(A) The income tax at the rate of 1% shall be levied, collected and paid with respect to the salaries, wages, commissions and other compensation earned on or before December 31, 2000 and with respect to the net profits of businesses, professions or other activities earned on or before December 31, 2000. The income tax at the rate of 2% shall be levied, collected and paid with respect to the salaries, wages, commissions and other compensation earned on and after January 1, 2001, and with respect to the net profits of businesses, professions or other activities earned on and after January 1, 2001. Where the fiscal year of the business, profession or other activity differs from the calendar year, the tax at the rate of 1% shall be applied to that part of the net profits for the portion of the fiscal year occurring before January 1, 2001. The tax at the rate of 2% shall be applied to that portion of the fiscal year occurring on and after January 1, 2001.
(B) Where the fiscal year of a business, profession or other activity is other than a calendar year, in computing the tax, the profits of such taxpayer shall be determined by dividing the annual profits by 12 and multiplying the quotient by the number of months of the fiscal year before January 1, 2001, and multiplying the quotient by the number of months of the fiscal year between January 1, 2001, and thereafter and applying the appropriate tax rate to each.