191.0501 RATE AND INCOME TAXABLE.

   An annual tax for the purposes specified in Section 191.0101 shall be imposed on and after June 1, 1987, at the rate of two percent per year upon the following:

   (a)   On all salaries, wages, commissions and other compensation earned on and after June 1, 1987, by residents of the City; on or after January 1, 2004, on qualified wages earned by residents of the City;

   (b)   On all salaries, wages, commissions and other compensation earned on and after June 1, 1987, by nonresidents of the City for work done or services performed or rendered within the City; on or after January 1, 2004, on qualified wages earned by nonresidents for work done or services performed or rendered within the City;

   (c)   (1)   On the portion attributable to the City on the net profits earned on and after June 1, 1987, of all resident unincorporated business entities or professions or other activities, derived from sales made, work done, services performed or rendered and business or other activities conducted in the City;

      (2)   On the portion of the distributive share of the net profits earned on and after June 1, 1987, of a resident partner or owner of a resident unincorporated business entity not attributable to the City and not levied against such unincorporated business entity by the City;

   (d)   (1)   On the portion attributable to the City of the net profits earned on or after June 1, 1987, of all nonresident unincorporated business entities, professions or other activities, derived from sales made, work done, services performed or rendered and business or other activities conducted in the City, whether or not such unincorporated business entity has an office or place of business in the City.

      (2)   On the portion of the distributive share of the net profits earned on or after June 1, 1987, of a resident partner or owner of a nonresident unincorporated business entity not attributable to the City and not levied against such unincorporated business entity by the City;

   (e)   On the portion attributable to the City of the net profits earned on and after June 1, 1987, of all corporations derived from sales made, work done, services performed or rendered and business or other activities conducted in the City, whether or not such corporations have an office or place of business in the City; and

   (f)   On the portion attributable to the City pursuant to the provisions of this chapter, as follows:

      (1)   Income earned by a taxpayer from a royalty interest in the production of an oil or gas well, whether managed, extracted or operated by the taxpayer individually or through an agent or other representative, shall be included in the computation of net profits from a business activity to the extent that such royalty interest constitutes a business activity of the taxpayer. Where the gross income received by a taxpayer from a royalty interest in the production of an oil or gas well in a taxable year exceed three thousand dollars ($3,000), it shall be prima-facie evidence that the income was derived from a business activity of such taxpayer and the net income from such royalty interest shall be subject to tax.

      (2)   The employer’s income derived from finance and carrying charges associated with his or her consumer’s accounts receivable shall be subject to such tax.

   (g)   On and after January 1, 2003, in the case of a pass-through entity, income of a pass-through entity in the hands of the owners of the entity and not income in the hands of the entity.
(Ord. 2005-05. Passed 3-8-05.)