Loading...
An annual tax for the purposes specified in Section 171.0101 hereof shall be imposed on and after January 1, 2015, at the rate of two percent (2%) per annum upon the following:
(a) (1) On all salaries, wages, commissions, other income, lottery winnings and other compensation earned on and after January 1, 2015, by residents of the City. Lottery losses are not deductible against lottery winnings.
(2) On all salaries, wages, commissions, other income, lottery winnings and other compensation earned on and after January 1, 2015, by nonresidents of the City 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 or after January 1, 2015, of all resident unincorporated business entities, associations, 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 January 1, 2015, of a resident partner or owner of a resident unincorporated business entity or association 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 January 1, 2015, of all nonresident unincorporated business entities, associations, 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.
(2) On the portion of the distributive share of the net profits earned on or after January 1, 2015, of a resident partner or owner of a nonresident unincorporated business entity or association 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 January 1, 2015, 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.
(Ord. 82-14. Passed 12-15-14.)
Such tax shall be levied, collected and paid with respect to the salaries, wages, commissions and other compensation, and with respect to the net profits of businesses, professions or other activities earned on and after January 1, 2015.
(Ord. 82-14. Passed 12-15-14.)
(Ord. 82-14. Passed 12-15-14.)
DETERMINATION OF ALLOCATION OF TAX
In the taxation of income which is subject to the City Income Taxes, if the books and records of a taxpayer conducting a business or profession both within and without the boundaries of the City shall disclose with reasonable accuracy what portion of its net profit is attributable to that part of the business or profession conducted within the boundaries of the City, then only such portion shall be considered as having a taxable status in the City for the purposes of municipal income taxation. The portion of the entire net profits of a taxpayer to be allocated as having been derived from within the City, in the absence of actual records thereof, shall be determined as follows:
(a) Multiply the entire net profits by a business allocation percentage to be determined by a three-factor formula of property, payroll and sales, each of which shall be given equal weight as follows:
(1) The average net book value of the real and tangible personal property owned or used by the taxpayer in the business or profession in the City during the taxable period to the average net book value of all the real and tangible personal property owned or used by the taxpayer in the business or profession during the same period, wherever situated.
As used in the preceding paragraph, real property shall include property rented or leased by the taxpayer and the value of such property shall be determined by multiplying the annual rental thereon by eight.
(2) Wages, salaries and other compensation paid during the taxable period to persons employed in the business or profession for services performed in the City to wages, salaries and other compensation paid during the same period to persons employed in the business or profession, wherever their services are performed.
(3) Gross receipts of the business or profession from sales made and services performed during the taxable period in the City to gross receipts of the business or profession during the same period from sales and service, wherever made or performed.
(b) In the event that the foregoing allocation formula does not produce an equitable result, another basis may, under uniform regulations, be substituted so as to produce such result. (Ord. 81-67. Passed 8-28-67.)
As used in Section 171.0701 (a)(3), sales made in the City mean:
(a) All sales of tangible personal property which is delivered within the City regardless of where title passes if shipped or delivered from a stock of goods within the City.
(b) All sales of tangible personal property which is delivered within the City regardless of where title passes even though transported from a point outside the City if the taxpayer is regularly engaged through its own employees in the solicitation or promotion of sales within the City and the sales result from such solicitation or promotion.
(c) All sales of tangible personal property which is shipped from a place within the City to purchasers outside of the City regardless of where title passes if the taxpayer is not, through its own employees, regularly engaged in the solicitation or promotion of sales at the place where delivery is made.
(Ord. 81-67. Passed 8-28-67.)
Add together the percentages determined in accordance with Section 171.0701(a)(1), (2) and (3), or such of the aforesaid percentages as are applicable to the particular taxpayer and divide the total so obtained by the number of percentages used in deriving the total in order to obtain the business allocation percentage referred to in Section 171.0701.
A factor is applicable even though it may be allocable entirely in or outside the City.
(Ord. 81-67. Passed 8-28-67.)
Loading...