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Wellston Overview
Wellston, OH Code of Ordinances
WELLSTON, OHIO CODE OF ORDINANCES
TITLE I: GENERAL PROVISIONS
TITLE III: ADMINISTRATION
TITLE V: PUBLIC WORKS
TITLE VII: TRAFFIC CODE
TITLE IX: GENERAL REGULATIONS
TITLE XI: BUSINESS REGULATIONS
TITLE XIII: GENERAL OFFENSES
TITLE XV: LAND USAGE
TABLE OF SPECIAL ORDINANCES
PARALLEL REFERENCES
CHAPTER 39: INCOME TAX
Section
   39.01   Authority to levy tax; purpose of tax
   39.02   Definitions
   39.03   Imposition of tax
   39.04   Collection at source
   39.05   Annual return; filing
   39.06   Credit for tax paid to other municipalities
   39.07   Estimated taxes
   39.08   Rounding of amounts
   39.09   Requests for refunds
   39.10   Second municipality imposing tax after time period allowed for refund
   39.11   Amended returns
   39.12   Limitations
   39.13   Audits
   39.14   Service of assessment
   39.15   Administration of claims
   39.16   Tax information confidential
   39.17   Fraud
   39.18   Interest and penalties
   39.19   Authority of Tax Administrator; verification of information
   39.20   Request for opinion of the Tax Administrator
   39.21   Board of Tax Review
   39.22   Authority to create rules and regulations
   39.23   Collection of tax after termination of chapter
   39.24   Adoption of RITA rules and regulations
   39.25   Election to be subject to R.C. 718.80 to 718.95
 
   39.99   Penalty
§ 39.01 AUTHORITY TO LEVY TAX; PURPOSE OF TAX.
   (A)   To provide funds for the purposes of general municipal operations, maintenance, new equipment, extension and enlargement of municipal services and facilities and capital improvements, the city hereby levies an annual municipal income tax on income, qualifying wages, commissions and other compensation and on net profits as hereinafter provided.
   (B)   The annual tax is levied at a rate of 1%. The tax is levied at a uniform rate on all persons residing in, or earning or receiving income in, the city. The tax is levied on income, qualifying wages, commissions and other compensation and on net profits as hereinafter provided in § 39.03 and other sections as they may apply.
   (C)   The tax on income and the withholding tax established by this chapter are authorized by Article XVIII, § 3 of the State Constitution. The tax is levied in accordance with, and is intended to be consistent with, the provisions and limitations of R.C. § 718.
(Ord. 2015-082, passed 10-15-2015)
§ 39.02 DEFINITIONS.
   (A)   Any term used in this chapter that is not otherwise defined in this chapter has the same meaning as when used in a comparable context in laws of the United States relating to federal income taxation or in R.C. Title 57, unless a different meaning is clearly required. If a term used in this chapter that is not otherwise defined in this chapter is used in a comparable context in both the laws of the United States relating to federal income tax and in R.C. Title 57 and the use is not consistent, then the use of the term in the laws of the United States relating to federal income tax shall control over the use of the term in R.C. Title 57.
   (B)   The singular shall include the plural, and the masculine shall include the feminine and the gender-neutral.
   (C)   For the purpose of this chapter, the following definitions shall apply unless the context clearly indicates or requires a different meaning.
      (1)   ADJUSTED FEDERAL TAXABLE INCOME. For a person required to file as a C corporation, or for a person that has elected to be taxed as a C corporation under (C)(24)(d) below, 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 5% of intangible income deducted under division (C)(1)(a) above, but excluding that portion of intangible income directly related to the sale, exchange or other disposition of property described in § 1221 of the Internal Revenue Code, being 26 U.S.C. § 1221;
         (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 §§ 1221 or 1231 of the Internal Revenue Code, being 26 U.S.C. §§ 1221 or 1231;
         (d)   1.   Except as provided in (C)(1)(d)2. below, 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 §§ 1221 or 1231 of the Internal Revenue Code, being 26 U.S.C. §§ 1221 or 1231; and
            2.   Division (C)(1)(d)1. above does not apply to the extent the income or gain is income or gain described in §§ 1245 or 1250 of the Internal Revenue Code, being 26 U.S.C. §§ 1245 or 1250.
         (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 or 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)   Deduct, to the extent not otherwise deducted or excluded in computing federal taxable income, any income derived from a transfer agreement or from the enterprise transferred under that agreement under R.C. § 4313.02;
         (h)   1.   Except as limited by divisions (C)(1)(h)2. through (C)(1)(h)4. below, deduct any net operating loss incurred by the person in a taxable year beginning on or after January 1, 2017. The amount of such net operating loss shall be deducted from net profit that is reduced by exempt income to the extent necessary to reduce municipal taxable income to zero, with any remaining unused portion of the net operating loss carried forward to not more than five consecutive taxable years following the taxable year in which the loss was incurred, but in no case for more years than necessary for the deduction to be fully utilized.
            2.   No person shall use the deduction allowed by this division (C)(1)(h) to offset qualifying wages.
            3.   a.   For taxable years beginning in 2018, 2019, 2020, 2021 or 2022, a person may not deduct, for purposes of an income tax levied by a municipal corporation that levies an income tax before January 1, 2016, more than 50% of the amount of the deduction otherwise allowed by division (C)(1)(h)1. above.
               b.   For taxable years beginning in 2023 or thereafter, a person may deduct, for purposes of an income tax levied by a municipal corporation that levies an income tax before January 1, 2016, the full amount allowed by (C)(1)(h)1. above.
            4.   Any pre-2017 net operating loss carryforward deduction that is available must be utilized before a taxpayer may deduct any amount pursuant to this division (C)(1)(h).
            5.   Nothing in division (C)(1)(h)3.a. above precludes a person from carrying forward, use with respect to any return filed for a taxable year beginning after 2018, any amount of net operating loss that was not fully utilized by operation of division (C)(1)(h)3.a. above. To the extent that an amount of net operating loss that was not fully utilized in one or more taxable years by operation of division (C)(1)(h)3.a. above is carried forward for use with respect to a return filed for a taxable year beginning in 2019, 2020, 2021 or 2022, the limitation described in division (C)(1)(h)3.a. above shall apply to the amount carried forward.
         (i)   Deduct any net profit of a pass-through entity owned directly or indirectly by the taxpayer and included in the taxpayer’s federal taxable income unless an affiliated group of corporations includes that net profit in the group’s federal taxable income in accordance with § 39.05(V)(3)(b); and
         (j)   Add any loss incurred by a pass-through entity owned directly or indirectly by the taxpayer and included in the taxpayer’s federal taxable income, unless an affiliated group of corporations includes that loss in the group’s federal taxable income in accordance with § 39.05(V)(3)(b). If the taxpayer is not a C corporation, is not a disregarded entity that has made an election described in division (C)(48)(b) below, is not a publicly traded partnership that has made the election described in division (C)(24)(d) below, and is not an individual, the taxpayer shall compute ADJUSTED FEDERAL TAXABLE INCOME under this section as if the taxpayer were a C corporation, except guaranteed payments and other similar amounts paid or accrued to a partner, former partner, shareholder, former shareholder, member or former member shall not be allowed as a deductible expense unless such payments are in consideration for the use of capital and treated as payment of interest under § 469 of the Internal Revenue Code, being 26 U.S.C. § 469 or United States treasury regulations. Amounts paid or accrued to a qualified self-employed retirement plan with respect to a partner, former partner, shareholder, former shareholder, member or former member of the taxpayer, amounts paid or accrued to or for health insurance for a partner, former partner, shareholder, former shareholder, member or former member, and amounts paid or accrued to or for life insurance for a partner, former partner, shareholder, former shareholder, member or former member shall not be allowed as a deduction. Nothing in this division (C)(1) shall be construed as allowing the taxpayer to add or deduct any amount more than once or shall be construed as allowing any taxpayer to deduct any amount paid to or accrued for purposes of federal self-employment tax.
      (2)   ASSESSMENT.
         (a)   A written finding by the Tax Administrator that a person has underpaid municipal income tax, or owes penalty and interest, or any combination of tax, penalty or interest to the municipal corporation that commences the person’s time limitation for making an appeal to the Board of Tax Review pursuant to § 39.21, and has “ASSESSMENT” written in all capital letters at the top of such finding.
         (b)   ASSESSMENT does not include a notice denying a request for refund issued under § 39.09(C)(3), a billing statement notifying a taxpayer of current or past-due balances owed to the municipal corporation, a Tax Administrator’s request for additional information, a notification to the taxpayer of mathematical errors or a Tax Administrator’s other written correspondence to a person or taxpayer that does not meet the criteria prescribed by division (C)(2)(a) above.
      (3)   AUDIT. The examination of a person or the inspection of the books, records, memoranda or accounts of a person ordered to appear before the Tax Administrator for the purpose of determining liability for a municipal income tax.
      (4)   BOARD OF TAX REVIEW, BOARD OF REVIEW, BOARD OF TAX APPEALS OR OTHER NAMED LOCAL BOARD CONSTITUTED TO HEAR APPEALS OF MUNICIPAL INCOME TAX MATTERS. The entity created under § 39.21.
      (5)   CALENDAR QUARTER. The three-month period ending on the last day of March, June, September or December.
      (6)   CASINO OPERATOR and CASINO FACILITY. Have the same meanings as in R.C. § 3772.01.
      (7)   CERTIFIED MAIL, EXPRESS MAIL, UNITED STATES MAIL, POSTAL SERVICE AND SIMILAR TERMS. Include any delivery service authorized pursuant to R.C. § 5703.056.
      (8)   DISREGARDED ENTITY. A single member limited liability company, a qualifying subchapter S subsidiary or another entity if the company, subsidiary or entity is a disregarded entity for federal income tax purposes.
      (9)   DOMICILE. The true, fixed and permanent home of a taxpayer and to which, whenever absent, the taxpayer intends to return. A taxpayer may have more than one residence but not more than one DOMICILE.
      (10)   EMPLOYEE. An individual who is an employee for federal income tax purposes.
      (11)   EMPLOYER. A person that is an employer for federal income tax purposes.
      (12)   EXEMPT INCOME. All of the following:
         (a)   The military pay or allowances of members of the armed forces of the United States or members of their reserve components, including the national guard of any state;
         (b)   Intangible income. However, a municipal corporation that taxed any type of intangible income on March 29, 1988, pursuant to § 3 of S.B. 23S of the 116th General Assembly, may continue to tax that type of income if a majority of the electors of the municipal corporation voting on the question of whether to permit the taxation of that type of intangible income after 1988 voted in favor thereof at an election held on November 8, 1988;
         (c)   Social Security benefits, railroad retirement benefits, unemployment compensation, pensions, retirement benefit payments, payments from annuities and similar payments made to an employee or to the beneficiary of an employee under a retirement program or plan, disability payments received from private industry or local, state or federal governments or from charitable, religious or educational organizations, and the proceeds of sickness, accident or liability insurance policies. As used in this division (C)(12)(c), UNEMPLOYMENT COMPENSATION does not include supplemental unemployment compensation described in § 3402(o)(2) of the Internal Revenue Code, being 26 U.S.C. § 3402(o)(2);
         (d)   The income of religious, charitable, scientific, literary or educational institutions to the extent such income is derived from tax-exempt real estate, tax-exempt tangible or intangible property or tax-exempt activities;
         (e)   Compensation paid under R.C. §§ 3501.28 or 3501.36 to a person serving as a precinct election official, to the extent that such compensation does not exceed $1,000 for the taxable year. Such compensation in excess of $1,000 for the taxable year may be subject to taxation by a municipal corporation. A municipal corporation shall not require the payer of such compensation to withhold any tax from that compensation;
         (f)   Dues, contributions and similar payments received by charitable, religious, educational or literary organizations or labor unions, lodges and similar organizations;
         (g)   Alimony and child support received;
         (h)   Compensation for personal injuries or for damages to property from insurance proceeds or otherwise, excluding compensation paid for lost salaries or wages or compensation from punitive damages;
         (i)   Income of a public utility when that public utility is subject to the tax levied under R.C. §§ 5727.24 or 5727.30. This division (C)(12)(i) does not apply for purposes of R.C. Chapter 5745;
         (j)   Gains from involuntary conversions, interest on federal obligations, items of income subject to a tax levied by the state and that a municipal corporation is specifically prohibited by law from taxing, and income of a decedent’s estate during the period of administration, except such income from the operation of a trade or business;
         (k)   Compensation or allowances excluded from federal gross income under § 107 of the Internal Revenue Code, being 26 U.S.C. § 107;
         (l)   Employee compensation that is not qualifying wages as defined in division (C)(35) below;
         (m)   Compensation paid to a person employed within the boundaries of a United States air force base under the jurisdiction of the United States air force that is used for the housing of members of the United States air force and is a center for air force operations, unless the person is subject to taxation because of residence or domicile. If the compensation is subject to taxation because of residence or domicile, tax on such income shall be payable only to the municipal corporation of residence or domicile;
         (n)   An S corporation shareholder’s share of net profits of the S corporation, other than any part of the share of net profits that represents wages as defined in § 3121(a) of the Internal Revenue Code, being 26 U.S.C. § 3121(a) or net earnings from self-employment as defined in § 1402(a) of the Internal Revenue Code, being 26 U.S.C. § 1402(a);
         (o)   To the extent authorized under an ordinance adopted by the city before January 1, 2016, all or a portion of the income of individuals or a class of individuals under 18 years of age;
         (p)   1.   Except as provided in divisions (C)(12)(p)2. through 4. below, qualifying wages described in division § 39.04(C)(2) or (C)(5) to the extent the qualifying wages are not subject to withholding for the city under either of those divisions.
            2.   The exemption provided in division (C)(12)(p)1. above does not apply with respect to the municipal corporation in which the employee resided at the time the employee earned the qualifying wages.
            3.   The exemption provided in division (C)(12)(p)1. above does not apply to qualifying wages that an employer elects to withhold under § 39.04(C)(4)(b).
            4.   The exemption provided in division (C)(l2)(p)1. above does not apply to qualifying wages if both of the following conditions apply:
               a.   For qualifying wages described in division § 39.04(C)(2), the employee’s employer withholds and remits tax on the qualifying wages to the municipal corporation in which the employer’s fixed location is located; and
               b.   The employee receives a refund of the tax described in division (C)(12)(p)4.a. above on the basis of the employee not performing services in that municipal corporation.
         (q)   1.   Except as provided in division (C)(l2)(q)2. or 3. below, compensation that is not qualifying wages paid to a nonresident individual for personal services performed in the city on not more than 20 days in a taxable year.
            2.   The exemption provided in this division (C)(l2)(q)2. does not apply under either of the following circumstances:
               a.   The individual’s base of operation is located in the municipal corporation; or
               b.   The individual is a professional athlete, professional entertainer or public figure, and the compensation is paid for the performance of services in the individual’s capacity as a professional athlete, professional entertainer or public figure. For purposes of this division (C)(12)(q)2.b., PROFESSIONAL ATHLETE, PROFESSIONAL ENTERTAINER and PUBLIC FIGURE have the same meanings as in § 39.04(C).
            3.   Compensation to which this division (C)(12)(q) applies shall be treated as earned or received at the individual’s base of operation. If the individual does not have a base of operation, the compensation shall be treated as earned or received where the individual is domiciled.
            4.   For purposes of this division (C)(12)(q), BASE OF OPERATION means the location where an individual owns or rents an office, storefront or similar facility to which the individual regularly reports and at which the individual regularly performs personal services for compensation.
         (r)   Compensation paid to a person for personal services performed for a political subdivision on property owned by the political subdivision, regardless of whether the compensation is received by an employee of the subdivision or another person performing services for the subdivision under a contract with the subdivision, if the property on which services are performed is annexed to a municipal corporation pursuant to R.C. § 709.023 on or after March 27, 2013, unless the person is subject to such taxation because of residence. If the compensation is subject to taxation because of residence, municipal income tax shall be payable only to the municipal corporation of residence;
         (s)   The taxation of income which is prohibited by the Constitution or laws of the United States; and
         (t)   Any item of income that is exempt income of a pass-through entity under division (C) of this section is exempt income of each owner of the pass-through entity to the extent of that owner’s distributive or proportionate share of that item of the entity’
      (13)   FORM 2106. Internal revenue service form 2106 filed by a taxpayer pursuant to the Internal Revenue Code.
      (14)   GENERIC FORM. An electronic or paper form that is not prescribed by a particular municipal corporation and that is designed for reporting taxes withheld by an employer, agent of an employer or other payer, estimated municipal income taxes or annual municipal income tax liability or for filing a refund claim.
      (15)   GROSS RECEIPTS. The total revenue derived from sales, work done or service rendered.
      (16)   INCOME. Includes the following.
         (a)   1.   For residents, all income, salaries, qualifying wages, commissions and other compensation from whatever source earned or received by the resident, including the resident’s distributive share of the net profit of pass-through entities owned directly or indirectly by the resident and any net profit of the resident, except as provided in (C)(24)(d) below.
            2.   For the purposes of division (C)(l6)(a)1. above:
               a.   Any net operating loss of the resident incurred in the taxable year and the resident’s distributive share of any net operating loss generated in the same taxable year and attributable to the resident’s ownership interest in a pass-through entity shall be allowed as a deduction, for that taxable year and the following five taxable years, against any other net profit of the resident or the resident’s distributive share of any net profit attributable to the resident’s ownership interest in a pass-through entity until fully utilized, subject to division (C)(16)(a)4. below; and
               b.   The resident’s distributive share of the net profit of each pass-through entity owned directly or indirectly by the resident shall be calculated without regard to any net operating loss that is carried forward by that entity from a prior taxable year and applied to reduce the entity’s net profit for the current taxable year.
            3.   Division (C)(16)(a)2. above does not apply with respect to any net profit or net operating loss attributable to an ownership interest in an S corporation unless shareholders’ shares of net profits from S corporations are subject to tax in the municipal corporation as provided in division (C)(12)(n) above or (C)(16)(c) below.
            4.   Any amount of a net operating loss used to reduce a taxpayer’s net profit for a taxable year shall reduce the amount of net operating loss that may be carried forward to any subsequent year for use by that taxpayer. In no event shall the cumulative deductions for all taxable years with respect to a taxpayer’s net operating loss exceed the original amount of that net operating loss available to that taxpayer.
         (b)   In the case of nonresidents, all income, salaries, qualifying wages, commissions and other compensation from whatever source earned or received by the nonresident for work done, services performed or rendered, or activities conducted in the municipal corporation, including any net profit of the nonresident, but excluding the nonresident’s distributive share of the net profit or loss of only pass-through entities owned directly or indirectly by the nonresident;
         (c)   For taxpayers that are not individuals, net profit of the taxpayer; and
         (d)   Lottery, sweepstakes, gambling and sports winnings, winnings from games of chance, and prizes and awards. If the taxpayer is a professional gambler for federal income tax purposes, the taxpayer may deduct related wagering losses and expenses to the extent authorized under the Internal Revenue Code and claimed against such winnings.
      (17)   INTANGIBLE INCOME. Income of any of the following types: income yield, interest, capital gains, dividends or other income arising from the ownership, sale, exchange or other disposition of intangible properly including, but not limited to, investments, deposits, money or credits as those terms are defined in R.C. § 5701, and patents, copyrights, trademarks, trade names, investments in real estate investment trusts, investments in regulated investment companies and appreciation on deferred compensation. INTANGIBLE INCOME does not include prizes, awards or other income associated with any lottery winnings, gambling winnings or other similar games of chance.
      (18)   INTERNAL REVENUE CODE. Has the same meaning as in R.C. § 5747.01.
      (19)   LIMITED LIABILITY COMPANY. A limited liability company formed under R.C. § 1705 or under the laws of another state.
      (20)   MUNICIPAL CORPORATION. Includes a joint economic development district or joint economic development zone that levies an income tax under R.C. §§ 715.691, 715.70, 715.71 or 715.74.
      (21)   MUNICIPAL TAXABLE INCOME. 
         (a)   Includes the following:
            1.   For a person other than an individual, income reduced by exempt income to the extent otherwise included in income and then, as applicable, apportioned or sitused to the city under § 39.03, and further reduced by any pre-2017 net operating loss carryforward available to the person for the city; and
            2.   a.   For an individual who is a resident of the city, income reduced by exempt income to the extent otherwise included in income, then reduced as provided in division (C)(21)(b) below, and further reduced by any pre-2017 net operating loss carryforward available to the individual for the municipal corporation.
               b.   For an individual who is a nonresident of the city, income reduced by exempt income to the extent otherwise included in income and then, as applicable, apportioned or sitused to the municipal corporation under § 39.03, then reduced as provided in division (C)(21)(b) below, and further reduced by any pre-2017 net operating loss carryforward available to the individual for the city.
         (b)   In computing the municipal taxable income of a taxpayer who is an individual, the taxpayer may subtract, as provided in division (C)(21)(a)2.a. or this division (C)(21)(b), the amount of the individual’s employee business expenses reported on the individual’s form 2106 that the individual deducted for federal income tax purposes for the taxable year, subject to the limitation imposed by § 67 of the Internal Revenue Code, being 26 U.S.C. § 67. For the municipal corporation in which the taxpayer is a resident, the taxpayer may deduct all such expenses allowed for federal income tax purposes, but to the extent the expenses do not relate to exempt income. For a municipal corporation in which the taxpayer is not a resident, the taxpayer may deduct such expenses only to the extent the expenses are related to the taxpayer’s performance of personal services in that nonresident municipal corporation and are not related to exempt income.
      (22)   MUNICIPALITY. The City of Wellston. If the term is capitalized in the chapter, they are referring to Wellston. If not capitalized, they refer to a municipal corporation other than Wellston.
      (23)   NET OPERATING LOSS. A loss incurred by a person in the operation of a trade or business. NET OPERATING LOSS does not include unutilized losses resulting from basis limitations, at-risk limitations or passive activity loss limitations.
      (24)   NET PROFIT.
         (a)   For a person other than an individual, means adjusted federal taxable income.
         (b)   NET PROFIT for a person who is an individual means the individual’s net profit required to be reported on schedule C, schedule E or schedule F reduced by any net operating loss carried forward. For the purposes of this division (C)(24)(b), the net operating loss carried forward shall be calculated and deducted in the same manner as provided in division (C)(1)(h) above.
         (c)   For the purposes of this chapter, and notwithstanding division (C)(24)(a) above, net profit of a disregarded entity shall not be taxable as against that disregarded entity, but shall instead be included in the net profit of the owner of the disregarded entity.
         (d)   A publicly traded partnership that is treated as a partnership for federal income tax purposes, and that is subject to tax on its net profits by the city, may elect to be treated as a C corporation for the city. The election shall be made on the annual return for the city. The city will treat the publicly traded partnership as a C corporation if the election is so made.
      (25)   NONRESIDENT. An individual that is not a resident.
      (26)   OHIO BUSINESS GATEWAY. The online computer network system, created under R.C. § 125.20, that allows persons to electronically file business reply forms with state agencies and includes any successor electronic filing and payment system.
      (27)   OTHER PAYER. Any person, other than an individual’s employer or the employer’s agent, that pays an individual any amount included in the federal gross income of the individual. OTHER PAYER includes casino operators and video lottery terminal sales agents.
      (28)   PASS-THROUGH ENTITY. A partnership not treated as an association taxable as a C corporation for federal income tax purposes, a limited liability company not treated as an association taxable as a C corporation for federal income tax purposes, an S corporation, or any other class of entity from which the income or profits of the entity are given pass-through treatment for federal income tax purposes. PASS-THROUGH ENTITY does not include a trust, estate, grantor of a grantor trust or disregarded entity.
      (29)   PENSION. Any amount paid to an employee or former employee that is reported to the recipient on an IRS form 1099-R or successor form. PENSION does not include deferred compensation, or amounts attributable to nonqualified deferred compensation plans, reported as FICA/Medicare wages on an IRS form W-2, Wage and Tax Statement, or successor form.
      (30)   PERSON. Includes individuals, firms, companies, joint stock companies, business trusts, estates, trusts, partnerships, limited liability partnerships, limited liability companies, associations, C corporations, S corporations, governmental entities and any other entity.
      (31)   POSTAL SERVICE. The United States postal service.
      (32)   POSTMARK DATE, DATE OF POSTMARK AND SIMILAR TERMS. Include the date recorded and marked in the manner described in R.C. § 5703.056 (B)(3).
      (33)   PRE-2017 NET OPERATING LOSS CARRYFORWARD. 
         (a)   Any net operating loss incurred in a taxable year beginning before January 1, 2017, to the extent such loss was permitted, by a resolution or ordinance of the municipal corporation that was adopted by the municipal corporation before January 1, 2016, to be carried forward and utilized to offset income or net profit generated in such municipal corporation in future taxable years.
         (b)   For the purpose of calculating municipal taxable income, any pre-2017 net operating loss carryforward may be carried forward to any taxable year, including taxable years beginning in 2017 or thereafter, for the number of taxable years provided in the resolution or ordinance or until fully utilized, whichever is earlier.
      (34)   PUBLICLY TRADED PARTNERSHIP. Any partnership, an interest in which is regularly traded on an established securities market. A PUBLICLY TRADED PARTNERSHIP may have any number of partners.
      (35)   QUALIFYING WAGES. Wages, as defined in § 3121(a) of the Internal Revenue Code, being 26 U.S.C. § 3121(a), without regard to any wage limitations, adjusted as follows:
         (a)   Deduct the following amounts:
            1.   Any amount included in wages if the amount constitutes compensation attributable to a plan or program described in § 125 of the Internal Revenue Code, being 26 U.S.C. § 125;
            2.   Any amount included in wages if the amount constitutes payment on account of a disability related to sickness or an accident paid by a party unrelated to the employer, agent of an employer or other payer; and
            3.   Any amount included in wages that is exempt income.
         (b)   Add the following amounts:
            1.   Any amount not included in wages solely because the employee was employed by the employer before April 1, 1986;
            2.   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 or ordinance, exempted the amount from withholding and tax adopted before January 1, 2016. This division (C)(35)(b)2. applies only to those amounts constituting ordinary income;
            3.   Any amount not included in wages if the amount is an amount described in §§ 401(k), 403(b) or 457 of the Internal Revenue Code, being 26 U.S.C. §§ 401(k), 403(b) or 457. Division (C)(35)(b)2. above applies only to employee contributions and employee deferrals;
            4.   Any amount that is supplemental unemployment compensation benefits described in § 3402(o)(2) of the Internal Revenue Code, being 26 U.S.C. § 3402(o)(2) and not included in wages;
            5.   Any amount received that is treated as self-employment income for federal tax purposes in accordance with § 1402(a)(8) of the Internal Revenue Code, being 26 U.S.C. § 1402(a)(8); and
            6.   Any amount not included in wages if all of the following apply:
               a.   For the taxable year the amount is employee compensation that is earned outside the United States and that either is included in the taxpayer’s gross income for federal income tax purposes or would have been included in the taxpayer’s gross income for such purposes if the taxpayer did not elect to exclude the income under § 911 of the Internal Revenue Code, being 26 U.S.C. § 911;
               b.   For no preceding taxable year did the amount constitute wages as defined in § 3121(a) of the Internal Revenue Code, being 26 U.S.C. § 3121(a);
               c.   For no succeeding taxable year will the amount constitute wages; and
               d.   For any taxable year the amount has not otherwise been added to wages pursuant to either this division (C)(35)(b) of this section or § 39.04, as that section existed before the effective date of H.B. 5 of the 130th General Assembly, March 23, 2015.
      (36)   RELATED ENTITY. Any of the following:
         (a)   An individual stockholder, or a member of the stockholder’s family enumerated in § 318 of the Internal Revenue Code, being 26 U.S.C. § 318, if the stockholder and the members of the stockholder’s family own directly, indirectly, beneficially or constructively, in the aggregate, at least 50% of the value of the taxpayer’s outstanding stock;
         (b)   A stockholder, or a stockholder’s partnership, estate, trust or corporation, if the stockholder and the stockholder’s partnerships, estates, trusts or corporations own directly, indirectly, beneficially or constructively, in the aggregate, at least 50% of the value of the taxpayer’s outstanding stock;
         (c)   A corporation, or a party related to the corporation in a manner that would require an attribution of stock from the corporation to the party or from the party to the corporation under division (C)(36)(d) below, provided the taxpayer owns directly, indirectly, beneficially or constructively at least 50% of the value of the corporation’s outstanding stock; and
         (d)   The attribution rules described in § 318 of the Internal Revenue Code, being 26 U.S.C. § 318 apply for the purpose of determining whether the ownership requirements in divisions (C)(36)(a) to (C)(36)(c) above have been met.
      (37)   RELATED MEMBER. A person that, with respect to the taxpayer during all or any portion of the taxable year, is either a related entity, a component member as defined in § 1563(b) of the Internal Revenue Code, being 26 U.S.C. § 1563(b), or a person to or from whom there is attribution of stock ownership in accordance with § 1563(e) of the Internal Revenue Code, being 26 U.S.C. § 1563(e) except, for purposes of determining whether a person is a related member under this division, “ 20%” shall be substituted for “5%” wherever “5%” appears in § 1563(e) of the Internal Revenue Code, being 26 U.S.C. § 1563(e).
      (38)   RESIDENT. An individual who is domiciled in the municipal corporation as determined under § 39.03(C).
      (39)   S CORPORATION. A person that has made an election under Subchapter S of Chapter 1 of Subtitle A of the Internal Revenue Code, being 26 U.S.C. §§ 1361 - 1379 for its taxable year.
      (40)   SCHEDULE C. Internal revenue service schedule C (form 1040) filed by a taxpayer pursuant to the Internal Revenue Code.
      (41)   SCHEDULE E. Internal revenue service schedule E (form 1040) filed by a taxpayer pursuant to the Internal Revenue Code.
      (42)   SCHEDULE V. Internal revenue service schedule F (form 1040) filed by a taxpayer pursuant to the Internal Revenue Code.
      (43)   SINGLE MEMBER LIMITED LIABILITY COMPANY. A limited liability company that has one direct member.
      (44)   SMALL EMPLOYER. Any employer that had total revenue of less than $500,000 during the preceding taxable year. For purposes of this division (C)(44), “total revenue” means receipts of any type or kind, including, but not limited to: sales receipts; payments; rents; profits, gains, dividends and other investment income; compensation; commissions; premiums; money: property; grants: contributions; donations; gifts; program service revenue; patient service revenue; premiums; fees, including premium fees and service fees; tuition payments; unrelated business revenue; reimbursements; any type of payment from a governmental unit, including grants and other allocations; and any other similar receipts reported for federal income tax purposes or under generally accepted accounting principles. SMALL EMPLOYER does not include the federal government, any state government, including any state agency or instrumentality, any political subdivision, or any entity treated as a government for financial accounting and reporting purposes.
      (45)   TAX ADMINISTRATOR. The individual charged with direct responsibility for administration of an income tax levied by the city in accordance with this chapter.
      (46)   TAX RETURN PREPARER. Any individual described in § 7701(a)(36) of the Internal Revenue Code, being 26 U.S.C. § 7701(a)(36) and 26 C.F.R. § 301.7701-15.
      (47)   TAXABLE YEAR. The corresponding tax reporting period as prescribed for the taxpayer under the Internal Revenue Code.
      (48)   TAXPAYER. 
         (a)   A person subject to a tax levied on income by a municipal corporation in accordance with this chapter. TAXPAYER does not include a grantor trust or, except as provided in division (C)(48)(b)1. below, a disregarded entity.
         (b)   1.   A single member limited liability company that is a disregarded entity for federal tax purposes may be a separate taxpayer from its single member in all state municipal corporations in which it either filed as a separate taxpayer or did not file for its taxable year ending in 2003, if all of the following conditions are met:
               a.   The limited liability company’s single member is also a limited liability company;
               b.   The limited liability company and its single member were formed and doing business in one or more state municipal corporations for at least five years before January 1. 2004;
               c.   Not later than December 31, 2004, the limited liability company and its single member each made an election to be treated as a separate taxpayer under division (C)(38) above as this section existed on December 31, 2004;
               d.   The limited liability company was not formed for the purpose of evading or reducing state municipal corporation income tax liability of the limited liability company or its single member; and
               e.   The state municipal corporation that was the primary place of business of the sole member of the limited liability company consented to the election.
            2.   For purposes of this division (C)(48)(b)2., a municipal corporation was the primary place of business of a limited liability company if, for the limited liability company’s taxable year ending in 2003, its income tax liability was greater in that municipal corporation than in any other municipal corporation in the state, and that tax liability to that municipal corporation for its taxable year ending in 2003 was at least $400,000.
      (49)   TAXPAYERS’ RIGHTS AND RESPONSIBILITIES. The rights provided to taxpayers in §§ 39.09, 39.12, 39.13, 39.19(B), 39.20, 39.21, and R.C. §§ 5717.011 and 5717.03 and the responsibilities of taxpayers to file, report, withhold, remit and pay municipal income tax and otherwise comply with R.C. Ch. 718 and resolutions, ordinances and rules and regulations adopted by the city for the imposition and administration of a municipal income tax.
      (50)   VIDEO LOTTERY TERMINAL. Has the same meaning as in R.C. § 3770.21.
      (51)   VIDEO LOTTERY TERMINAL SALES AGENT. A lottery sales agent licensed under R.C. Chapter 3770 to conduct video lottery terminals on behalf of the state pursuant to R.C. § 3770.21.
(Ord. 2015-082, passed 10-15-2015)
§ 39.03 IMPOSITION OF TAX.
   The income tax levied by the city, at a rate of 1%, is levied on the municipal taxable income of every person residing in and/or earning and/or receiving income in the city.
   (A)   Individuals.
      (1)   For residents of the city, the income tax levied herein shall be on all income, salaries, qualifying wages, commissions and other compensation from whatever source earned or received by the resident, including the resident’s distributive share of the net profit of pass-through entities owned directly or indirectly by the resident and any net profit of the resident. This is further detailed in the definition of income in § 39.02.
      (2)   For nonresidents, all income, salaries, qualifying wages, commissions and other compensation from whatever source earned or received by the nonresident for work done, services performed or rendered, or activities conducted in the municipal corporation, including any net profit of the nonresident, but excluding the nonresident’s distributive share of the net profit or loss of only pass-through entities owned directly or indirectly by the nonresident.
      (3)   For residents and nonresidents, income can be reduced to municipal taxable income as defined in § 39.02. Exemptions which may apply are specified in § 39.02(C)(12).
   (B)   Refundable credit for nonqualified deferred compensation plan.
      (1)   (a)   For the purpose of this division (B), the following definitions shall apply unless the context clearly indicates or requires a different meaning.
            NONQUALIFIED DEFERRED COMPENSATION PLAN. A compensation plan described in § 3121(v)(2)(C) of the Internal Revenue Code, being 26 U.S.C. § 3121(v)(2)(C).
            QUALIFYING LOSS. The amount of compensation attributable to a taxpayer’s nonqualified deferred compensation plan, less the receipt of money and property attributable to distributions from the nonqualified deferred compensation plan. Full loss is sustained if no distribution of money and property is made by the nonqualified deferred compensation plan. The taxpayer sustains a QUALIFYING LOSS only in the taxable year in which the taxpayer receives the final distribution of money and property pursuant to that nonqualified deferred compensation plan.
            QUALIFYING TAX RATE. 
               a.   The applicable tax rate for the taxable year for the which the taxpayer paid income tax to the city with respect to any portion of the total amount of compensation, the payment of which is deferred pursuant to a nonqualified deferred compensation plan.
               b.   If different tax rates applied for different taxable years, then the QUALIFYING TAX RATE is a weighted average of those different tax rates. The weighted average shall be based upon the tax paid to the city each year with respect to the nonqualified deferred compensation plan.
            REFUNDABLE CREDIT. The amount of city income tax that was paid on the non-distributed portion, if any, of a nonqualified deferred compensation plan.
         (b)   If, in addition to the city, a taxpayer has paid tax to other municipal corporations with respect to the nonqualified deferred compensation plan, the amount of the credit that a taxpayer may claim from each municipal corporation shall be calculated on the basis of each municipal corporation’s proportionate share of the total municipal corporation income tax paid by the taxpayer to all municipal corporations with respect to the nonqualified deferred compensation plan.
         (c)   In no case shall the amount of the credit allowed under this section exceed the cumulative income tax that a taxpayer has paid to the city for all taxable years with respect to the nonqualified deferred compensation plan.
         (d)   The credit allowed under this division is allowed only to the extent the taxpayer’s qualifying loss is attributable to:
            1.   The insolvency or bankruptcy of the employer who had established the nonqualified deferred compensation plan; or
            2.   The employee’s failure or inability to satisfy all of the employer’s terms and conditions necessary to receive the nonqualified deferred compensation.
   (C)   Domicile.
      (1)   (a)   An individual is presumed to be domiciled in the city for all or part of a taxable year if the individual was domiciled in the city on the last day of the immediately preceding taxable year or if the Tax Administrator reasonably concludes that the individual is domiciled in the city for all or part of the taxable year.
         (b)   An individual may rebut the presumption of domicile described in division (C)(1)(a) above if the individual establishes, by a preponderance of the evidence, that the individual was not domiciled in the city for all or part of the taxable year.
      (2)   For the purpose of determining whether an individual is domiciled in the city for all or part of a taxable year, factors that may be considered include, but are not limited to, the following:
         (a)   The individual’s domicile in other taxable years;
         (b)   The location at which the individual is registered to vote;
         (c)   The address on the individual’s driver’s license;
         (d)   The location of real estate for which the individual claimed a property tax exemption or reduction allowed on the basis of the individual’s residence or domicile;
         (e)   The location and value of abodes owned or leased by the individual;
         (f)   Declarations, written or oral, made by the individual regarding the individual’s residency:
         (g)   The primary location at which the individual is employed;
         (h)   The location of educational institutions attended by the individual’s dependents as defined in § 1152 of the Internal Revenue Code, being 26 U.S.C. §§ 1152, to the extent that tuition paid to such educational institution is based on the residency of the individual or the individual’s spouse in the municipal corporation where the educational institution is located; and
         (i)   The number of contact periods the individual has with the city. For the purposes of this division, an individual has one “contact period” with the city if the individual is away overnight from the individual’s abode located outside of the city, and while away overnight from that abode, spends at least some portion, however minimal, of each of two consecutive days in the city.
      (3)   All additional applicable factors are provided in the rules and regulations.
   (D)   Businesses. This division applies to any taxpayer engaged in a business or profession in the city, unless the taxpayer is an individual who resides in the city or the taxpayer is an electric company, combined company or telephone company that is subject to and required to file reports under R.C. Chapter 5745.
      (1)   Except as otherwise provided in division (D)(2) and (E) below, net profit from a business or profession conducted both within and without the boundaries of the city shall be considered as having a taxable situs in the city for purposes of municipal income taxation in the same proportion as the average ratio of the following:
         (a)   The average original cost or the real property and tangible personal property owned or used by the taxpayer in the business or profession in the city during the taxable period to the average original cost of all of 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 above, TANGIBLE PERSONAL OR 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;
         (b)   Wages, salaries and other compensation paid during the taxable period to individuals employed in the business or profession for services performed in the city to wages, salaries and other compensation paid during the same period to individuals employed in the business or profession, wherever the individual’s services are performed, excluding compensation from which taxes are not required to be withheld under § 39.04(C); and
         (c)   Total gross receipts of the business or profession from sales and rentals made and services performed during the taxable period in the city to total gross receipts of the business or profession during the same period from sales, rentals and services, wherever made or performed.
      (2)   (a)   If the apportionment factors described in division (D)(1) above do not fairly represent the extent of a taxpayer’s business activity in the city, the taxpayer may request, or the city’s Tax Administrator may require, that the taxpayer use, with respect to all or any portion of the income of the taxpayer, an alternative apportionment method involving one or more of the following:
            1.   Separate accounting;
            2.   The exclusion of one or more of the factors;
            3.   The inclusion of one or more additional factors that would provide for a more fair apportionment of the income of the taxpayer to the municipal corporation; or
            4.   A modification of one or more of the factors.
         (b)   A taxpayer request to use an alternative apportionment method shall be in writing and shall accompany a tax return, timely filed appeal of an assessment, or timely filed amended tax return. The taxpayer may use the requested alternative method unless the Tax Administrator denies the request in an assessment issued within the period prescribed by § 39.12(A).
         (c)   The Tax Administrator may require a taxpayer to use an alternative apportionment method as described in division (D)(2)(a) above, but only by issuing an assessment to the taxpayer within the period prescribed by § 39.12(A).
         (d)   Nothing in division (D)(2) above nullifies or otherwise affects any alternative apportionment arrangement approved by a the Tax Administrator or otherwise agreed upon by both the Tax Administrator and taxpayer before January 1, 2016.
      (3)   As used in division (D)(1)(b) above, WAGES, SALARIES AND OTHER COMPENSATION includes only wages, salaries or other compensation paid to an employee for services performed at any of the following locations:
         (a)   A location that is owned, controlled or used by, rented to or under the possession of one of the following:
            1.   The employer;
            2.   A vendor, customer, client or patient of the employer, or a related member of such a vendor, customer, client or patient; and/or
            3.   A vendor, customer, client or patient of a person described in (D)(3)(a)2. above, or a related member of such a vendor, customer, client or patient.
         (b)   Any location at which a trial, appeal, hearing, investigation, inquiry, review, court-martial or similar administrative, judicial or legislative matter or proceeding is being conducted, provided that the compensation is paid for services performed for, or on behalf of, the employer or that the employee’s presence at the location directly or indirectly benefits the employer; or
         (c)   Any other location, if the Tax Administrator determines that the employer directed the employee to perform the services at the other location in lieu of a location described in division (D)(3)(a) or (D)(3)(b) above solely in order to avoid or reduce the employer’s municipal income tax liability. If the Tax Administrator makes such a determination, the employer may dispute the determination by establishing, by a preponderance of the evidence, that the Tax Administrator’s determination was unreasonable.
      (4)   For the purposes of division (D)(1)(c) above, and except as provided in division (E) of this section, receipts from sales and rentals made and services performed shall be sitused to a municipal corporation as follows:
         (a)   Gross receipts from the sale of tangible personal property shall be sitused to the municipal corporation in which the sale originated. For the purposes of this division, a sale of property originates in the city if, regardless of where title passes, the property meets any of the following criteria:
            1.   The property is shipped to or delivered within the city from a stock of goods located within the city;
            2.   The property is delivered within the city from a location outside the city, provided the taxpayer is regularly engaged through its own employees in the solicitation or promotion of sales within the city and the sales result from such solicitation or promotion; or
            3.   The property is shipped from a place within the city to purchasers outside the municipal corporation, provided that the taxpayer is not, through its own employees, regularly engaged in the solicitation or promotion of sales at the place where delivery is made.
         (b)   Gross receipts from the sale of services shall be sitused to the city to the extent that such services are performed in the city;
         (c)   To the extent included in income, gross receipts from the sale of real property located in the city shall be sitused to the city;
         (d)   To the extent included in income, gross receipts from rents and royalties from real properly located in the city shall be sitused to the city; and
         (e)   Gross receipts from rents and royalties from tangible personal property shall be sitused to the city based upon the extent to which the tangible personal property is used in the city.
      (5)   The net profit received by an individual taxpayer from the rental of real estate owned directly by the individual, or by a disregarded entity owned by the individual, shall be subject to the city’s tax only if the property generating the net profit is located in the city or if the individual taxpayer that receives the net profit is a resident of the city. The city shall allow such taxpayers to elect to use separate accounting for the purpose of calculating net profit sitused under this division to the municipal corporation in which the property is located.
      (6)   (a)   Commissions received by a real estate agent or broker relating to the sale, purchase, or lease of real estate shall be sitused to the municipal corporation in which the real estate is located. Net profit reported by the real estate agent or broker shall be allocated to the city, if applicable, based upon the ratio of the commissions the agent or broker received from the sale, purchase or lease of real estate located in the city to the commissions received from the sale, purchase or lease of real estate everywhere in the taxable year.
         (b)   An individual who is a resident of the city shall report the individual’s net profit from all real estate activity on the individual’s annual tax return for the city. The individual may claim a credit for taxes the individual paid on such net profit to another municipal corporation to the extent that such a credit is allowed under the city’s income tax ordinance.
      (7)   When calculating the ratios described in division (D)(1) above for the purposes of that division or division (D)(2) above, the owner of a disregarded entity shall include in the owner’s ratios the property, payroll and gross receipts of such disregarded entity.
   (E)   (1)   As used in this division:
         (a)   QUALIFYING REMOTE EMPLOYEE OR OWNER means an individual who is an employee of a taxpayer or who is a partner or member holding an ownership interest in a taxpayer that is treated as a partnership for federal income tax purposes, provided that the individual meets both of the following criteria:
            1.   The taxpayer has assigned the individual to a qualifying reporting location.
            2.   The individual is permitted or required to perform services for the taxpayer at a qualifying remote work location.
         (b)   QUALIFYING REMOTE WORK LOCATION means a permanent or temporary location at which an employee or owner chooses or is required to perform services for the taxpayer, other than a reporting location of the taxpayer or any other location owned or controlled by a customer or client of the taxpayer. QUALIFYING REMOTE WORK LOCATION may include the residence of an employee or owner and may be located outside of a municipal corporation that imposes an income tax in accordance with this chapter. An employee or owner may have more than one qualifying remote work location during a taxable year.
         (c)   REPORTING LOCATION means either of the following:
            1.   A permanent or temporary place of doing business, such as an office, warehouse, storefront, construction site, or similar location, that is owned or controlled directly or indirectly by the taxpayer;
            2.   Any location in this state owned or controlled by a customer or client of the taxpayer, provided that the taxpayer is required to withhold taxes under division (D) above, on qualifying wages paid to an employee for the performance of personal services at that location.
         (d)   QUALIFYING REPORTING LOCATION means one of the following:
            1.   The reporting location in this state at which an employee or owner performs services for the taxpayer on a regular or periodic basis during the taxable year;
            2.   If no reporting location exists in this state for an employee or owner under division (E)(1)(d)1. of this section, the reporting location in this state at which the employee's or owner's supervisor regularly or periodically reports during the taxable year;
            3.   If no reporting location exists in this state for an employee or owner under division (E)(1)(d)1. or 2. of this section, the location that the taxpayer otherwise assigns as the employee's or owner's qualifying reporting location, provided the assignment is made in good faith and is recorded and maintained in the taxpayer's business records. A taxpayer may change the qualifying reporting location designated for an employee or owner under this division at any time.
      (2)   (a)   For tax years ending on or after December 31, 2023, a taxpayer may elect to apply the provisions of this division to the apportionment of its net profit from a business or profession. For taxpayers that make this election, the provisions of division (D) of this section apply to such apportionment except as otherwise provided in this division.
         (b)   A taxpayer shall make the election allowed under this division in writing on or with the taxpayer's net profit return or, if applicable, a timely filed amended net profit return or a timely filed appeal of an assessment. The election applies to the taxable year for which that return or appeal is filed and for all subsequent taxable years, until the taxpayer revokes the election.
         (c)   The taxpayer shall make the initial election with the Tax Administrator of each municipal corporation with which, after applying the apportionment provisions authorized in this division, the taxpayer is required to file a net profit tax return for that taxable year. A taxpayer shall not be required to notify the Tax Administrator of a municipal corporation in which a qualifying remote employee's or owner's qualifying remote work location is located, unless the taxpayer is otherwise required to file a net profit return with that municipal corporation due to business operations that are unrelated to the employee's or owner's activity at the qualifying remote work location.
         (d)   After the taxpayer makes the initial election, the election applies to every municipal corporation in which the taxpayer conducts business. The taxpayer shall not be required to file a net profit return with a municipal corporation solely because a qualifying remote employee's or owner's qualifying remote work location is located in such municipal corporation.
         (e)   Nothing in this division prohibits a taxpayer from making a new election under this division after properly revoking a prior election.
      (3)   For the purpose of calculating the ratios described in division (D)(1) of this section, all of the following apply to a taxpayer that has made the election described in division (E)(2):
         (a)   For the purpose of division (D)(1)(a) of this section, the average original cost of any tangible personal property used by a qualifying remote employee or owner at that individual's qualifying remote work location shall be sitused to that individual's qualifying reporting location.
         (b)   For the purpose of division (D)(1)(b) of this section, any wages, salaries, and other compensation paid during the taxable period to a qualifying remote employee or owner for services performed at that individual's qualifying remote work location shall be sitused to that individual's qualifying reporting location.
         (c)   For the purpose of division (D)(1)(c) of this section, and notwithstanding division (D)(4) of this section, any gross receipts of the business or profession from services performed during the taxable period by a qualifying remote employee or owner for services performed at that individual's qualifying remote work location shall be sitused to that individual's qualifying reporting location.
      (4)   Nothing in this division prevents a taxpayer from requesting, or a Tax Administrator from requiring, that the taxpayer use, with respect to all or a portion of the income of the taxpayer, an alternative apportionment method as described in division (D)(2) of this section. However, a Tax Administrator shall not require an alternative apportionment method in such a manner that it would require a taxpayer to file a net profit return with a municipal corporation solely because a qualifying remote employee's or owner's qualifying remote work location is located in that municipal corporation.
      (5)   Except as otherwise provided in this division, nothing in this division is intended to affect the withholding of taxes on qualifying wages pursuant to division (D) above.
(Ord. 2015-082, passed 10-15-2015; Ord. 2024-23, passed 4-18-2024)
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