To provide for the purposes of general Municipal operations, maintenance, new equipment and capital improvements of the City, there is hereby levied a tax at the rate of two and one half percent (2.50%) per annum upon the following:
(a) On all qualifying wages, salaries, commissions and other compensation earned on and after July 1, 2010.
(b) On all qualifying wages, salaries, commissions and other compensation earned on and after July 1, 2010 by nonresidents of the City for work done or services performed or rendered in the City.
(c) (1) On the net profits earned on and after July 1, 2010 of all unincorporated businesses, professions or other activities conducted by residents of the City.
(2) On the net profits earned on and after July 1, 2010 of all unincorporated businesses, professions or other activities conducted in the City by nonresidents.
(3) For the purposes of subsections (c)(1) and (c)(2) above, an association shall be taxed as an entity, on the net profits of the association derived from the work done or services performed or rendered and business or other activities conducted in the City, whether or not such association has its principal or any place of business located in the City, effective for all accounting periods commencing on or after January 1, 1999.
(4) For the purposes of subsection (c)(1) above, a resident of the City who is a member of an association is taxed individually on that resident's entire share, whether distributed or not, of the annual net profits of the association which are not subject to entity filing under subsection (c)(3) above, effective for all accounting periods commencing on or after January 1, 1999.
(d) On the net profits on and after July 1, 2010 of all corporations, estates, and trusts derived from work done or services performed or rendered and business or other activities conducted in the City, whether or not such corporations, estates, and trusts have their principal or any place of business located in the City.
(e) On a resident's entire share, whether distributed or not, of the net profits of a Subchapter S corporation as defined in Section 1361 of the Internal Revenue Code. If a resident is a shareholder in two or more Subchapter S corporations to be included in the same return, the resident's share of the net loss of one Subchapter S corporation (except any portion of a loss separately reportable for municipal tax purposes to another taxing entity) may be used to offset the resident's share of the profits of another Subchapter S corporation for purposes of arriving at overall net profits derived from Subchapter S corporations. Credit on the tax imposed by this paragraph shall be given for tax paid on the resident's share of the net profits of a Subchapter S corporation under Sections 1703.01(d) and 1707.01 of this Taxation Code. The tax imposed under this paragraph is effective for all accounting periods commencing on or after January 1, 2001.
(Ord. 03-2010. Passed 6-7-10.)