INSTRUCTIONS FOR HARRISON CITY BUSINESS TAX FORM 2004

Who Must File
All corporations' partnerships' trusts, estates LLC's or other entities
conducting business or performing services in or derive income from
activities in Harrison must file a City Income Tax return. We have
mandatory filing. If for some reason, you do not have any taxable income
for the year you need to return our tax form with an explanation.

When and where to file
MUST be filed on or before April 15th for calendar year taxpayers. Fiscal
year taxpayers must file the return within 31/2 months from the end of such
fiscal year. Returns must be filed with the Harrison Tax Department at 300
George St., Harrison, OH 45030 -1515.

Extensions of Time to File
A copy of the Federal extension request or written extension request must
be received by April 15th or the due date of the fiscal year return and a
payment of any tax deemed to be due. Payment in full of your tax liability
must accompany the extension request since an extension of time to file is
not an extension of time to pay the tax due. Only requests received in
duplicate with a self-addressed stamped envelope will have a copy returned
after being marked approved.

INSTRUCTIONS

Line 1. Total taxable income from Federal Form 1120, 1120S, 1065, or
appropriate federal schedules. Attach Federal schedules and supporting
documents. Non C-Corps must use Schedule C, E, F, as a starting point in
computing the net profits base. Partnerships and S-Corps must file their
return as if they are C-Corporations.

Line 2A & B Schedule X- Reconciliation with Federal Income Tax Return
General:
Schedule X is to be used by corporations and partnerships. A C-Corporation's
federal taxable income is used before net operating losses and special
deductions with the following adjustments:

Items not taxable

N. Capital gains (IRC1221 or 1231 property dispositions except to the extent
the income and gains apply to those described in IRC 1245 or 1250)

O. Federally reported intangible income such as but not limited to
(ORCsec.718.01(A)(5) includes interest, dividends, patents and copyrights.
(does not include lottery winnings).

P. Amount of Federal Tax Credit to the extent they have reduced
corresponding operating expenses.

Q. Not previously deducted IRC Section 179 expense.

R. Other

Items not deductible

A. Federally deducted losses form IRC 1221 or 1231 property dispositions.

B. Five percent of intangible income reported in letter O, except that from
IRC 1221 property dispositions.

C. and D. Taxes based on State and City income

E. Guaranteed payments or accruals to or for current or former partners or
members

F. Federally deducted dividends, distributions, or amounts set aside for
credited to, or distributed to investors of REIT Real Estate Investment
Trusts or RCI.

G. Federal deducted amounts paid or accrued to or for self-employed
retirement plans, health insurance plans and life Insurance plans for owners
or owner-employees of non-C corp entities.

H. Charitable contributions (up to federal allowance)

Line M entered on 2A and Line Z entered on 2B.

Line 3B. Schedule Y
Business Apportionment Formula:
Schedule Y is to be used by unincorporated business, partnerships,
professions associations etc., and non-resident sole proprietorships when
business is conducted both inside and outside of the cities.
1. Property Value determined based on the Original cost of property not the
net book value. (ORC Sec. 718.02) To determine the value of property rented
and used in the business, multiply the gross annual rental by 8.
2. Gross receipts from sales made and services performed, regardless of
where made or performed.
3. Total payroll wages, salaries and other compensation paid.

The purpose of this schedule is to allocate of a business' net income/loss
or adjusted net income/loss (if Schedule X is used) to the City of
Harrison using the three (3) factor formula. A factor may be excluded from
the formula only when the factor does not exist anywhere.
If Schedule Y is completed enter the average percentage in the parenthesis
portion of Line 3B.

Line 3C. Loss from previous year(s). Operating losses may be carried forward
for a maximum of (3) years.

Line 4. Amount of income subject to Municipal Income Tax

Line 5. Compute tax at 1% of line 4

Line 6A. Estimated taxes paid during the tax year if any do not round.

Line 6B. Prior year overpayment

Line 6C. Enter in total credits 6A and 6B

Line 7. Subtract 6C from Line 5 difference should be entered on this line.
Any tax due must be paid when the return is filed. If the balance due with
your return is less than $5.00, no payment need accompany the return.

Line 8. If Line 6C is greater than Line 5, the amount will be transferred as
a credit towards next year's estimated tax unless you request a refund. NO
REFUNDS UNDER $5.00.

Declaration of Estimated Tax:
Business entities (corporations, partnerships, professional entities etc,)
conducting activities or producing income within the City of Harrison are
required to make quarterly estimated tax payments. Quarterly payments are
due on or before March 15, June 15, September 15, and December 15.
Taxpayers must have 90% of their current year tax liability or 100% of their
previous year's tax liability paid through quarterly estimated tax payments
by December 15. Fiscal year taxpayers should substitute corresponding
dates.

Line 9. Estimate your taxable income for the year. Multiply by 1%.

Line 10. Enter credits from overpayment of prior year tax.

Line 11. Subtract the CREDITS on Line 10 A from Line 9C to get your
balance of estimated tax.

Line 12. Enter payment amount, 1/4 of estimated tax for the next year.

Line 13. Balance of estimated tax

Line 14. Total payment-adding lines 7 and line 12. If the amount is less
then $5.00 you need not pay.

Signature, Date, and Tax Preparer Information:
The taxpayer and spouse and the return preparer, if other than the taxpayer,
should sign and date the return.

Supporting Documents: Documentation is necessary to verify all amounts
of taxable or non-taxable incomes, expenses, and deductions, as applicable.

Assistance:
If you have any question, please contact the Income Tax Department. Office
hours are 8:00 AM - 4:30 PM Monday through Friday. Phone (513)367-3595
or Fax (513)367-3599. Additional forms can be obtained from our website:
www.harrisonoh.org (tax forms).

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