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To provide for the purposes of general Municipal operations, maintenance, new equipment and capital improvements of the City, there is hereby levied a tax at the rate of two percent (2%) per year upon the following:
(Ord. 88-89. Approved by electors 11-8-83.)
(a) On all income, qualifying wages, commissions and other compensation, earned and/or received on or after July 1, 1971, by residents of the City;
(b) On all income, qualifying wages, commissions and other compensation earned and/or received on and after July 1, 1971, by nonresidents of the City for work done or services performed or rendered in the City;
(1) Separation pay, termination pay, reduction-in-force pay, and other compensation paid as a result of an employee leaving the service of an employer shall be allocable only to Grove City.
(2) Grove City shall not tax the compensation of an individual if all of the following apply:
a. The individual does not reside in the City.
b. The compensation is paid for personal services performed by the individual in the City on twelve (12) or fewer days during the calendar year. A day is a full day or any fractional part of a day.
c. In the case of an individual who is an employee, the principal place of business of the individual's employer is located outside the City and the individual pays tax on compensation described in subsection 191.02(b) hereof to the City, if any, in which the employer's principal place of business is located, and no portion of that tax is refunded to the individual.
d. The individual is not a professional entertainer or professional athlete; the promoter of a professional entertainment or sports event, or an employee of such a promoter, all as may be reasonably defined by the city.
(Ord. C27-05. Passed 4-04-05.)
(c) (1) On the net profits earned on and after July 1, 1971, of all unincorporated business, professions or other activities conducted by residents of the City;
(2) On net profits earned on and after July 1, 1971, of all unincorporated business, professions or other activities conducted in the City by nonresidents; (Ord. C7-71. Passed 3-1-71.)
(3) For the purposes of subsections (c)(1) and (2) hereof, an association shall be taxed as an entity, on the net profits of the association derived from work done or services performed or rendered and business or other activities conducted in the City, whether or not such association has its principal or any place of business located in the City, effective for all accounting periods commencing on or after January 1, 1991.
(4) For the purposes of subsection (c)(1) hereof, a resident of the City who is a member of an association is taxed individually on that residents' entire share, whether distributed or not, of the annual net profits of the association which are not subject to entity filing under subsection (c)(3) hereof, effective for all accounting periods commencing on or after January 1, 1991. (Ord. C104-90. Passed 12-17-90.)
(d) On the net profits on and after July 1, 1971, of all corporations, estates and trusts derived from work done or services performed or rendered and business or other activities conducted in the City, whether or not such corporation, estates and trusts have their principal or any place of business located in the City; (Ord. C73-77. Passed 9-19-77.)
(e) Payments made to employees by an employer as vacation wages are taxable and payments made to any employee by an employer under a wage continuation plan during periods of disability or sickness are taxable;
(f) Taxable rentals from real property are provided for as follows:
(1) Rentals received by the taxpayer are to be included only if and to the extent that the rental, ownership, management or operation of the real estate from which such rentals are derived, whether so rented, managed or operated by the taxpayer individually or through agents or other representatives, constitutes a business activity of the taxpayer in whole or in part;
(2) Where the gross monthly rental of any real properties, regardless of number and value, aggregate in excess of one hundred dollars ($100.00) per month, it shall be prima-facie evidence that the rental, ownership, management or operation of such properties is a business activity of such taxpayer, and the net income of such rental properties shall be subject to tax; provided that in case of commercial property, the owner shall be considered engaged in a business activity when the rental is based on a fixed or fluctuating
percentage of gross or net sales, receipts or profits of the lessee, whether or not such rental exceeds one hundred dollars ($100.00) per month; provided further that in the case of farm property, the owner shall be considered engaged in a business activity when he shares in the crops or when the rental is based on a percentage of the gross or net receipts derived from the farm, whether or not the gross income exceeds one hundred dollars ($100.00) per month; and provided further that the person who operates a rooming house of five or more rooms rented shall be considered in business whether or not the gross income exceeds one hundred dollars ($100.00) per month;
(3) In determining the amount of gross monthly rental of any real property, periods during which, by reason of vacancy or any other cause, rentals are not received shall not be taken into consideration by the taxpayer;
(4) Rentals received by a taxpayer engaged in the business of buying and selling real estate shall be considered as part of business income;
(5) As used in this chapter, “real property” includes commercial property, residential property, farm property and any and all other types of real estate;
(6) In determining the taxable income from rentals, the deductible expenses shall be of the same nature, extent and amount as are allowed by the Internal Revenue Service for Federal income tax purposes;
(7) Residents of the City of Grove City are subject to taxation upon the net income from rentals, to the extent above specified, regardless of the location of the real property owned;
(8) Nonresidents of the City are subject to such taxation only if the real property is situated within the City. Nonresidents, in determining whether gross monthly rentals exceed one hundred dollars ($100.00), shall take into consideration only real estate situated within the City of Grove City;
(9) Corporations owning or managing real estate are taxable only on that portion of income derived from property located in the City of Grove City.
(Ord. C7-71. Passed 3-1-71)