Upon every person exercising the privilege of engaging or continuing within this City in the business of severing, extracting, reducing to possession and producing for sale, profit or commercial use any natural resource products, the amount of such tax to be equal to the value of the articles produced as shown by the gross proceeds derived from the sale thereof by the producer, except as otherwise provided, multiplied by the respective rates as follows: coal, seventy-five one-hundredths percent (0.75%); limestone or sandstone, quarried or mined, one and twelve and one-half one-hundredths percent (1.125%); oil, two and twenty-five one- hundredths percent (2.25%); natural gas, in excess of the value of five thousand dollars ($5,000), four and fifty one-hundredths percent (4.50%); blast furnace slag, two and twenty-five one-hundredths percent (2.25%); sand, gravel or other mineral products, not quarried or mined, two and twenty- five one-hundredths percent (2.25%); timber, one and twelve and one-half one-hundredths percent (1.125%); other natural resource products, one and fifty one-hundredths percent (1.50%).
The measure of this tax is the value of the entire production in this City, regardless of the place of sale or the fact that the delivery may be made to points outside of the City.
For the purposes of the production of oil classification and the production of natural gas classification, as set forth in this section, multiple co-owners of oil or natural gas in place, lessees thereof, or other being vested with title and ownership to part or all of the oil and gas, as personal property, immediately after severance, extraction, reduction to possession and production, except royalty recipients, in kind, shall be deemed to be a group or combination acting as a unit and one person, as defined in Section 757.01(a), if not otherwise defined therein, whenever engaged in the business of producing oil or natural gas through common use, by joint or separately executed contracts, of the same independent contractor driller or operator's services; and notwithstanding provisions of private contracts for separate deposit of gross receipts in separate member's accounts or for members of such group or combination to take in kind any proportionate part of such natural resources.
Lessees, sublessees or other denominated lessees are considered to be producers of all of the oil or natural gas produced, regardless of any payment, in kind, to lessors, sublessors or other denominated lessors of a part of such natural resources as rents or royalties.
Recipients of royalties or rents, in kind, in cash, or otherwise, are taxable on their gross income pursuant to the provisions of Section 757.10 for the privilege of engaging in the business of furnishing property for hire within this City.
A person exercising any privilege taxable under this section and engaging in the business of selling his natural resource products at retail in this City shall be required to make returns of the gross proceeds of such retail sales and pay the tax imposed in Section 757.05 for the privilege of engaging in the business of selling such natural resource products at retail in this City. But any person exercising any privilege taxable under this section and engaging in the business of selling his natural resource products to producers of natural resources, manufacturers, wholesalers, jobbers, retailers or commercial consumers for use or consumption in the purchaser's business shall not be required to pay the tax imposed in Section 757.05 for the privilege of selling natural resource products in this City.
A person exercising privileges taxable under the other sections of this article, producing natural resource products taxable under this section, and using or consuming such natural resource products in his business or transferring or delivering the same as any royalty payment in kind, or the like, shall be deemed to be engaged in the production of natural resource products for sale, profit or commercial use, and shall be required to make returns on account 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 City Clerk shall prescribe.
Persons who produce natural resource products outside of this City and who make sale of the same within this City shall not pay the tax imposed under this section but shall pay the tax imposed by Section 757.05 for the privilege of selling such products within the City.
(Ord. 77-30. Passed 12-19-77.)