(A) Income received from real estate. The income received from the operation of real estate by persons, trust companies and real estate agents, for or on behalf of persons or estates are subject to the license fee imposed by this chapter, where such operation falls within the classes herein described.
(1) Warehouse, apartment, hotels and similar structures. The operation of these types of buildings constitutes a subject activity and the income thereof is subject to the fee imposed by this chapter.
(2) Apartment houses, single dwellings and other rental property. As to this type of real estate, the income derived therefrom is considered subject when the operation thereof is so extended as to constitute an “activity” within the meaning of this chapter, and if such “activity” requires at least 20% of a person’s activity time, then he or she will be presumed to be engaged in the real estate business. To the extent that a person is engaged in managing real estate for at least 20% of his or her activity time, he or she is engaged in the real estate business. This does not preclude an inquiry into each particular case, if necessary.
(3) All corporations engaged in the rental of real estate or partnerships organized for that purpose shall be considered to be engaged in a subject activity.
(4) When any property falls within the classifications above given, the manner of its acquisition, such as purchase, gift, inheritance, fiduciary or as fiduciary mortgages in possession, and the like, does not affect the subjectability of the income derived therefrom.
(5) Where the property is located within the city limits, the residence of the beneficiary is immaterial.
(B) Trusts. Whenever a trust estate is engaged in an enterprise, activity or business which is productive of income, the income shall be considered subject to the license fee.
(C) Trading in securities. Where a person engages in the buying and selling of stocks, bonds and other types of securities, and such transactions are not isolated and few, but are extensive so as to constitute an activity, the net profits therefrom are subject to the license fee.
(D) Fiduciaries.
(1) A fiduciary is a person who holds in trust property, moneys or properties, to which another has a beneficial title or interest, or who receives and controls income for another person or persons.
(2) Money received by a fiduciary is subject income, where a fiduciary is regularly engaged in a business or profession as a fiduciary or is engaged in a business or profession commonly regarded as being incidental or collateral thereto, for example, an attorney-at-law, real estate agent or the like. If such commissions or fees represent a substantial portion of the earnings or income of the fiduciary, or when the administration of the trust requires a substantial portion of the fiduciary’s available working time, the income received by such persons is subject to this license fee.
(Prior Code, § 110.07) (Ord. A-27, passed 3-24-1969)