AN ORDINANCE PROVIDING FOR THE LEVY AND COLLECTION OF A TAX ON BANKS AND BANKING INSTITUTIONS FOR THE PRIVILEGE OF DOING BUSINESS WITHIN THE CITY OF RICH HILL, MISSOURI
Be it ordained and enacted by the Board of Aldermen of the City of Rich Hill, Missouri, as follows:
Banking Institution – Every bank and every trust company organized under any general or special law of the State of Missouri and any branch or office physically located within the city limits of Rich Hill, Missouri.
Collector – City Clerk
Income period – The calendar year or relevant portion thereof next preceding the taxable year.
Taxable year – The calendar year in which the tax is payable.
Taxpayer – Any banking institution subject to any tax imposed by this ordinance.
- Every banking institution shall be subject to an annual tax for the privilege of exercising its corporate franchises with the City according to and measured by its net income for the preceding year.
- The rate of tax for each taxable year shall be 7% of the taxpayer’s net income for the income period.
- 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 States government or any political subdivision or any instrumentality thereof, or any state or political subdivision thereof:
- All rents, compensation for services, commissions, brokerage and other fees;
- All gains or profits from the sale or other disposition of any property, real or personal, tangible or intangible.
Dividends received on share of stock of any banking institution liable to a tax under this ordinance shall not be included in gross income.
- Net Income: Gross income as defined in Paragraph 1 of this Article minus the deductions allowed in Paragraph 3 of this Article.
- In computing net income there shall be allowed as deductions 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 director of finance or the comptroller of the currency of their respective examiners as the case may be;
- Cost of insurance and advertising;
- All taxes paid or accrued during the income period to the United States, to the State of Missouri or any political subdivision thereof during the relevant income tax period, including without limitation, state and local sales and use taxes with respect to the taxpayer’s purchases of tangible personal property and the services enumerated in Chapter 144 of the Missouri Revised Statutes.
- Reasonable allowances for depreciation and depletion; amortization of premiums on bonds, debentures, notes or other securities or evidences of indebtedness;
- Payment or contribution to or on account of any pension or retirement fund of plan for its officers or employees;
- Contributions to any corporation, association or fund operated exclusively for religious, charitable, scientific, literary or educational purposes, not part of the net earnings of which inure to the benefit of any private shareholder or individual to an amount which does not exceed 5% 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;
- All other losses sustained during the income period not compensated for by insurance.
- A taxpayer shall not be entitled to credits for:
- 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 by this ordinance;
- Taxes imposed under Chapter 148 of the Missouri Revised Statutes;
- Taxes imposed under Chapter 147 of the Missouri Revised Statutes for taxable years after 1985.
- 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 collector does clearly reflect the income.
- Every taxpayer shall file a return with the Missouri Director of Revenue on or before the 15th day of April each year, along with payment in full of the taxes owed.
- If the taxpayer fails to file a return, the net income shall be estimated by the Director who will then notify the taxpayer of the proposed amount assessed pursuant to a Notice of Deficiency.
- The notice of deficiency shall set forth the reason for the proposed assessment and shall be mailed by certified or registered mail to the taxpayer at its last known address unless the Director has received notice of the existence and address of a person to receive notices with respect to such taxpayer.
ALL ORDINANCES OR PARTS OF ORDINANCES OR POLICIES IN CONFLICT WITH THIS ORDINANCE ARE HEREBY REPEALED.
This ordinance shall be in force and affect from and after its passage and approval as provided by law.
First reading this the 23rd day of August 2016.
Second reading this the 23rd day of August 2016.
PASSED THIS 23RD DAY OF AUGUST 2016.
Jennifer Perkey-Ewing, Mayor
Brittany Schenker, City Clerk
Ayes: Humble, Pilcher, Rich, Robb
Chapter 148, Sections .010 through 1969, Missouri Revised Statutes, was amended several times since 1977, with the most recent amendment occurring in 1986, effective May 15, 1986. This amendment increased the tax rate from 5% to 7% and made the Director of Revenue responsible for the distribution of taxes to the counties who then distributed the funds to the municipalities.
This ordinance repeals and replaces: Ordinance No. 852, enacted September 13, 1977.