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Ordinance No. 2003-11-01
SECTION
2. DEFINITIONS.
As used in
this ordinance, the following words shall have the meaning ascribed to
them in this SECTION, except as and if the context clearly indicates or
requires a different meaning.
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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 five (5%) of intangible income deducted
under Division (A)(1)(a) of this Section,
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 related to the sale, exchange, or
other disposition of an asset described in Section 1221 or 1231
of the Internal Revenue Code
d.
(i) Except
as provided in Division (A)(1)(d)(ii) of this Section deduct income and
gain included in federal
taxable income to the extent the income and gain
directly relate to the sale, exchange, or other
disposition of an asset
described in Section 1221 or 1231 of the Internal Revenue Code.
(ii) Division
(A)(1)(d)(i) of this Section does not apply to the extent the income or
gain is 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 a 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 investor
and allowed as a
deduction in the computation of federal taxable income.
g. 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:
(i) 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.
(ii) 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.
Nothing
in Division (A)(1) 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.
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.
2. Association:
A partnership, limited partnership, S Corporation or any form of
unincorporated enterprise, owned
by one or more persons.
3. Board of Review: The
Board created by and constituted as provided in SECTION 13 of this
ordinance
4. Business: 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 estate, personal or mixed.
5. Corporation: 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.
6. Domicile: The principle residence that the taxpayer intends to
use for an indefinite time and to which whenever he
is absent he intends
to return. A taxpayer has only one domicile even though he may have more
than one
residence.
7. Employee: One who works for wages, salaries, commissions, or
other type of compensation in the services of
an employer.
8. Employer: 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 (I) or more persons on a
salary, wage
commission or other compensation basis.
9. Fiscal Year: An
accounting period of twelve (12) months or less ending on any day other
than December 31st.
10. Form 2106: Internal Revenue Service Form 2106 filed by a
taxpayer pursuant to the Internal Revenue Code.
11. Generic Form: 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 of the information required
to be submitted with the
municipalities prescribed return, report, or documents.
12. Gross Receipts:- The total income of taxpayers from whatever
source derived.
13. Income from a Pass-through Entity: Partnership, income of partners, membership
interest 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.
14. Intangible Income: 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 Chapter 5701 of the
Ohio Revised Code, and patents, copyrights, trademarks, trade-names,
investments in real estate investment
trust investments in regulated
investment companies, and appreciation on deferred compensation. Intangible
income does not include prizes, awards, or other
income associated with lottery winnings or other similar
games of chance.
15. Internal Revenue Code: The Internal Revenue Code of 1986, 100 Stat. 2085, 26 U.S.C. 1, as
amended.
16. Internet: The international
computer network of both federal and non-federal interoperable packet
switched
data networks, including the graphical sub network known as the
worldwide web.
17. Joint Economic Development District: Districts created under the Ohio Revised Code sections 715.10
through 715.83, as amended from time to time.
18. Limited Liability Company: A limited liability company formed under Chapter 1705 of
the Ohio Revised Code o
under the laws of another state.
19. Village: The Village of New
Waterford
20. Net Profits: For a taxpayer other than an individual means
adjusted federal taxable income and “net profit” for a
taxpayer who is
an individual means the individual’s profit , other than the amounts
described in division (F) of
Section 3 required to be reported on
Schedule C, Schedule E, or Schedule F.
21. Nonqualified deferred
compensation plan: A compensation plan described in section 3121(v)(2)(C) of the
Internal
Revenue Code.
22. Non-Resident: An individual domiciled outside the Village.
23. Non-Resident Incorporated
Business Entity: An
incorporated business entity not having an office or place of
business
within the Village.
24. Non-Resident Unincorporated Business Entity:
An unincorporated business entity not having an office or
place of
business within the Village.
25. Other Payer: Any
person other than an individual’s employer or the employer’s agent
that pays an individual
any amount included in federal gross income of the
individual.
26. Owner: A partner
of a partnership, a member of a limited liability company, a shareholder
of an S Corporation,
or other person with ownership interest in a
pass-through entity.
27. Owner’s Proportionate Share: With respect to each owner of a pass-through entity,
means the ratio of (a) the
owner’s income from a pass-through entity
that is subject to taxation by the Village, to (b) the total income from
that entity of all owners whose income from the entity is subject to
taxation by the Village.
28. Pass-Through Entity: 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.
29. Person: Individuals, firms, companies, business trust,
estates, trust partnership, limited liability companies,
associations,
corporations, governmental entities and any other entities.
30. Place of Business: Any bona fide place of business 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.
31. Principal Place of Business: In the case of an employer having headquarters
activities at a place of business
with a taxing municipality, the place of
business at which the headquarters is situated. In the case of any
employer not having its headquarters activities
at a place of business within a taxing municipality, the term
means the
largest place of business located in a taxing municipality.
32. Qualified Plan: A
retirement plan satisfying the requirements under Section 401 of the
Internal Revenue Code
as amended.
33. Qualifying Wages: Wages as defined in Section 3121 (a) of the Internal
Revenue Code, without regard to any
wage limitation, adjusted in
accordance with Section 718.03 (A) of the Ohio Revised Code.
34. Resident: An individual domiciled in the Village.
35. Resident Incorporated Business Entity: An incorporated business entity whose office, place of
operations or business sites is within the Village.
36. Resident Unincorporated Business Entity: An unincorporated business entity having an office or
place
of business within the Village.
37. Return Preparer: Any person other than a taxpayer that is authorized by a
taxpayer to completed or file
income tax return, report, or other
document for or on behalf of the taxpayer.
38. Schedule C: Internal Revenue Service schedule C filed by a
taxpayer pursuant to the Internal Revenue Code.
39. Schedule E: Internal
Revenue Service schedule E filed by a taxpayer pursuant to the Internal
Revenue Code.
40. Schedule F: Internal
Revenue Service schedule F filed by a taxpayer pursuant to the Internal
Revenue Code.
41. S Corporation: A
corporation that has made an election under subchapter S of Chapter 1 of
Subtitle A of the
Internal Revenue Code for its taxable year.
42. Tax Administrator: The person appointed to administer the Village’s
Income Tax Ordinance and to direct the
operation of the Village Income Tax
Department or the person executing the duties of the Tax Administrator.
43. Taxable Income: Qualifying
wages paid by an employer or employers, 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 ordinance.
44. Taxable Year: The
corresponding tax-reporting period as prescribed for the taxpayer under
the Internal
Revenue Code.
45. Taxing Municipality: A municipality levying a tax on income earned by
nonresidents working within such
municipality or on income earned by its
residents.
46. Taxpayer: A
person subject to a tax on income levied by a municipal corporation. Taxpayer does not include
any person that is a disregarded entity
or a qualifying subchapter S subsidiary for federal income tax purposes,
but taxpayer includes any other person who owns the disregarded entity or
qualifying subchapter S subsidiary.
The
singular shall include the plural, the masculine shall include the
feminine and the neuter, and all periods set forth shall be inclusive of
the first and last mentioned dates.
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