In the case of the residents of the Village an annual tax of one percent is imposed on all salaries, wages, commissions and other compensation earned or accrued on and after January 1, 1973. For the purpose of determining the tax on the earnings of the resident taxpayers, taxed under Section 183.02(a), the source of the earnings and the place or places in or at which the services were rendered are immaterial. All such earnings, wherever earned or paid, are taxable.
The following items are subject to tax:
(a) Qualifying wages, salaries, bonuses or incentive payments received by an individual, whether directly or through an agent and whether in cash or in property, for services rendered on and after January 1, 1973:
(1) As an officer, director or employee of a corporation (including charitable and other nonprofit corporations), joint stock association or joint stock company;
(2) As an employee (as distinguished from a partner or member) of a partnership, limited partnership, or any other form of unincorporated enterprise owned by one or more persons;
(3) As an employee (as distinguished from the proprietor) of a business, trade or profession conducted by an individual owner;
(4) As an officer or employee (whether elected, appointed or commissioned) of a governmental administration, agency, arm, authority, board, body, branch, bureau, department, division, subdivision, section or unit of the State or any of the political subdivisions thereof;
(5) As an officer or employee (whether elected, appointed or commissioned) of a governmental administration, agency, arm, authority, board, body, branch, bureau, department, division, subdivision, section or unit of the United States Government or of a corporation created and owned, or controlled by the United States Government or any of its agencies;
(6) As an employee of any other entity or person.
(b) Qualifying wages, bonuses or incentive payments received by an individual, whether directly or through an agent and whether in cash or in property, for services rendered on and after January 1, 1973:
(1) Whether based upon hourly, daily, weekly, semimonthly, monthly, annual, unit of production or piecework rates; and
(2) Whether paid by an individual, limited partnership, partnership, association, corporation (including charitable and other nonprofit corporations) governmental administration, agency, arm, authority, board, body, branch, department, division, subdivision, section or unit, or any other entity.
(c) Commission received by a taxpayer whether directly or through an agent and whether in cash or in property, for services rendered on and after January 1, 1973, regardless of how computed, by whom or wheresoever paid.
If amounts received as a drawing account exceed the commissions earned, the tax is payable on the gross amount received.
Amounts received from an employer by way of expenses and not by way of compensation, and used as such by the individual receiving them, are not deemed to be compensation if the employer deducts such expense advances as such from his gross income for the purpose of determining his net profits taxable under Chapter 183.
If such commissions are included in the net earnings of a trade, business, professions, enterprise or activity regularly carried on by such individual and therefore subject to tax under Section 183.02(c), they shall not again be separately taxed. In such case, such net earnings shall be taxed as provided in Section 181.11.
(d) The receipt of fees and other compensation for personal services rendered shall be deemed to be subject to taxation under Chapter 183.
(e) Domestic servants are subject to the tax under Chapter 183 but are not subject to withholding provisions. That is to say, the domestic will report earnings and pay the tax directly to the Department of Taxation.
(Ord. 2004-07. Passed 9-29-04.)