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For the purposes of this article, transactions involving improvements to, or sales of, real property are designated into one of the following categories; and these categorizations shall apply, whether or not a person designates himself as a contractor, construction manager, developer or otherwise:
(1) A person performing improvements to real property is one of the following:
a. An "owner-builder" when the work is performed by the owner or lessor or lessee-in-possession. An "owner-builder" may also be a "speculative builder."
b. A "construction contractor" when performing work for the owner or lessor or lessee-in-possession of the real property, unless that person has provided a written declaration stating that:
(i) The owner-builder is improving the property for sale; and
(ii) The owner-builder is liable for the tax for such construction contracting activity; and
(iii) The owner-builder has provided the contractor his city privilege license number.
c. A "subcontractor" as provided in section 19-415(c).
(2) An owner or lessor ("owner-builder") of improved real property is one of the following:
a. A "speculative builder" as provided in section 19-100; or
b. An "owner-builder who is not a speculative builder" in all other cases.
(3) The terms "owner," "lessor" and "lessee-in-possession" shall be deemed to include any authorized agent for such person.
(Ord. No. 6674, § 3, 3-23-87; Ord. No. 7446, § 2.5, 7-2-90)
(a) Certain rentals, leases and licenses for use in connection with construction contracting. Rental, leasing, or licensing of earth-moving equipment with an operator shall be deemed construction contracting activity. Rental, leasing, or licensing of any other tangible personal property (with or without an operator) or of earthmoving equipment without an operator shall be deemed rental, leasing, or licensing of tangible personal property. For example:
(1) Rental of a backhoe, bulldozer, or similar earthmoving equipment with operator is construction contracting. Rental of these items without an operator is rental of tangible personal property.
(2) Rental of scaffolding, temporary fences, or barricades is rental of tangible personal property.
(3) Rental of pumps or cranes is rental of tangible personal property, whether or not an operator is provided with the equipment rented.
(b) Distinction between construction, contracting, retail, and certain direct customer service activities.
(1) When an item is attached or installed on real property, it is a construction contracting activity, and any subsequent repair, removal, or replacement of that item is construction contracting.
(2) Items attached or installed on tangible personal property are retail sales.
(3) Transactions where no tangible personal property is attached or installed are considered direct customer service activities (for example: carpet cleaning, lawn mowing, landscaping maintenance).
(4) Demolition, earthmoving, and wrecking activities are considered construction contracting.
(c) Sale of consumable goods incorporated into or applied to real property is considered a retail sale and not construction contracting. Examples of consumable goods are lubricants, faucet washers, and air conditioning coolant, but not paint.
(d) Installation or removal of tangible personal property which has independent functional utility is considered a retail activity.
(1) "Tangible personal property which has independent functional utility" must be able to substantially perform its function(s) without attachment to real property. "Attachment to real property" must include more than connection to water, power, gas, communication, or other service.
(2) Examples of tangible personal property which has independent functional utility include artwork, furnishings, "plug-in" kitchen equipment, or similar items installed by bolts or similar fastenings.
(3) Examples of tangible personal property which does not have independent functional utility include wall-to-wall carpeting, flooring, wallpaper, kitchen cabinets, or "built- in" dishwashers or ranges.
(4) The installation of window coverings (drapes, mini-blinds, etc.) is always a retail activity.
(e) Sale and installation of interior window coverings. Notwithstanding any other provision of this code and regulations pertaining thereto, the sale of interior window coverings is always a retail activity, except when sold and installed by the vendor, in which case it shall be construction contracting.
(Ord. No. 6674, § 3, 3-23-87; Ord. No. 8440, § 24, 1-23-95; Ord. No. 8766, §§ 1, 2, 10-21-96; Ord. No. 8794, § 3, 1-6-97; Ord. No. 8856, § 3, 4-7-97; Ord. No. 10949, § 4, 12-13-11)
(a) In the event of a tax rate change, the rate imposed on gross income from construction contracting shall be computed based upon the rate in effect when the contract was executed, subject to the "enactment date" as defined in this section. Gross income from a contract executed prior to the enactment date shall not be subject to the tax rate change, provided the contract contains no provision that entitles the construction contractor to recover the amount of the tax.
(b) In the event of a rate increase, in order to qualify for the lower rate, the construction contractor shall, upon request, provide sufficient documentation, in a manner and form prescribed by the tax collector, to verify that a contract was entered into before the enactment date.
(c) For purposes of this section, "enactment date" shall be:
(1) In the event an election is held, the date of election.
(2) In the event no election is held, the date of final adoption by the mayor and council.
(3) Notwithstanding the above, nothing in this section shall be construed to prevent the city from establishing a later enactment date.
(Ord. No. 9841, § 2, 5-12-03)
Editor’s note – Ordinance No. 11936, § 18, adopted July 12, 2022, repealed regulation 19-416.2, effective April 1, 2019. Formerly, such regulation pertained to reconstruction contracting and derived from Ord. No. 6674, §3, 3-23-87, Ord. No. 8440, § 26, 1-23-95, and .Ord. No. 8784, § 28, 12-2-96.
(a) Computerized Printing. Computerized versions of all items which would be taxable under section 19-425 if performed without computerized assistance are considered taxable under that section, and therefore, are not exempt services.
(b) Book Publishing. The printing of books shall be deemed job printing. Sales of books shall be deemed retail sales.
(c) Newspaper, etc., publishing. Publication of newspapers, magazines or other periodicals shall not be considered job printing for the purposes of this article.
(Ord. No. 6674, § 3, 3-23-87)
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