§ 311-27. Collection at Source; Occasional Entrant.

(a)

The following terms, as used in this section, shall have the meaning set forth herein:

(i)

"Employer" includes any person who:

(1)

Employs or contracts for the services of any professional entertainer(s) or professional athlete(s) to be performed in the Municipality or any person who, acting as a promoter, booking agent or employer, engages the services of or arranges the appearance of any professional entertainer(s) or professional athlete(s) in the Municipality and who makes any payment arising from said appearance in the Municipality; or

(2)

Rents facilities located in the Municipality that are made available to any professional entertainer(s) or professional athlete(s) for use in performing services in the Municipality and who makes any payment arising from said use of facilities to the professional entertainer(s) or professional athlete(s) for services performed in the Municipality; and

(3)

Includes a person that is a related member to or of an employer.

(ii)

"Professional athlete" means an athlete who performs services in a professional athletic event for wages or other remuneration.

(iii)

"Professional entertainer" means a person who performs services in the professional performing arts for wages or other remuneration on a per-event basis.

(iv)

"Public figure" means a person of prominence who performs services at discrete events, such as speeches, public appearances, or similar events, for wages or other remuneration on a per-event basis.

(v)

"Fixed location" means a permanent place of doing business in this state, such as an office, warehouse, storefront, or similar location owned or controlled by an employer.

(vi)

"Worksite location" means a construction site or other temporary worksite in this state at which the employer provides services for more than twenty (20) days during the calendar year. "Worksite location" does not include the home of an employee.

(vii)

"Principal place of work" means the fixed location to which an employee is required to report for employment duties on a regular and ordinary basis. If the employee is not required to report for employment duties on a regular and ordinary basis to a fixed location, "principal place of work" means the worksite location in this state to which the employee is required to report for employment duties on a regular and ordinary basis. If the employee is not required to report for employment duties on a regular and ordinary basis to a fixed location or worksite location, "principal place of work" means the location in this state at which the employee spends the greatest number of days in a calendar year performing services for or on behalf of the employee's employer.

If there is not a single municipal corporation in which the employee spent the "greatest number of days in a calendar year" performing services for or on behalf of the employer, but instead there are two (2) or more municipal corporations in which the employee spent an identical number of days that is greater than the number of days the employee spent in any other municipal corporation, the employer shall allocate any of the employee's qualifying wages subject to subsection (b)(i)(2) of this section among those two (2) or more municipal corporations. The allocation shall be made using any fair and reasonable method, including, but not limited to, an equal allocation among such municipal corporations or an allocation based upon the time spent or sales made by the employee in each such municipal corporation. A municipal corporation to which qualifying wages are allocated under this division shall be the employee's "principal place of work" with respect to those qualifying wages for the purposes of this section.

For the purposes of this division, the location at which an employee spends a particular day shall be deemed in accordance with subsection (b)(ii) of this section, except that "location" shall be substituted for "municipal corporation" wherever "municipal corporation" appears in that division.

(b)

(i)

Subject to subsections (c), (e), (f), and (g) of this section, an employer is not required to withhold municipal income tax on qualifying wages paid to an employee for the performance of personal services in the Municipality if the employee performed such services in the municipal corporation on twenty (20) or fewer days in a calendar year beginning on or after January 1, 2016, or on twelve (12) or few days in a calendar year for years ending prior to January 1, 2016, unless one of the following conditions applies:

(1)

For tax years ending before January 1, 2016, the individual is an employee of another person, the principal place of business of the individual's employer is located in another municipal corporation in Ohio that imposes a tax applying to compensation paid to the individual for services performed on those days, and the individual is not liable to that other municipal corporation for tax on the compensation paid for such services; or

(2)

For tax years beginning on or after January 1, 2016, the employee's principal place of work is located in the Municipality; or

(3)

For tax years beginning on or after January 1, 2016, the employee performed services at one or more presumed worksite locations in the Municipality. "Presumed worksite location" shall have the same meaning as set forth in Ohio Revised Code section 718.011; or

(4)

The employee is a resident of the Municipality and has requested that the employer withhold tax from the employee's qualifying wages as provided in Section 311-23 of this chapter; or

(5)

The employee is a professional entertainer, professional athlete, or public figure, and the qualifying wages are paid for the performance of services in the employee's capacity as a professional athlete, professional entertainer, or public figure within the Municipality.

(ii)

For the purposes of subsection (b)(i) of this section, an employee shall be considered to have spent a day performing services in the Municipality only if the employee spent more time performing services for or on behalf of the employer in the Municipality than in any other municipal corporation on that day. For the purposes of determining the amount of time an employee spent in a particular location, the time spent performing one or more of the following activities shall be considered to have been spent at the employee's principal place of work:

(1)

Traveling to the location at which the employee will first perform services for the employer for the day;

(2)

Traveling from a location at which the employee was performing services for the employer to any other location;

(3)

Traveling from any location to another location in order to pick up or load, for the purpose of transportation or delivery, property that has been purchased, sold, assembled, fabricated, repaired, refurbished, processed, remanufactured, or improved by the employee's employer;

(4)

Transporting or delivering property described in subsection (b)(ii)(3) of this section, provided that, upon delivery of the property, the employee does not temporarily or permanently affix the property to real estate owned, used, or controlled by a person other than the employee's employer; or

(5)

Traveling from the location at which the employee makes the employee's final delivery or pick-up for the day to either the employee's principal place of work or a location at which the employee will not perform services for the employer.

(c)

If the principal place of work of an employee is located in a municipal corporation that imposes an income tax in accordance with this chapter, the exception from withholding requirements described in subsection (b)(i) of this section shall apply only if, with respect to the employee's qualifying wages described in that division, the employer withholds and remits tax on such qualifying wages to the municipal corporation in which the employee's principal place of work is located.

(d)

(i)

Except as provided in subsection (d)(ii) of this section, if, during a calendar year, the number of days an employee spends performing personal services in the Municipality exceeds the threshold described in subsection (b)(i) of this section, the employer shall withhold and remit tax to the Municipality for any subsequent days in that calendar year on which the employer pays qualifying wages to the employee for personal services performed in the Municipality.

(ii)

An employer required to begin withholding tax under subsection (d)(i) of this section may elect to withhold tax on behalf of the Municipality during the initial threshold period described in subsection (b)(i) of this section for days on which the employer paid qualifying wages to the employee for personal services performed in that municipal corporation.

(iii)

If an employer makes the election described in subsection (d)(ii) of this section, the taxes withheld and paid by such an employer during that initial threshold period to the municipal corporation in which the employee's principal place of work is located are refundable to the employee.

(e)

Beginning January 1, 2016 and thereafter, without regard to the number of days in a calendar year on which an employee performs personal services in the Municipality, an employer shall withhold municipal income tax on all of the employee's qualifying wages for a taxable year and remit that tax only to the Municipality if the employer's fixed location is located in the Municipality and the employer qualifies as a small employer as defined in Section 311-9-S6 of this chapter. To determine whether an employer qualifies as a small employer for a taxable year, the tax commissioner may require the employer to provide the tax commissioner with the employer's federal income tax return for the preceding taxable year.

(f)

Subsections (b)(i) and (d) of this section shall not apply to the extent that the tax commissioner and an employer enter into an agreement regarding the manner in which the employer shall comply with the requirements of Section 311-23 of this chapter.

(g)

Withholding on the qualifying wages of a person performing personal services at a petroleum refinery located in the Municipality shall be consistent with Ohio Revised Code section 718.011(G).

(Ordained by Emer. Ord. No. 363-2015, § 2, eff. Jan. 1, 2016)