City of Powell Income Tax Code - The City of Powell

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E. On the net profits of all resident sole proprietorships, and on the netprofits of all non- resident sole proprietorships for work done or servicesperformed or rendered and business or other activities conducted in theCity.F. Effective for tax years 2004 and later, the distributive share of incomepaid to an S corporation shareholder shall be taxable in the followingmanner:(1) If no portion of the net profits of the S corporation are allocated orapportioned to the State of Ohio, the distributive share is taxableonly to the extent that it represents wages or net earnings fromself-employment.(2) If any portion of the net profits of the S corporation are allocatedor apportioned to the State of Ohio, the full amount of thedistributive share is taxable.(b)Exceptions.The tax provided for herein shall not be levied upon:1. Military pay or allowances of members of the Armed Forces of the UnitedStates and of members of their reserve components, including the OhioNational Guard.2. The income of religious, fraternal, charitable, scientific, literary or educationalinstitutions to the extent that such income is derived from tax exempt realestate, tax exempt tangible or intangible property or tax exempt activities.3. Poor relief, unemployment insurance benefits, pensions paid as a result ofretirement, and disability benefits received from local, State or Federalgovernments or charitable, religious or educational organizations.4. Proceeds of insurance paid by reason of the death of the insured, disabilitybenefits, annuities or gratuities not in the nature of compensation for servicesrendered from whatever source derived.5. Receipts by bona fide charitable, religious and educational organizations andassociations, when those receipts are from seasonal or casual entertainment,amusements, sports events and health and welfare activities when any suchare conducted by bona fide charitable, religious or educational organizationsand associations.6. Personal earnings of all individuals under eighteen (18) years of age.7. Parsonage allowance, to the extent of the rental allowance or rental value of ahouse provided as a part of an ordained minister’s compensation. The ministermust be duly ordained, commissioned, or licensed by a religious body6
constituting a church or church denomination and be permitted to perform allthe sacraments of the religious body, including that of marriage.8. Compensation paid to a precinct election official, to the extent that suchcompensation does not exceed $1,000 annually.9. Compensation for personal injuries or for damages to property by way ofinsurance or otherwise, but this exclusion does not apply to compensation paidfor lost salaries or wages, or to compensate for punitive damages.10. Gains from involuntary conversion, cancellation of indebtedness, interest onFederal obligations, items of income already taxed by the State of Ohio fromwhich the City is specifically prohibited from taxing and income of decedent’sestate during the period of administration (except such income from theoperation of a business).11. Other income, salaries, wages, commissions and compensation and net profits,the taxation of which is prohibited by the United Sates Constitution or any act ofCongress limiting the power of the states or their political subdivisions toimpose net income taxes on income derived from interstate commerce.12. Other income, salaries, wages, commissions and compensation and net profits,the taxation of which is prohibited by the Constitution of the State of Ohio orany act of the Ohio General Assembly limiting the power of the City to imposenet income taxes.13. Intangible income as defined in Ohio Revised Code 718.01(A)(5).14. Unreimbursed employee business expenses deductible on federal form 2106.The deductions shall be subject to federal guidelines, and to review and auditby the City’s Income Tax Office. Expenses must be allocated proportionate tothe related income.181.03 ALLOCATION OF NET PROFITS(a)Net profit from a business or profession conducted both within and without theboundaries of the City shall be considered as having a taxable situs in the Cityfor the purpose of the tax in the same portion as the average ratio of:1. The average original cost of the real and tangible personal propertyowned or used by the taxpayer in the business or profession in the Cityduring the taxable period to the average original cost of all of the realand tangible personal property owned or used by the taxpayer in thebusiness or profession during the same period, whenever situated. Asused in this subsection, real property shall include property rented orleased by the taxpayer and the value of such property shall bedetermined by multiplying the annual rental thereon by eight.7
Page 2 and 3: profit, having a place of business
Page 4 and 5: (bb)(cc)(dd)“TAXABLE INCOME” me
Page 8 and 9: 2. Wages, salaries and other compen
Page 10: (c)The taxpayer shall file the retu
Page 13 and 14: withheld for the final quarter was
Page 15 and 16: 4. Compliance with sections (h)2 an
Page 17 and 18: (b)(c)(d)The Finance Director is au
Page 19 and 20: 4. A penalty shall not be assessed
Page 21 and 22: After such approval, such rules, re

City of Powell Income Tax Code - The City of Powell

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