745.02 IMPOSITION OF PRIVILEGE TAX.

   There is hereby levied and shall be collected annual privilege taxes against the persons, on account of the business and other activities, and in the amounts to be determined by the application of rates against values or gross income as set forth in Sections 745.03 to 745.11 inclusive.

   If any person liable for any tax under Sections 745.03 and 745.04 shall ship or transport his products, or any part thereof, out of the State without making sale of such products, the value of the products in the condition and form in which they exist immediately before transportation out of the State shall be the basis for the assessment of the tax imposed in said sections, except in those instances in which another measure of the tax is expressly provided. The Mayor shall prescribe equitable and uniform rules for ascertaining such value.

   In determining value, however, as regards sales from one to another of affiliated companies or persons, or under other circumstances where the relation of the buyer and seller is such that the gross proceeds from the sale are not indicative of the true value of the subject matter of the sale, the Mayor shall prescribe uniform and equitable rules for determining the value upon which such privilege tax shall be levied, corresponding as nearly as possible to the gross proceeds from the sale of similar products of like quality or character where no common interest exists between the buyer and seller, but the circumstances and conditions are otherwise similar.

   Gross income included in the measure of the tax under Sections 745.03 and 745.04, except in the case of production of natural gas, shall neither be added nor deducted in computing the tax levied under the other sections of this article.

   A person exercising any privilege taxable under Section 745.03 or 745.04 and engaging in the business of selling his natural resources or manufactured products at retail in this State shall be required to make returns on the gross proceeds of such retail sales and pay the tax imposed Section 745.05 for the privilege of engaging in the business of selling such natural resource or manufactured product at retail in this State. A person exercising any privilege taxable under this section and engaging in the business of selling its natural resource products in the municipality shall be required to make returns of the gross proceeds of such sales and pay the tax imposed in Section 745.05 of this article for the privilege of engaging in the business of selling such natural resource products in the municipality.

   Manufacturers exercising any privilege taxable under Section 745.04 shall not be required to pay the tax imposed in Section 745.05 for the privilege of selling their manufactured products for delivery outside of this State, but the gross income derived from the sale of such manufactured products outside of this State shall be included in determining the measure of the tax imposed on such manufacturer in Section 745.04.

   A person exercising privileges taxable under the other sections of this article, producing coal, oil, natural gas, minerals, timber, or other natural resource products, the production of which is taxable under Section 745.04, and using or consuming the same in his business, shall be deemed to be engaged in the business of mining and producing coal, oil, natural gas, minerals, timber, or other natural resource products for sale, profit, or commercial use, and shall be required to make returns on accounts of the production of the business showing the gross proceeds, or equivalent, in accordance with uniform and equitable rules for determining the value upon which such privilege tax shall be levied, corresponding as nearly as possible to the gross proceeds from the sale of similar products of like quality or character by other taxpayers, which rules the Mayor shall prescribe.

(1977 Code 5-402.)