(a) In General. An annual tax for the purposes specified in Section 191.01 is hereby imposed on and after January 1, 2007, at the rate of two percent (2%) per year upon the following:
(1) On all salaries, wages, commissions and other compensation earned on and after January 1, 2007, by residents of the City;
(2) On all salaries, wages, commissions and other compensation earned on and after January 1, 2007, by nonresidents for work done or services performed or rendered within the City;
(3) A. On the portion attributable to the City of the net profits earned on and after January 1, 2007, by 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;
B. On the portion of the distributive share of the net profits earned on and after January 1, 2007 by 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.
(4) A. On the portion attributable to the City of the net profits earned on and after January 1, 2007 by all nonresident unincorporated business entities, professions or other activities, derived from sales made, work done, services performed or rendered and business and other activities conducted in the City, whether or not such unincorporated business entity has an office or place of business in the City;
B. On the portion of the distributive share of the net profits earned on and after January 1, 2007, by a resident partner or owner of a nonresident unincorporated business entity not attributable to the City and not levied against such incorporated business entity by the City;
(5) On the portion attributable to the City of the net profits earned on and after January 1, 2007, by 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.
(6) On all lottery winnings, and income in an amount in excess of one hundred thousand dollars ($100,000), derived from lotteries by residents of the City.
(7) On all lottery winnings and income in an amount in excess of one hundred thousand dollars ($100,000), derived from lotteries by nonresidents of the City for lottery winnings received from lotteries or lottery sales within the City.
(b) Rental Income. Rental income received by a taxpayer shall be included in the computation of net profits from business activities under paragraphs (a)(3), (4) and (5) hereof 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 real property, regardless of number and value, aggregates in excess of two hundred fifty dollars ($250.00) per month, it shall be prima-facie evidence that the rental, ownership, management or operation of such property 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 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 two hundred fifty dollars ($250.00) per month. 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 two hundred fifty dollars ($250.00) per month. A person who operates a licensed rooming house shall be considered in business whether or not the gross income exceeds two hundred fifty dollars ($250.00) per month.
Property owners who are considered by this section to have a business activity, shall submit or cause to be submitted to the Tax Administrator a list of names and addresses of all persons, firms, corporations, or other entities occupying, leasing or renting premises belonging to such property owner within the 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, and at such other times as may be prescribed by the Administrator.
(c) Operating Loss Carry-Forward.
(1) The portion of a net operating loss sustained in any taxable year subsequent to January 1, 1967, allocable to the City, may be applied against the portion of the profit of succeeding tax years allocable to the City, until exhausted, but in no event for more than five taxable years immediately following the year in which the loss occurred. No portion of a net operating loss shall be carried back against net profits of any prior year.
(2) The portion of net operating loss sustained shall be allocated to the City in the same manner as provided in this chapter for allocating net profits to the City.
(3) The Administrator shall provide, by rules and regulations, the manner in which such net operating loss carry-forward shall be determined.
(Ord. 1966-133. Passed 12-27-66; Ord. 1972-81. Passed 5-23-72; Ord. 1997-54. Passed 9-23-97; Res. 2006-51. Approved by Voters 11-7-2006.)