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VILLAGE OF MALTA INCOME TAX RULES AND REGULATIONS (Page 1) |
RESOLUTION NO. 88-8
WHEREAS, the Village of Malta is a municipal corporation authorized by Chapter 718 of the Revised Code to levy an income tax, and;
WHEREAS, the Village of Malta has by Ordinance No. 88-7 so levied a municipal income tax, and;
WHEREAS, the provisions of said Ordinance No. 88-7 directs the Council of the Village of Malta to adopt by resolution regulation for the implementation of the Village income tax,
NOW THEREFORE, be it resolved by the Council of the Village of Malta that the foregoing articles shall and do constitute the income, tax regulations for said Village.
ARTICLE I: 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.
ARTICLE II: DEFINITIONS
As used in these rules and regulations, the following words shall have the meaning ascribed to them in this article, except as and if the context clearly indicates or requires a different meaning.
ASSOCIATION means a partnership, cooperative, limited partnership, or any other form of unincorporated enterprise owned by two or more persons.
THE BOARD means the Board of Review provided for by Section 13 of the ordinance.
BUSINESS means an enterprise, cooperative 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. The ordinary administration of a decedent's estate by the executor or administrator, and the mere custody, supervision and management of trust property under passive trust, whether intervivos or testamentary, unaccompanied by the actual operation of a business as herein defined shall not be construed as the operation of a business.
BUSINESS ALLOCATION as used in these regulations, means the portion of net profits to be allocated to Village of Malta (hereinafter, referred to as "this municipality") as having been made in this municipality, either under separate accounting method or under the three factor formula of property, payroll, and sales, provided for in Section 3 of the ordinance.
COMMISSIONER means the individual designated by the ordinance, whether appointed or elected, to administer and enforce the provisions of the ordinance, regardless of the particular title assigned such individual.
CORPORATION means 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 means one who works for wages, salary, commission or other types of compensation in the service of an employer. Any person upon whom an employer is required to withhold for either federal income or social security or on whose account payments are made under the Ohio Workmen's Compensation law shall prima facie be an employee.
EMPLOYER means an individual, partnership, association, corporation (including a corporation not for profit), governmental agency, board, body, bureau, department, sub-division, or unit or any other entity, who or that employs one or more persons on a salary, wage, commission or other compensation basis whether or not such employer is engaged in business. It does not include a person who employs only domestic help for such person's private residence.
FISCAL YEAR 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 (this municipality's) tax purposes.
GROSS RECEIPTS means total income from any source whatsoever, before any deductions.
NET PROFITS means 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 taxes computed on the net worth basis; and in the case of an association, without deduction of salaries paid to partners, and other owners; and otherwise adjusted to the requirements of this ordinance.
NON-RESIDENT means an individual domiciled outside this municipality.
NON-RESIDENT UNINCORPORATED BUSINESS ENTITY means one not having an office or place of business within this municipality.
THE ORDINANCE means Ordinance No. 88-7 enacted by the Council of this municipality and any amendments and supplements thereto effective April 7, 1988.
PERSONS means every natural person, partnership, fiduciary, association, corporation, or, other entity. Whenever used in a clause prescribing or imposing a penalty, the term PERSON as applied to any unincorporated entity shall mean the partners or members thereof, and as applied to a corporation, the officers thereof, and in the case of any unincorporated entity or corporation not having any partner, member or officer within this municipality, any employee or agent of such unincorporated entity or corporation who can be found within the corporate limits of this municipality.
PLACE OF BUSINESS means a 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 employers regularly in attendance.
RESIDENT means an individual domiciled in this municipality.
RESIDENT UNINCORPORATED BUSINESS ENTITY means an unincorporated business entity having an office or place of business within this municipality.
TAXABLE INCOME means Gross wages, salaries and other compensation paid by an, employer or employers before deductions of any kind, 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 and these regulations.
TAXABLE YEAR means the calendar year, or the fiscal year, used as the basis on which net profits are to be computed under the 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.
TAXPAYER means an individual, association, corporation or other entity required by the ordinance to file a return and/or to pay a tax.
VILLAGE means the Village of Malta.
In all definitions and these regulations the singular shall include the plural and the masculine shall include the feminine and the neuter.
ARTICLE III: IMPOSITION OF TAX
A. Bases
1. Resident Employee:
a. In the case of residents of this municipality an annual tax of 1% is imposed, on all salaries, wages, commissions, and other compensation earned during the effective period of the ordinance. For the purpose of determining the tax on the earnings of resident taxpayers taxed under Section 3, paragraph A-1 of the ordinance, the source of the earnings and the place or places in or at which the services were rendered, are immaterial. All such earnings wherever earned or paid are taxable.
b. The following are items which are subject to the tax imposed by Section 3'. paragraph A-1 of the ordinance:
1. Salaries, wages, bonuses and incentive payments earned by an individual whether directly or through an agent and whether in cash or in property for services rendered during the tax period as:
.01 An officer, director or employee of a corporation (including charitable and other non-profit organizations), joint stock association, or joint stock company;
.02 An employee (as distinguished from a partner or member) of a partnership, limited partnership, or any form of unincorporated enterprise owned by two or more persons;
.03 An employee (as distinguished from a proprietor) of a business, trade or profession conducted by an individual owner;
.04 An officer or employee (whether elected, appointed or commissioned) of the, United States Government or of a corporation created and owned or controlled by the United States Government, or any of its agencies; or of the State of Ohio or any of its political subdivisions or agencies thereof; or any foreign country or dependency except as provided in Section 3 of the ordinance;
.05 An employee of any other entity or person, whether based upon hourly, daily, weekly, semi-monthly, monthly, annual, unit of production or piece work rates; and whether paid by an individual, partnership, association, corporation (including charitable and other nonprofit corporations), governmental administration, agency, authority, board, body, branch, bureau, department, division, sub-division, section. or unit, or any other entity.
.2 Commissions earned by a taxpayer whether directly or through an agent and whether in cash or in property for services rendered during the effective period of the ordinance, regardless of how computed or by whom or wheresoever paid.
.01 If amounts received as a drawing account exceed the commissions. earned and the excess is not subject to the demand of the employer for replacement, the tax is . payable on the amounts received as a drawing account.
.02 Amounts received from an employer for expenses and used as such by the individual receiving them are not deemed to be compensation if the employer deducts such expenses or advances as such from his gross income for the purpose of determining his net profits taxable under federal law, and the employee is not required to include such receipts as income on his federal income tax return.
.03 If commissions are included in the net earnings of the trade, business, profession, enterprise, or activity, carried on by an unincorporated entity of which the individual receiving such commission is owned or part owner and therefore subject to the tax under paragraphs A-3 or A-4 of Section 3 of the ordinance, they shall not be taxed under Section 3, paragraph A-1.
.3 Fees, unless such fees are properly includible as part of the net profits of a trade, business, profession, or enterprise regularly carried on by an unincorporated entity owned or partly owned by said individual and such net profits are subject to the tax under Section 3, paragraph A-3 of the ordinance.
.4 Other compensation, including tips, bonuses or gifts of any type, and including compensation paid to domestic servants, casual employees and other types of employees.
.5 Payments made to employees by an employer as vacation wages are taxable. Payments made to an employee by an employer, under a wage continuation plan during periods of disability or sickness, are taxable.
c. Where compensation is paid or received in property, its fair market value, at the time of receipt, shall be subject to the tax and to withholding. Board, lodging and similar items received by an employee in lieu of additional cash compensation shall be included in earnings at their fair market value.
.1 In the case of domestics and other employees whose duties require them to live at their place of employment or assignment, board and lodging shall not be considered as wages or compensation earned.
2. Non-resident Employee:
a. In the case of individuals who are not residents of this municipality, there is imposed under Section 3, paragraph A-2 of the ordinance, a tax of 1% on all salaries, wages, commissions, and other compensation earned during the effective period of the ordinance for work done or services performed or rendered within this municipality whether such compensation or remuneration is received or earned directly or through an agent and whether paid in cash or in property. The location of the place for which payment is made is immaterial.
b. The items subject to tax under Section 3, paragraph A-2 of the ordinance, are the same as those listed and defined in Article III-A. For the methods of computing the extent of such work or services performed within this municipality, in cases involving compensation for person services partly within and partly without this municipality, see Article VI-A.6.
3. a. Imposition of Tax on Net Profits of Resident Unincorporated Businesses: