36-2023 - Amend Tax Code re: HB 33

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DocuSign Envelope ID: D733A3F0-EC57-49D6-A4C4-7A15E4E44C25 election described in division (v)(4) of this section, and is not an individual, the taxpayer shall compute adjusted federal taxable income under this section as if the taxpayer were a C corporation, except guaranteed payments and other similar amounts paid or accrued to a partner, former partner, shareholder, former shareholder, member, or former member shall not be allowed as a deductible expense unless such payments are a pension or retirement benefit payment paid to a retired partner, retired shareholder, or retired member or are in consideration for the use of capital and treated as payment of interest under section 469 of the Internal Revenue Code or United States treasury regulations. Amounts paid or accrued to a qualified self-employed retirement plan with respect to a partner, former partner, shareholder, former shareholder, member, or former member of the taxpayer, amounts paid or accrued to or for health insurance for a partner, former partner, shareholder, former shareholder, member, or former member, and amounts paid or accrued to or for life insurance for a partner, former partner, shareholder, former shareholder, member, or former member shall not be allowed as a deduction. Nothing in division (a) of this section 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. Section 4. That section 128.03(p), Definitions, of the Lakewood Codified Ordinances, currently reading as follows: 128.03 DEFINITIONS. (p) "LIMITED LIABILITY COMPANY" means a limited liability company formed under Chapter 1705 of the Ohio Revised Code or under the laws of another state. is hereby repealed. Section 5. That new Sections 128.03(p), Definitions, of the Lakewood Codified Ordinances, is hereby enacted to read as follows: 128.03 DEFINITIONS. (p) "LIMITED LIABILITY COMPANY" means a limited liability company formed under Chapter 1705 or 1706 of the Ohio Revised Code., or under the laws of another state. Section 6. That Section 128.03(bb), Definitions, of the Lakewood Codified Ordinances, currently reading as follows: 128.03 DEFINITIONS. (bb) "PENSION" means any amount paid to an employee or former employee that is reported to the recipient on an IRS form 1099-R, or successor form. Pension does not include deferred compensation, or amounts attributable to nonqualified deferred compensation plans, reported as FICA/Medicare wages on an IRS form W 2, Wage and Tax Statement, or successor form. is hereby repealed.