Upon every person engaging or continuing within this city in the business of contracting, including both subcontractor and general contractor, the tax shall be equal to 1.2% of the gross income of the business derived from contracts entered into prior to July 1, 1971, and by 1.25% of the gross income of the business from contracts entered into on or after July 1, 1971. Any person contracting with a nonresident contractor subject to the taxes imposed by this subchapter shall withhold payment, in the final settlement of such contract, of such sufficient amount as will be sufficient to cover such taxes, until the receipt of a certificate from the collector of business taxes to the effect that the taxes imposed on the nonresident contractor have been paid or provided for. It shall be the duty of the contractor to notify the owner that such monies are to be withheld from the final settlement of the contract. The owner, however, shall be ultimately liable for such amount should the contractor fail to pay such tax as required under this subchapter.
(Ord. passed 12-18-1998)