a. Net Profits: The following income is specifically determined to be subject to the occupational license fee:
1. Income of the sales of stocks, bonds and other securities or any interest therein by brokers, business entities and persons engaged in conducting such business as investment firms, lending institutions and similar such businesses;
2. Income from the operation of warehouses, apartments, hotels, motels, hotel buildings, office buildings and similar structures;
3. A trust estate engaged in business which produces income. In the case of a real estate investment trust (REIT), the total deduction for dividends paid and the Internal Revenue Code (I.R.C.) Section 857 (b)(2)(E) of the IRS deduction are included when determining the investment trusts taxable income;
4. Income of fiduciaries, defined to mean a person who holds in trust property, monies or properties to which another has a beneficial trust or interest, or who receives or controls income for another person where such a fiduciary is regularly engaged in such a business or profession; and,
5. Income earned, derived or received on the sales, rental or leasing of personal and real property, as well as losses attributable to the sale of real and personal property classified as capital losses by the Internal Revenue Service which shall be included as income.
b. Employee Withholdings: The following income has been specifically defined as taxable wages, commission or salary and is subject to the occupational license fee:
1. Wages, salaries, other compensation, including but not limited to deferred compensation and any and all income derived from approved leave, including but not limited to vacation pay, sick leave, employer provided and paid disability payments, military leave, personal days, holidays, annual leave and other approved leave;
2. Early retirement and similar inducement payments, including but not limited to Supplemental Income Protection Program (SIPP) payments made in consideration for early retirement, or other inducements paid by employers to employees arising from the employee’s service to the employer;
3. Separation payments, regardless of residency at time of payment, including (a) payments made by an employer to an employee at the time of retirement if such benefits would be subject to the withholdings license fee if paid to an active employee; (b) other benefits accrued pursuant to any employment contract or arrangement between the employer and employee; and (c) payments which are made in lieu of any payment which the employer is obligated to make to or on behalf of the employee arising from the employment to the extent that such payments would be subject to the withholdings license fee if paid to an active employee; and,
4. Life insurance premiums for coverage in excess of fifty thousand ($50,000) dollars paid by the employer.
(Ord. BG2020-23, 9/1/2020; Ord. BG2022-49, 11/15/2022)