"Net profits" means a net gain from the operation of a business, profession, enterprise or other activity after provision for all ordinary and necessary expenses either paid or accrued in accordance with the accounting system used by the taxpayer for federal income tax purposes, without deduction of taxes imposed by this chapter, or federal, state and other taxes based on income; and in the case of an association, or sole proprietorship, without deduction of compensation paid to partners, officers, or other owner(s) and otherwise adjusted to requirements of this chapter. Also, net profits from operation of a business, provided that gains and losses on the sale, exchange, or disposition of depreciable property or real estate, used in the taxpayer’s business, shall not be taxed nor allowed as deductible expense in determining net profit or loss as determined by Federal or State government. (Ord. 2000-111. Passed 10-24-00.)