(a) An annual tax for the purposes specified in Section 181.01 hereof shall be imposed on and after June 1, 2009 at the rate of the two and one-half percent (2.5%) per annum upon the following:
(1) On all salaries, wages, commissions and other compensation earned on and after June 1, 2009, by residents of the City of Brooklyn, with the exception that, effective July 1, 2010, the City of Brooklyn income tax shall not be levied on stock options exercised on or after July 1, 2010.
(2) On all salaries, wages, commissions and other compensation earned on and after June 1, 2009, by non-residents of the City of Brooklyn for work done or services performed or rendered within the City of Brooklyn, with the exception that, effective July 1, 2010, the City of Brooklyn income tax shall not be levied on stock options exercised on or after July 1, 2010.
(Ord. 2010-34. Passed 5-24-10.)
A. 12 - Day Occasional Entry Rule. A non-resident individual who works in Brooklyn 12 or fewer days per year shall be considered an occasional entrant and shall not be subject to Brooklyn 's municipal income tax for those 12 days. For purposes of the 12-day calculation any portion of a day worked in Brooklyn shall be counted as one day worked in Brooklyn. Beginning with the thirteenth day, the employer of said individual shall begin withholding Brooklyn income tax from the remuneration paid by the employer to the individual and shall remit the withheld income tax to Brooklyn. If the individual is self-employed it shall be the responsibility of the individual to remit the appropriate income tax to the City of Brooklyn. If two or more individuals of the same employer (even if they are independent contractors of that employer) perform work in Brooklyn related to the service for which the employer has been engaged, the individuals shall not be subject to the 12-day occasional entry rule but rather to the withholding rules that apply to one hundred fifty dollars ($150.00) deminimus amounts. The 12-day occasional entry rules does not apply to entertainers or professional athletes, their employees or individuals who perform services on their behalf, or to promoters and booking agents of such entertainment events and sporting events.
B. $150.00 Deminimus Rule. A non-resident employer, agent of such employer, or other payer not situated in Brooklyn shall not be required to withhold Brooklyn income tax from remuneration paid to employees of the employer until the collective tax liability of the employees initially exceeds one hundred fifty dollars ($150.00). Independent contractors of a non-resident employer shall be deemed employees for work performed in Brooklyn on behalf of the employer and are subject to the collective tax liability provision as if they were employees and are not excluded from taxation. When the collective tax liability exceeds one hundred fifty dollars ($150.00) the employer is required to begin withholding the appropriate income tax for Brooklyn on behalf of all employees performing work in Brooklyn. Once the collective tax liability has exceeded one hundred fifty dollars ($150.00) the employer must withhold income tax for Brooklyn for the remainder of that calendar year and for subsequent years, even if the liability in subsequent years does not exceed one hundred fifty dollars ($150.00). However, if the tax liability for each of the three consecutive years (subsequent to that year in which the employer became liable for withholding the income tax) does not exceed one hundred fifty dollars ($150.00), the employer will be considered as not having performed work in Brooklyn in regard to further tax liability, and will again be subject to the original rule provisions.
(3) A. On the portion attributable to the City of Brooklyn on the net profits earned on and after June 1, 2009, of all resident unincorporated business entities or professions or other activities, derived from sales made, work done, services performed or rendered and business or other activities conducted in the City of Brooklyn.
B. On the portion of the distributive share of the net profits earned on and after June 1, 2009, of a resident partner or owner of a resident unincorporated business entity not attributable to the City of Brooklyn and not levied against such unincorporated business entity.
(4) A. On the portion attributable to the City of Brooklyn of the net profits earned on or after June 1, 2009, of all non-resident unincorporated business entities, professions or other activities, derived from sales made, work done, services performed or rendered and business and other activities conducted in the City of Brooklyn, whether or not such unincorporated business entity has an office or place of business in the City of Brooklyn.
B. On the portion of the distributive share of the net profits earned on or after June 1, 2009, of a resident partner or owner of a unincorporated business entity not attributable to the City of Brooklyn and not levied against such unincorporated business entity.
(5) On the portion attributable to the City of Brooklyn on the net profits earned on and after June 1, 2009, of all corporations derived from sales made, work done, services performed or rendered and business or other activities conducted in the City of Brooklyn, whether or not such corporations have an office or place of business in the City of Brooklyn.
(Ord. 2009-1. Passed 5-26-09.)
(6) On all lottery winnings and income derived from lotteries, gaming, wagering or schemes of chance in the amount of $5,000,000.00 or more received by residents of the City on or after July 1, 2010.
(Ord. 2010-34. Passed 5-24-10.)