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(a) Tax rate. The tax rate shall be an amount equal to four and one half (4.5) percent of the gross income from the business activity upon every person engaging or continuing in the business of providing utility services to consumers or ratepayers who reside within the city.
(b) Resale of Utility Services. Sales of utility services to another provider of the same utility services for the purpose of providing such utility services either to another properly licensed utility provider or directly to such purchaser's customers or ratepayers shall be exempt and deductible from the gross income subject to the tax imposed by this section, provided the purchaser is properly licensed by all applicable taxing jurisdictions to engage or continue in the business of providing utility services, and further provided that the seller maintains proper documentation, in a manner similar to that for sales for resale, of such transactions.
(c) Exemptions. The tax imposed by this section shall not apply to sales of utility services to any nonprofit primary health care facility, except when sold for use in activities resulting in gross income from unrelated business income as that term is defined in 26 U.S.C. section 512. For purposes of this section, "primary health care facility" means any hospital or any licensed nursing care institution, licensed pursuant to A.R.S. chapter 4, title 36, or any licensed kidney dialysis center.
(Ord. No. 6926, § 1.B, 4-18-88; Ord. No. 9870, § 3, 6-30-03; Ord. No. 10685, § 2, 6-16-09, eff. 7-1-09; Ord. No. 11369, § 3, 6-7-16, eff. 7-1-16)