All property owners of rental or leased property who rent to tenants of residential premises or business premises has two responsibilities:
First - you are required to report net profit/loss from any rental property located in the city limits. This can be done by submitting a completed tax return that includes a Federal Schedule "E" or other appropriate schedule.
Second - Landlords are required to provide names, address (including suite letters, suite numbers, and/or apartment numbers, if applicable), phone numbers if know and move-in/move-out date of tenants to the tax office annually. We will send out an annual report in August or September and request that it be completed and return to our office.
In determining the taxable income from rentals, the deductible expenses shall be of the same nature, extent, and amount as allowed by the Internal Revenue Service for federal income tax purposes. Owners of rental property who are non-residents of this municipality, whether individuals or business entities, are subject to tax only on the income from property located in this municipality, and in determining whether gross monthly rental exceeds the rental rate of this municipality, only the income from such properties located within this munipality shall be considered.
Owners of rental property who are residents of Waverly are subject to tax on the net income from rentals regardless of the location of the property owned, except that if any property is located and subject to a municipal income tax by another municipality, credit shall be given.