(A) Rental from real properties.
(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 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 $50 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 the gross or net sales, receipts or profits of the lessee, whether or not such rental exceeds $50 per month: provided further that in the case of farm property, the owner shall be considered engaged in a business activity, when the 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 $50 per month: and provided further that the person who operates a rooming house or five or more rooms rented shall be considered in business whether or not the gross income exceeds $50 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 should not be taken into consideration by the taxpayer.
(4) Rentals received by the taxpayer engaged in the business of buying and selling real estate shall be considered as part of business income.
(5) “REAL PROPERTY,” as the term is used in this regulation, shall include commercial property, residential property, farm property, and any other type of real estate.
(6) In determining the taxable income from rentals, the deductible expenses shall be the same nature, extent and amount as are allowed by the Internal Revenue Service for federal income tax purposes.
(7) Residents of this municipality are subject to taxation upon net income from rentals (to the extent above specified), regardless of the location of the real property owned.
(8) Nonresidents of this municipality are subject to such taxation only if real property is situated within the municipality. Nonresidents in determining whether gross monthly rentals exceed $50, shall take into consideration only real estate situated within the municipality.
(B) Rental and leased property. Every owner of one or more rental or leased units, whether residential, commercial, or industrial, within the village is hereby directed to furnish to the Tax Administrator a semi-annual statement of the names and addresses of all persons who newly occupied or vacated such rental and leased units during the period covered by the required report. The semi-annual statement provided for herein shall be filed with the Tax Administrator on or before January 31 and July 31, unless an extension of time is granted by the Tax Administrator. This section does not apply to storage rentals which are not connected to public utilities.
(Ord. 2884, passed- - )Penalty, see § 38A.99