(A) General contractors must pay in advance at the time of issuance of a job permit/building permit a minimum license tax in the amount of one quarter of one percent (0.25%) of the total contract consideration stated in the contract or agreement for labor, services or materials agreed to be provided by the contractor, his or her employees, subcontractors, agents, and the like, including amendments, change orders or additions thereto.
(B) No minimum license tax will be due from any contractor whose taxes or compensation is included as a part of a general contractor’s total contract consideration. The contractor will be required to file a net profits license tax return and to withhold occupational license tax from any employees performing work in the city.
(C) In the event that any contractor’s tax or compensation is not included as part of the general contractor’s total contract consideration for which a minimum license tax has been paid, the contractor’s total contract consideration will be subject to the minimum license tax, and will be payable by the contractor.
(D) Property owners (“owner”) who act as general contractor on their construction projects must pay the minimum license tax on the total estimated cost of construction before they will be issued a building permit. As the owner contracts with others to perform parts of the construction, those contractors will be required to pay the minimum license tax on the contract that they receive. It is the owner’s responsibility to inform each contractor that they are liable for the minimum license tax. Each subcontract will be considered a general contract for the purpose of the minimum license tax. The owner should obtain the contractor’s city license number, name, address, and taxpayer identification number (TIN) and maintain a record of all contractors and the total compensation paid. When construction is completed, the record of contractors is submitted to the city, and if all the contractors have paid the required minimum license tax as described above, the owner will be refunded the minimum license tax. If all contractors have not paid the required minimum license tax, the minimum license tax will be retained to the extent that the minimum has not been collected on the total cost of construction.
(E) Minimum license tax paid by contractors may be claimed as a credit against tax due on the contractor’s net profits return. Contractors may, at their option, apply minimums on a contract by contract basis, thus allowing them to carry a portion minimum tax paid in one (1) year to subsequent years as the contract is completed. When a contract is completed all minimums remaining will be applied in that tax year. The contractor must apply minimum tax based on the percentage of completion of each contract and on appropriate forms supplied by the Occupational Tax Administrator. No refund shall be made if the minimum tax exceeds the license tax calculated on the net profits return.
(Ord. 0-2008-002, passed 1-14-08; Am. Ord. 0-2015-013, passed 10-1-15) Penalty, see § 115.99