The tax provided for in this chapter shall not be levied on the following:
(a) Pay or allowance of active members of the Armed Forces of the United States or the income of religious, fraternal, charitable, scientific, literary or educational institutions to the extent that such income is derived from tax exempt real estate, tax exempt tangible or intangible property or tax exempt activities;
(b) Poor relief, unemployment insurance benefits, old age pensions or similar payments, including disability benefits received from local, State or Federal governments or charitable, religious or educational organizations;
(c) Proceeds of insurance paid by reason of the death of the insured and pensions, disability benefits, annuities or gratuities not in the nature of compensation for services rendered from whatever source derived;
(d) Receipts from seasonal or casual entertainment, amusements, sports events and health and welfare activities when any such are conducted by bona fide charitable, religious or educational organizations and associations;
(e) Alimony received;
(f) Personal earnings of any natural person under eighteen years of age;
(g) Compensation for personal injuries or for damages to property by way of insurance or otherwise;
(h) Interest, dividends and other revenue from intangible property;
(i) Gains from involuntary conversion, cancellation of indebtedness, interest on Federal obligations, items of income already taxed by the State which the City is specifically prohibited from taxing, and income of a decedent's estate during the period of administration (except such income from the operation of a business);
(j) Salaries, wages, commissions and other compensation and net profits, the taxation of which is prohibited by the United States Constitution or any act of Congress limiting the power of the states or their political subdivisions to impose net income taxes on income derived from interstate commerce; and
(k) Salaries, wages, commissions and other compensation and net profits, the taxation of which is prohibited by the Constitution of the State or any act of the General Assembly limiting the power of the City to impose net income taxes.
(l) (1) A nonresident individual who works in the City 12 or fewer days per year shall be considered an occasional entrant, and shall not be subject to the municipal income tax for those 12 days. For purposes of the 12-day calculation, any portion of a day worked in the City shall be counted as one day worked in the City.
(2) Beginning with the thirteenth day, the employer of said individual shall begin withholding the City income tax from remuneration paid by the employer to the individual, and shall remit the withheld income tax to the City in accordance with the requirements of this chapter. Since the individual can no longer be considered to have been an occasional entrant, the employer is further required to remit taxes on income earned in the City by the individual for the first 12 days.
(3) If the individual is self-employed, it shall be the responsibility of the individual to remit the appropriate income tax to the City.
(4) The 12-day occasional entry rule does not apply to entertainers or professional athletes, their employees or individuals who perform services on their behalf, or to promoters and booking agents of such entertainment events and sporting events.
(m) Parsonage allowance, as set forth in the Internal Revenue Code, to the extent of the rental allowance or rental value of a house provided as a part of an ordained minister's compensation. The ordained minister must be duly ordained, commissioned, or licensed by a religious body constituting a church or church denomination, and must have authority to perform all sacraments of the church.
(Ord. 1966-230. Passed 12-30-66; Ord. 2005-028. Passed 3-2-05.)