To provide for the purposes of general municipal operations, maintenance, new equipment, and capital improvements of the Village of West Jefferson, there is hereby levied a tax rate of one (1%) percent per annum upon the following:
(a) On all salaries, wages, commissions, and other compensation earned by residents of the Village of West Jefferson.
(b) On all salaries, wages, commissions, and other compensation earned by nonresidents of the Village of West Jefferson for work done or services rendered in the Village of West Jefferson.
(c) Net profits:
(1) On the net profits earned of all unincorporated businesses, professions, or other activities conducted by residents of the Village of West Jefferson.
(2) On the net profits earned of all unincorporated businesses, professions, or other activities conducted in the Village of West Jefferson by nonresidents.
(3) For the purposes of subsections (c)(1) and (c)(2) hereof, an association shall not be taxable as an entity, but any member thereof who is a resident of the Village shall be taxed individually on his entire share whether distributed or not, of the annual net profits of the association, and any nonresident member thereof shall be taxed individually only on that portion of his share, whether distributed or not of the annual net profits of the association as is derived from work done, services performed or rendered, and business or other activities conducted in the Village.
(d) On the net profits of all corporations, estates, trusts and limited partnerships, derived from work done or services performed or rendered and business or other activities conducted in the Village, whether or not such corporations, estates, trust, and limited partnerships, have their principal or any place of business located in the Village.
(e) That the tax at the rate of one percent (1%) upon all of the income specified in paragraphs (a), (b), (c), and (d) hereof shall remain in effect for the purpose of filing of returns and collection of the tax with regard to all income earned.
(f) A non-exclusive list of taxable and non-taxable items follows:
(1) Taxable income.
A. Gross wages, salaries, commissions and other compensation to include:
1. Bonuses.
2. Compensation paid in property or the use thereof at fair market value to extent as taxable for Federal tax purposes and so indicated on the W-2.
3. Contributions made by or on behalf of employees to a cafeteria plan.
4. Contributions made by or on behalf of employees to a tax deferred plan (401k and the like) - taxed at year earned, deferral not permitted.
5. Contributions made by or on behalf of employees to a tax deferred annuity or stock purchase plan (includes any plan where employee has the option to defer).
6. Cost of group term life insurance over $50,000.
7. Director's fees.
8. Employee contributions to cost of fringe benefits.
9. Employer paid death benefits.
10. Excess employee discounts.
11. Golden parachute payments.
12. Income from guaranteed annual wage contract.
13. Income from wage continuation plans (includes retirement incentive plans and buyouts).
14. Income received as a result of a covenant or agreement not to compete.
15. Interest on below market loans.
16. Moving expense reimbursements (follow Federal rules but nonreimbursed expenses are not deductible).
17. Preretirement distributions from retirement plans (except previously taxed income from deferred plans).
18. Prizes, awards and gifts - if connected with employment.
19. Profit Sharing.
20. Royalties (unless derived from registered copyrights, patents or trademarks).
21. Severance pay.
22. Sick and/or vacation pay.
23. Stipends - if work required (vow of poverty not recognized).
24. Stock bonus incentive plans.
25. Stock options - taxed when exercised on amount indicated on W-2 form (market price less option price).
26. Strike benefits paid by employer.
27. Supplemental unemployment pay paid by employer.
28. Taxes paid by employer on employee's behalf.
29. Tips.
30. Union steward fees.
B. Net Profits from:
1. Corporations.
2. Unincorporated businesses:
a. Sole proprietorships- Schedule C.
b. Rental properties- Schedule E.
c. Farm Net Income- Schedule F.
d. Royalties from gas and oil interest - Schedule E.
(2) Non-taxable income.
1. Alimony.
2. Annuities - at time of distribution.
3. Capital gains or ordinary.
4. Disability pay if received as benefit from employment (includes third party plans)
5. Dividends.
6. Gambling winnings (losses not deductible).
7. Government allotments.
8. Housing for clergy.
9. Income earned while less than 18 years of age.
10. Income from Foster Grandparent Program.
11. Income from Jury Duty.
12. Income of religious, fraternal, charitable, scientific, literary or educational institutions to the extent that such income is derived from tax-exempt real estate, tax-exempt to tangible or intangible property or tax-exempt activities.
13. Insurance benefits - unless connected with employment.
14. Interest.
15. Meals and lodging required on premises.
16. Military pay including reserve pay.
17. Patent and copyright income.
18. Pension income - includes lump sum distributions.
19. Prizes - unless connected with employment.
20. Retirement Pay.
21. Royalties - if derived from intangible property.
22. Salaries of the mentally retarded or developmentally disabled while working in a government funded workshop for less than minimum wage.
23. Social Security benefits.
24. State unemployment benefits.
25. Welfare payments.
26. Workers’ Compensation.
NOTE: This list is intended for reference purposes only. It may not be all- inclusive and is subject to revision without notice.