(A) Residents.
(1) In the case of trades, businesses, professions, other activities, enterprises or undertakings conducted, operated, engaged in, prosecuted or carried on by residents of Smithville, there is imposed an annual tax of 1.5% on the net profits earned or accruing on and after January 1, 1977
(2) For the purpose of construing the divisions hereof, the term RESIDENTS in the phrase CONDUCTED BY RESIDENTS OF THE VILLAGE OF SMITHVILLE” will ordinarily be construed to have reference to the business entity itself, as distinguished from the partners, proprietors or other participants in its profits.
(3) Generally, a partnership, association or other unincorporated enterprise owned by two or more persons will be taxed as an entity. However, in the case of a non-resident partnership, association or unincorporated enterprise which cannot be reached or taxed directly by the Village of Smithville, or if only part of its earnings may be directly taxed, then in either such case, resident partners, co-owners, proprietors or other participants in the profits thereof must include in their declaration and tax return or returns their distributive shares of such profits, or portion thereof not taxed to the business enterprise as an entity, and must pay the tax thereon.
(4) The tax imposed hereunder is levied upon the entire net profits of the resident trade, business, profession, other activity, enterprise, or undertaking, wherever earned, paid or accrued and regardless of the fact that any part of such business or professional activity may have been conducted at or through a place or places of business located outside the Village of Smithville.
(B) Non-residents.
(1) In the case of a non-resident individual, partnership, association, fiduciary or other entity (other than a corporation) engaged in the conduct, operation or prosecution of any trade, business, profession, enterprise, undertaking or other activity, there is imposed an annual tax of 1.5% on the net profits (earned or accruing on and after January 1, 1977) of such trade, business, profession, enterprise, undertaking, or other activity if, and to the extent, conducted in or derived from activity in the Village of Smithville.
(2) A non-resident entity within the meaning hereof which has a branch or branches, office or offices and/or store or stores, warehouse, or other place or places in which the entity's business is transacted, located in the Village of Smithville, shall be considered to be conducting, operating, prosecuting, or carrying on a trade, business, profession, enterprise, undertaking or other activity to the full extent of the sum total of all transactions originating or consummated in by or through such Smithville branch, office, store, warehouse or other place of business, including (a) billings made on such transactions, or (b) services rendered, or (c) shipments made, or (d) goods, chattels, merchandise, etc., sold, or (e) commissions, fees or other remuneration or payments earned.
(3) In the case of the partnership, association, or other unincorporated business owned by one or more persons the tax, generally, shall be upon said partnership, association, or business enterprise as an entity and not ordinarily upon the partners or members thereof. However, the provisions hereof are applicable to render taxable against such resident partners or members their distributive share of any profits of such non-resident entity not taxable hereunder.
(4) In determining the proportion or amount of the taxable net profits of a non-resident business entity having a place or places of business within and outside Smithville, such business entity may at its option use and apply the Business Allocation Percentage Formula set forth herein.
(C) Corporations.
(1) In the case of a corporation doing business in Smithville, whether domestic or foreign, and whether domiciled in Smithville, or elsewhere. there is imposed an annual tax of 1.5% on that part of the net profits (earned or accruing on and after January 1, 1977) of such corporations; which is earned by such corporations as a result of work done or services performed or rendered and business or other activities conducted in the Village of Smithville.
(2) The provisions hereof are applicable to such corporations.
(3) A corporation doing business both within and outside the Village of Smithville may, in determining the part of the net profits which are taxable hereunder, at its option:
(a) Use the usual accounting system of the taxpayer corporation so long as said usual accounting system shall be one acceptable to the Federal Internal Revenue Department as evidenced by acceptance and approval of income tax returns filed therein; or
(b) Use the Business Allocation Percentage Formula set forth herein.
(Res. 1976-55, passed 12-13-1976)