(a) Records to be kept by taxpayers. Employers and other taxpayers subject to the tax under this chapter are required to keep such records as will enable the filing of true and accurate returns, whether of taxes withheld at the source or of taxes payable upon income or net profits, or both, and such records are to be preserved to enable the Finance Director, or any agent or employee of the Finance Director, to verify the correctness of the returns filed. Such records shall be kept for a period of six years.
(b) Allocation of funds; 1.25% income tax.
A. Generally. The allocation of funds collected by virtue of the municipal income tax of the city shall be as follows.
B. One and one quarter percent income tax. The funds collected under the provisions of this chapter shall be deposited in the City Income Tax Fund, and the funds shall be disbursed in the following order, to wit:
1. Such part thereof as shall be necessary to defray all costs of collecting the taxes at the cost of administering and enforcing the provisions thereof shall be kept within the Income Tax Fund for the costs.
2. Not more than 95% of the net available income tax received annually may be transferred from time to time to the General Fund and be used to defray operating expenses of the city.
3. At least 5% of net available income tax receipts received annually from time to time shall be transferred to the Capital Improvements Fund and used for capital improvements for the city, including but not limited to development and construction of sewers and street improvements, street materials (for repair or replacement), for all city-owned buildings, parks, playgrounds, and for equipment necessary for the Police, Fire, Safety, Street and Traffic Departments. A one-time exception shall be for fiscal year 2014 reducing the percent of transfer to zero percent (0%).
(c) Identification required. Agents and employees charged with the duty of inspection or auditing of reports of employers and taxpayers will carry proper identification, which shall be subject to examination by any person whose records are sought to be examined.
(d) Savings clause. If any sentence, clause, section or part of this chapter, or any tax against any individual or any of the several groups specified herein, is found to be unconstitutional, illegal or invalid, the unconstitutionality, illegality or invalidity shall affect only the sentence, clause, section or part of this chapter and shall not affect or impair any of the remaining provisions, sentences, clauses, sections or other parts of this chapter. It is hereby declared to be the intention of the Council of the city that this chapter would have been adopted had the unconstitutional, illegal or invalid sentence, clause, section or part thereof not been included herein.
(e) Offsets.
(1) Business losses cannot be offset against income, salaries, wages and other compensation that represent employee income and/or other non-business income.
A. If an individual operated more than one business, the profits of which were subject to city income tax, the individual may offset profits from one business with the net loss from another business, and report the resulting net profit or loss for city income tax purposes.
B. In any event, the net loss on a business used to offset net income from another business must exactly agree with the net loss as reported on federal income tax return Form 1040, as filed with the federal government.
(2) If a net operating loss has been sustained in any taxable year, such losses may not be carried forward or backward for any other taxable year.
(Ord. 43-2004, passed 12-20-2004; Ord. 8-2014, passed 5-19-2014)