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` ~ 0 CITY OF NORTH OLMSTED ORDINANCE NO. 72-~~ PAGE 2 e CHAPTER 7 DETERMINATION OF ALLOCATION OF TAX Section 1501.0704 RENTALS Rental income received by a taxpayer shall be included in the computation of net profits from business activities under Subparagraphs 3, 4, and 5 of Section 1501.0501, only if and to the extent that the rental , ownership, management of operations of the real estate from wHch such rentals are derived (whether so rented, managed, or operated by a taxpayer individually or through agents or other representatives)constitutes abusiness activity of the taxpayer in whole or in part. Where the gross monthly rental of any and all real properties, regardless of number and value, aggregates in excess of TWO HUNDRED FIFTY DOLLARS ( $250.00) per month, it shall be prima facia evidence that the rental, ownership, management or operation of such properties is a business activity of such taxpayer, and the net income of such rental property shall be subject to tax ;provided that in the case of commercial property, the owner shall be considered engaged in a business activity when the rental is based on a fixed or fluctuating percentage or net sales, receipts or profits of the lessee, whether or not such rental exceeds TWO HUNDRED FIFTY DOLLARS ($250.00) per month ;provided further that in the case of farm property, the owner shall be considered engaged in a business activity when he shares in crops or when the rental is based on a percentage of the gross or net receipts derived from the farm, whether or not the gross income exceeds said TWO HUNDRED FIFTY DOLLARS ($250.00) per month ;and provided further that the person who operates a licensed rooming house shall be considered in business whether or not the gross income exceeds TWO HUNDRED FIFTY DOLLARS ($250.00) per month. The taxpayers subject to the provisions of this section shall submit or cause to be submitted to the Tax Administration a list of names and addresses of all persons, firms ,corporations or other entities occupying , leasing, renting or otherwise using any premises belonging to the taxpayer within this municipality in such a manner as to produce economic benefit to the taxpayer, whether or not such benefit is collected as "rent "and whether or not such benefit results in a profit or loss. The required list shall be prepared as of December 31 of each year and submitted on or be- fore January 31 of the following year and at such other times as may be prescribed by the Tax Administrator. Section 2. That the Clerk of Council is hereby instructed to forward a copy of this Ordinance to the Director of Finance and the Income Tax Department of the City of North Olmsted. Section 3. That all other ordinances or resolutions, or parts of ordinaces or parts of resolutions, inconsistent herewith to the provisions of this Ordinance ,are hereby repealed with the effective date of this ordinance . Section 4. WHEREFORE, this Ordinance shall take effect and be in force at the earliest date permitted by Article IV, Section 12 of the Charter of the City of North Olmsted. PASSED: /,~•„~~~,~~.• ATTEST: Nora T. Hill, Clerk of Council APPROVED: 3~,2/~ ~ Ralph Christman, Mayor +! .~.• President of Counc Francis j. O'Ne ,