambling includes but is not limited to bingo, keno, slot machines, casino games, horse racing, dog racing, jai alai, sweepstakes, wagering pools, lotteries, prizes and any other wagering transactions.
B. The portion of the net profits attributable to the Village of Waverly of a taxpayer conducting a business, profession or other activity both within and without the boundaries of the Village of Waverly shall be determined as provided in Section 718.02 of the Revised Code of Ohio and in accordance with the rules and regulations adopted by the Administrator pursuant to this ordinance.
C. Consolidated Returns.
l. Filing of consolidated returns may be permitted or required in accordance with the Rules and Regulations prescribed by the Administrator.
2. In the case of a corporation that carried on transactions with its stockholders 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 an activity within the Village of Waverly constituting a portion only of its total business, the Administrator shall require such additional information as he may deem necessary to ascertain whether net profits are properly allocated to the Village of Waverly. If the Administrator finds net profits are not properly allocated to the Village of Waverly by reason of transactions with stockholders or with other corporations related by stock ownership, interlocking directorates, or transactions with such divisions, branch, factory, office, laboratory or activity or by some other method, he shall make such allocation as he deems appropriate to produce a fair and proper allocation of net profits to the Village of Waverly.
D. Exclusions from Tax. The provisions of this chapter shall not be construed as levying a tax upon the following:
l. Poor relief, unemployment insurance benefits, old age pensions, or similar payments, including disability benefits received from local, state or federal governments or charitable, religious or educational organizations.
2. Proceeds of insurance paid by reason of the death of the insured, pensions, disability benefits, annuities or gratuities not in the nature of compensation for services rendered from whatever source derived.
3. Dues, contributions and similar payments received by charitable, religious educational organizations, labor unions, trade or professional associations, seasonal or casual entertainment, amusements, sports events and health and welfare activities when any such activities are conducted by a Bona Fide charitable, religious or educational organization or association.
4. Gains from involuntary conversions, cancellations of indebtedness and income of a decedent's estate during the period of administration (except such income from the operation of a business).
5. The Village of Waverly shall not tax 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; however, the Village of Waverly may tax the following, subject to Chapter 5745 of the Ohio Revised Code:
a. Beginning January I, 2002, the income of an electric company or combined company;
b. Beginning January I, 2004, the income of a telephone company
c. "Combined company," "electric company," and ''telephone company" have the same meanings as in section 5727.01 of the Ohio Revised Code.
E. Allocation Formula.
a. Net profit from a business or profession conducted both within and without the boundaries of a municipal corporation shall be considered as having a taxable situs in such municipal corporation for purposes of municipal income taxation in the same proportion as the average ratio of the following:
i. The average original cost of the real and tangible personal property owned or used by the taxpayer in the business or profession in such municipal corporation during the taxable period to the average original cost of all the real and tangible personal property owned or used by the taxpayer in the business or profession during the same period, wherever situated;
As used in the preceding paragraph, real property shall include property rented or leased by the taxpayer and the value of such property shall be determined by multiplying the annual rental thereon by eight;
ii. Wages, salaries, and other compensation paid during the taxable period to persons employed in the business or profession for services performed in such municipal corporation to wages, salaries, and other compensation paid during the same period to persons employed in the business or profession, wherever their services are performed, excluding compensation that is not taxable by the municipal corporation under section 7I8.011 of the Ohio Revised Code;
iii. Gross receipts of the business or profession from sales made and services performed during the taxable period in such municipal corporation to gross receipts of the business or profession during the same period from sales and services, wherever made or performed.
If the foregoing apportionment formula does not produce an equitable result, another basis may be substituted, under uniform regulations, so as to produce an equitable result.
(Ord. 78-2015. Passed 12-15-15.)