(a) (1) Rental income received by a taxpayer shall be included in the computation of net profits from business activities only if and to the extent that the rental ownership, management or operation of the real estate from which such rentals are derived (whether so rented, managed or operated by a taxpayer individually or through agents or other representatives) constitutes a business activity of the taxpayer in whole or in part.
(2) Where the gross monthly rental of any and all real properties, regardless of the number and value, aggregates in excess of two hundred fifty dollars ($250.00) per month, it shall be prima-facie evidence that the rental, ownership, management or operation of such properties is a business activity of such taxpayer, and the net income of such rental property shall be subject to tax. However, in the case of commercial property, the owner shall be considered engaged in a business activity when the rental is based on a fixed or fluctuating percentage of gross or net sales, receipts or profits of the lessee, whether or not such rental exceeds two hundred fifty dollars ($250.00) per month. Further, in the case of farm property, the owner shall be considered engaged in a business activity when he or she shares in crops or when the rental is based on a percentage of the gross or net receipts derived from the farm, whether or not the gross income exceeds two hundred fifty dollars ($250.00) per month. A person who operates a licensed rooming house shall be considered in business whether or not the gross income exceeds two hundred fifty dollars ($250.00) per month.
(3) A. On or before February 1, 2005, all property owners of rental or leased residential property who rent said premises to tenants, shall file with the Finance Director of Avon, Ohio, a report showing the names, addresses and places of employment of each such tenant who occupies said residential premises within the corporation limits of the City, as of January 1, 2005.
B. Beginning January 1, 2005, and thereafter, within 30 days after a new tenant(s) occupies residential rental or leased property of any kind within the City, the property owner(s) of such rental or leased residential property who rents to the tenant(s), shall file with the Finance Director of the City, a report showing the name(s), address(es) and place(s) of employment of each such tenant who occupies said residential premises within the corporation limits of the City.
C. Beginning January 1, 2005, and thereafter, within 30 days after a tenant vacates a rental or leased residential property located within the City, the property owner of such vacated rental or leased property shall file with the Finance Director of the City, a report showing the date of vacating from the rental or leased residential property and identifying such vacating tenant(s) by name, forwarding address (if available) and place of employment (if available).
(b) Income earned by a taxpayer from a royalty interest in the production of an oil or gas well, whether managed, extracted or operated by the taxpayer individually or through an agent or other representative, shall be included in the computation of net profits from a business activity to the extent that such royalty interest constitutes a business activity of the taxpayer.
Where the gross income received by a taxpayer from a royalty interest in the production of an oil or gas well in a taxable year exceeds three thousand dollars ($3,000), it shall be prima-facie evidence that the income was derived from a business activity of such taxpayer and the net income from such royalty interest shall be subject to tax.
(Ord. 5-85. Passed 4-22-85; Ord. 212-04. Passed 12-28-04.)