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(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)
(A) Each person subject to a license fee imposed by this chapter shall on or before May 11 of each year, make and file with the City Clerk/Treasurer/Tax Collector an estimated return in duplicate, on a form furnished by or obtainable from the City Clerk/Treasurer/Tax Collector setting forth the aggregate amount of estimated net profits to be earned during the ensuing fiscal year.
(B) The licensee in filing the return showing the estimated net profits for the ensuing year may use as estimated net profits that declaration of net profits which is shown on Schedule C of his or her federal income tax return for the occupation, trade or profession for the immediately preceding calendar year.
(1) Where the licensee is required under this chapter to file an estimated return of net profits for more than one occupation, trade or profession in which he or she is engaged, then the declaration of net profits shown on the Schedule C for each occupation, trade or profession for the preceding calendar year shall be sufficient to support his or her estimated return for the ensuing year.
(2) If, for any reason, any Schedule C for the preceding calendar year does not adequately reflect proper supporting evidence concerning the occupation, trade or profession with which it deals for the ensuing fiscal year commencing May 11, or if the licensee chooses to use evidence other than Schedule C, the licensee shall be permitted to rely upon, and submit to the City Clerk/Treasurer/Tax Collector, if requested, similar or more accurate supporting figures.
(C) At the time of the filing of the estimated return for the ensuing year, the licensee shall pay in advance the estimated license fee for the ensuing year, which fee as set forth in § 110.04 of this chapter shall be no less than $50 per year, nor more than $500 per year, except for those businesses, occupations, vehicles and devices, defined in § 110.15 of this chapter, which are exempted from said limits.
(D) Within 30 days after the close of each fiscal year, the licensee shall, on a form furnished by or obtainable from the City Clerk/Treasurer/Tax Collector, file an accurate declaration of the net profits for his or her business, profession or occupation, and at that time, pay the difference if any, between that amount paid with his or her estimated return which was filed the preceding year or, in the alternative, he or she may claim a refund, if one is due, and the City Clerk/Treasurer/Tax Collector shall forthwith process and pay the refund as soon as possible and within 30 days thereafter, unless the licensee in writing directs the City Clerk/Treasurer/Tax Collector to credit the refund on future license fees or other payments due the city under this chapter or any other ordinance. Pursuant to the maximum license fee in § 110.04 of this chapter if the licensee does not desire or choose to disclose his or her net profits under the provisions of this chapter, he or she shall be deemed to have complied with all of the provisions of this section by filing an estimated return on or before May 11 of each year, showing his or her estimated tax to be $500, signing the estimated tax return, and paying the maximum license fee of $500. No further final return shall be required, unless he or she elects to file a final return after the close of the fiscal year for the purpose of claiming a refund.
(E) It is the intent of this chapter that any license fee paid during any calendar or fiscal year is for the right to do business in that calendar or fiscal year.
(F) Upon the recommendation of the Mayor and subject to the approval of the City Council, the City Clerk/Treasurer/Tax Collector, after having received such approval by the Council, shall have the authority to extend the time for the filing of the returns in individual cases. Such extension shall be upon the written request of the licensee. All sums shown by the final return, when filed, to have been due at the end of the fiscal year, shall bear interest at the rate of 6% per annum from May 11 until paid.
(G) Where a part of a business is situated in one or more other locations apart from the principal place of business but the same is an integral part of the principal place of business, the licensee shall be required by this chapter to file a single return, as herein provided, if he or she files with the City Clerk/Treasurer/Tax Collector an affidavit setting out facts sufficient to prove to the City Clerk/Treasurer/Tax Collector that the separate locations are in fact an integral part of the principal place of business.
(Prior Code, § 110.08) (Ord. A-27, passed 3-24-1969; Ord. passed 5-16-1978) Penalty, see § 110.99
(A) Records of collection. It shall be the duty of the City Clerk/Treasurer/Tax Collector to collect and to receive the license fees imposed by this chapter, and the City Clerk/Treasurer/Tax Collector shall keep records showing the amount received by him or her from each licensee and the date of such receipt.
(B) Records to be kept by licensees. Licensees subject to the license fee under this chapter are required to keep such records as will enable the filing of true and accurate returns of net profits, and such records are to be preserved to enable the City Clerk/Treasurer/Tax Collector, or any agent or employee of the City Clerk/Treasurer/Tax Collector, to verify the correctness of the return filed.
(Prior Code, § 110.09) (Ord. A-27, passed 3-24-1969) Penalty, see § 110.99
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