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(a) Any manufacturing business taxable under Section 757.04 which shall, after the passage of this section, commence manufacturing activities taxable within the corporate limits of the City, which constitutes a New Business as defined in Section 757.01 , which commencement within the City is not merely by reason of annexation by the City, 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 business' normal Business and Occupation Tax liability as follows:
(1) 75% during the first calendar year of taxable activity;
(2) 50% during the second calendar year of taxable activity; and
(3) 25% during the third calendar year oftaxable activity.
(b) "Normal Business and Occupation Tax Liability", as used in this section means that tax computed by the application of rates contained in Section 757.04 , to income generated from activities described therein, less the amount of annual exemption allowed and determined under the Business and Occupation Section 757.04 .
(d) Notwithstanding any of the above, a manufacturing business located in the City at the time of the passage of this section, which business is subsequently sold, would be eligible for the tax credit described above, if, in the determination of the City Treasurer, such business constitutes a New Business as defined in Section 757.01 .
(e) Any manufacturing business which shall, after the passage of this section, increases its full-time average yearly work force by at least 25 persons over base year employment, and increase its yearly gross (Section 757.01 ) taxable income by at least Two Million, Five Hundred Thousand Dollars ($2,500,000.00) shall be eligible for a fifty percent (50%) tax credit against the increase in the tax liability derived from the above-referenced activities. However, the credit shall only apply to the tax due on that incremental portion of gross income which is greater than the average gross income generated by the business over the immediately preceding three years. This tax credit shall apply only to income taxable under Section 757.04 .
(f) "Base year employment", for the purposes of this subsection, means the average employment, within the City, which the manufacturing business utilizes to conduct activity taxable under Section 757.04 during the 12-month period immediately preceding first application for this credit.
(g) In order for a manufacturing business to qualify for this credit, the jobs created shall be located within the City and shall be utilized in the business' manufacturing activity. In addition, the jobs created shall be retained for the full term of the credit in order for the credit to be applicable. That is, if the number of qualifying jobs at any time drops below the base year employment level, plus 25, the credit shall be lost.
(h) The tax credit may be available for a period of up to three consecutive years from the date of commencement of taxable activity. Upon request of the taxpayer, the City Treasurer's Office shall provide information regarding this tax credit section to any business which commences manufacturing activities within the City.
(i) Any taxpayer who fails to file returns and pay the City's Business and Occupation Tax, interest and penalties due under this Article within three calendar months of the initial due date for such tax hereby waives and forfeits any right to apply for or receive any credit against the tax due and owing under the City's Business and Occupation Tax as authorized in this Section 757.42 .
(Ord. 2018-03. Passed 2-20-18.)