04-18 Amend Municipal Net Profit Taxes 128.22 - 128.2215

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(3) Any other location, if the tax commissioner determines that the employer directed the employee to perform the services at the other location in lieu of a location described in subsection (c)(1) or (2) of this section solely in order to avoid or reduce the employer's municipal income tax liability. If the tax commissioner makes such a determination, the employer may .dispute the determination by establishing, by a preponderance of the evidence, that the tax commissioner's determination was unreasonable. (d) For the purposes of subsection (a)(3) of this section, receipts from sales and rentals made and services performed shall be sitused to the City as follows: (1) Gross receipts from the sale of tangible personal property shall be sitused to the City only if, regardless of where title passes, the property meets either of the following criteria: (a) The property is shipped to or delivered within the City from a stock of goods located within the City. (b) 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. (2) Gross receipts from the sale of services- shall be sitused to the City to the extent that such services are performed in the City. (3) To the extent included in income, gross receipts from the sale of real property located in the City shall be sitused to the City. (4) To the extent included in income, gross receipts from rents and royalties from real property located in the City shall be sitused to the City. (5) 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. (e) Commissions received by a real estate agent or broker relating to the sale, purchase, or lease of real estate shall be sitused to the City in which the real estate is located. Net profit reported by the real estate agent or broker shall be allocated to the City 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. (f) If, in computing a taxpayer's adjusted federal taxable income, the taxpayer deducted any amount with respect to a stock option granted to an employee, and if the employee is not required to include in the employee's income any such amount or a portion thereof because it is exempted from taxation under section 718.01 of the revised code, the taxpayer shall add the amount that is exempt from taxation to the taxpayer's net profit that was apportioned to the City. In no case shall a taxpayer be required to add to its net profit that was apportioned to the City any amount other than the amount upon which the employee would be required to pay tax were the amount related to the stock option not exempted from taxation.