Omaha daily bee., 1909-06-17
SANE As THE zINNAN BILLS
New. Occupation Tax Ordinances Are
Changed but Slightly.
FIVE PER CENT GROSS EARNINGS
Ordinance, ~ Passed as Drawn, BE-
comes Elective September Next,
but Produces First Tax I'm
March, 1910.

~
The new occupation tax ordinances intro
duced at the last meeting Of the city coun-
Gil are practically he same as those faith
cred by Councilman Zimman in the last
The public service corporations,
under their terms, will be compelled to pay
into the city treasury a tax Of 5 per cent
on their gross earnings.
II passed as originally drawn, the ordi-
nances will become effective on September
1, 1909. though the first tax payments will
not be made until six months later, or on
March l, 1910. The tax is to be paid semi
annually on March / and September l Of
each year on the gross receipts during the
preceding six months.
Under the original draft Of the ordi-
nances and as passed the first two read
ings, interest OF / per cent per month will
attach II not paid when due. II not paid
in six months an additional tax of per
cent will be added.
on the first days of March and Septem-
Der the affected franchise corporations
must file with the city a complete and
detailed statement of income and gross
receipts. Should this not be done the tax
against the companies shall be fixed as
follows:
street railway companies. 5000 per
month.
Water work companies, 5000 per month.
Telephone companies, 1900 per month.
Electric companies, 5000 per month.
Gas companies, 5000 per month.
Telegraph companies, $500 per month.
The books Of all franchise corporations
occupying the streets and coming under
the provisions Of any of the six ordinances
must at all times be open to the inspection
Of duly authorized city officials.
Changes May Make Trouble.
All the ordinances were drawn by Harry
L. Burnam, city attorney, to take the place
Of imilar ordinances drawn and introduced
by former Councilman Harry B. Zimman,
but In three of them there appear to be
changes which, according to Mr.. Zimman,
the father of the occupation tax" might
cause trouble. one section affecting street
railway companies reads:
Said company shall pay s per cent Of
the gross receipts Of the said company de-
rived from its business as a common car
rier of passengers and as a street railway
company within the corporate limits Of
the city of Omaha.
No tax or portion Of tax in the ordi-
nance provided for shall be assessed
obaiAlo W vi hBOh VI AdhNl oAg
such business done to or from points with
out the state OF Nebraska, but the same
shall, In all respects, be exempt and eX-
cepted from the provisions hereof.
According to Mr.. Zimman, 1t would take
a lot OF figuring to ascertain what it was
to pay on.
The ordinance governing telegraph and
telephone companies specifies that a tax
shall not be collected on business done
outside the state, but only on messages
sent from Omaha to points within Ne.
braska and messages received in Omaha
from points in Nebraska.
Tax within the City.
The water works company's ordinance
provides for collecting q tax on receipts
for water furnished to inhabitants and
consumers of water within the corporatt
limits Of the city of Omaha South
Omaha. Florence, Benson and Dundee bust
ness Is excepted.
The Omaha Gas company is now payinl
the city a royalty of 5 cents on every 100
feet Of gas sold private consumers in thu
city, gas sold the city being exempted
the Omaha Electric Light and Power com
pany is now paying a royalty of 3 pc
cent on it's gross receipts from privat,
consumers. and the Independent Telephon,
company is supposed to pay a royalty of
per cent on IT'S gross receipts, but neve
has. The royalties required by existing
ordinances or contracts are to be deducte
from the receipts before the occupation
? tax will be assessed.
In 1905 the Omaha Gas company pal
$26, 671.7 in royalties. o Il sold to privat
? consumers 531, 427, 416 feet of gas and to tn
|, city So. 142, 40 feet, or a total sale OF 5s4
. $40, 1T6 feet. 1t charges S1.15 per 1000 fee
making its total receipts 1861, 2b5. 20. So
per cent tax on this total would be $33
3s2. rs. AS IT pays a royalty on city excepte
business OF s26,571.S7, deducting this, tn
occupation tax, according to the receipt
Of last yeas, would be about 5000 add
tional.
In 1908 the Omaha Electric Light an
Power omp ny paid s14, $3.50 in royalties
on sales amounting to t4sl, 1851 p. The extr
2 per cent over the 8 per cent now pait
making the 5 per cent occupation ia,
would be charged only on its total sale
which last year amounted to 1868, 500, %.
2 per cent additional tax would amour
according to the 1905 figures. to 81, O56. Is.
Receipts Of the other public service col
porations are not to be had, but the oril
inal Zimman ordinances were estimated
bring in a total revenue from all compani,
Of approximately $3.50, 900, Of which II
Street Railway company would have to pa
nearly half.