(A) Definitions. For the purpose of this section, the following definitions shall apply unless the context clearly indicates or requires a different meaning.
BUILDINGS or STRUCTURES. Everything artificially built up or composed of parts joined together in some definite manner and attached to real property. BUILDINGS or STRUCTURES includes not only buildings in the general and ordinary sense, but also tanks, fences, conduits, systems, tunnels, monuments, retaining walls, bridges, trestles, parking lots and pavement for foot or vehicular traffic.
CONTRACTING, REPAIRING, DECORATING OR IMPROVING OF A NEW OR EXISTING BUILDING OR STRUCTURE OR ANY PART THEREOF. In addition to its ordinary meaning, includes the installing or attaching of any article of tangible personal property in or to real property, whether or not such personal property becomes a part of the realty by virtue of such installation.
PRIME CONTRACTOR. A person engaged in the business of performing for others, contracts for the constructing, repairing, decorating or improving of a new or existing building or buildings or other structures under, upon or above real property, either for the entire work or for a specific portion thereof.
PRIME CONTRACTOR and/or SUBCONTRACTOR. In addition to the definition of CONTRACTING contained herein includes persons performing labor and services in respect to the moving of earth or clearing of land, razing or moving of existing buildings or structures even though such services may not be done in connection with a contract involving the construction, repairing or altering of a new or existing building or structure.
SUBCONTRACTOR. A person engaged in the business of performing contracting or a like or similar service for persons other than consumers, either for the entire work or for a specific portion thereof.
(B) The business of contracting is taxable under the business and occupation tax subchapter, and the gross income derived therefrom must be reported under the contracting classification. The rate of tax applied against gross income under the contracting classification is taxable at the rate specified in § 113.136(E).
(1) Prime and subcontractors, taxable on gross income with no deductions therefrom. A prime contractor, one who furnishes work or both materials and work under a written or oral contract, for the construction, alteration, repair, decoration or for the construction, alteration, repair, decoration or improvement of a new or existing building or structure may take no deduction from gross income on account of payments made to the subcontractor. The subcontractor will also be taxable on his or her gross income under the contracting classification.
(2) Contracting entered into with governments. Gross income received by a person for contracting activities performed for the state, the federal government, or any of their instrumentalities, agencies, boards, commissions or political subdivisions and the like is taxable and shall be reported under the contracting classification. The fact that the owner is a governmental unit does not relieve the contractor, subcontractor, suppliers or any other person from liability for business and occupation tax on the full amount of gross income.
(3) Prime contractors liable for taxes due from subcontractors. Whenever a contracting, repairing, decorating or improving contract is let for work to be done in the city, the prime contractor shall submit a list of all subcontractors who will work under the contract to the Director of Finance. The list shall be submitted within 30 days of the original contract. The names of any and all subcontractors engaged after the list is submitted shall be submitted as they are engaged. A standard form for the list shall be approved by the Finance Director or his or her designee. Upon completion of the contract, but prior to final payment to the subcontractor or subcontractors, the prime contractor shall notify the Finance Director in writing and request a letter of release from the Finance Director stating that such subcontractor or subcontractors, as appropriate, have timely filed and paid taxes due the city. If the Finance Director is satisfied that such subcontractor or subcontractors, as appropriate, have timely filed and paid taxes due the city, he or she shall issue such letter of release forthwith. Nothing herein shall be construed to relieve any subcontractor of its liability for taxes due the city under § 113.136(E).
(Ord. passed 11-12-2019)