(a) Twelve-day occasional entry rule.
(1) A nonresident individual who works in the City 12 or fewer days per year shall be considered an occasional entrant, and shall not be subject to municipal income tax for those 12 days. For purposes of the 12-day calculation, any portion of a day worked in the City shall be counted as one day worked in the City.
(2) Beginning with the thirteenth day, the employer of said individual shall begin withholding City income tax from remuneration paid by the employer to the individual, and shall remit the withheld income tax to the City in accordance with this chapter. Since the individual can no longer be considered to have been an occasional entrant, the employer is further required to remit taxes on income earned in the City by the individual for the first 12 days.
(3) If the individual is self-employed, it shall be the responsibility of the individual to remit the appropriate income tax to the City.
(4) The 12-day occasional entry rule does not apply to entertainers or professional athletes, their employees or individuals who perform services on their behalf, or to promoters and booking agents of such entertainment events and sporting events.
(5) Income tax withheld by a nonresident employer and paid to the City as a result of the employer being subject to the $150 de minimus provision cannot be refunded to an individual under the 12-day occasional entry provision.
(b) $150 de minimus rule.
(1) If not currently required to withhold City income tax, then a nonresident employer, agent of such employer, or other payer not situated in the City shall not further be required to withhold City income tax from remuneration paid to employees of the employer until the collective tax liability of the employees initially exceeds $150.
(2) Independent contractors of a nonresident employer shall be deemed employees for work performed in the City on behalf of the employer, and are subject to the collective tax liability provision as if they were employees, and are not excluded from taxation.
(3) When the collective tax liability exceeds $150, the employer is required to begin withholding the appropriate income tax for the City on behalf of all the employees performing work in the City. The withheld income tax shall be remitted to the City in accordance with this chapter. After exceeding the $150 de minimus amount, the employer shall continue to have no responsibility for remitting any portion of the initial $150 liability that was not withheld.
(4) Once the collective tax liability has exceeded the $150, the employer must withhold income tax for the City (i.e., for work performed in the City) for the remainder of that calendar year and for subsequent years, even if the liability in subsequent years does not exceed $150. However, if the tax liability for each of the three consecutive years (subsequent to that year in which the employer became liable for withholding the income tax) does not exceed $150, the employer will be considered as not having performed work in the City in regard to further tax liability, and will again be subject to division (a) of this section.
(c) Forms. All income tax returns, reports or other documents required under this chapter may be filed on the forms promulgated by the City or upon generic forms of such returns, reports or documents. The City shall accept generic forms, if the generic forms, once completed and filed, contain all of the information required to be submitted with the City's prescribed returns, reports or documents, and if the taxpayer or return preparer filing the generic form otherwise complies with this City's rules or ordinances governing the filing of returns, reports or documents.
(d) Extensions. The Finance Director shall extend the time for filing of the annual City tax return upon the filing of a copy of the taxpayer's request for a federal extension. No extension may exceed six months, or one month beyond the extension requested of or granted by the Internal Revenue Service for filing of the federal income tax return, and will not be approved for a period less than the federal extension request. The request for extension shall be filed no later than the last day for filing the municipal income tax return as prescribed by ordinance or rule of the City income tax. The City may require a tentative return accompanied by payment of the amount shown to be due thereon by the date the return is normally due. The City may deny a taxpayer's request for extension only if the taxpayer fails to timely file the request, fails to file a copy of the request for the federal extension, owes the City any delinquent income tax or any penalty, interest, assessment or other charge for the late payment or nonpayment of income tax, or has failed to file any required income tax return, report, or other related document for a prior tax period. The granting of an extension for filing this City's income tax return does not extend the last date for paying the tax without penalty unless the City grants an extension of the date.
(Ord. 6-01. Passed 3-12-01.)