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(a) The term "semi-permanently or permanently installed" means that the item of tangible personal property has and is expected to have at the time of installation a permanent location at the site installed, as under a long-term lease agreement, except that the person using or applying said property may eventually replace it because it has become worn out or has become obsolete or the person ceases to have the right to possession of the property.
(b) An item of tangible personal property is deemed permanently installed if its installation requires alterations to the premises.
(c) Examples of "semi-permanently or permanently installed tangible personal property" include but are not limited to computers, duplicating machines, furniture not of portable design, major appliances, store fixtures.
(d) The term does not include mobile transportation equipment or tangible personal property designed for regular use at different locations, as under numerous short-term rental, lease or license agreements, whether or not such property is in fact so used.
(1) For example, use of a mobile crane, trencher, automobile or other similar equipment shall be considered a rental, lease or license transaction subject to taxation only by the city or town in which such business office of the lessor is based.
(2) Other similar examples include but are not limited to camping equipment, contracting equipment, chain saw, forklift, household items, invalid needs, janitorial equipment, reducing equipment, furniture of portable design, trucks or trailers, tools, towbars, sump pumps, arc welders.
(e) A rental, lease or license agreement which specifies that the item in question shall remain, under the terms of the agreement, located within the same city or town for more than one hundred eighty (180) consecutive days shall be sufficient evidence that such rented, leased or licensed item is "permanently or semi-permanently installed" in the city or town, except when the item is mobile transportation equipment or one of the other types of portable equipment or property described in subsection (d) above.
(Ord. No. 6674, § 3, 3-23-87)
(b) Gross income from the sale of a warranty, maintenance or similar service contract in connection with the rental, leasing and licensing of tangible personal property shall be exempt.
(c) Separately stated charges for repair not included as part of a warranty, maintenance or similar service contract relating to the rental, leasing or licensing of tangible personal property are exempt from the tax imposed by section 19-450; however, such income is subject to the provisions of sections 19-460 and 19-465, and the provisions of regulation 19-465.1.
(Ord. No. 6938, § 27, 4-25-88; Ord. No. 8784, § 30, 12-2-96)
Gratuities charged by or collected by persons subject to the tax imposed by section 19-455 may be excluded from gross income if:
(1) Such charge is separately stated upon the bill, invoice, etc., provided the customer, and such amounts are maintained separately in the books and records of the taxpayer; and
(2) Such gratuities are distributed in total to employees of the taxpayer in addition to customary and regular wages.
(Ord. No. 6674, § 3, 3-23-87)
(a) Distinction Between Transfer of Tangible Personal Property and Sales at Retail. Charges for transfer of tangible personal property included in the gross income of the business activity of persons engaged in the following business activities shall be deemed only as gross income from such business activity and not sales at retail taxed by section 19-460:
(2) Reserved.
(3) Job printing, per section 19-425.
(4) Mining, timbering and other extraction, but not sales of sand, gravel or rock extracted from the ground, per section 19-430.
(5) Publication of newspapers, magazines and other periodicals, per section 19-435.
(7) Restaurants and bars, per section 19-455.
(8) Food for home consumption, per section 19-462.
(9) Telecommunications services, per section 19-470.
(10) Utility services, per section 19-480.
(11) Wastewater removal services, per section 19-485.
(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, landscape maintenance).
(4) Demolition, earth moving, and wrecking activities are considered construction contracting.
(c) The sale of sand, rock and gravel extracted from the ground shall be deemed a sale of tangible personal property and not mining or metallurgical activity.
(d) 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.
(e) 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.
(f) 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. 8766, §§ 3, 4, 10-21-96; Ord. No. 10949, § 5, 12-13-11; Ord. No. 11183, § 10, 6-17-14, eff. 1-1-13)
A trading stamp transaction is defined as follows: the trading stamp company issues stamps to a vendor; the vendor then provides them to its customers; and the customer then exchanges the stamps for merchandise from the trading stamp company.
The exchange transaction for the merchandise shall be deemed a retail sale and the trading stamp company a retailer. All taxes imposed by this article applicable to retail transactions are therefore applicable to such exchange transactions.
The rate of tax shall be the retail rate based upon the retail dollar value of the redeemed merchandise as expressed in the redemption dollar value per book of stamps or portion thereof. The tax imposition described herein is in lieu of any privilege or use tax upon the business of issuing stamps, redeeming the same, or using or storing property redeemed.
(Ord. No. 6674, § 3, 3-23-87)
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