As used in this chapter:
(a) (1) “Adjusted Federal taxable income” 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 this division (a)(1), but excluding that portion of intangible income directly related to the sale, exchange, or other disposition of property described in Section 1221 of the Internal Revenue Code;
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 Section 1221 or 1231 of the Internal Revenue Code;
D. Except as otherwise provided in this section, deduct income and gain included in Federal taxable income to the extent the income and gain directly related to the sale, exchange, or other disposition of an asset described in Section 1221 or 1231 of the Internal Revenue Code. Do not deduct income or gain described in Section 1245 or 1250 of the Internal Revenue Code;
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 real estate investment trust and 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.
(2) If the taxpayer is not a C Corporation and is not an individual, the taxpayer shall compute adjusted Federal taxable income as if the taxpayer were a C Corporation, except:
A. 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
B. 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.
(3) Nothing in this division (a) 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.
(4) Nothing in this chapter shall be construed as limiting or removing the ability of any municipal corporation to administer, audit, and enforce the provisions of its Municipal income tax.
(b) “Administrator” means the individual designated by this chapter, whether appointed or elected, to administer and enforce the provisions of this chapter.
(c) “Association” means a partnership, limited partnership or any other form of unincorporated enterprise, owned by two or more persons.
(d) “Board of Review” means the Board created by and constituted as provided in Section 197.13.
(e) “Business” means an enterprise, activity, profession or undertaking of any nature conducted for profit or ordinarily conducted for profit, whether by an individual, partnership, association, corporation or any other entity, including, but not limited to, the renting or leasing of property, real, personal or mixed.
(f) “Compensation” means all salaries, wages, commissions and other remuneration for work done or services performed. “Compensation” of an employee means “qualifying wages”.
(g) “Corporation” means a corporation or joint stock association organized under the laws of the United States, the State of Ohio, or any other state, territory, foreign country or dependency.
(h) “Day” means a full day or any fraction or part of a day.
(i) “Domicile” means the place where a taxpayer has his or her true, fixed, and permanent home, and to which, whenever the taxpayer is absent, he or she has the intention of returning. Factors to be considered when determining domicile are, but are not limited to: registration of vehicles; current driver's license; address of Federal and State income tax returns; address of voter's registration; attendance at schools by taxpayer's family; county of taxpayer's estate if deceased.
(j) “Employee” means one who works for qualifying wages, salary, commission or other type of compensation in the service of an employer.
(k) “Employer” means an individual, partnership, association, corporation, governmental body, unit or agency, or any other entity, whether or not organized for profit, who or that employs one or more persons on a salary, wage, commission or other compensation basis.
(l) “Fiscal year” means an accounting period of twelve months or less ending on any day other than December 31.
(m) “Form 2106" means Internal Revenue Service form 2106 filed by a taxpayer pursuant to the Internal Revenue Code.
(n) “Generic form” means an electronic or paper form designed for reporting estimated municipal income taxes and annual municipal income tax liability or for filing a refund claim that is not prescribed by a particular municipal corporation for the reporting of that municipal corporation's tax on income. Any Municipality that requires taxpayers to file income tax returns, reports, or other documents shall accept for filing a generic form of such a return, report or document if the generic form, once completed and filed, contains all the information required to be submitted with the municipality's prescribed returns, reports or documents.
(o) “Gross receipts” means the total income from any source whatsoever.
(p) “Income from a pass-through entity” means partnership income of partners, membership interests of members of a limited liability company, distributive shares of shareholders of an S Corporation, or other distributive or proportionate ownership shares of income from other pass-through entities.
(q) “Intangible income” means 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 property, including, but not limited to, investments, deposits, money, or credits as those terms are defined in Ohio R.C. Chapter 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 or other similar games of chance.
(r) “Limited Liability Company” means a limited company formed under Ohio R.C. Chapter 1705 or under the laws of another state.
(s) “Municipality” means the City of Willard.
(t) “Net profit” means a net gain from the operation of a business, profession, enterprise or other activity after provision for all ordinary and necessary expenses, including charitable contributions, either paid or accrued in accordance with the accounting system used by the taxpayer for Federal income tax purposes, without deduction of taxes imposed by this chapter, Federal, State and other taxes based on income; and in the case of an association, without deduction of salaries paid to partners, and other owners; and otherwise adjusted to the requirements of this chapter.
(u) “Non-qualified deferred compensation plan” means a compensation plan described in Section 3121(v)(2)(c) of the Internal Revenue Code.
(v) “Nonresident” means an individual domiciled outside the City limits.
(w) “Nonresident incorporated business entity” means an incorporated business entity not having an office or place of business within the City of Willard.
(x) “Nonresident unincorporated business entity” means an unincorporated business entity not having an office or place of business within the City limits.
(y) “Other entity” means any person or unincorporated body not previously named or defined.
(z) “Other payer” means 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.
(aa) “Owner” means a partner of a partnership, a member of a limited liability company, a shareholder of an S Corporation, or other person with an ownership interest in a pass-through entity.
(bb) “Owner's proportionate share, with respect to each owner of a pass-through entity,” means the ratio of:
(1) The owner's income from the pass-through entity that is subject to taxation by the municipal corporation, divided by
(2) The total income from that entity of all owners whose income from the entity is subject to taxation by that municipal corporation.
(cc) “Pass-through entity” means a partnership, limited liability company, S Corporation, or any other class of entity the income or profits from which are given pass-through treatment under the Internal Revenue Code.
(dd) “Pension” means income earned or received as a result of retirement from employment from an IRS qualified retirement plan, and which is generally, although not exclusively, reported to the taxpayer by the payor on a form 1099-R similar form.
(ee) “Person” means every natural person, partnership, fiduciary, association or corporation. Whenever used in any clause prescribing and imposing a penalty, the term “person”, as applied to any unincorporated entity, means the partners or members thereof, and, as applied to corporations, the officers thereof.
(ff) “Place of business” means any bona fide office other than a mere statutory office, factory, warehouse or other space which is occupied and used by the taxpayer in carrying on any business activity individually or through one or more of his regular employees regularly in attendance.
(gg) “Qualified plan” means a retirement plan satisfying the requirements under Section 401 of the Internal Revenue Code as amended.
(hh) “Qualifying wages” means wages, as defined in Section 3121(a) of the Internal Revenue Code, without regard to any wage limitations, adjusted in accordance with Ohio R.C. 718.03(A).
(ii) “Relief” means a credit of the amount of such tax rate paid to such other municipality but not in excess of the tax rate assessed by this chapter, per employer.
(jj) “Resident” means an individual domiciled in the City.
(kk) “Resident incorporated business entity” means an incorporated business entity having an office or place of business within the City limits.
(ll) “Resident unincorporated business entity” means an unincorporated business entity having an office or place of business within the City limits.
(mm) “Return preparer” means any person other than the taxpayer that is authorized by a taxpayer to complete or file an income tax return, report, or other document for or on behalf of the taxpayer.
(nn) “Schedule C” means Internal Revenue Service Schedule C filed by a taxpayer pursuant to the Internal Revenue Code.
(oo) “Schedule E” means Internal Revenue Service Schedule E filed by a taxpayer pursuant to the Internal Revenue Code.
(pp) “Schedule F” means Internal Revenue Service Schedule F filed by a taxpayer pursuant to the Internal Revenue Code.
(qq) “Taxable income” means qualifying wages, salaries and other compensation paid by an employer or employers, and includes the total compensation paid to an individual in cash or in kind on an hourly, daily, weekly, monthly; annual, or other basis, including but not limited to the following: severance or termination pay; wage continuation payments made as a result of early retirement or employment termination; wage continuation payments made as a result of sickness or temporary disability and whether paid by the recipient's employer or by a third party; vacation or holiday pay; tips or gratuities received; group term insurance premiums paid on an employee's behalf; employee contributions to tax sheltered annuities, non-qualified pension plans, or into employer or third party trusts or pension plans as permitted by IRS and which may be excludable from wages for Federal tax purposes; ordinary income portion of stock options or employee stock purchase plans; supplemental unemployment benefits (sub pay): strike pay; jury duty pay; employer or employee contributions or amounts credited to non-qualified pension plans or deferred compensation plans at the time of deferral and to the extent subject to Medicare tax; working conditions fringe benefits subject to tax by IRS; guardian, executor, conservator, trustee, or administrator fees; bonuses; ordinary income portion of lump sum distributions which become subject to Federal tax because the recipient did not roll over the distribution within the time required by IRS; compensation for personal services, other income defined by statute as taxable, and/or adjusted Federal taxable income from the operation of a business, profession, or other enterprise or activity adjusted in accordance with the provisions of this chapter.
(rr) “Taxable municipality” means a municipality levying a tax on income earned by nonresidents working within such municipality or on income earned by its residents.
(ss) “Taxable year” means the calendar year, or the fiscal year upon the basis of which net profits are to be computed under this chapter and, in the case of a return for a fractional part of a year, the period for which such return is required to be made.
(tt) “Taxpayer” means a person, whether an individual, partnership, association or other corporation or other entity, required hereunder to file a return or pay a tax.
(uu) “Working conditions fringe benefits” means any fringe benefit paid by the employer such as unemployment compensation or sick leave pay that is reported on IRS Form W-2 or Form 1099.
(Ord. 4774. Passed 11-15-99; Ord. 5271. Passed 5-5-08.)