View Amendment Current Amendment: 2 to Bill 4431

Rep. LUCAS proposes the following Amendment No. 2 to H. 4431 (COUNCIL\SA\4431C003.RT.SA20):

Reference is to Printer's Date 2/19/20-H.

Amend the bill, as and if amended, SECTION 2, Section 6-1-400, by adding an appropriately lettered subsection to read:

/ ( )(1) For purposes of this subsection:

(a) 'Charitable Organization' means an organization that is determined by the Internal Revenue Service to be exempt from Federal income taxes under 26 U.S.C. section 501 (c)(3), (4), (6), (7), (8), (10) or (19).

(b) ' Charitable Purpose' means a benevolent, philanthropic, patriotic, or eleemosynary purpose which does not result in personal gain to a sponsor, organizer, officer, director, trustee or person with ultimate control of the organization.

(2) A charitable organization shall be exempt from the business license tax on its gross income unless it is deemed a business subject to a business license tax on all or part of its gross income as provided in this section. A charitable organization, or any for-profit affiliate of a charitable organization, that reports income from for-profit activities, or unrelated business income, for federal income tax purposes to the Internal Revenue Service shall be deemed a business subject to a business license tax on the part of its gross income from such for-profit activities or unrelated business income.

(3) A charitable organization shall be deemed a business subject to a business license tax on its total gross income if (1) any net proceeds of operation, after necessary expenses of operation, inure to the benefit of any individual or any entity that is not itself a charitable organization as defined in this ordinance, or (2) any net proceeds of operation, after necessary expenses of operation, are used for a purpose other than a charitable purpose as defined in this ordinance. Excess benefits or compensation in any form beyond fair market value to a sponsor, organizer, officer, director, trustee, or person with ultimate control of the organization shall not be deemed a necessary expense of operation." /