(a) New Manufacturing Business Tax Credit. Any manufacturing business taxable under Section 737.10 which shall, after the passage of this section, commence manufacturing ativities taxable within the corporate limits of the City, which constitutes a New Business as defined herein, which commencement within the City is not merely by reason of annexation by the City, which meets the qualifying conditions stipulated herein, and which business is subject to the City’s Business and Occupation Tax, shall be eligible to make application with the City Treasurer’s office for a tax credit against the normal Business and Occupation tax liability as follows:
(1) 0% Tax Credit during the first calendar year after issuance of business license.
(2) 0% Tax Credit during the second calendar year after issuance of business license.
(3) 0% Tax Credit during the third calendar year after issuance of business license.
(4) 0% Tax Credit during the fourth calendar year after issuance of business license.
(5) 50% Tax Credit during the fifth calendar year after issuance of business license.
(6) 50% Tax Credit during the sixth calendar year after issuance of business license.
(7) 50% Tax Credit during the seventh calendar year after issuance of business license.
(8) 50% Tax Credit during the eighth calendar year after issuance of business license.
(9) 25% Tax Credit during the ninth calendar year after issuance of business license.
(10) 25% Tax Credit during the tenth calendar year after issuance of business license.
(11) 25% Tax Credit during the eleventh calendar year after issuance of business license.
(12) 25% Tax Credit during the twelfth calendar year after issuance of business license.
(13) 25% Tax Credit during the thirteenth calendar year after issuance of business license.
(14) 25% Tax Credit during the fourteenth calendar year after issuance of business license.
(15) 25% Tax Credit during the fifteenth calendar year after issuance of business license.
(16) 25% Tax Credit during the sixteenth calendar year after issuance of business license.
(17) 25% Tax Credit during the seventeenth calendar year after issuance of business license.
(18) 25% Tax Credit during the eighteenth calendar year after issuance of business license.
(19) 25% Tax Credit during the nineteenth calendar year after issuance of business license.
(20) 25% Tax Credit during the twentieth calendar year after issuance of business license.
(b) Definitions.
(2) Gross Income means as defined in Section 737.01
(3) Gross Income from manufacturing means gross income as defined in Section 737.01 but limited to income from manufacturing. Income from sources other than manufacturing is not defined as gross income from manufacturing.
(4) Issuance of business license means the issuance of certificate or license as defined and stipulated in Article 733.
(5) Manufacturing means producing a new, different or useful substance or article of tangible personal property for sale, or commercial, or industrial use.
(6) Calendar year means from January 1 through December 31.
(7) Industrial zone means district zoned by the City carrying the designation of I-2 or I-4 and the use restricted to those permitted in Section 1329.01.
(8) Employees means persons working at the manufacturing business at the location of the facility in the City not less than 40 hours per week and subject to Federal, State income tax and Social Security Tax withholding.
(9) Normal tax liability for manufacturing business means $0.30 per $100 of gross income.
(10) Tax Credit or New Manufacturing Business Tax Credit means a reduction according to a stipulated percent that may be subtracted from the normal tax liability owed the City.
(c) Qualifying Conditions. All of the following conditions shall be met by the new manufacturing business in order to qualify for the Tax Credit.
(1) Located in industrial zoned property. The new manufacturing business shall be located on industrial zoned property.
(2) The industrial zoned property where the new manufacturing business is located shall have generated zero dollars Business and Occupation Tax to the City for a period of two calendar years prior to the issuance of the business license for a new manufacturing business.
(3) Minimum tax liability. The new manufacturing business shall have an annual gross income from manufacturing of not less than the following:
A. $100,000,000 during the fourth calendar year after issuance of a business license.
B. $100,000,000 during calendar fifth through seventh calendar years after issuance of the business license.
C. $200,000,000 during the eighth calendar year after issuance of a business license.
D. $250,000,000 during the ninth through eleventh calendar years after issuance of the business license.
E. $400,000,000 during the twelfth calendar years after issuance of the business license.
F. $400,000,000 during the thirteenth through twentieth calendar years after issuance of the business license.
(4) Employees. The new manufacturing business shall have a number of employees not less than the following:
A. 250 on payroll at the conclusion of the fourth calendar year after the issuance of the business license.
B. 250 average and not less than 200 at any time during the fifth through seventh calendar years after issuance of the business license.
C. 275 average on payroll at the conclusion of the eighth calendar year after the issuance of the business license.
D. 300 average and not less than 250 at any time during the ninth through eleventh calendar years after issuance of the business license.
E. 400 average on payroll at the conclusion of the twelfth calendar year after the issuance of the business license.
F. 400 average and not less than 350 at any time during the twelfth through twentieth calendar years after issuance of the business license.
(d) Documentation. The new manufacturing business shall submit written documentation prepared by certified public accountant showing a true and accurate number of employees on the payroll as of the last day of said quarter.
(e) Tax Cap. The Business and Occupation Tax shall be capped and not exceed $360,000 per calendar year during the life of the Tax Credit.
(f) Other Conditions.
(1) Any time during the life of the New Manufacturing Business Tax Credit that the new manufacturing business fails to file a return or pay the full amount of Business and Occupation Tax, interest and penalties due the City within three (3) calendar months of the due date for such tax, then the Tax Credit will be terminated, and the tax shall be the normal tax liability for manufacturing business. Furthermore the new manufacturing business that received the benefits of the Tax Credit shall be liable for and pay to the City all tax credits received from the date of receiving the first tax credit through the date of Tax Credit termination.
(2) Any time during the life of the New Manufacturing Business Tax Credit that the new manufacturing business fails to submit the required documentation within thirty calendar days of designated date to show proof of number of employees, then the Tax Credit shall be terminated, and the tax shall be the normal tax liability for manufacturing business. Furthermore the new manufacturing business that received the benefits of the Tax Credit shall be liable for and pay to the City all tax credits received from the date of receiving the first tax credit through the date of Tax Credit termination.
(3) Any time during the life of the tax credit that the new manufacturing business fails to meet any of the qualifying conditions stipulated herein, then the New Manufacturing Business Tax Credit shall be terminated and the tax shall be the normal tax liability for manufacturing business. Furthermore the new manufacturing business that received the benefits of the Tax Credit shall be liable for and pay to the City all tax credits received from the date of receiving the first tax credit through the date of Tax Credit termination.
(4) Any new manufacturing business that has the tax credit terminated for failure to meet the qualifying conditions as stipulated herein shall be granted a resumption of the tax credit at such time as all of the qualifications are met and the new manufacturing business has submitted written documentation certifying the qualifying conditions. Resumption of tax credit will not be granted if more than twelve calendar years have elapsed since the issuance of the business license.
(5) Pay back to the City resulting from termination of the New Manufacturing Tax Credits of tax credits shall occur in full within six months of the date of termination.
(6) Businesses receiving the New Manufacturing Business Tax Credit shall not be eligible to receive any other City Business and Occupation Tax credits.
(Ord. 2166. Passed 4-19-12.)
(Ord. 2166. Passed 4-19-12.)