880.03   IMPOSITION OF TAX.
   (a)   Subject to the provisions of Section 880.18, an annual tax for the purposes specified in Section 880.01 shall be imposed for the period beginning October 1, 1981, at the rate of one and three-quarters percent per annum upon the following:
      (1)   On all salaries, qualifying wages, commissions and other compensation received during the effective period of this chapter by residents of the City.
      (2)   On all salaries, qualifying wages, commissions and other compensation received during the effective period of this chapter by nonresidents for work done or services performed or rendered in the City.
      (3)   On the portion attributable to the City of the net profits earned and accrued or received during the effective period of this chapter of all resident associations, unincorporated businesses, professions or other entities, derived from sales made, work done, services performed or rendered and business or other activities conducted in the City.
      (4)   On the portion of the distributive share of the net profits earned and accrued or received during the effective period of this chapter of a resident partner or owner of a resident unincorporated business entity not attributable to the City upon which the tax was not paid by the entity.
      (5)   On the portion attributable to the City of the net profits earned and accrued or received during the effective period of this chapter of all nonresident associations, unincorporated businesses, professions or other entities, derived from sales made, work done or services performed or rendered and business or other activities conducted in the City, whether or not such association or other unincorporated business entity has an office or place of business in the City.
      (6)   On the portion of the distributive share of the net profits earned and accrued or received during the effective period of this chapter of a resident partner or owner of a nonresident association or other incorporated business entity, not attributable to the City, on which the tax was not paid by the entity.
      (7)   On the portion attributable to the City of the net profits earned and accrued or received during the effective period of this chapter of all corporations, derived from sales made, work done, services performed or rendered and business or other activities conducted in the City, whether or not such corporations have a place of business in the City.
      (8)   On all income received as gambling winnings as reported on IRS Form W-2G, Form 5754 and/or any other form required by the Internal Revenue Service that reports winnings from gambling.
      (9)   On or after January 1, 2003, a pass-through entity residing in or doing business in the city shall be taxed at the entity level.
   (b)   The portion of the entire net profits of a taxpayer to be allocated as having been derived from within the City, in the absence of actual records thereof, shall be determined as follows:
      (1)   Multiply the entire net profits by a business allocation percentage to be an average ratio of:
         A.   The average net book value of the real and tangible personal property owned or used by the taxpayer in the business or profession in the City during the taxable period to the average net book value of all the real and tangible personal property owned or used by the taxpayer in the business or profession during the same period, wherever situated.
         As used in the preceding paragraph, real property shall include property rented or leased by the taxpayer, and the value of such property shall be determined by multiplying the annual rental thereon by eight.
         B.   Wages, salaries and other compensation paid or accrued during the taxable period to persons employed in the business or profession for services performed in the City to wages, salaries and other compensation paid or accrued during the same period to persons employed in the business or profession, wherever their services are performed.
         C.   Gross receipts of the business or profession from sales made and services performed during the taxable period in the City to gross receipts of the business or profession during the same period from sales and services, wherever made or performed.
      In the event that the foregoing allocation formula does not produce an equitable result, another basis may, under uniform regulations, be substituted so as to produce such result.
      (2)   As used in paragraph (b)(1)C. hereof, “sales made in the City” means:
         A.   All sales of tangible personal property which is delivered within the City regardless of where title passes if shipped or delivered from a stock of goods within the City.
         B.   All sales of tangible personal property which is delivered within the City regardless of where title passes, even though transported from a point outside the City, if the taxpayer is regularly engaged, through its own employees, in the solicitation or promotion of sales within the City and the sales result from such solicitation or promotion.
         C.   All sales of tangible personal property which is shipped from a place within the City to purchasers outside the City regardless of where title passes, if the taxpayer is not, through its own employees, regularly engaged in the solicitation or promotion of sales at the place where delivery is made.
   (c)   For the purpose of this section, the taxable base shall be determined in accordance with the Federal tax interpretations, when applicable, and with the accounting method used by the taxpayer for Federal income taxes, adjusted to the requirements of this chapter.
(Ord. 23-81.  Passed 8-31-81; Ord. 5-04.  Passed 4-19-04; Ord. 9-04.  Passed 7-19-04; Ord. 18-15.  Passed 11-16-15.)