(a) Each taxpayer who engages in business, or whose salaries, wages, commissions, rents and other compensation are subject to the tax imposed by this chapter shall, whether or not a tax is due thereon, make and file a return on or before April 15 of each year with the Department of Finance, Income Tax Division on a form furnished by or obtained from the Income Tax Division, setting forth the aggregate amount of salaries, wages, commissions, rents and other compensation earned and/or net profits earned and/or gross income from such business less allowable expenses in the acquisition of such gross income earned during the preceding year and subject to the tax, together with such other pertinent information as the Finance Director may require. However, when the return is made for a fiscal year or other period different from the calendar year, the return shall be made on or before the last day of the fourth month after the close of such fiscal year or other period.
(b) Commencing with taxable years beginning subsequent to December 31, 1994 the net loss from an unincorporated business activity may not be used to offset salaries, wages, commissions or other compensation. However, if a taxpayer is engaged in two or more taxable business activities to be included in the same return, the net loss of one unincorporated business activity (except any portion of a loss separately reportable for municipal tax purposes to another taxing entity) may be used to offset the profits of another for purposes of arriving at overall net profits. These same provisions shall apply to joint returns filed by husband and wife.
A nonresident's income is only subject to the Westerville City income tax to the extent it was earned within Westerville.
(c) If a net operating loss has been sustained in any taxable year such losses may not be carried forward or backward to any other taxable year.
(d) Affiliated corporations may not deduct a loss from any other corporation having a taxable profit. Operations of any affiliated corporation may not be taken into consideration in computing net profits or the Business Allocation Percentage Formula of another.
(e) A taxpayer who pays their business expenses from their commissions or other compensation, without reimbursement from their employer, may deduct from their gross commissions or other compensation business expenses allowed by the Internal Revenue Service for Federal Income Tax purposes, but only to the extent that such expenses are incurred in earning commissions or other compensation subject to the tax imposed by this section.
(f) The taxpayer making a return shall, at the time of the filing thereof, pay to the City the amount of taxes shown as due thereon; however where any portion of the tax so due has been deducted at the source pursuant to the provisions of Section 191.07 or where any portion of such tax has been paid by the taxpayer pursuant to the provisions of Section 191.08, credit for the amount so paid shall be deducted from the amount shown to be due and only the balance, if any, shall be due and payable at the time of filing the return.
(g) A taxpayer who has overpaid his income tax in any taxable year may request a refund provided there is no other tax liability and provided, further, that no amount of less than one dollar and one cent ($1.01) will be refunded or collected.
(h) The Finance Director or his delegate shall have the authority to extend the time for filing of the annual return upon the request of the taxpayer for a period not to exceed six months, or one month beyond any extension requested of or granted by the Internal Revenue Service for the filing of the Federal income tax return. The Finance Director or his delegate may require a tentative return, accompanied by payment of the amount of tax shown to be due thereon by the date the return is normally due.
(i) In the case of a real estate investment trust and regulated investment company, taxable income shall be defined as 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.
(j) If the taxpayer is not a C corporation and is not an individual, the taxpayer shall compute income as if the taxpayer were a C corporation, except:
(1) 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
(2) 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.
(k) Extensions.
(1) Any taxpayer that has requested an extension for filing a federal income tax return may request an extension for the filing of a City income tax return by filing a copy of the taxpayer’s federal extension request with the Finance Director or his delegate. Any taxpayer not required to file a federal income tax return may request an extension for filing a City income tax return in writing. The request for extension must be filed on or before the original due date for the annual return. If the request is granted, the extended due date of the City tax return shall be the last day of the month following the month to which the due date of the federal income tax return has been extended.
(2) The Tax Administrator may deny a taxpayer’s request for extension if the taxpayer:
A. Fails to timely file the request; or
B. Fails to file a copy of the federal extension request (if applicable); or
C. Owes the City any delinquent income tax, penalty, interest or other charge for the late payment or nonpayment of income tax; or
D. Has failed to file any required income tax return, report, or other related document for a prior tax period.
(3) The granting of an extension for filing a City tax return does not extend the due date as provided in this section for payment of the tax; hence, penalty and interest may apply to any unpaid tax during the period of extension at the rate set out by Section 191.13. Any extension by the Tax Administrator shall be granted upon the condition that declaration filing and payment requirements have been fulfilled.
(Ord. 04-52. Passed 12-7-04.)