(a) Existing Manufacturing Business Tax Credit. Any existing manufacturing business taxable under Section 737.10 which undertakes manufacturing activities taxable within the corporate limits of 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:
50% Tax Credit on the increment of gross annual revenue that exceeds the average of the three previous calendar year’s gross annual revenue by 20% or greater.
(b) Definitions.
(1) Existing business means a business as defined in Section 737.01 in possession of a business license issued by the City of South Charleston with continuous operations in the City during the five calendar years preceding the tax year for which the credit is sought.
(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 an existing, 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 any district zoned by the City carrying the designation of I-2 or I-4 with uses restricted to those permitted in Section 1329.01.
(8) Normal tax liability for manufacturing business means $0.30 per $100 of gross income.
(9) Tax Credit or Existing Manufacturing Business Tax Credit means a reduction according to a stipulated percent that may be subtracted from the normal tax liability owed the City.
(10) 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.
(c) Conditions. All of the following conditions shall be met by the existing manufacturing business in order to qualify for the Tax Credit.
(1) Gross annual revenue shall exceed the average of the three previous calendar year’s gross annual revenue by 20% or greater.
(2) Number of employees on the last day of the tax year for which the credit is sought shall exceed the average of the three previous calendar years number of employees by 20% or greater.
(3) The existing manufacturing business shall be located on industrial zoned property.
(4) Any time the existing 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.
(5) Any time that the existing manufacturing business fails to meet any of the qualifying conditions stipulated herein, then the Existing Manufacturing Business Tax Credit shall be terminated and the tax shall be the normal tax liability for manufacturing business.
(6) Any existing manufacturing business that has the tax credit terminated due to 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 existing manufacturing business has submitted written documentation certifying the qualifying conditions.
(7) Businesses receiving the Existing Manufacturing Business Tax Credit shall not be eligible to receive any other City Business and Occupation Tax credits.
(d) Documentation. The existing manufacturing business shall submit written documentation prepared by a certified public accountat showing a true and accurate number of employees on the payroll as of the last day of the tax year in which the credit is sought and the average number of employees for the three previous calendar year period.
(Ord. 2170. Passed 8-16-12.)