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r <br />21199 <br />:-ROOK p� } <br />I•J hap <br />The following solutions would appear to have consistency: <br />1 • a) require a licence tax of each association, and <br />b) require a license tax of each individual professional including <br />real estate salespersons. <br />or <br />2. a) require a license tax of each professional including real estate <br />salespersons, and <br />b) not require a license tax of an association made up of <br />professionals who pay an individual license tax. <br />Analysis: <br />Solution #1. Would be reflective of what is essentially required now <br />except it would remove the anomaly of not having professional licensed <br />real estate salespersons exempt from the tax. <br />Solution #2.. Would ignore the covering organization or shell and would <br />only look to all professionals. In the case of an active real estate <br />broker, the broker as an individual professional would pay the tax and <br />all of the independent salespersons would pay as would all doctors and <br />lawyers. <br />Either choice is fair. The first option places a tax on `an association <br />which is usually formed for legal and tax benefits and it may be better <br />not to tax this entity but concentrate on taxing the professionals no <br />matter how they are constituted. The first option becomes a little <br />onerous when you have a single member P.A. who is required to pay <br />both taxes just to gain the legal benefit of the P.A. <br />II. Exemptions for Non-profit Charitable Organizations <br />Under Section 207.24 carnivals are required to pay a license tax of $225 <br />for each day. Concern was expressed that this fee could have a <br />chilling effect on charitable organizations that staged a small carnival to <br />raise . funds. Under Section 207.12 there is an exemption for <br />charitable organizations that stage fund-raising projects when "the <br />projects are performed exclusively by the members . " This exemption is <br />not broad enough to cover small carnivals that are hired by the <br />organization. It is suggested that Section 207.12 be amended to read <br />as follows: <br />Section 207.12 Charitable, organizations; occasional sales; <br />fundraising exemption <br />M <br />No occupational licneses shall be required of any charitable, <br />religious, fraternal, youth, civic service or other such <br />organization when the organization makes occasional sales or <br />engages in fund-raising projects and when the proceeds from <br />the activities are use exclusively in the charitable, religious, <br />fraternal, youth, civic and service activities of the <br />organization. <br />76 <br />M <br />