3.24.050 Imposition of the tax—Tax or fee levied.
A. Except as provided in subsection B of this section, there is hereby levied upon and shall be collected from every person a tax for the act or privilege of engaging in business activities within the city, whether the person’s office or place of business be within or without the city. The tax shall be in amounts to be determined by application of rates against gross proceeds of sale, gross income of business, or value of products, including byproducts, as the case may be, as follows:
1. Upon every person engaging within the city in business as an extractor; as to such persons the amount of the tax with respect to such business shall be equal to the value of the products, including byproducts, extracted within the city for sale or for commercial or industrial use, multiplied by the rate of one-tenth of one percent, except as provided in subsections (A)(1)(a), (b), (c), (d), and (e) of this section. The measure of the tax is the value of the products, including byproducts, so extracted, regardless of the place of sale or the fact that deliveries may be made to points outside the city.
a. For the years beginning January 1, 2021, and ending December 31, 2024, upon every person engaging within the city in business as an extractor; as to such persons the amount of the tax with respect to such business shall be equal to the value of the products, including byproducts, extracted within the city for sale or for commercial or industrial use, multiplied by the rate of one-tenth of one percent where such value is up to and including eight billion dollars and where such value exceeds eight billion dollars, the value of such products so exceeding the eight billion dollars shall be multiplied by the rate of twenty-five-hundredths of one percent;
b. For the years beginning January 1, 2025, and ending December 31, 2027, upon every person engaging within the city in business as an extractor; as to such persons the amount of the tax with respect to such business shall be equal to the value of the products, including byproducts, extracted within the city for sale or for commercial or industrial use, multiplied by the rate of one-tenth of one percent where such value is up to and including eight billion five hundred million dollars and where such value exceeds eight billion five hundred million dollars, the value of such products so exceeding the eight billion five hundred million dollars shall be multiplied by the rate of twenty-five-hundredths of one percent;
c. For the years beginning January 1, 2028, and ending December 31, 2030, upon every person engaging within the city in business as an extractor; as to such persons the amount of the tax with respect to such business shall be equal to the value of the products, including byproducts, extracted within the city for sale or for commercial or industrial use, multiplied by the rate of one-tenth of one percent where such value is up to and including nine billion dollars and where such value exceeds nine billion dollars, the value of such products so exceeding the nine billion dollars shall be multiplied by the rate of twenty-five-hundredths of one percent;
d. For the years beginning January 1, 2031, and ending December 31, 2033, upon every person engaging within the city in business as an extractor; as to such persons the amount of the tax with respect to such business shall be equal to the value of the products, including byproducts, extracted within the city for sale or for commercial or industrial use, multiplied by the rate of one-tenth of one percent where such value is up to and including nine billion five hundred million dollars and where such value exceeds nine billion five hundred million dollars, the value of such products so exceeding the nine billion five hundred million dollars shall be multiplied by the rate of twenty-five-hundredths of one percent; and
e. For the years beginning January 1, 2034, upon every person engaging within the city in business as an extractor; as to such persons the amount of the tax with respect to such business shall be equal to the value of the products, including byproducts, extracted within the city for sale or for commercial or industrial use, multiplied by the rate of one-tenth of one percent.
2. Upon every person engaging within the city in business as a manufacturer; as to such persons the amount of the tax with respect to such business shall be equal to the value of the products, including byproducts, manufactured within the city, multiplied by the rate of one-tenth of one percent, except as provided as follows:
a. For the years beginning January 1, 2006, and ending December 31, 2009, upon every person engaging within the city in business as a manufacturer; as to such persons the amount of the tax with respect to such business shall be equal to the value of the products, including byproducts, manufactured, multiplied by the rate of one-tenth of one percent where such value is up to and including six billion dollars and where such value exceeds six billion dollars, the value of such products so exceeding the six billion dollars shall be multiplied by the rate of twenty-five-hundredths of one percent;
b. For the years beginning January 1, 2010, and ending December 31, 2015, upon every person engaging within the city in business as a manufacturer, as to such persons the amount of the tax with respect to such business shall be equal to the value of the products, including byproducts, manufactured, multiplied by the rate of one-tenth of one percent where such value is up to and including seven billion dollars and where such value exceeds seven billion dollars, the value of such products so exceeding the seven billion dollars shall be multiplied by the rate of twenty-five-hundredths of one percent;
c. For the years beginning January 1, 2016, and ending December 31, 2024, upon every person engaging within the city in business as a manufacturer; as to such persons the amount of the tax with respect to such business shall be equal to the value of the products, including byproducts, manufactured within the city, multiplied by the rate of one-tenth of one percent where such value is up to and including eight billion dollars and where such value exceeds eight billion dollars, the value of such products so exceeding the eight billion dollars shall be multiplied by the rate of twenty-five-hundredths of one percent;
d. For the years beginning January 1, 2025, and ending December 31, 2027, upon every person engaging within the city in business as a manufacturer; as to such persons the amount of the tax with respect to such business shall be equal to the value of the products, including byproducts, manufactured within the city, multiplied by the rate of one-tenth of one percent where such value is up to and including eight billion five hundred million dollars and where such value exceeds eight billion five hundred million dollars, the value of such products so exceeding the eight billion five hundred million dollars shall be multiplied by the rate of twenty-five-hundredths of one percent;
e. For the years beginning January 1, 2028, and ending December 31, 2030, upon every person engaging within the city in business as a manufacturer; as to such persons the amount of the tax with respect to such business shall be equal to the value of the products, including byproducts, manufactured within the city, multiplied by the rate of one-tenth of one percent where such value is up to and including nine billion dollars and where such value exceeds nine billion dollars, the value of such products so exceeding the nine billion dollars shall be multiplied by the rate of twenty-five-hundredths of one percent;
f. For the years beginning January 1, 2031, and ending December 31, 2033, upon every person engaging within the city in business as a manufacturer; as to such persons the amount of the tax with respect to such business shall be equal to the value of the products, including byproducts, manufactured within the city, multiplied by the rate of one-tenth of one percent where such value is up to and including nine billion five hundred million dollars and where such value exceeds nine billion five hundred million dollars, the value of such products so exceeding the nine billion five hundred million dollars shall be multiplied by the rate of twenty-five-hundredths of one percent; and
g. For the years beginning January 1, 2034, upon every person engaging within the city in business as a manufacturer; as to such persons the amount of the tax with respect to such business shall be equal to the value of the products, including byproducts, manufactured within the city, multiplied by the rate of one-tenth of one percent.
With respect to this subsection (A)(2), including subsections (A)(2)(a) through (g) of this section, the measure of the tax is the value of the products, including byproducts, so manufactured, regardless of the place of sale or the fact that deliveries may be made to points outside the city.
3. Upon every person engaging within the city in the business of making sales at wholesale, except persons taxable under subsection (A)(6) of this section; as to such persons, the amount of tax with respect to such business shall be equal to the gross proceeds of such sales of the business without regard to the place of delivery of articles, commodities or merchandise sold, multiplied by the rate of one-tenth of one percent, except as provided as follows:
a. For the years beginning January 1, 2022, and ending December 31, 2024, upon every person engaging within the city in the business of making sales at wholesale, except persons taxable under subsection (A)(6) of this section; as to such persons, the amount of tax with respect to such business shall be equal to the gross proceeds of such sales of the business without regard to the place of delivery of articles, commodities or merchandise sold, multiplied by the rate of one-tenth of one percent where such gross proceeds are up to and including eight billion dollars and where such gross proceeds exceed eight billion dollars, such gross proceeds so exceeding the eight billion dollars shall be multiplied by the rate of twenty-five-hundredths of one percent;
b. For the years beginning January 1, 2025, and ending December 31, 2027, upon every person engaging within the city in the business of making sales at wholesale, except persons taxable under subsection (A)(6) of this section; as to such persons, the amount of tax with respect to such business shall be equal to the gross proceeds of such sales of the business without regard to the place of delivery of articles, commodities or merchandise sold, multiplied by the rate of one-tenth of one percent where such gross proceeds are up to and including eight billion five hundred million dollars and where such gross proceeds exceed eight billion five hundred million dollars, such gross proceeds so exceeding the eight billion five hundred million dollars shall be multiplied by the rate of twenty-five-hundredths of one percent;
c. For the years beginning January 1, 2028, and ending December 31, 2030, upon every person engaging within the city in the business of making sales at wholesale, except persons taxable under subsection (A)(6) of this section; as to such persons, the amount of tax with respect to such business shall be equal to the gross proceeds of such sales of the business without regard to the place of delivery of articles, commodities or merchandise sold, multiplied by the rate of one-tenth of one percent where such gross proceeds are up to and including nine billion dollars and where such gross proceeds exceed nine billion dollars, such gross proceeds so exceeding the nine billion dollars shall be multiplied by the rate of twenty-five-hundredths of one percent;
d. For the years beginning January 1, 2031, and ending December 31, 2033, upon every person engaging within the city in the business of making sales at wholesale, except persons taxable under subsection (A)(6) of this section; as to such persons, the amount of tax with respect to such business shall be equal to the gross proceeds of such sales of the business without regard to the place of delivery of articles, commodities or merchandise sold, multiplied by the rate of one-tenth of one percent where such gross proceeds are up to and including nine billion five hundred million dollars and where such gross proceeds exceed nine billion five hundred million dollars, such gross proceeds so exceeding the nine billion five hundred million dollars shall be multiplied by the rate of twenty-five-hundredths of one percent; and
e. For the years beginning January 1, 2034, upon every person engaging within the city in the business of making sales at wholesale, except persons taxable under subsection (A)(6) of this section; as to such persons, the amount of tax with respect to such business shall be equal to the gross proceeds of such sales of the business without regard to the place of delivery of articles, commodities or merchandise sold, multiplied by the rate of one-tenth of one percent.
4. Upon every person engaging within the city in the business of making sales at retail (including public road construction); as to such persons, the amount of tax with respect to such business shall be equal to the gross proceeds of such sales of the business without regard to the place of delivery of articles, commodities or merchandise sold, multiplied by the rate of one-tenth of one percent, except as provided as follows:
a. For the years beginning January 1, 2022, and ending December 31, 2024, upon every person engaging within the city in the business of making sales at retail (including public road construction); as to such persons, the amount of tax with respect to such business shall be equal to the gross proceeds of such sales of the business without regard to the place of delivery of articles, commodities or merchandise sold, multiplied by the rate of one-tenth of one percent where such gross proceeds are up to and including eight billion dollars and where such gross proceeds exceed eight billion dollars, such gross proceeds so exceeding the eight billion dollars shall be multiplied by the rate of twenty-five-hundredths of one percent;
b. For the years beginning January 1, 2025, and ending December 31, 2027, upon every person engaging within the city in the business of making sales at retail (including public road construction); as to such persons, the amount of tax with respect to such business shall be equal to the gross proceeds of such sales of the business without regard to the place of delivery of articles, commodities or merchandise sold, multiplied by the rate of one-tenth of one percent where such gross proceeds are up to and including eight billion five hundred million dollars and where such gross proceeds exceed eight billion five hundred million dollars, the value of such gross proceeds so exceeding the eight billion five hundred million dollars shall be multiplied by the rate of twenty-five-hundredths of one percent;
c. For the years beginning January 1, 2028, and ending December 31, 2030, upon every person engaging within the city in the business of making sales at retail (including public road construction); as to such persons, the amount of tax with respect to such business shall be equal to the gross proceeds of such sales of the business without regard to the place of delivery of articles, commodities or merchandise sold, multiplied by the rate of one-tenth of one percent where such gross proceeds are up to and including nine billion dollars and where such gross proceeds exceed nine billion dollars, such gross proceeds so exceeding the nine billion dollars shall be multiplied by the rate of twenty-five-hundredths of one percent;
d. For the years beginning January 1, 2031, and ending December 31, 2033, upon every person engaging within the city in the business of making sales at retail (including public road construction); as to such persons, the amount of tax with respect to such business shall be equal to the gross proceeds of such sales of the business without regard to the place of delivery of articles, commodities or merchandise sold, multiplied by the rate of one-tenth of one percent where such gross proceeds are up to and including nine billion five hundred million dollars and where such gross proceeds exceed nine billion five hundred million dollars, such gross proceeds so exceeding the nine billion five hundred million dollars shall be multiplied by the rate of twenty-five-hundredths of one percent; and
e. For the years beginning January 1, 2034, upon every person engaging within the city in the business of making sales at retail (including public road construction); as to such persons, the amount of tax with respect to such business shall be equal to the gross proceeds of such sales of the business without regard to the place of delivery of articles, commodities or merchandise sold, multiplied by the rate of one-tenth of one percent.
5. Upon every person engaging within the city in the business of (a) printing, (b) both printing and publishing newspapers, magazines, periodicals, books, music, and other printed items, (c) publishing newspapers, magazines and periodicals, (d) extracting for hire, and (e) processing for hire; as to such persons, the amount of tax on such business shall be equal to the gross income of the business multiplied by the rate of one-tenth of one percent, except as provided as follows:
a. For the years beginning January 1, 2022, and ending December 31, 2024, upon every person engaging within the city in the business of (1) printing, (2) both printing and publishing newspapers, magazines, periodicals, books, music, and other printed items, (3) publishing newspapers, magazines and periodicals, (4) extracting for hire, and (5) processing for hire; as to such persons, the amount of tax on such business shall be equal to the gross income of the business multiplied by the rate of one-tenth of one percent where such gross income is up to and including eight billion dollars and where such gross income exceeds eight billion dollars, such gross income so exceeding the eight billion dollars shall be multiplied by the rate of twenty-five-hundredths of one percent;
b. For the years beginning January 1, 2025, and ending December 31, 2027, upon every person engaging within the city in the business of (1) printing, (2) both printing and publishing newspapers, magazines, periodicals, books, music, and other printed items, (3) publishing newspapers, magazines and periodicals, (4) extracting for hire, and (5) processing for hire; as to such persons, the amount of tax on such business shall be equal to the gross income of the business multiplied by the rate of one-tenth of one percent where such gross income is up to and including eight billion five hundred million dollars and where such gross income exceeds eight billion five hundred million dollars, such gross income so exceeding the eight billion five hundred million dollars shall be multiplied by the rate of twenty-five-hundredths of one percent;
c. For the years beginning January 1, 2028, and ending December 31, 2030, upon every person engaging within the city in the business of (1) printing, (2) both printing and publishing newspapers, magazines, periodicals, books, music, and other printed items, (3) publishing newspapers, magazines and periodicals, (4) extracting for hire, and (5) processing for hire; as to such persons, the amount of tax on such business shall be equal to the gross income of the business multiplied by the rate of one-tenth of one percent where such gross income is up to and including nine billion dollars and where such gross income exceeds nine billion dollars, such gross income so exceeding the nine billion dollars shall be multiplied by the rate of twenty-five-hundredths of one percent;
d. For the years beginning January 1, 2031, and ending December 31, 2033, upon every person engaging within the city in the business of (1) printing, (2) both printing and publishing newspapers, magazines, periodicals, books, music, and other printed items, (3) publishing newspapers, magazines and periodicals, (4) extracting for hire, and (5) processing for hire; as to such persons, the amount of tax on such business shall be equal to the gross income of the business multiplied by the rate of one-tenth of one percent where such gross income is up to and including nine billion five hundred million dollars and where such gross income exceeds nine billion five hundred million dollars, such gross income so exceeding the nine billion five hundred million dollars shall be multiplied by the rate of twenty-five-hundredths of one percent; and
e. For the years beginning January 1, 2034, upon every person engaging within the city in the business of (1) printing, (2) both printing and publishing newspapers, magazines, periodicals, books, music, and other printed items, (3) publishing newspapers, magazines and periodicals, (4) extracting for hire, and (5) processing for hire; as to such persons, the amount of tax on such business shall be equal to the gross income of the business multiplied by the rate of one-tenth of one percent.
6. Upon every person engaging within the city in the business of making sales of retail services; as to such persons, the amount of tax with respect to such business shall be equal to the gross proceeds of sales multiplied by the rate of one-tenth of one percent, except as provided as follows:
a. For the years beginning January 1, 2022, and ending December 31, 2024, upon every person engaging within the city in the business of making sales of retail services; as to such persons, the amount of tax with respect to such business shall be equal to the gross proceeds of sales multiplied by the rate of one-tenth of one percent where such gross proceeds are up to and including eight billion dollars and where such gross proceeds exceed eight billion dollars, such gross proceeds so exceeding the eight billion dollars shall be multiplied by the rate of twenty-five-hundredths of one percent;
b. For the years beginning January 1, 2025, and ending December 31, 2027, upon every person engaging within the city in the business of making sales of retail services; as to such persons, the amount of tax with respect to such business shall be equal to the gross proceeds of sales multiplied by the rate of one-tenth of one percent where such gross proceeds are up to and including eight billion five hundred million dollars and where such gross proceeds exceed eight billion five hundred million dollars, such gross proceeds so exceeding the eight billion five hundred million dollars shall be multiplied by the rate of twenty-five-hundredths of one percent;
c. For the years beginning January 1, 2028, and ending December 31, 2030, upon every person engaging within the city in the business of making sales of retail services; as to such persons, the amount of tax with respect to such business shall be equal to the gross proceeds of sales multiplied by the rate of one-tenth of one percent where such gross proceeds are up to and including nine billion dollars and where such gross proceeds exceed nine billion dollars, such gross proceeds so exceeding the nine billion dollars shall be multiplied by the rate of twenty-five-hundredths of one percent;
d. For the years beginning January 1, 2031, and ending December 31, 2033, upon every person engaging within the city in the business of making sales of retail services; as to such persons, the amount of tax with respect to such business shall be equal to the gross proceeds of sales multiplied by the rate of one-tenth of one percent where such gross proceeds are up to and including nine billion five hundred million dollars and where such gross proceeds exceed nine billion five hundred million dollars, such gross proceeds so exceeding the nine billion five hundred million dollars shall be multiplied by the rate of twenty-five-hundredths of one percent; and
e. For the years beginning January 1, 2034, upon every person engaging within the city in the business of making sales of retail services; as to such persons, the amount of tax with respect to such business shall be equal to the gross proceeds of sales multiplied by the rate of one-tenth of one percent.
7. Upon every other person engaging within the city in any business activity other than or in addition to those enumerated in subsections (A)(1) to (6) of this section; as to such persons, the amount of tax on account of such activities shall be equal to the gross income of the business multiplied by the rate of one-tenth of one percent, except as provided in subsections (A)(7)(a), (b), (c), (d), and (e) of this section. This subsection includes, among others, and without limiting the scope hereof (whether or not title to material used in the performance of such business passes to another by accession, merger or other than by outright sale), persons engaged in the business of developing or producing custom software or of customizing canned software, producing royalties or commissions, and persons engaged in the business of rendering any type of service which does not constitute a sale at retail, a sale at wholesale, or a retail service.
a. For the years beginning January 1, 2022, and ending December 31, 2024, upon every other person engaging within the city in any business activity other than or in addition to those enumerated in subsections (A)(1) to (6) of this section; as to such persons, the amount of tax on account of such activities shall be equal to the gross income of the business multiplied by the rate of one-tenth of one percent where such gross income is up to and including eight billion dollars and where such gross income exceeds eight billion dollars, such gross income so exceeding the eight billion dollars shall be multiplied by the rate of twenty-five-hundredths of one percent;
b. For the years beginning January 1, 2025, and ending December 31, 2027, upon every other person engaging within the city in any business activity other than or in addition to those enumerated in subsections (A)(1) to (6) of this section; as to such persons, the amount of tax on account of such activities shall be equal to the gross income of the business multiplied by the rate of one-tenth of one percent where such gross income is up to and including eight billion five hundred million dollars and where such gross income exceeds eight billion five hundred million dollars, such gross income so exceeding the eight billion five hundred million dollars shall be multiplied by the rate of twenty-five-hundredths of one percent;
c. For the years beginning January 1, 2028, and ending December 31, 2030, upon every other person engaging within the city in any business activity other than or in addition to those enumerated in subsections (A)(1) to (6) of this section; as to such persons, the amount of tax on account of such activities shall be equal to the gross income of the business multiplied by the rate of one-tenth of one percent where such gross income is up to and including nine billion dollars and where such gross income exceeds nine billion dollars, such gross income so exceeding the nine billion dollars shall be multiplied by the rate of twenty-five-hundredths of one percent;
d. For the years beginning January 1, 2031, and ending December 31, 2033, upon every other person engaging within the city in any business activity other than or in addition to those enumerated in subsections (A)(1) to (6) of this section; as to such persons, the amount of tax on account of such activities shall be equal to the gross income of the business multiplied by the rate of one-tenth of one percent where such gross income is up to and including nine billion five hundred million dollars and where such gross income exceeds nine billion five hundred million dollars, such gross income so exceeding the nine billion five hundred million dollars shall be multiplied by the rate of twenty-five-hundredths of one percent; and
e. For the years beginning January 1, 2034, upon every other person engaging within the city in any business activity other than or in addition to those enumerated in subsections (A)(1) to (6) of this section; as to such persons, the amount of tax on account of such activities shall be equal to the gross income of the business multiplied by the rate of one-tenth of one percent.
B. The gross receipts tax imposed in this section shall not apply to any person whose gross proceeds of sales, gross income of the business, and value of products, including byproducts, as the case may be, from all activities conducted within the city during any calendar year is equal to or less than twenty thousand dollars, or is equal to or less than five thousand dollars during any quarter if on a quarterly reporting basis. (Ord. 3849-21 § 1, 2021; Ord. 3711-19 § 1, 2019.)