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Upon every person engaging or continuing within this City in the business of manufacturing, compounding or preparing for sale, profit or commercial use, either directly or through the activity of others in whole or part, any article or articles, substance or substances, commodity or commodities, or electric power produced by public utilities or others and not taxable under other sections of this article, the amount of the tax to be equal to the value of the article, substance, commodity or electric power manufactured, compounded or prepared for sale, as shown by the gross proceeds derived from the sale thereof by the manufacturer or person compounding or preparing the same, except as otherwise provided, multiplied by a rate of twenty- two and one-half one-hundredths percent (0.225%).
The measure of this tax is the value of the entire product manufactured, compounded or prepared in this City for sale, profit or commercial use, regardless of the place of sale or the fact that deliveries may be made to points outside the City. However, the dressing and processing of food by a person, firm or corporation, which food is to be sold on a wholesale basis by such person, firm or corporation shall not be considered as manufacturing or compounding, but the sale of these products on a wholesale basis shall be subject to the same tax as is imposed on the business of selling at wholesale as provided in Section 757.05.
It is further provided, however, that in those instances in which the same person partially manufactures, compounds or prepares such products outside this City, the measure of his tax under this section shall be that proportion of the sale price of the product that the payroll cost of manufacturing within this City bears to the entire payroll cost of manufacturing the product; or at the option of the taxpayer, the measure of his tax under this section shall be the proportion of the sales value of the articles that the cost of operation in this City bears to the full cost of manufacture of the articles.
A person exercising any privilege taxable under this section and engaging in the business of selling his 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 products at retail in this City. But any person exercising any privilege taxable under this section and engaging in the business of selling his product 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.
Manufacturers exercising any privilege taxable under this section shall not be required to pay the tax imposed in Section 757.05 for the privilege of selling their manufactured products for delivery outside this City, but the gross income derived from the sale of such manufactured products outside this City shall be included in determining the measure of the tax imposed on such manufacturers in this section.
Persons who manufacture, compound or prepare products outside of this City and who make sale of the same within this City shall not pay the tax imposed by this section but shall pay the tax imposed by Section 757.05 for the privilege of selling such products within this City.
(Ord. 79-9. Passed 8-20-79.)