Upon every person engaging or continuing within the Municipality in the business of manufacturing, compounding or preparing for sale, profit or commercial use, either directly or through the activity of others, in whole or part, any article or articles, substance or substances, commodity or commodities, or newspaper publishing (including all gross income or proceeds of sale from circulation and advertising), the amount of the tax shall be equal to the value of the article, substance, commodity or newspaper manufactured, compounded or prepared for sale, as shown by the gross proceeds derived from the sale thereof by the manufacturer or person compounding or preparing the same, except as otherwise provided, multiplied by a rate of twenty one-hundredths percent (0.20%). Provided that, on and after July 1, 2020, the respective tax rate of this section is reduced and shall be equal to the rate of ten one-hundredths percent (0.10%).
The measure of the tax in this section is the value of the entire product manufactured, compounded or prepared in the Municipality for sale, profit or commercial use, regardless of the place of sale or the fact the deliveries may be made to points outside the Municipality. It is further provided, however, that in those instances in which the same person partially manufactures, compounds or prepares products within the Municipality and partially manufactures, compounds or prepares such products outside the Municipality, the measure of tax under this section shall be that proportion of the sales price of the product that the payroll costs of manufacturing within the Municipality bears to the entire payroll costs of manufacturing the product.
If any person shall ship or transport its products or any part thereof out of the State without making sale of such products, the value of the products in the condition or form in which they exist immediately before transportation out of the State shall be the basis for the assessment of the tax imposed. The Collector may prescribe equitable and uniform rules of ascertaining such value; provided that, in the absence of such rules, the person manufacturing the products within the Municipality shall report the value in a consistent and reasonable manner.
The dressing and processing of food intended for human consumption by a person, or the cooking and serving of food by a restaurant which food is to be sold in the Municipality by such person, shall not be considered manufacturing or compounding or preparing for sale, but the sale of these products shall be reported under Section 733.05 either as wholesale or retail sale, as the case may be.
Persons who manufacture, compound or prepare products outside the Municipality and who make sale of such product within the Municipality shall not pay the tax imposed by this section but shall pay tax imposed by Section 733.05 for the privilege of selling such product within the Municipality.
A person exercising any privilege taxable under this section and engaging in the business of selling its product in the Municipality shall be required to make returns of the gross proceeds of such sales and pay the tax imposed by this section at the rate set forth in Section 733.05 for the privilege of engaging in the business of selling such manufactured goods in the Municipality.
(Ord. 2019-07. Passed 12-2-19.)