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• Interest costs associated with any relocation expense or the purchase of replacement <br />property. <br />• Payment to a part-time business in the home which does not contribute materially to the <br />household income. <br />Option 2: Fixed Payment In Lieu of a Payment for Actual Reasonable Moving and <br />Related Expenses <br />A displaced business, non-profit organization or farm may be eligible to choose a fixed payment in <br />lieu of the payments for actual moving and related expenses and actual reasonable reestablishment <br />expenses. The payment may not be less than $1,000.00 or more than $40,000.00. For a business or <br />farm, the payment is based on the average annual net earnings before Federal, State and local <br />income taxes during the 2 taxable years immediately prior to the taxable year in which it was <br />displaced. For a non-profit organization, the payment is based on the average of 2 years annual <br />gross revenues less administrative expenses. <br />In order to qualify for this payment, the Displacing Agency must determine that: <br />1. The business owns or rents personal property which must be moved in connection with the <br />displacement and for which an expense would be incurred in such move, and the business <br />vacates or relocates from its displacement site. <br />2. The business cannot be relocated without a substantial loss of existing patronage (clientele <br />or net earnings). <br />1 The business is not a part of a commercial enterprise having more than three other entities <br />which are not being acquired by the Displacing Agency, and which are engaged in the <br />same or similar business activities. <br />4. The business is not operated at the displacement dwelling/site solely for the purpose of <br />renting such dwelling/site to others. <br />5. The business contributed materially to the income of the displaced person during the two <br />(2) taxable years prior to displacement. <br />If the business or farm was not in operation for the full two years prior to displacement, the net <br />earnings are based on the actual period of operation at the acquired site projected to an annual rate. <br />Average net earnings may be based on a different period of time when the Displacing Agency <br />determines it to be more equitable. Net earnings include any compensation paid to the owners of the <br />business, a spouse or dependents. Proof of net earnings must be furnished to the Displacing Agency <br />through income tax returns, certified financial statements, or other reasonable evidence which the <br />Displacing Agency determines is satisfactory. <br />For a qualified non-profit organization, gross earnings may include membership fees, class fees, cash <br />donations, tithes and receipts from sales or other forms of fund collection that enables the non-profit <br />organization to operate. Administrative expenses are those for administrative support such as rent, <br />utilities, salaries, advertising and other like items as well as fund raising expenses. Operating <br />expenses for carrying out the purposes of the non-profit organization are not included in <br />administrative expenses. The monetary receipts and expense amounts may be verified with certified <br />financial statements or financial documents required by public agencies. <br />55A-52 <br />