2004 023 Ordinance - Laserfiche WebLink

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compensation in the service of an employer. Generally, the relationship of employer and employee exists when the person for whom services are performed has the right to control and direct the individual who performs the services, not only as to the result to be accomplished, but also as to the details and means by wlilch that result is accomplished. Any person from whom an employer is required to withhold for federal income tax purposes shall pchna facie be deemed an employee. 1:09 EMPLOYER means an individual, association, corporation or other entity, who or that employs one or more persons on a salary, wage, commission or other compensafion basis whether m not such employer is engaged in business or operated for a profit. The temr employer includes the State of Olilo, its political subdivisions and its agencies, instmmentalides, boards, bureaus, depamnents, etc., as well as other governmental subdivisions, agencies, instnunentalities, boards, bureaus, departments, etc., to the extent that any such body witlilrolds tax on a mandatory or voluntary basis. No rights, duties or obhgations are imposed with respect to any such body not otherwise authorized by law. The term employer does not include a person who employs only domestic help for such person's private residence. 1:10 FISCALYEAR means an accounting period of twelve (12) months or less ending on any day other than December 31st Only fiscal years accepted by the Internal Revenue Service for federal income tax purposes may be used for municipal income tax purposes. l:l 1 FUNDAMENTAL CHANGE means any substantial alteration by an employer, including liquidation, dissolution, banknrptcy and reorganizations such as merger, consohdation, acquisifion, transfer or change in identity, form or organization. 1:12 Generic Tax Returns: A generic form means an electronic or paper form designed for reporting estirnated municipal income taxes and annual municipal income tax liability. However, to be acceptable the generic fomns must be in a similar forma[ that will allow the processing of the generic forms without changing RTTA's existing procedures for processing forms. 1:13 GROSS RECEIP'T'S means the total income from any souroe whatsoever Cross receipts shall include, but not be limited to, income in the form of convnissions, fees, rentals, teal and tangible personal properly, and other compensation for work or services performed or rendered, as well as income from sales of stack in trade. 1:14 .TEDD (IOINT ECONOMIC DEVELOPMENT DISTRICT) means two or more municipal corporations may enter into a contract whereby they agree to share m the costs of improvements or an area located in one or more of the contracting municipal corporations that they designate as a joint economic development district for the purpose of faeifita[ing new or expanded growth for commercial or economic development in [he 9 deduction. fffor any reason the income from property is not subject to the tax, then taxes on and other expenses of said property are no[ deductible. In any event, the fallowing taxes are not deductible from income: the tax under the Ortlinance, federal or other taxes based upon income, gift or inhedtance taxes, franchise tax, and tames for local benefits or improvements to property which tend to appreciate the value thereof. 6. Capital gains and losses,as detemrined under the Internal Revenue Code, from sale, exchange or other disposition or property shall not be taken into consideration in amving at net profits earned. 7. Tn general, non-taxable income and expenses incurred in connection therewith are not to be considered in de[emrirring net profits. 1:17 NON-RESIDENT means an individual domiciled outside the boundaries of this municipality 1:18 NON-RESIDENT UNINCORPORATED BUSINESS ENTITY means an unincorporated business entity not having an office or place of business within dus municipality 1:19 ORDINANCE means the ~ income Tm Ordinance enacted by the Council m this muruci and any amendments and supplements thereto. 1:20 PASS THROUGH ENTITIES means a partrrership, S Corporation, Limited Liability Company or any other class of entity the income or profits from which are given pass- through tmatrnent under the Intema] Revenue Code. S Corporafion means a corporation that has made an Election under Subchapter S of Chapter 1 of Subtitle A of the In[emal Revenue Code for its taxable year. Limited Liability Company means a Limited Liability Company formed under chapter 1705 of the Ohio Revised Code or under the laws of another state. be the case of Pass Thmugh Entities, whether domestic or Foreign and whether mnot such corporntions have an office or place of business in this municipality, there is imposed an annual tax on the net profits earned and received or earned and accmed during the effective period of the Ordmazrce detemvned by a method of allocation provided in Chapter 3:00 hereof, derived from sales made, work done, services performed or rendered and business or other acfivities conducted in tbis municipality. 1:21 PERSON means every natural person, fiduciary, association, corporation or other entity. Whenever used in a clause prescribing or imposing a penalty, the temr person, as applied to an unincorporated entiTy, shall mean the partners or members thereof, and as applied to a corporation, the officers thereof. 1:22 PLACE OF BUSINESS means any bonafide o$ce (other than a mere statutory office), u state. (See O.R.C. 715.69 and 715.691 for 7EDZ'S and 715.70-715.83 for B3DD'S) 1:15 MANAGER means any of the employer's officers, responsible persons, employees having control or supervision, and employees charged with the responsibility of filing the relum, paying taxes and otherwise complying with the ordinance. 1:16 NET PROFITS means the net gain from the operation of a business, profession, enterprise or other activity after deduction of all ordinary and necessary expenses paid or accmed in accordance with the accounting method used by the taxpayer for federal income tax purposes. A. Net profits as disclosed on any relum filed pursuant to the provisions of the Ordinance shall be computed by the same accounting method used in mporting net income to dte Federal Intema] Revenue Service (providing such method does not conflict with any provisions of the Ordinance). All ordinary and necessary expenses of doing bushress, including reasonable compensation paid employees, shall be allowed, but no deduction may be claimed for salary or withdrawal of a proprietor or of [he partrrers, members or other owners of any unincorporated business or enterprise. L If not cla'vned as paR of the cost of goods sold elsewhere m the retain filed, there may be claimed and allowed a reasonable deduction for depreciation, depletion, obsolescence, losses resulting Crum [heft or casualty not compensated for by insurance or otherwise of property used in trade or business, but the amount may not exceed that recognized for the purposes of the federal income tax. 2. C\rment amortization of equipment, facilities and other property under the provisions of the Tntemal Revenue Code, if recognized as such for federal income tam purposes, maybe included as an expense deduction hereunder. 3. Where depreciable property is voluntarily destroyed, only the cost of such demolition and the undepreciated balance thercof will be allowed as an expense m the year of such demolition to the extent allowable for federal income ten purposes. 4. Bad debts in a reasonable amount maybe allowed in the year ascertained worthless and charged off; or, if the reserve method is used, a reasonable addition to the reserve maybe claimed, but in no even[ shall the amount exceed the amount allowable for federal income tax purposes. 5. Only taxes directly connected with the business may be claimed as a 10 factory, warehouse or other space which is occupied and used by the taxpayer in caaying on any business actvity individually or through one or mare of his regular employees regularly N attendance. 1:23 REAL PROPERTY, as the term is used in these Regulations, ghall imclude commercial property, residential property, farm property and any and all types of real estate. 124 REGIONAL INCOME TAX AGENCY (RITA) means the orgazrizafion fomted under the Regional Council of Governments to provide a central collection agency for municipal income faxes. 1:25 RESIDENT means an individual domiciled in this municipality atarty time during the taxable year. 1:26 RESIDENT UNINCORPORATED BUSINESS ENTITY means an unincorporated business entity having an office or place of business within this municipality. 1:27 TAXABLE INCOME means wages, salades and other compensafion paid by an employer or employers before deductions of any kind and/or Gross income and or the pet profits from the operation of a business, profession or other enterprise or activity adjusted in accordance with the provisions of the Ordinance (see Sectiop S:O1.G of these Regulations enfitled'1Von-reimbursed Business and Moving Expenses'. 1:28 TAXABLE YEAR means the calendar year or the fiscal year used as the basis on which net profits are m be computed order the Ordinance, and in the case of a return for a fractional part of a year, the period for which such return is required m be made. 1:29 TAXING MUNICIPALITY means any municipal corporation levying a municipal income tax on income. 1:30 TAXPAYER means a person (whether an individual, association, corporation or other entity) requved by the Ordinarrce to file a return or pay a tax. 1:31 TAX YEAR means the year in which the tenable year begins. CHAPTER 2:00 IMPOSITION OF INCOME TAX RATE AND INCOME TAXABLE 2:01 Resident Individuals az