Loading...
(a) Delivery Charges. Delivery charges exist only when the total charges to the ultimate customer or consumer include, as separately charged to the ultimate customer, charges for delivery to the ultimate consumer, whether the place of delivery is within or without the city, and when the taxpayer's books and records show the separate delivery charges.
(1) Separate statement required. Identification to the customer or consumer that the listed price has "delivery included" or other similar expression is insufficient to show the delivery as a separate charge. Only the separately stated charge for the delivery shall be deemed a "delivery charge."
(2) Freight in. Charges for delivery from place of production or the manufacturer to the vendor either directly or through a chain of wholesalers or jobbers or other middlemen are deemed "freight in" and are not considered delivery.
(b) Installation. "Installation," as used in this definition, relates only to tangible personal property. Installation to real property is deemed construction contracting in this article. Examples of installation relating to tangible personal property are installing a radio in an automobile; applying sun screens on the windows of a boat; installing cabinets, carpeting or built-in appliances to a camper or motorized recreational vehicle.
(c) Exclusion. Repair of tangible personal property is not included in this definition. See regulation 19-465.1.
(d) Direct Customer Services. "Direct customer services" means services other than repair rendered directly to the customer. Services or labor provided by any person prior to the transfer of tangible personal property to the customer or consumer are not included in this definition. In the following examples, the requirements of subsection (e) below are referred to by the words "identify" or "identification":
(1) A retailer sells a customer a one hundred dollar ($100.00) "plug-in" appliance, with a twenty-five dollar ($25.00) delivery and installation charge. If the retailer identifies the twenty-five dollar ($25.00) delivery and installation charge, it is a charge for direct customer services.
(2) A caterer charges his customer one thousand dollars ($1,000.00) for the food and drink served, three hundred dollars ($300.00) for setup and site cleanup, and five hundred dollars ($500.00) for bartender and waiters. If all charges are properly identified, only the three hundred dollars ($300.00) for setup and cleanup is a charge for direct customer services, and the one thousand five hundred dollars ($1,500.00) for food and service is restauranting gross income.
(3) Persons engaged in engraving on wood metal, stone, etc., or persons engaged in retouching photographs or paintings may consider such charges for labor as direct customer services.
(4) All charges by a photographer resulting in the sale of a photograph (sitting charges, developing, making enlargements, retouching, etc.) for services that occur prior to transfer of tangible personal property are not direct customer services.
(5) An equipment rental company charging twenty-five dollars ($25.00) for delivery may consider such delivery charge as a charge for direct customer service only if such charge is properly identified.
(6) Even if identified, charges for labor incurred in the production of any manufactured article or of a custom-made article (jewelry, artwork, tailoring, draperies, etc.) are not included in this definition, as such labor occurs prior to the transfer of property.
(e) Recordkeeping Requirements.
(1) Any person who engages in transactions involving these services must:
a. Separately bill, invoice or charge the customer for such services in a manner by which the customer or consumer may readily identify the specific dollar amount of the service charge; and
b. Maintain business books and records in a manner in which the separate charge for such services can be clearly identified, to the satisfaction of the tax collector.
(2) Rendering a statement to a customer for a transaction involving such services and the transfer of tangible personal property which only indicates the total amount of the charges with words such as "services included" or, "charge includes labor and parts" or similar a expression does not satisfy the requirements of this subsection.
(Ord. No. 6674, § 3, 3-23-87)
When in the opinion of the tax collector it is necessary for efficient administration of this article, he may regard any salesman, representative, peddler, canvasser or agent of any dealer, distributor, supervisor or employer under whom he operates or from whom he obtains tangible personal property for sale, rental, lease or license as a retailer for the purposes of this article, irrespective of whether he is making sales, rentals, leases or licenses on his own behalf or on behalf of others. The tax collector may also regard such dealer, distributor, supervisor or employer as a retailer for the purposes of this article.
(Ord. No. 6674, § 3, 3-23-87)
Sales to Native Americans or tribal councils by vendors located within the city shall be deemed sales within the city, unless all of the following conditions exist:
(1) The vendor has properly accounted for such sales, in a manner similar to the recordkeeping requirements for out-of-city sales; and
(2) All of the following elements of the sale exist:
a. Solicitation and placement of the order occurs on the reservation; and
b. Delivery is made to the reservation; and
c. Payment originates from the reservation.
(Ord. No. 6938, § 20, 4-25-88; Ord. No. 9322, § 14, 11-22-99)
The following activities are considered remediation contracting and are exempt:
(1) Excavation, transportation, treatment, and/or disposal of contaminated soil for purposes of site remediation (rather than characterization);
(2) Installation of groundwater extraction and/or injection wells for purposes of groundwater remediation;
(3) Installation of pumps and piping into groundwater extraction wells for remediation purposes;
(4) Installation of vapor extraction wells for the purpose of soil or groundwater remediation;
(5) Construction of remediation systems, such as groundwater treatment plants, vapor extraction systems, or air injection systems;
(6) Connection of remediation systems to utilities;
(7) Abandonment of groundwater or vapor extraction wells;
(8) Removal/demolition of remediation systems;
(9) Capping/closure construction activities; and
(10) Service or handling charges for subcontracted remediation contracting activities.
(Ord. No. 9004, § 1(3), 1-5-98)
Editors Note: Ordinance No. 8794, § 2, adopted January 6, 1997, repealed regulation 19-100.5 in its entirety. Formerly, such regulation pertained to remediation contracting and derived from Ord. No. 8793, § 2, 1-6-97. Subsequently, Ord. No. 9004, § 1, adopted January 5, 1998, added a new regulation to read as herein set out.
Editors Note: Ordinance No. 8440, § 22, adopted January 23, 1995, repealed regulation 19-110.2. Formerly, such regulation pertained to income-producing capital: manufacturing equipment; job printing equipment and derived from Ord. No. 6674, § 3, 3-23-87 and Ord. No. 6938, § 21, 4-25-88.
(a) Definitions.
(1) "Computer hardware" (also called "computer equipment" or "peripherals") is the components and accessories which constitute the physical computer assembly, including but not limited to: central processing unit, keyboard, console, monitor, memory unit, disk drive, tape drive or reader, terminal, printer, plotter, modem, document sorter, optical reader and/or digitizer, network.
(2) "Computer software" (also called "computer program") is tangible personal property, and includes:
a. "Operating program (software)" (also called "executive program (software)"), which is the programming system or technical language upon which or by means of which the basic operating procedures of the computer are recorded. The operating program serves as an interface with user applied programs and allows the user to access the computer's processing capabilities.
b. "Applied program (software)", which is the programming system or technical language (including the tape, disk, cards, or other medium upon which such language or program is recorded) designed either for application in a specialized use, or upon which or by means of which a plan for the solution of a particular problem is based. Typically, applied programs can be transferred from one (1) computer to another via storage media. Examples of applied programs include: payroll processing, general ledger, sales data, spreadsheet, word processing, and data management programs.
(3) "Storage medium" is any hard disk, compact disk, floppy disk, diskette, diskpack, magnetic tape, cards, or other medium used for storage of information in a form readable by a computer, but not including the memory of the computer itself.
(4) A "terminal arrangement" (also called "'on-line' arrangement") is any agreement allowing access to a remote central processing unit through telecommunications via hardware.
(5) A "computer services agreement" (also called "data services agreement") is an agreement allowing access to a computer through a third-party operator.
(b) For the purposes of this article, transfer of title and possession of the following are deemed sales of tangible personal property and any other transfer of title, possession, or right to use for a consideration of the following is deemed rental, leasing, or licensing of tangible personal property:
(1) Computer hardware or storage media. Rental, leasing, or licensing for use of computer hardware or storage media includes the lessee's use of such hardware or storage media on the lessor's premises.
(2) Computer software which is not custom computer programming. Such prewritten ("canned") programs may be transferred to a customer in the form of punched cards, magnetic tape, or other storage medium, or by listing the program instructions on coding sheets. Transfer is deemed to have occurred whether title to the storage medium upon which the program is recorded, coded, or punched passes to the customer or the program is recorded, coded, or punched on storage medium furnished by the customer. Gross income from the transfer of such prewritten programs includes:
a. The entire amount charged to the customer for the sale, rental, lease, or license for use of the storage medium or coding sheets on which or into which the prewritten program has been recorded, coded, or punched.
b. The entire amount charged for the temporary transfer or possession of a prewritten program to be directly used or to be recorded, coded, or punched by the customer on the customer's premises.
c. License fees, royalty fees, or program design fees; any fee present or future, whether for a period of minimum use or of use for extended periods, relating to the use of a prewritten program.
d. The entire amount charged for transfer of a prewritten ("canned") program by remote telecommunications from the transferor's place of business to or through the customer's computer.
e. Any charge for the purchase of a maintenance contract which entitles the customer to receive storage media on which prewritten program improvements or error corrections have been recorded or to receive telephone or on-site consultation services, provided that:
i. If such maintenance contract is not optional with the customer, then the charges for the maintenance contract, including the consultation services, are deemed gross income from the transfer of the prewritten program.
ii. If such maintenance contract is optional with the customer but the customer does not have the option to purchase the consultation services separately from the storage media containing the improvements or error corrections, then the charges for the maintenance contract, including the consultation services, are deemed gross income from the transfer of the prewritten program.
iii. If such maintenance contract is optional with the customer and the customer may purchase the consultation services separately from the storage media containing the improvements or error corrections, then only the charges for such improvements or error corrections are deemed gross income from the transfer of a prewritten program and charges for consultation are deemed to be charges for professional services.
(c) Producing the following by means of computer hardware is deemed to be the activity of job printing for the purposes of this article:
(1) Statistical reports, graphs, diagrams, microfilm, microfiche, photorecordings, or any other information produced or compiled by a computer; except as provided in subsection (e) below.
(2) Additional copies of records, reports, manuals, tabulations, etc. "Additional copies" are any copies in excess to those produced simultaneously with the production of the original and on the same printer, whether such copies are prepared by running the same program, by using multiple printers, by looping the program, by using different programs to produce the same output, or by other means.
(d) Charges for the use of communications channel in conjunction with a terminal arrangement or data services agreement are deemed gross income from the activity of providing telecommunication services.
(e) The following transactions are deemed direct customer services, provided that charges for such services are separately stated and maintained as provided by regulation 19-100.2(e):
(1) "Custom (computer) programming", which is any computer software which is written or prepared for a single customer, including those services represented by separately stated charges for the modification of existing prewritten programs.
a. Custom computer programming is deemed a professional service regardless of the form in which the programming is transferred.
b. Custom programming includes such programming performed in connection with the sale, rental, lease, or license for use of computer hardware, provided that the charges for such are separately stated from the charges for the hardware.
c. Custom computer programming includes a program prepared to the special order of a customer who will use the program to produce copies of the program for sale, rental, lease, or license. The subsequent sale, rental, lease, or license of such a program is deemed the sale, rental, lease, or license of a prewritten program.
(2) Training services related to computer hardware or software, provided further that:
a. The provider of such training services is deemed the ultimate consumer of all tangible personal property used in training others or provided to such trainees without separately itemized charge for the materials provided.
b. Training deemed a direct customer service does not include:
i. Training materials, books, manuals, etc. furnished to customers for a charge separate from the charge for training services.
ii. Training provided to customers without separate charge as part of the sale, rental, lease, or license of computer hardware or software, or as part of a terminal arrangement or data services agreement.
(3) The use of computer time through the use of a terminal arrangement or a data service agreement, but not charges for computer hardware located at the customer's place of business (for example, the terminal, a printer attached to the terminal, a modem used to communicate with the remote central processing unit over a telephone line).
(4) Compiling and producing, as part of a terminal arrangement or computer services agreement, original copies of statistical reports, graphs, diagrams, microfilm, microfiche, photorecordings, or other information for the same person who supplied the raw data used to create such reports.
(f) The purchase, rental, lease, or license for use of computer hardware, storage media, or computer software which is not deemed custom programming is deemed the use or storage of tangible personal property for the purpose of this chapter, and the amount which may be subject to use tax shall be determined in the same manner as the determination of the gross income from the sale, rental, lease, or license for use of such.
(Ord. No. 6674, § 3, 3-23-87; Ord. No. 9652, § 10, 1-14-02; Ord. No. 9840, § 6, 5-5-03)
Editors Note: It should be noted that the provisions of Ord. No. 9641 become effective retroactive to January 1, 2002.
Loading...