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VILLAGE OF MALTA INCOME TAX ORDINANCE (Page 1) |
ORDINANCE # 88-7
An ordinance levying a tax to provide funds for the purposes of any and/or all general municipal operation, maintenance of equipment, extension, enlargement, and improvement of municipal services and facilities, capital improvements, or an Councilmatic authorized expenditure for any purpose, on all salaries, wages, commissions and other compensations earned by residents of this municipality; on all salaries, wages, commissions and other compensation earned by non-residents of this municipality; for work done or services performed or rendered in this municipality; on the net profits earned on all businesses, professions or other activities conducted in this municipality by non-residents, and on the net profits earned by all corporations doing business in this municipality as the result of work done or services performed or rendered in this municipality; requiring the filing of returns and furnishing of information by employers and all those subject to said tax; imposing on employers the duty of collecting the tax at the source and paying the same to this municipality; providing for the administration, collection and enforcement of said tax; declaring violation thereof to be a misdemeanor and imposing penalties therefore. This ordinance adopted to update the existing Ordinance.
BE IT ORDAINED BY THE COUNCIL OF THE VILLAGE OF MALTA THAT:
SECTION 1: PURPOSE
To provide funds for any and/or all purposes of general municipal operations, maintenance, new equipment, extension and enlargement of municipal services and facilities and capital improvements of this municipality there shall be, and is hereby, levied a tax on salaries, wages, commissions and other compensation, and on net profits as hereinafter provided.
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 require a different meaning.
ASSOCIATION--A partnership, limited partnership, or any other form of unincorporated enterprise, owned by two or more persons.
BOARD OF REVIEW--The board created by and constituted as provided in SECTION 13 of this ordinance.
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, personal or mixed.
COMMISSIONER--The individual designated by the ordinance, whether appointed or elected, to administer and enforce the provisions of the Ordinance.
CORPORATION--A corporation or joint stock association organized under the laws of the United States, the State of Ohio, or any other state, territory, or foreign country or dependency.
EMPLOYEE--One who works for wages, salary, commissions or other type of compensation in the service of an employer.
EMPLOYER--An individual, partnership, association, corporation, governmental body, unit or agency, or any other entity, whether or not organized for profit, who or that employees one or more persons on a salary, wage, commission, or other compensation basis.
FISCAL YEAR--An accounting period of twelve months or less ending on any \par day other than December 31st.
GROSS RECEIPTS--The total income from any source whatsoever, before any deductions.
NET PROFITS--A net gain from the operation of a business, profession, enterprise, or other activity after provision for all ordinary, reasonable and necessary expenses 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 ordinance, federal, state, and other taxes based on income exclusive of the amount of Ohio franchise tax computed on the net worth basis; and in the case of a association, without deduction of salaries paid to partners, and other owners; and otherwise adjusted to the requirements of this ordinance.
NON-RESIDENT--An individual domiciled outside this municipality.
NON-RESIDENT UNINCORPORATED BUSINESS ENTITY--An unincorporated business entity not having an office or place of business within this municipality.
PERSON--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, shall mean the partners or members thereof, and as applied to corporations, the officers thereof.
PLACE OF BUSINESS--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.
RESIDENT--An individual domiciled in this municipality.
RESIDENT UNINCORPORATED BUSINESS ENTITY--An unincorporated business entity having an office or place of business within this municipality.
TAXABLE INCOME--Gross wages, salaries, and other compensation paid by an employer or employers before any deductions and/or the net profits from the operation of a business, profession or other enterprise or activity adjusted in accordance with the provisions of the ordinance. In the case of a taxpayer who maintains an office within the corporate limits of Malta Municipality, and has buildings or property contiguous to said office, which may or may not extend into areas outside said Malta Municipal Limits, all income earned or wages paid are hereby declared taxable under provisions of this ordinance.
TAXABLE YEAR--The calendar year, or the fiscal year upon the basis of which net profits are to be computed under this ordinance 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. The taxable year for the Village of Malta shall be the same as elected by the taxpay er for Federal income tax purposes.
TAXPAYER--A person, whether as an individual, partnership, association, or any corporation or other entity, required hereunder to file a return or pay a tax.
The singular shall include the plural, and the masculine shall include the feminine and the neuter.
SECTION 3: IMPOSITION OF TAX
A. Subject to the provisions of Section 16 of this ordinance an annual tax for the purposes specified in Section 1 hereof shall be imposed on and after January 1, 1976, at the rate of 1% per annum upon the following:
1. On all salaries, wages, commissions and other compensation earned during the effective period of the ordinance by residents of this municipality.
2. On all salaries, wages, commissions and other compensation earned during the effective period of the ordinance by non-residents for work done or services performed or rendered in this municipality.
3. (a) On the portion attributable to this municipality of the net profits earned during the effective period of this ordinance of all resident unincorporated businesses, professions, or other entities, derived from sales made, work done, services performed or rendered and business or other activities conducted in this municipality.
(b) On the portion of the distributive share of the net profits earned during the effective period of this ordinance of a resident partner or owner of a resident unincorporated business entity not attributable to this municipality and not levied against such unincorporated business entity by this municipality.
4. (a) On the portion attributable to this municipality of the net profits earned during the effective period of this ordinance of all non-resident unincorporated businesses, professions or other entities, derived from sales made, work done, or services performed or rendered and business or other activities conducted in this municipality, whether or not such unincorporated business entity has an office or place of business in this municipality.
(b) On the portion of the distributive share of the net profits earned during the effective period of this ordinance of a resident partner or owner of a non-resident unincorporated business entity not attributable to this municipality and not levied against such unincorporated business entity by this municipality.
5. (a) On the portion attributable to this municipality, of the net profits earned during the effective period of this ordinance of all corporations derived from sales made, work done, services performed or rendered and business or other activities conducted in this municipality, whether or not such corporations have an office or place of business in this municipality.
(b) The portion of the net profits attributable to this municipality of a taxpayer conducting a business, profession or other activity both within and without the boundaries of this municipality shall be determined as provided in Section 718.02 of the Revised Code of Ohio and in accordance with the rules and regulations adopted by the Commissioner pursuant to the ordinance.
(c) Operating Loss Carry Forward
1. The portion of a net operating loss sustained in a taxable year subsequent to January 1, 1976, allocable to this municipality may be applied against the portion of profit of succeeding year(s) allocable to this municipality, until exhausted but in no event more than five (5) years. No portion of a net operating loss shall be carried back against net profits of any prior year.
2. The portion of a net operating loss sustained shall be allocated to this municipality in the same manner as provided herein for allocating net profits to this municipality. 3. The Commissioner shall provide by Rules and Regulations the manner in which such net operating loss carry-forward shall be determined.
(d) Consolidated Returns:
l. Filing of Consolidated returns may be permitted, required, or denied in accordance with Rules and Regulations prescribed by the Commissioner.
2. In the case of a corporation that carries on transactions with its stockholders or with other corporations related by stock ownership, interlocking directorates, or some other method, or in case any person operates a division, branch, factory, office, laboratory or activity within this municipality constituting a portion only of its total business, the Commissioner shall require such additional information as he may deem necessary to ascertain whether net profits are properly allocated to this municipality . If the Commissioner finds net profits are not properly allocated to this municipality by reason of transactions with stockholders or with other corporations related by stock ownership, interlocking directorates, or transactions with such division, branch, factory, office, laboratory or activity or by some other method, he shall make such alloction as he deems appropriate to product a fair and proper allocation of net profits to this municipality.
(e) EXCEPTION: The tax provided for herein shall not be levied upon the military pay or allowances of members of the armed forces of the United States, or upon the net profits of any civic, charitable, religious, fraternal or other organization specified in Section 718.02 of the Revised Code of Ohio to the extent that such net profits are exempted from municipal income taxes under said section.
SECTION 4: EFFECTIVE PERIOD
Said tax shall be levied, collected and paid with respect to the salaries, wages, commissions and other compensation, and with respect to the net profits of businesses, professions or other activities earned on and after January 1, 1976.