(A) The following compensations are subject to the license tax levied under this article:
(1) Salaries, bonuses or incentive payments received by an individual, whether directly or through an agent and whether in cash or in property, for services rendered:
(a) As an officer, agent or employee, or both, of a corporation (including a corporation of the first or non-profit class), joint stock association or joint stock company;
(b) As an officer, agent or employee (as distinguished from a partner or member) of a partnership, limited partnership or any other form of unincorporated enterprise owned by one or more persons;
(c) As an agent employee (as distinguished from the proprietor) of a business, trade or profession, conducted by an individual owner;
(d) As an officer, agent or employee (whether elected or appointed, enlisted or commissioned) of a governmental administration, agency, arm, authority, board, body, branch, bureau, department, division, section or unit of the state, or any of the political subdivisions thereof, or those of any other state;
(e) As an officer, agent or employee (whether elected or appointed) of a governmental administration, agency, arm, authority, board, body, branch, bureau, department, division, section or unit of the U.S. Government or of a corporation created and owned or controlled by the U.S. Government or any of its agencies, or those of any foreign country or dependency except those enlisted or commissioned in the military service; and
(f) As an officer, agent or employee of any other entity.
(2) Wages, bonuses or incentive payments received by an individual, whether directly or through an agent and whether in cash or in property, for services rendered:
(a) Whether based upon hourly, daily, weekly, semi-monthly, biweekly, monthly, annual unit of production or piece-work rates; and
(b) Whether paid by an individual, copartnership, association, corporation (including a corporation of the first or non-profit class), a governmental, administration, agency, arm, authority, board, body, branch, bureau, department, division, section or unit or other entity.
(3) Commissions received by a taxpayer, whether directly or through an agent and whether in cash or in property, for services rendered regardless of how computed or by whom paid. If amounts received as a drawing account exceed the commissions earned, the tax is payable on the amounts received; and
(4) Other compensation, which will be treated as subject to the license tax is as follows.
(a) Tips received by waiters and others. Tips received are subject to the license tax and will be reported in the same manner as earnings of an independent contractor.
(b) Vacation or holiday benefits. Payments made to employees by an employer as vacation wages are subject to the license tax.
(c) Employee separation or dismissal. Payments made to employees by an employer at the time of a voluntary or involuntary separation or dismissal of the employee from the service of the employer are to be regarded as subject to the license tax.
(B) The following money receipts are not deemed to be salaries, wages, commissions and other compensations within the meaning of this article:
(1) Periodical payments, commonly recognized as old age or retirement pensions, made to persons retired from service after reaching a specified age or after a stated period of employment;
(2) Payments made to employees by an employer under a disability, sickness and accident plan, and unemployment compensation payments by the state, or any other agency;
(3) Death benefits payable by an employer to the beneficiary of an employee or to his or her estate, whether payable in a single sum or otherwise; and
(4) Amounts received by employees under the Worker’s Compensation Act as compensation for a disability sustained during the course of employment, together with any amount of damages received by suit or agreement on account of the disability.
(1977 Code, § 20-260) (Ord. 68-10, passed 6-24-1968)