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g) Other dividends from foreign corporations. (NOTE: THE AMOUNT IS REPORTED ON THE FEDERAL FORM 1120, PAGE 2,
LINE 13 OF SCHEDULE C. THE TOTAL DIVIDEND AMOUNT IS ALSO REPORTED AS “DIVIDENDS” IN THE INCOME SECTION OF
THE FEDERAL RETURN.)
h) An adjustment for ordinary income from other partnerships or S corporations which is included in taxable income. (NOTE:
THE AMOUNT IS FROM OTHER ENTITIES IN WHICH THE CORPORATION HAS OWNERSHIP. THE OCCUPATIONAL LICENSE
FEE IS ASSESSED ON THE BUSINESS ENTITY WHICH IS CONDUCTING BUSINESS WITHIN THE LOCALITY, NOT THE OWNERS.
THE TOTAL VALUE IN WHICH THE CORPORATION OWNS WOULD BE REPORTED ON THE BALANCE SHEET AS AN
INVESTMENT ASSET. THE INCOME AMOUNT IS TYPICALLY REPORTED ON THE FEDERAL FORM 1120 AS “OTHER INCOME,”
LINE 10, AND CAN ALSO BE REPORTED ON THE FORM 4797 IF THE INVESTMENT COMPANY SELLS BUSINESS PROPERTY.”
i) An adjustment for the total deduction for dividends paid and the Section 857(b)(2)(E) deduction. (NOTE: THE AMOUNT IS
REPORTED ON LINE 21d OF THE FEDERAL FORM 1120-REIT. THIS AMOUNT IS THE DISTRIBUTION OF INCOME TO THE
OWNERS. SINCE THE OCCUPATIONAL LICENSE FEE IS NOT ASSESSED ON THE OWNERS, THE AMOUNT MUST BE ADDED
BACK TO TAXABLE INCOME)
Line 8 of Worksheet P, “Professional Expenses not reimbursed by the partnership.” If a partner incurs out-of-pocket expenses in
connection with providing services to a partnership, those expenses are deductible on the partner’s individual tax return if the
partnership agreement states in writing that the partner pay the expenses. If the partner has the right to be reimbursed, but fails to
obtain reimbursement, the partner is not entitled to a deduction. The out-of-pocket expenses are deducted on the partner’s individual
return, Schedule E, Part II, column (i). If the partner is allowed to deduct the expenses on their individual return, then a deduction is
permitted on their local occupational license return. Attach a schedule detailing these expenses.
Line 9 of Worksheet P, “Total Adjustments.” Add lines 5 through 8 and enter the total on line 9.
Line 10 of Worksheet C, “Adjusted Net Profit.” Subtract line 9 from line 4. Enter the total on line 10 of Worksheet P and Line 1,
Section B, FEE COMPUTATION of the Net Profit Tax Return. Go to Line 2 BUSINESS APPORTIONMENT of the FEE COMPUTATION
section. If paying on less than 100% of Adjusted Net Profit - complete Worksheet Y and enter the percentage on Line 4 of Worksheet Y
and Line 2 Section B, FEE COMPUTATION of the Net Profit Tax Return.
WORKSHEET Y -BUSINESS APPORTIONMENT - If a percentage of your business is
outside the taxing jurisdiction - Complete Worksheet Y
1) If 100% of the business is conducted within the local jurisdiction, enter 100% on line 2 of the FEE COMPUTATION section of the Net
Profit Tax Return. Do not complete WORKSHEET Y: BUSINESS APPORTIONMENT.
2) All licensees whose business operations were not conducted entirely in the local jurisdiction must complete WORKSHEET Y:
BUSINESS APPORTIONMENT, regardless of profit or loss.
Payroll Factor
Line 1, column A: Enter the total compensation paid to employees who are residents of the school district for services rendered
within the local jurisdiction during the period covered by the tax return. (NOTE: FOR THOSE LOCAL JURISDICTIONS THAT
HAVE A PAYROLL TAX, THIS AMOUNT SHOULD EQUAL THE AMOUNT OF PAYROLL REPORTED AS BEING SUBJECT TO THE
LOCAL JURISDICTION WITHHOLDING TAX. SOMETIMES A DIFFERENCE IS NOTED DUE TO THE ACCRUAL ACCOUNTING
PROCESS. IN THIS SITUATION, THE AUDITOR WOULD REQUEST THE TAXPAYER TO SUBMIT A RECONCILIATION OF THE
DIFFERENCE. TYPICALLY, THE ACCURAL WOULD HAVE AN IMMATERIAL AFFECT ON THE FEE DUE.)
Line 1, column B: Enter the total compensation paid to employees for services rendered everywhere during the period covered
by the tax return. (NOTE: THIS AMOUNT SHOULD EQUAL THE DEDUCTIONS REPORTED ON THE FEDERAL INCOME TAX
RETURNS AS COMPENSATION OF OFFICERS, WAGES AND SALARIES, AND COST OF LABOR. IT WOULD NOT INCLUDE THE
COST OF LABOR AMOUNT IF THE SUBCONTRACTORS EXPENSE IS REPORTED UNDER COST OF LABOR. ALSO, IT WOULD NOT
INCLUDE GUARANTEED PAYMENTS TO PARTNERS DEDUCTED ON A FEDERAL FORM 1065 BECAUSE PARTNERS ARE NOT
CONSIDERED EMPLOYEES.)
Line 1, column C: Divide column A by column B. Enter the result on Line 1, Column C.
Sales Factor
Line 2, column A: Enter the total gross receipts from sales, rents, and services in the ordinary course or usual trade of
business earned within Warren County during the period covered by the tax return. The business entity must be a resident or
have business situs in the school district.
Line 2, column B: Enter the total gross receipts from sales, rents, and services in the ordinary course or usual trade of
business earned everywhere during the period covered by the tax return. (NOTE: THIS AMOUNT EQUALS THE “GROSS
RECEIPTS LESS RETURNS AND ALLOWANCES” AS REPORTED ON THE FEDERAL INCOME TAX RETURN. IF THE TAXPAYERS
PRINCIPAL BUSINESS WITHIN THE LOCALITY IS RENTAL INCOME, THEN THE AMOUNT WOULD INCLUDE THE TOTAL GROSS
RENTS AS REPORTED ON THE FEDERAL INCOME TAX RETURN. THIS AMOUNT DOES NOT INCLUDE INTEREST, DIVIDENDS, OR
SALES OF BUSINESS PROPERTY. IF THE TAXPAYERS PRINCIPAL BUSINESS IS THE SALE OF PROPERTY, THEN THE SALES ARE
REPORTED IN THE “GROSS RECEIPTS” AMOUNT FOR FEDERAL INCOME TAX PURPOSES. INCOME AS REPORTED ON THE
FEDERAL FORM 4797 IS FROM CASUAL SALES, NOT FROM THE ORDINARY TRADE OR BUSINESS AND SHOULD NOT BE
CONSIDERED IN DETERMINING THE SALES FACTOR.)
Line 2, column C: Divide column A by column B. Enter the result on Line 2, column C.
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