Rental income received by a taxpayer shall be included in the computation of net profits from business activities under Section 890.03(c), (d) and (e) 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 a taxpayer, individually, or through agents or other representatives) constitutes a business activity of the taxpayer in whole or in part.
Where the gross monthly rental of any and all real properties, regardless of number and value, aggregates in excess of four hundred fifty dollars ($450.00) 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 property shall be subject to tax. However, in the 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 four hundred fifty dollars ($450.00) per month. Further, in the case of farm property, the owner shall be considered engaged in a business activity when he or she shares in 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 four hundred fifty dollars ($450.00) per month. Further, the person who operates a licensed rooming house shall be considered in business whether or not the gross income exceeds four hundred fifty dollars ($450.00) per month.
Property owners who are considered to have a business activity under the provisions of this section shall submit or cause to be submitted to the Administrator a list of names and addresses of all persons, firms, corporations or other entities occupying, leasing or renting any premises belonging to the property owner within this Municipality. The required list shall be prepared as of December 31 of each year and submitted on or before January 31 of the following year.
(Ord. 79-55. Passed 2-19-80.)