INSTRUCTIONS FOR FORM  L-NP
                         GENERAL INSTRUCTIONS                                installments. If the estimate is left blank, an estimate will be created for 
                                                                             you based on your prior year tax liability and municipal allocation. If no 
FILING REQUIREMENT - Every corporation, partnership, trust, or               estimate is required enter zero (0) on Line 16.
estate whether a resident or non-resident that conducts business in 
Lakewood must file a return and pay tax on the net profit.                   Quarterly payments of estimated tax must be made to Lakewood if your 
                                                                             total tax liability is at least $200. If your estimated payments are not 
WHAT CONSTITUTES  NET  PROFITS - Net profits are based on                    90% of the tax due or are not equal to or greater than your prior year’s 
Adjusted Federal Taxable Income. Ohio Revised Code Section 718.01            total tax liability, you will be subject to penalty and interest assessments.
(House Bill 95) created a uniform definition of taxable income for net 
profits tax returns. In the case of a taxpayer that is not a C corporation                                 SPECIFIC INSTRUCTIONS
and is not an individual (i.e. pass-through entities), federal taxable 
income shall be computed as though the taxpayer was a C Corporation.         HEADING - Check pre-printed information. If not correct, make corrections 
Please see Ohio Revised Code Section 718.01 (“ORC 718.01”), available        by crossing out pre-printed information and entering correct data above 
via the State of Ohio website at: www.ohio.gov/government.stm for            the line(s). Fiscal year and short period filers must indicate beginning 
more information.                                                            and ending month/year of period covered by the return.
HOW TO TREAT A NET LOSS - The net operating loss (NOL) sustained             LINE 1 - Place here your taxable federal income per attached tax return 
prior to 2017, allocable to Lakewood, may be applied against the profit      (Form 1120 - pg. 1, line 28; Form 1120A - pg. 1, line 24; Form 1120S - 
of succeeding year(s) allocable to Lakewood, until exhausted, but in         pg. 4, line 18; Form 1065 - pg. 4, line 1 & line 2; Form 1041 - page 1, 
no event for more than five (5) taxable years. Per ORC 718.01(D)(3)(c)       line 17). Returns will not be accepted unless accompanied by a copy of 
(i), NOL sustained 2017 and after is limited to the lesser of 50% of the     the entire federal tax return.
utilized NOL or 50% of the income. The NOL shall not be carried back         LINE 2 - Enter amount from Schedule W, Line P.
against net profits of any prior year. The NOL sustained shall be allocated 
to Lakewood in the same manner as provided herein for allocation of          LINE 3 - Line 1 plus or minus Line 2.
net profits to Lakewood. The NOL of a business which loses its identity      LINE 4 - If applicable, enter amount from Schedule X, Line 5.
through merger, consolidation, etc. shall be allowed as a loss carryfor-
ward deduction to the surviving business entity to the extent permitted      LINE 5 - Multiply Line 3 by Line 4.
by the Internal Revenue Code.                                                LINE 6 - Loss may be carried forward for a maximum of five years, or 
                                                                             until exhausted, whichever is earlier. Loss sustained in 2017 or later is 
WHEN & WHERE TO FILE - File with the City of Lakewood - Division             limited to the lesser of 50% of the utilized NOL or 50% of the income.  
of Municipal Income Tax Office located at 12805 Detroit Avenue, Suite        Loss may not be carried back.
1, Lakewood, Ohio 44107 on or before the fifteenth day of the fourth 
month following the end of the entity’s tax year. If the due date falls on a LINE 7 - Subtract Line 6 from Line 5. This is your Lakewood taxable 
Saturday, Sunday, or legal holiday file by the next business day.            income.
                                                                             LINE 8 - Multiply Line 7 by 1.5% or .015.
METHOD OF PAYMENT - Checks or money orders should be made                               Enter here estimate payments made to Lakewood for this 
payable to CITY OF LAKEWOOD - DIVISION OF TAX. Amounts less                  LINE 9 -
                                                                             taxable year. Estimated tax payments can be verified by calling (216) 
than $10.00 need not be remitted. There will be a $30 charge for dis-        529-6620.
honored checks.
MasterCard, Visa, Discover, or American Express may be used for              LINE 10 - Enter unused credit from prior year(s) overpayment(s).
payment of municipal income tax. To charge the amount of tax due,            LINE 11 - Add Lines 9 and 10.
complete the Pay By Credit Card - MasterCard/Visa/Discover/American          LINE 12 - Subtract Line 11 from Line 8 and proceed to Line 15. This is 
Express box next to the signature box on the front of the tax return.        your tax due. If less than $10.00, enter zero (0) and proceed to Line 13.
EXTENSIONS OF TIME TO FILE - A federal extension will extend the             LINE 13 - If Line 11 is greater than Line 8, and not less than $10.00, 
municipal due date to the due date to which the federal return is extended.  you have overpaid. Subtract Line 8 from Line 11 and enter the amount 
A copy of the federal extension must be filed with the Lakewood Municipal    on Line 13.
Income Tax Office on or before the extension due date.                       LINE 14 - Overpayment on Line 13 - enter the amount you want credited 
                                                                             and/or refunded on the appropriate line. Proceed to Line 16.
ROUNDING OFF TO WHOLE DOLLARS is permitted. Eliminate any 
amount less than fifty cents and increase any amount from fifty cents        LINE 15 - If Line 8 is greater than Line 11, and not less than $10.00, 
through ninety-nine cents to the next higher dollar.                         you have a balance due. Subtract Line 11 from Line 8 and enter the 
                                                                             amount on Line 15.
PENALTY AND INTEREST - In accordance with the law, penalty and               LINE 16 - Enter amount from Line 8. Your 2022 tax amount is used 
interest will be charged for failing to file a return and to pay taxes,      to determine your 202  tax estimate.3If you anticipate earning more 
including estimated taxes, when they are due.                                income (wage and/or non-wage) in 202 , use Form L-ES3to determine 
                                                                             your 202  estimate.3Quarterly payments of estimated tax must be made 
DECLARATION OF ESTIMATED MUNICIPAL TAX ON  NET PROFITS                       if the anticipated tax due amount is $200.00 or more.
- A Declaration of Estimated Income Tax on Net Profits is required by
municipal ordinance and must be filed by the following:                      LINE 17 - Multiply Line 16 by 25% or .25.
1.  All corporations (including S Corps. and LLC’s) whose income is          LINE 18 - Enter amount from Line 14. This is the 2022 credit to be 
  derived from sales made, work done, services performed or                  applied to the first quarter estimate.
  rendered, and business or other activities conducted in Lakewood,
  whether or not such income results in a net profit.                        LINE 19 - Add Lines 15, 17, and subtract Line 18. This is the amount 
2.  All resident or non-resident partnerships, limited partnerships,         due to the City of Lakewood. Amounts less than $10.00 need not be 
  estates, or trusts which expect a profit or loss derived from sales        paid. Make your check or money order payable to the CITY OF 
  made, work done, services performed or rendered, and business or           LAKEWOOD - DIVISION OF TAX.
  other activities conducted in Lakewood.
The estimate is due on the 15th day of the fourth month following the        SIGNATURE - Sign and date your return before submitting it to the City 
end of the entity’s tax year. For your convenience, you may pay the          of Lakewood. A return is not “filed” within the meaning of the law, until 
full amount of total estimated tax due (Line 16) with this declaration.      signed by the taxpayer or an agent legally authorized to sign for such 
Otherwise, 1/4 of the estimated tax due must be remitted with this           taxpayer. If someone other than the taxpayer prepares the return, this 
declaration and the remaining amount will be billed to you in three equal    person should sign the return.

                                        SCHEDULE INSTRUCTIONS FOR FORM L-NP
        SCHEDULE W - RECONCILIATION WITH FEDERAL                              Line 2, Column B - Gross rental amount paid for property located within 
              INCOME TAX RETURN PER O.R.C. §718                               Lakewood city limits multiplied by 8.
                                                                              Line 3, Column A - Add Line 1, Column A and Line 2, Column A. 
This schedule is used for the purpose of making adjustments when total 
federal taxable income (FTI) on Line 1 includes income not taxable and/       Line 3, Column B - Add Line 1, Column B and Line 2, Column B. 
or items not deductible for municipal purposes. Enter the amounts of          Line 3, Column C - Line 3, Column B divided by Line 3, Column A. If 
any such items in Schedule W and carry total (Line P) to Line 2.              the amount is zero, enter N/A on this line.
LINE A - Non-deductible losses incurred from the sale or exchange of          Line 4, Column A - The total gross receipt from sales made, work  
capital or other assets per O.R.C. 718.01(A)(1)(c).                           performed, and/or services rendered regardless of physical location.
LINE B - Expenses not attributable to the sale, exchange, or other            SPECIAL NOTE: “Sales” and “gross receipts” in Lakewood (Line 4) mean: 
disposition of IRS Section 1221 property (Use actual expenses or Line         •  All sales or tangible property which is shipped from Lakewood to 
K multiplied by 5% or .05).                                                    purchasers outside of Lakewood, regardless of where title passes, 
                                                                               through its own employees regularly engaged in the solicitation or 
LINE C - Includes federal, state, local and other taxes paid or accrued        promotion of sales at the place where delivery is made.
based on income.                                                              •  All sales of tangible personal property which is delivered within  
LINE D - Guaranteed payments to partners - applies only if guaranteed          Lakewood, regardless of where title passes, even though transported 
payments to partners/members had not been included within net profits          from a point outside Lakewood, if the taxpayer is regularly engaged 
under C.C.C. 361.09.                                                           through its employees in the solicitation and the sales resulting from 
                                                                               such solicitation or promotion.
LINE E - Charitable Contributions - Non-Corporate business entities           •  All sales of tangible personal property which is delivered within  
should report any contributions over the 10% corporate limitation in           Lakewood regardless of where title passes, if shipped or delivered 
accordance with O.R.C. 718.01(A)(1)(g). Non-corporate businesses               from a stock of goods within Lakewood.
may carry forward any unused contributions as if they were C-Corporations. 
A schedule should be provided to show how your deduction was                  Line 4, Column B - The total gross receipt from sales made, work  
calculated and identify any portion that was carried forward from prior       performed, and/or services rendered within Lakewood city limits. 
years. (Deduction is limited to 10% of city taxable income before             Line 4, Column C - Line 4, Column B divided by Line 4, Column A. If 
consideration for any charitable contribution deduction.)                     the amount is zero, enter N/A on this line.
LINE F - Non-corporate business entities may be limited to the corporate      Line 5, Column A - The total wages, salaries, and other compensation 
limitations for IRS Section 179 expense deduction in accordance with          paid to W2 employees regardless of physical location for services 
O.R.C. 718.01 (A)(1)(g).                                                      performed except compensation exempt from municipal taxation under 
LINE G - Qualified retirement, health insurance, and life insurance           ORC §718.11.
plans on behalf of owners/owner employees must be added back as               Line 5, Column B - The total wages, salaries, and other compensation 
non-deductible under O.R.C. 718.01 (A)(1)(g).                                 paid to W2 employees within Lakewood city limits for services per-
LINE H - Other expenses not deductible (with documentation and/or             formed expect compensation exempt from municipal taxation under 
explanation).                                                                 ORC §718.11.
                                                                              Line 5, Column C - Line 5, Column B divided by Line 5, Column A. If 
LINE I - Add Lines A through H and enter amount on Line I.                    the amount is zero, enter N/A on this line.
LINE J - Non-deductible gains incurred from the sale or exchange of           Line 6, Column C - Add the percentages listed in Column C for Lines 3, 
capital or other assets per O.R.C. 718.01 (A)(1)(c).                          4, and 5.
LINE K - Interest income.                                                     Line 7, Column C - Divided the total percentage by the number of factors 
LINE L - Dividend income.                                                     (percentages) used. Enter this amount on Page1, Line 4.
LINE M - Income from patents, trademarks, and copyrights - Do not                        Example 1 - Line 5, Column A shows no wages companywide. 
include royalty income derived from land which is fully taxable for city               If Column C shows 30%, 60%, and N/A for Lines 3, 4, and 5 
purposes.                                                                              respectively, divide 90% (30% + 60%) by 2 (since only two 
LINE N - Other exempt income (attach documentation and/or explanation).                lines have factors).
LINE O - Add Lines J through N and enter amount on Line O.                               Example 2 - Line 5, Column A reports wages companywide. 
                                                                                       None of the wages are earned in Lakewood. Line 5, Column C 
LINE P - Subtract Line O from Line I and enter the net amount on Line                  should be reported at 0%. If Column C shows 30%, 60%, and 
P. Enter this amount on Page 1, Line 2.                                                0% for Lines 3, 4, and 5 respectively, divide 90% (30% + 60%) 
                                                                                       by 3 (since all three lines have factors - zero is considered a 
 SCHEDULE X - REQUIRED MULTI-CITY NET                                                  factor).
                  PROFIT ALLOCATION
                                                                                   SCHEDULE Z - PARTNERSHIP DISTRIBUTIVE
Provide a completed L-NP, Schedule X to properly allocate your                                  SHARE OF NET INCOME
taxable city income. In order to promote uniformity and consistency 
in the calculation of the net profits, it is the City of Lakewood’s policy to Must be completed by all partnerships and associations filing returns. 
strictly interpret the changes in O.R.C. §718.02. Commencing with tax         Amounts shown in this schedule must correspond with amounts report    ed 
year 2004, the use of Separate Accounting (books & records) in the            on your Federal Partnership Form. Attach an additional schedule if you 
calculation of Net Profits is no longer an available option.                  need more space.
Line 1, Column A - The average original cost of all real and tangible 
personal property owned or used by the taxpayer except leased or 
rented real property regardless of its physical location.
Line 1, Column B - The average original cost of all real and tangible 
personal property owned or used by the taxpayer except leased or rented 
real property physically located within Lakewood city limits. 
Line 2, Column A - Gross rental amount paid regardless of physical 
location multiplied by 8.