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INSTRUCTIONS FOR PREPARING FORM 27

GENERAL INSTRUCTIONS

LINE (3C) – Business entities may carry operating losses forward for a maxi-

mum period of five (5) years or until exhausted whichever is earlier. No portion

FILING REQUIREMENTS: Every corporation, partnership, trust or estate

of a net operating loss shall be carried back against net profits of any prior

whether a resident or non-resident that conducts business in a R.I.T.A. munic-

year. Taxpayers doing business both in and outside R.I.T.A. municipalities who

ipality must file a return and pay tax on the net profit.

allocate profits via Schedule Y must also allocate losses accordingly. A work-

sheet or schedule is required to support an operating loss claimed on the

WHAT CONSTITUTES NET PROFITS: Net profits shall be determined on the

return.

basis of the information used for federal income tax purposes adjusted to the

requirements of the Ordinance of a R.I.T.A. municipality. Expenses attributable

LINE 4 – is the result of Line (3B) less Line (3C).

to non-taxable income are not deductible. Gains and losses from the sale or

exchange of capital assets to the extent recognized as capital gains or losses

LINE 5 – See reverse side for tax rates or use to obtain

for federal income tax purposes are not to be considered in arriving at net

current rates. NOTE: You must complete Schedule B for any amount on line 5.

profits.

LINE (6A) – Enter here estimate payments made to R.I.T.A. municipalities for

HOW TO TREAT A NET LOSS: The portion of a net operating loss sustained

this taxable year.

in any taxable year, allocable to a R.I.T.A. municipality may be applied against

the portion of the profit of succeeding year(s) allocable to a R.I.T.A. municipal-

LINE (6B) – Enter credit from prior year(s). (Overpayment you indicated on the

ity until exhausted, but in no event for more than five (5) taxable years. No por-

prior return to be credited against this year’s tax.)

tion of a net operating loss shall be carried back against net profits of any prior

year. The portion of a net operating loss sustained shall be allocated to a

LINE (6C) – is the total of Lines (6A) and (6B).

R.I.T.A. municipality in the same manner as provided herein for allocating net

profits to the taxing municipality. The net operating loss of a business which

LINE (7A) – If Line 5 is greater than Line (6C) the difference should be entered

loses its identity through merger, consolidation, etc. shall be allowed as a loss

here. Remittance in this amount must accompany the return when flied. If this

carry-forward deduction to the surviving business entity to the extent permitted

amount is less than $1, (for Bedford Hts. $5), you do not have to pay.

by the Internal Revenue Code.

LINE (7B) – If Line (6C) is greater than Line 5 the difference should be entered

WHEN TO FILE: On or before April 30th following the close of the calendar

here. This amount will be transferred as a credit unless you request a refund.

year (April 15 for entities conducting business in Bexley, Galena, Milan, Milford

Refunds of less than $1 (for Bedford Hts. $5) are not made, per the income tax

Center, Mount Sterling, New Albany, Powell, Reynoldsburg, Shawnee Hills,

ordinance, but can be credited to your account. Do not split overpayment

Steubenville and Toronto). If the return is made for a fiscal year or any period

between credit and refund.

less than a year, file within four (4) months from the end of the fiscal year or

other period. (Before the 15th day of the fourth month from the end of the

COMPUTATION OF ESTIMATED TAX

LINE (8) –

fiscal year or other period for Bexley, Galena, Milan, Milford Center, Mount

Sterling, New Albany, Powell, Reynoldsburg, Shawnee Hills, Steubenville and

A. Enter the computed, estimated taxes for each municipality in the space pro-

Toronto.)

vided next to the name of that municipality listed on the bottom part of the

WHERE TO FILE: Forms may be mailed to R.I.T.A., P.O. Box 6600, Cleveland,

Estimated Tax Requirements section. Then place the total taxes on line A.

Ohio 44101-2004, or delivered to the office of the Regional Income Tax

B. Credit from prior year: If upon completion of your annual net profit Form

Agency.

27 you have accrued a credit and did not request a refund, you may take

EXTENSIONS OF TIME TO FILE for good cause may be granted by the

that credit here on line B. Otherwise, place a zero on this line.

Administrator. Make written request on or before the due date, stating reason

for extension.

C. Subtract line B from line A and place the difference here on line C.

ROUNDING OFF TO WHOLE DOLLARS is permitted. Eliminate any amount

D. Enter the amount of estimated tax to be paid with this return on line D.

less than fifty cents and increase any amount from fifty cents through ninety-

nine cents to the next higher dollar.

LINE (9) – Enter the total of Tax Line 7A plus total estimate paid Line 8D.

In accordance with law, PENALTY AND INTEREST will be charged for failing

For your convenience, you may pay the full amount of total estimated tax

to file a return and to pay taxes, including estimated taxes, when they are due.

due, (line 3) with this declaration. Otherwise, 1/4 of the estimated tax due

must be remitted with this declaration and the remaining amount will be

SPECIAL NOTES

billed to you in three equal installments.

BEXLEY, GRANDVIEW HTS., NEW ALBANY, POWELL, REYNOLDS-

BURG, RIVERSIDE, SHAWNEE HILLS, SUNBURY, TORONTO AND

SIGN AND DATE FORM 27 IN THE SPACE PROVIDED.

UPPER ARLINGTON: A net operating loss may not be carried forward. For

UPPER ARLINGTON only, net operating loss can be carried forward prior to

PRINT YOUR FEDERAL EMPLOYER IDENTIFICATION NUMBER ON YOUR

tax year 1999 for a maximum of three years.

CHECK OR MONEY ORDER AND MAKE IT PAYABLE TO R.I.T.A.

ENCLOSE CHECK OR MONEY ORDER AND ORIGINAL FORM 27 IN THE

BOSTON HTS. AND SOUTH SOLON: A net operating loss may be carried

ENCLOSED RETURN ENVELOPE.

forward for a maximum period of three (3) years.

RIVERSIDE: Net losses, incurred in a business or other activity subject to

CHANGES

the ordinance, are deductible from all the taxable net profits and earnings

included in the return.

If your mailing address, company name, trade name or R.I.T.A. MUNICIPALI-

TY where located is incorrect or has changed from that shown on Form 27,

SPECIFIC INSTRUCTIONS

enter all changes on the form next to the information that has changed.

HEADING – Print your company name, address, federal identification number,

In accordance with law, PENALTY AND INTEREST will be charged for failing

or make needed corrections if already imprinted.

to file a return and to pay taxes, including estimated taxes, when they are due.

LINE 1 – Place here your total taxable income as shown on your federal form

For each R.I.T.A. MUNICIPALITY owed, if your estimated payments are not

attached. 1065 filers use amount shown as ordinary income.

80% (70% for Lockland, Newtown and Riverside; 90% for Sunbury) of the tax

due or are not equal to or greater than your prior year’s total tax liability, you

LINES (2A), (2B), and (2C) – are used to make adjustments when Line 1

will be subject to penalty and interest assessments.

includes income not taxable and/or items not deductible for municipal tax pur-

poses. Schedule X is used to reconcile income as used for federal purposes

QUARTERLY PAYMENTS OF ESTIMATED TAX MUST BE MADE TO EACH

by subtracting such income items that are not taxable for municipal purposes

R.I.T.A. MUNICIPALITY IN WHICH THE ANTICIPATED AMOUNT OWED IS

and adding back deductions used for federal purposes which are not allowable

AT LEAST $10.00, EXCEPT AVON LAKE IF THE ANTICIPATED AMOUNT IS

for city purposes. Enter the amounts of any such items in Schedule X, and

AT LEAST $40.00; AURORA, BAY VILLAGE, GALENA, GLENWILLOW, HUD-

carry the totals of Schedule X, Lines (G) and (Z) respectively to Lines (2A) and

SON, MAYFIELD HEIGHTS, MIDDLEBURG HEIGHTS, NEW ALBANY, POW-

(2B). The difference between Lines (2A) and (2B) is to be entered on Line (2C).

ELL, SHAKER HEIGHTS, STRONGSVILLE, SUNBURY, UNIVERSITY

Also see instructions for Schedule X.

HEIGHTS AND WILLOWICK IF OVER $50.00; BRECKSVILLE IF OVER

$75.00; BEDFORD HEIGHTS, ELYRIA, GRANDVIEW HTS., REYNOLDS-

LINE (3A) – is the result of Line 1 plus Line (2A) less Line (2B).

BURG, ST. PARIS, SILVER LAKE, STEUBENVILLE, UPPER ARLINGTON

AND WESTLAKE AT LEAST $100.00; AND FOR BEXLEY AT LEAST $200.00.

LINE (3B) – The income tax ordinance recites a formula (Schedule Y) to deter-

FOR ASHVILLE, BEACHWOOD, HUNTING VALLEY, LOCKLAND, MILAN,

mine the percentage of income attributable to R.I.T.A. municipalities by busi-

MILFORD CTR., MOUNT STERLING, NEWTOWN, NORTH LEWISBURG,

ness entities conducting business activity both within and outside R.I.T.A.

OTTAWA, RICHWOOD, SHAWNEE HILLS, SOUTH SOLON, TORONTO,

municipalities. If Schedule Y is used, bring the average percentage from Line

WAKEMAN AND WINTERSVILLE QUARTERLY PAYMENTS MUST BE

5 of Schedule Y to the % line of Line (3B). Multiply Line (3A) by this percent-

MADE REGARDLESS OF THE ANTICIPATED AMOUNT OWED.

age and enter the result on Line (3B).

Schedule X - Reconciliation With Federal Income Tax Return, Schedule Y - Business Allocation Formula Etc. Page 2

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