For the purposes of this article, the following words and phrases shall have the meanings respectively ascribed to them by this section:
(a) Banking Business; Financial Organization. Any bank, banking association, trust company, industrial loan company, small loan company or licensee, building and loan association, savings and loan association, credit union, finance company, investment company, investment broker or dealer and any other similar business organization of which at least ninety percent of the assets consist of intangible personal property and of which at least ninety percent of the gross receipts consist of dividends, interest and other charges derived from the use of money or credit.
(b) Business. All activities engaged in or caused to be engaged in with the object of gain or economic benefit, either direct or indirect. "Business" shall not include a casual sale by a person who is not engaged in the business of selling the type of property involved in such casual sale. "Business" shall include the production of natural resources or manufactured products which are used or consumed by the producer or manufacturer and shall include the activities of a banking business or financial organization.
(c) Contracting. The furnishing of work, or both work and materials for the erecting, building, constructing, altering, repairing, removing or demolishing of any building or other structure, or other improvement appurtenant to any such building or other structure, or for altering, improving or development of property, under and by virtue of a contract with the owner for an agreed lump sum or upon any other basis of settlement and payment agreed to by the parties, whether such contract be an oral agreement or in writing; and shall include the furnishing of work or both work and materials or equipment under and by virtue of a subcontract with a general contractor for an agreed contract price, or by day, or by piece, or by other basis of payment agreed to by the parties, whether such contract be an oral agreement or in writing.
(d) Gross Income; Gross Proceeds of Sales. "Gross income" means the gross receipts of the taxpayer, other than a banking or financial business, received as compensation for personal services, and the gross receipts of the taxpayer derived from trade, business, commerce or sales and the value proceeding or accruing from the sale of tangible property (real or personal) or service or both, and all receipts by reason of the investment of the capital of the business engaged in, including rentals, royalties, fees, reimbursed costs or expenses or other emoluments, however designated, and including all interest, carrying charges, fees or other like income, however denominated, derived by the taxpayer from repetitive carrying of accounts in the regular course and conduct of his business, and extension of credit in connection with the sale of any tangible personal property or service, and without any deductions on account of the cost of property sold, the cost of materials used, labor costs, taxes, royalties paid in each or in kind or otherwise, interest or discount paid or any other expense whatsoever.
(1) "Gross proceeds of sales" means the value, whether in money or other property, actually proceeding from the sale of tangible property without any deduction on account of the cost of property sold or expenses of any kind.
(2) The terms "gross income" and "gross proceeds of sales" shall not be construed to include: (1) cash discounts allowed and taken on sales; (2) the proceeds of sale of goods, wares or merchandise returned by customers when the sale price is refunded either in cash or by credit; (3) the amount allowed as "trade-in value" for any article accepted as part payment for any article sold; (4) excise taxes imposed by the state; or (5) money or other property received or held by a professional person for the sole use and benefit of a client or another person or money received by the taxpayer on behalf of a bank or other financial institution for the repayment of a debt of another.
(e) Sale; Sales; Selling. Any transfer of ownership of or title to property, whether for money or in exchange for other property.
(f) Selling at Wholesale; Wholesale Sales.
(1) Sales of any tangible personal property for the purpose of resale in the form of tangible personal property;
(2) Sales of machinery, supplies or materials which are to be directly consumed or used by the purchaser in the conduct of any business or activity which is subject to the tax imposed herein; and
(3) Sales of any tangible personal property to the United States of America, its agencies and instrumentalities or to the state, its institutions or political subdivisions.
(g) Service Business or Calling. All activities engaged in by a person for other persons for a consideration, which involve the rendering of a service as distinguished from the sale of tangible property, but not including the services rendered by an employee to his employer. The term shall include, but not be limited to:
(1) Persons engaged in manufacturing, compounding or preparing for sale, profit or commercial use articles, substances or commodities which are owned by another or others.
(2) Persons engaged as independent contractors in producing natural resource products which are owned by another or others as personal property, immediately after the same are severed, extracted, reduced to possession and produced.
(3) The repetitive carrying of accounts, in the regular course and conduct of business, and extension of credit in connection with the sale of any tangible property or service, except as to persons taxed pursuant to the provisions of Section 749.31(i)
(6-27-77; 11-5-90.)