§ 11-26. Deductions, exemptions, nonprofit and charitable organizations.

(a)

No deductions from gross income shall be made except income earned outside of the municipality on which a license tax is paid to some other municipality or a county and fully reported to the municipality, taxes collected for a governmental entity, or income which cannot be included for computation of the tax pursuant to state or federal law. The applicant shall have the burden to establish the right to exempt income by satisfactory records and proof.

(b)

No person shall be exempt from the requirements of the ordinance by reason of the lack of an established place of business within the municipality, unless exempted by state or federal law. The license official shall determine the appropriate classification for each business in accordance with the latest issue of the North American Industry Classification System (NAICS) for the United States published by the Office of Management and Budget. No person shall be exempt from this ordinance by reason of the payment of any other tax, unless exempted by state law, and no person shall be relieved of liability for payment of any other tax or fee by reason of application of this ordinance.

(c)

A nonprofit or charitable organization shall be exempt from the business license tax on its gross income unless it is deemed a business subject to a business license tax on all or part of its gross income as provided in this section. A nonprofit or charitable organization or any for-profit affiliate of a nonprofit or charitable organization, that reports income from for-profit activities such as offering goods or services to the public, or unrelated business income, for federal income tax purposes to the Internal Revenue Service shall be deemed a business subject to a business license tax on the part of its gross income from such for-profit activities or unrelated business income.

(d)

A nonprofit or charitable organization shall be deemed a business subject to a business license tax on its total gross income if (1) any net proceeds of operation, after necessary expenses of operation, inure to the benefit of any individual or any entity that is not itself a nonprofit or charitable organization as defined in this ordinance, or (2) any net proceeds of operation, after necessary expenses of operation, are used for a purpose other than a nonprofit or charitable purpose as defined in this ordinance. Excess benefits or compensation in any form beyond fair market value to a sponsor, organizer, officer, director, trustee or person with ultimate control of the organization shall not be deemed a necessary expense of operation.

(Ord. No. 2014-18, 6-10-14; Ord. No. 2014-49, 8-12-14)

Editor's note

Ord. No. 2014-18, adopted June 10, 2014, repealed the former § 11-26, and enacted a new section as set out herein. The former § 11-26 pertained to deductions and exemptions and derived from Ord. No. 91-24, § 6, adopted June 25, 1991.