ORDINANCE 852
AN ORDINANCE PROVIDING FOR THE LEVYANDCOLLECTION OF A TAX ON BANKSANDBANKING INSTITUTIONS FOR THE PRIVILEGE OF DOING BUSINESS WITHIN THE MUNICIPALITY OF RICH HILL, MISSOURI
BE IT ORDAINED and enacted by the Board of Aldermen of the City of Rich Hill, Missouri, as follows:
ARTICLE 1
Unless the context specifically indicates otherwise, the meaning of terms used in this ordinance shall be as follows:
Section 1: Banking Institution-Means every bank and every trust company organized under any general or special law of the State of Missouri located within the corporate limits of this municipality and every national banking association located within the corporate limits of this municipality.
Section 2: Collector-Means the collector of revenue in charge of the City Revenue Department
Section 3: Income Period- Means the calendar year or relevant portion thereof next preceding the taxable year.
Section 4: Taxable Year-Means the calendar year in which the tax is payable.
Section 5: Taxpayer-Means any banking institution subject to any tax imposed by this law.
ARTICLE II
Section 1. Every banking institution shall be subject to an annual tax for the privilege of exercising its corporate franchises within this municipality according to and measured by its net income for the preceding year.
Section 2. The rate of tax for each taxable year shall be 5% of such net income.
Section 3. Each taxpayer shall be entitled to credits against the tax imposed by this ordinance for all taxes paid too the State of Missouri or any political subdivision thereof during the relevant income period, other than taxes on real estate and tangible personal property owned by the taxpayer and held for lease or rental to others, contributions paid pursuant to the unemployment compensation tax law of Missouri, taxes imposed under Section 148.010, R.S. Mo. 1969 et seq., and taxes imposed by this law.
Section 4. The income period for the year in which this ordinance is enacted shall end on the September 30th following enactment of this ordinance and the tax accrued for that income period shall be due and payable on or before the December 31st following.
Section 5. This ordinance shall be construed together with Sec. 148.010, R.S. Mo. 1969 et seq., so as to create the maximum permissible tax under Article II, Section 2, without increasing the combined tax liability to the State of Missouri and the City of Rich Hill, Missouri of any taxpayer.
ARTICLEIII
Section 1. “Net Income” means gross income as defined in Section 2 of this Article minus the deductions allowed in Section 3 of this Article.
Section 2. “Gross Income” includes all gains, profits, earnings and other income of the taxpayer from whatever sources derived during the income period, including but not limited to interest from obligations issued by the United State government or any political subdivision or any instrument thereof, or any state or political subdivision thereof, or issued by any foreign country or nation or political subdivision thereof; all rents, compensation for services, commissions, brokerage and other fees; all gains profits from the sale or other disposition of any property, real or personal, tangible or intangible; and all recoveries on losses sustained in the ordinary course of business subsequence to the effective date of this ordinance; providing however, that recoveries on such losses sustained during any prior income period within which the deductions, as permitted by Section 3 of this article exceeded the taxpayer’s gross income for said income period, computed in accordance with this Section, shall not be included in the taxpayer’s gross income for the income period in which they were received to the extend of income for the income period in which they were received to the extent of said excess. Dividends received on shares of stock of any banking institution liable to a tax under this law shall not be included in gross income.
Section 3. In computing net income there shall be allowed as deduction, all ordinary and necessary expenses paid or incurred by the taxpayer during the income period in carrying on its trade or business. Without limiting the generality of the foregoing, there shall be allowed as deductions a reasonable allowance for salaries and other compensation for personal services actually rendered; rents, repairs, and bad debts and debts ordered to be charged off by the commissioner of finance or the comptroller of the currency or their respective examiners as the case may be; interest; cost of insurance and advertising; all taxes paid or accrued during the income period to the United States and all taxes paid or accrued on real estate on tangible personal property owned by the taxpayer and held for lease or rental or others to the state of Missouri or any political subdivision that all contributions paid or accrued pursuant to the unemployment compensation law of Missouri; reasonable allowances for depreciation and depletion; amortization of premiums on bonds, debentures, notes or other securities or evidences of indebtedness; a reasonable allowance for payments or contribution to or on account of any pension or retirement funds or plan for its officers or employees; contributions to any corporation, association or fund organized and operated exclusively for religious, charitable, scientific, literary or educational purpose, no part of the net earnings of which inure to the benefit of any private shareholder or individual to an amount which does not exceed five percent of the taxpayer’s net income as computed without the benefit of this deduction; losses from the sale or disposition of any property real or personal, tangible or intangible; and all other losses sustained during the income period not compensated for by insurance.
Section 4. Net income shall be computed in accordance with the method of accounting regularly employed in keeping the books of the taxpayer, unless such method does not clearly reflect the income, in which case the computation shall be made in accordance with such method as in the opinion of the collect does clearly reflect the income.
ARTICLE IV
Every taxpayer shall file a return with the collector on or before the fifteenth day of April in each year. The collector may grant a reasonable extension of time for filing returns under such rules and regulations, as he shall prescribe. Whenever such an extension of time is granted, a taxpayer shall be required to pay as part of any tax due interest thereon at the rate of one percent per month from the day when such return should have been filed if no such extension had been granted.
ARTICLE V
Section 1. The tax imposed by this ordinance shall be due and payable upon the last day upon which a return must be filed under Article IV.
Section 2. Upon the filing of such return the full amount of any tax as computed by the taxpayer shall be paid to the collector, who as soon as is practicable thereafter shall examine it and determine the correct amount of the tax. If the collector determines that the taxpayer has paid a tax in excess of the amount lawfully due, the collector shall permit a credit.
Section 3. If any tax due hereunder is not paid when due, the taxpayer shall be required to pay as part of such tax interest thereon at the rate of one percent per month from such time but not to exceed ten percent per annum.
ARTICLE VI
In event the collector shall determine that the correct amount of the tax is greater than that computed by the taxpayer, he shall, upon such determination, notify the taxpayer thereof by mail and shall fix a time and place for a hearing relative thereto not earlier than thirty days after the date of such determination. Upon such hearing the collector shall make such order as may be lawful, but such taxpayer shall have the right of appeal from such order as provided by law.
ARTICLEVII
Insofar as feasible, this ordinance shall be enforced consistently with the rules and regulations prescribed by the commissioner of Internal Revenue for the enforcement of the income tax chapter of the Internal Revenue Code.
ARTICLE VIII
Section 1. All ordinance or parts of ordinances in conflict herewith are hereby repealed.
Section 2. The invalidity of any section, clause, sentence or provisions of this ordinance shall not affect the validity of any other part of this ordinance, which can be given effect without such invalid part or parts.
ARTICLE IX
Section 1. This ordinance shall be in full force and effect from and after its passage and approval as provided by law.
Section 2. Passed and adopted by the Board of Aldermen of the City of Rich Hill, State of Missouri, on the 13 day of September, 1977.
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William Thelen-Mayor
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Marcelle Marquardt-City Clerk
No voting record
