§ 813. Earnings and profits tax.

(a)

Earnings and profits tax authorized. Continuing the authority of the City granted by the electorate in 1963, the City is authorized to levy and collect, by ordinance, for general revenue purposes, an earnings tax on the following:

(1)

Salaries, wages, commissions and other compensation earned by its residents;

(2)

Salaries, wages, commissions and other compensation earned by non-residents of the City for work done or service performed or rendered in the City;

(3)

Net profits of associations, businesses or other activities conducted by residents;

(4)

Net profits of associations, businesses or other activities conducted in the City by non-residents; and

(5)

Net profits earned by all corporations as the result of work done or services performed or rendered and business or other activities conducted in the City.

(b)

Limitation on tax. The tax shall not be in excess of one percent per year.

(c)

Calculation of net profits or earnings. Net profits or earnings of associations, businesses or other activities and corporations shall be ascertained and determined by deducting the necessary expenses of operation from the gross profits or earnings. The earnings or net profits subject to tax of any non-resident individual, of any association or business conducted by non-residents or of any corporation in any case in which the work done, services performed or rendered, and business or other activities conducted, is done, performed, rendered or conducted both within and without the City, may be ascertained by formulae set forth in the ordinance enacted or prescribed by rules or regulations adopted pursuant to the ordinance.

(d)

Collection and remission of tax. The City may impose upon the employer the duty of collecting and remitting to the City any tax that may be levied upon the earnings of employees and may prescribe penalties for failure to perform the duty. Each employer shall be entitled to retain the percent allowed by law of the total amount collected by the employer to compensate the employer for collecting the tax.

(e)

Wage brackets. The ordinance may create wage brackets within which the tax shall be uniform for taxpayers entitled to the same number of exemptions.

(f)

Filing state or federal tax returns with the City not required. The ordinance shall not require any taxpayer to file copies of the taxpayers state or federal income tax returns with any City officer, employee or other person designated by the ordinance to collect or administer the tax.

Editor's note

This section becomes effective on March 1, 2007.