09/25/1985 Meeting - Laserfiche WebLink

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exercise of religious duties required by' such order, which e duties are not commercial in nature. 3.604 Imposition of Tax. ( 1) A tax is imposed upon every resident of the city upon and with respect to his/her entire taxable income from sources both within and without the city. (2) Except as set forth in section 3.604(4), a tax is imposed upon every nonresident of the city upon and with respect to his/her entire taxable income derived from every business, trade, or occupation carried on in the city, including income from intangible personal property used by the taxpayer in the conduct of his/her business, trade or occupation within the city; and from ownership or disposition of all real or tangible personal property located in the city, including interest. or any amount received in lieu there- of upon the deferred payments of the selling price received in connection with the sale of such property. The determination of taxable income derived from or connected with a business, trade, or occupation carried on partly in and partly outside this city shall be made by apportionment and allocation under the provisions of section 3.634 and following of this Act. (3) A tax is imposed upon every part-year resident of the city -upon and with respect to his/her entire taxable income from sources both within and without the city for the portion of the year during which he/she is a resident, and upon and with re~pect to his/her entire taxable income subject to nonresident taxation under this Act for the portion of the year during which he/she is a nonresident. The provisions of this Act shall apply - as the context may require to accomplish the purpose of this section 3.604 (3). (4 ) If any other city ("enacting city") shall enact a tax on in- come, earnings or other form of compensation that would otherwise apply to residents of the city in any manner analogous to that of section 3.604(2), the city may, but is not required to, enter into an agreement with the enacting city providing for reciprocal exemptions, in whole or in part, from such tax, with the result that the tax imposed by section 3.604(2) may be mitigated or eliminated with respect to the residents of the enacting city. (5 ) Subject to the withholding provisions of section 3.618 et ~., the tax imposed by this Act shall be levied, collected and paid annu- ally on taxable income, as defined in this Act, after allowing the proper credits against the tax in accordance with this Act. The tax imposed by this Act shall apply to taxable years commencing on or after January 1, 1986. (6) The tax imposed by this Act may hereinafter be referred to as the "city personal income tax" or the "tax". 3.606 Rate of Tax. The tax rate shall be four-tenths of one percent (0.4%) of taxable income. The tax rate shall decrease to not more than one-quarter of one percent (0.25%) after obligations incurred by the city for airport expansion and library expansion or replacement are paid. 3.608 Credit Against Tax. (1) Except as provided in section 3.608(2), there shall be allowed - to each taxpayer (or to each married couple filing a joint return) as a credit against the tax imposed by this Act an amount determined in accordance with the following schedule: Ordinance - 3