Exemptions Sources of Income Not Taxed

4:01 Income of Members of Armed Forces and Certain Institutions

A. All military pay and allowance of any member of the armed forces of the United States and members of their reserve components, including the Ohio National Guard, are exempt from the tax imposed by the Ordinance. This exemption includes not only the military pay and allowances, such as dependency allowances, received by another person by reason of the member's service.

B. The income of religious, fraternal, scientific, literary or educational institutions is exempt from the tax imposed by the Ordinance only to the extent that such income is derived from tax-exempt tangible or intangible property or tax-exempt activities.

4:02 Payments From Governments and Certain Organizations

A. Poor relief, unemployment insurance benefits, old age pensions or similar payments, including disability benefits received from local, state or federal governments or charitable, religious or educational organizations are exempt from the tax imposed from the Ordinance. The exempted benefits include all types of payments and allowances made or given by such governments and organizations for the relief or correction of poverty, unemployment, delinquency, problems of health or advanced age, lack of education and similar problems. The exempted benefits include, for example; aid to dependent children and the aged; rent, food and clothing allowances or subsidies; job training allowances; social security and Medicare benefits; and Workmen's Compensation benefits.

4:03 Insurance and Annuity Proceeds, Certain Employee Benefits and Gifts

A. Proceeds of insurance paid by reason of the death of the insured, gratuities not in the nature of compensation for services rendered, pensions, disability benefits (not under a wage continuation plan), retirement benefits and annuities are exempt from the tax imposed by the Ordinance, irrespective of the source from which derived. Disability benefits include the proceeds of health and accident insurance and similar benefits, annuities and similar payments made to an employee or to the beneficiary of an employee under a retirement program or plan (whether formal or informal) after termination of employment are exempt form the tax, however, supplemental unemployment benefits are not exempt from the taxation.

4:04 Receipts of Certain Organizations and Associations

A. Receipts from seasonal or casual entertainment, amusements, sports events and health and welfare activities, when such are conducted by charitable, religious or educational organizations or associations, are exempt from the tax imposed by the Ordinance. This exemption refers only to the receipts of the organization and no to the compensation of employees and entertainers.

4:05 Alimony

A. Alimony received is exempted from the tax imposed by the Ordinance. Support payments made by one spouse for the benefit of the other spouse or children in connection with any divorce or separation, whether or not awarded by the court, shall be deemed alimony for the purposes of this exemption. 

 4:06 Minors

A. Personal earnings of any natural person under eighteen (18) years of age are exempt from the tax imposed by the Ordinance.

4:07 Person Injury and Damage to Property

A. Compensation for personal injuries or for damages to property by way of insurance or otherwise is exempt from the tax imposed by the Ordinance.

4:08 Income From Intangibles

A. Intangible property includes:

1. Shares of stock in corporations

2. Interest-bearing obligations (notes, bonds and savings accounts)

3. Annuities

4. Patents and Copyrights

5. Qualified stock options

4:09 Involuntary Conversions and Other Exemptions

A. Gains from involuntary conversion, cancellation of indebtedness, interest on Federal obligations, items of income already taxed by the State of Ohio, which this municipality is specifically prohibited from taxing and income of a decedent's estate during the period of administration (except such income from the operation of a business), are exempt from the tax imposed by the Ordinance.

4:10 Compensation Paid to a Precinct Official

A. Compensation paid under section 3501.28 or 3501.36 of the Revised Code to a person serving as a precinct election official, to the extent that compensation does not exceed one thousand ($1,000.00) dollars annually.  The Village of Cadiz may subject such compensation in excess of one thousand ($1,000.00) dollars to taxation.  The payer of such compensation will not be required to withhold any tax from that compensation.

4:11 Regional Transit Authority

Compensation paid to an employee of a transit authority, regional transit authority, or regional transit commission created under Chapter 306, of the Revised Code for operating a transit bus or other motor vehicle for the authority or commission in or through the municipal corporation, unless the bus or vehicle is operated on a regularly scheduled route, the operator is subject to such tax by reason of residence or domicile in the municipal corporation, or the headquarters of the authority or commission is located within the municipal corporation.

4:12 Public Utilities

The income of a public utility when that public utility is subject to the tax levied under section 5727.24 or 5727.30 or the Revised Code, except starting January 1, 2002, the income of an electric company or combined company, as defined in section 5727.01 of the Revised Code, may be taxed by a municipal corporation.  for a combined company, only the income attributed from the activity of an electric company shall be subject to taxation by a municipal corporation.  The income of an electric company or combined company subject to taxation by a municipal corporation shall be computed by taking in account the adjustments provided by division (1) (16) of section 5733.04 of the Revised Code.

4:13 Taxation Prohibited by Federal Government

A. Salaries, wages, commissions and other compensation and net profits, the taxation of which is prohibited by the United States Constitution or any act of Congress limiting the power of the states or their political subdivisions to impose net income taxes of income derived from interstate commerce, are exempt from the tax imposed by the Ordinance.

 4:14 Taxation Prohibited by State of Ohio

A. Salaries, wages, commissions and other compensation and net profits, the taxation of which is prohibited by the Constitution of the State of Ohio or any act of the Ohio General Assembly limiting the power of this municipality to impose net income taxes, are exempt from the tax imposed by the Ordinance.