185.03 IMPOSITION OF TAX.

   Subject to the provisions of Section 185.14, an annual tax for the purposes specified in

Section 185.01 shall be imposed on and after January 1, 1970, at the rate of 1-1/2 % per annum upon the following:

   (a)   On all salaries, wages, commissions and other compensation earned or received as defined at Section 185.02(q), and net profits from unincorporated business entities and professions earned on and after January 1, 1970, by residents of the Village.

   (b)   On all salaries, wages, commissions and other compensation earned or received as defined in Section 185.02(q) on and after January 1, 1970, by nonresidents for work done or services performed or rendered in the Village.

   (c)   On the portion attributable to the Village of the net profits earned on and after January 1, 1970, of all resident unincorporated businesses, professions and other entities, derived from sales made, work done or services performed or rendered and business or other activities conducted in the Village.

   (d)   On the portion of the distributive share of the net profits earned on and after January 1, 1970, of a resident partner or owner of a resident unincorporated business entity not attributable to the Village and not levied against such unincorporated business entity; provided that such income of such resident partner or owner shall be subject to the Relief and Reciprocity Provisions of Section 185.14 and to the exemption provided at Section 185.031, Exceptions; Sources of Income Not Taxed.

   (e)   On the portion attributable to Whitehouse of the net profits, earned on or after January 1,1970, and during the effective period of this chapter, of all corporations derived from work done or services performed or rendered and business or other activities conducted in the Village, whether or not such corporations have an office or place of business in the Village.

   (f)   That portion of the net profits attributable to the Village of a taxpayer conducting a business, profession or other activity, both within and without the boundaries of the Village shall be determined as provided in O.R.C. 718.02 reprinted at the end of this chapter, and in accordance with the rules and regulations adopted by the Commissioner of Taxation pursuant to this chapter.

   (g)   Consolidated returns from affiliated groups or corporations that file consolidated returns with IRS for the same reporting period will be accepted in accordance with Rules and Regulations prescribed by the Commissioner.
(O.R.C. 718.06)

   (h)   The portion of the net operating loss sustained in any taxable year allocated to the Village may be applied against the portion of profit of succeeding years allocated to the Village for a maximum of five (5) years, but no portion of net operating loss shall be carried back against the net profits of any prior year.

   (i)   The portion of a net operating loss sustained shall be allocated by the Village in the same manner as provided herein for allocating net profits to the Village.

   (j)   Spouses are permitted to report their income taxable to Whitehouse on the same tax return. However, a spouse may not offset one spouse's business losses, including rental losses, against the other spouse's W-2 income nor may an individual offset his or her W-2 income with losses, including rental losses, from a business. Business losses, including rental losses, may be carried forward if unused in the current tax year in accordance with Section 185.03 (h). Appropriate schedules as filed with IRS must be attached to the Whitehouse Tax Return.

   (k)   On all income derived from gaming, wagering, lotteries, or schemes of chance by residents of Whitehouse or by nonresidents of Whitehouse when the income derived from gaming, wagering, lotteries or schemes of chance is won or received as a result of transactions conducted in Whitehouse.

   (l)   If a resident of Whitehouse operates a business (including rentals) in another taxing municipality in Ohio and the business or businesses incur a loss, the amount of the loss is deemed primarily subject to the taxing jurisdiction of the other taxing municipality and may not be used to reduce the taxpayer's Whitehouse tax base.

   (m)   The owners or partners of a Pass-Through Entity as defined at O.R.C. 718.14(A)(2)which is reprinted at the end of this chapter, who or which are subject to the tax imposed by this chapter, must file an individual tax return on which they are to report their respective share of the profits or losses of the Pass-Through Entity. This is in lieu of the Pass-Through Entity paying the tax on that portion of its net profit subject to the tax. However, a resident Pass-Through Entity is still required to file an informational return with the Tax Commissioner and reporting thereon its income and the distributive share of each owner or partner.

      (Ord. 23-2003. Passed 11-18-03.)