181.16 EXEMPTIONS.

   (a)    The provisions of this chapter shall not be construed to tax:

      (1)    The military pay or allowances of members of the Armed Forces of the United States and 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)    Pensions and disability benefits;

      (4)    Personal earnings of any natural person under eighteen years of age;

      (5)    Proceeds from welfare benefits, unemployment insurance benefits, social security benefits, and qualified retirement plans as defined by the Internal Revenue Service;

      (6)    Proceeds of insurance, annuities, Workers' Compensation insurance, compensation for damages for personal injury, and like reimbursements, not including damages for loss of profits and wages;

      (7)    Dues, contributions and similar payments received by charitable, religious, educational organizations, or labor unions, trade or professional associations, lodges and similar organizations:

         A.   Any association or organization falling in the category listed in the preceding paragraph receiving income from non-exempt real estate, tangible or intangible personal property, or business activities of a type ordinarily conducted for profit by taxpayers operating for profit shall not be excluded hereunder.

         B.   In the event any association or organization receives taxable income as provided in the preceding paragraph from real or personal property ownership or income producing business located both within and without the corporate limits of the Municipality, it shall calculate its income apportioned to the Municipality under the method or methods provided above.

      (8)   Gains from involuntary conversion, cancellation of indebtedness, interest on federal obligations, and income of a decedent's estate during the period of administration (except such income from the operation of a business);

      (9)    Alimony;

      (10)   Compensation for damage to property by way of insurance or otherwise;

      (11)    Interest and dividends from intangible property;

      (12)    Personal earnings of any natural person under eighteen years of age;

      (13)    The rental value of a home furnished to a minister of the gospel as part of his compensation, or the rental allowance paid to a minister of the gospel as part of his compensation, to the extent used by him to rent or provide a home pursuant to section 107 of the Internal Revenue Code;

      (14)   Compensation paid to an employee of a transit authority, regional transit authority, or a 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 Municipality, unless the bus or vehicle is operated on a regularly scheduled route, the operator is subject to such tax by reason of residence or domicile in the Municipality, or the headquarters of the authority or commission is located within the Municipality;

      (15)    The Municipality shall not tax the compensation paid to a nonresident individual for personal services performed by the individual in the Municipality on twelve or fewer days in a calendar year unless one of the following applies:

          A.    The individual is an employee of another person, the principal place of business of the individual's employer is located in another municipality in Ohio that imposes a tax applying to compensation paid to the individual for service paid on those days, and the individual is not liable to that other municipality for tax on the compensation paid for such services.

         B.    The individual is a professional entertainer or professional athlete, the promoter of a professional entertainment or sports event, or an employee of such promoter, all as may be reasonably defined by the Municipality.

      (16)    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 Ohio Revised Code:

         A.    The income of an electric company or combined company;

         B.    The income of a telephone company.

As used in this chapter, "combined company", "electric company" and "telephone company" have the same meanings as in Section 5727.01 of the Ohio Revised Code;

      (17)    An S corporation shareholder's distributive share of net profits or losses of the S corporation;

      (18)    Generally, the above noted items in this section are the only forms of income not subject to the tax. Any other income, benefits, or other forms of compensation shall be taxable.

   (b)    The Tax Commissioner shall prescribe the format and make available the approved form by which an exemption may be claimed.

   (c)    For residents who may be exempt from filing, an exemption form filed with the Tax Commissioner shall be claimed effective year-to-year without further filing, provided that the basis authorized by this section shall remain unchanged and valid.

(Ord. 73-05. Passed 12-6-05.)