When used in this subchapter, the term PERSON or the term COMPANY, herein used interchangeably, includes any individual, firm, copartnership, joint adventure, association, corporation, trust or any other group or combination acting as a unit, and the plural as well as the singular number, unless the intention to give a more limited meaning is disclosed by the context; and, for the purposes of this subchapter, the following words, terms and phrases shall have the meanings respectively ascribed to them by this section.
BANKING BUSINESS or 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 at least 90% of the assets of which consists of intangible personal property and at least 90% of the gross receipts of which consists of dividends, interest and other charges derived from the use of money or credit.
BUSINESS. Includes 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 includes the production of natural resources or manufactured products which are used or consumed by the producer or manufacturer and includes the activities of a banking business or financial organization.
CONTRACTING. Includes the furnishing of work, or both materials and work, in the fulfillment of a contract for the construction, alteration, repair, decoration or improvement of a new or existing building or structure, or any part thereof, or for the alteration, improvement or development of real property.
GROSS INCOME. 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 or her 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 cash or in kind or otherwise, interest or discount paid or any other expense whatsoever. GROSS INCOME of a banking or financial business is specified in § 38.014.
GROSS PROCEEDS OF SALES.
(1) 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:
(a) Cash discounts allowed and taken on sales;
(b) The proceeds of sale of goods, wares or merchandise returned by customers when the sale price is refunded either in cash or by credit;
(c) The amount allowed as “trade-in value” for any article accepted as part payment for any article sold;
(d) Excise taxes imposed by this state; or
(e) 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.
SALE, SALES OR SELLING. Includes any transfer of ownership of, or title to, property, whether for money or in exchange for other property.
SELLING AT WHOLESALE or WHOLESALE SALES. Includes:
(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 by this subchapter; 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.
SERVICE BUSINESS OR CALLING. Includes 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 shall not include the service rendered by an employee to his or her employer. This 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; and
(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 personal property or service, except as to persons taxed pursuant to the provisions of § 38.014.
TAX YEAR or TAXABLE YEAR. Either the calendar year, or the taxpayer’s fiscal year when permission is obtained from the Treasurer to use same as the tax period in lieu of the calendar year.
TAXPAYER. Any person liable for any tax hereunder.
(Prior Code, § 711.01)