Boonville Payment ordinance (§ 10-92)

(a) Every person engaged in the business of supplying or manufacturing gas in the city shall, within 30 days after the end of each and every calendar month, file with the city clerk a sworn statement showing the gross receipts of such person from such business for the calendar month period immediately preceding, and shall at that time pay to the city clerk an amount equal to five per cent of the gross receipts from such business for the calendar month period immediately preceding.

(b) Every person engaged in the business of supplying electricity in the city shall, within 30 days after the end of each and every calendar month, file with the city clerk a sworn statement showing the gross receipts of such person from such business for the calendar month period immediately preceding, and shall at that time pay to the city clerk an amount equal to four and fifty-four one-hundredths per cent of the gross receipts from such business for the calendar month period immediately preceding.

(c) To encourage the continued expansion of the local economy by providing incentives for local manufacturing expansions and the location of new manufacturers the reportable taxable gross receipts; for each manufacturing customer who meets the following criteria may be exempt, for a five-year period, from determining the amount of tax payable under section 10-92 (b).

(1) Any electrical customer who has heretofore been exempt from the license tax imposed under provision of section 10-92 (c) being repealed by this ordinance shall continue to

be exempt from the license tax for all electrical energy sold at its current place of usage.

(2) Electrical customers engaging in manufac-

turing whose usage of electrical energy is increased by at least 500,000 Kilowatt hours of electricity on an annual basis may apply for and be granted an exemption from full imposition of the license tax. In determining a manufacturing customer's usage of at least 500,000 Kilowatt Hours on an annual basis, all qualified electricity used by a customer shall be considered by combining all qualified metering devices of the customer.

(3) Manufacturing is defined for purposes of this

section to be the conversion of materials into articles, substances, goods, wares, or merchandise, and shall include those large scale assembly plants, distribution facilities and processing facilities that use at least 500,000 Kilowatt hours of electricity on an annual basis. Manufacturing must be the primary activity of the entity, and the limitation of tax shall not apply to retail, wholesale or commercial facilities of the manufacturer.

(4) It shall be the duty of the city administrator to

review the applications of persons seeking status as a manufacturer under this subsection. The city administrator will confer with the city council prior to the issuance of a certificate of qualification for manufacturer. The limitation of tax shall not be effective until such certificate is delivered to the utility. (5) The manufacturer must meet the definition

of manufacturers stated in subsection (3), except that the electrical usage requirement of the manufacturer must reasonably be expected to meet the electrical usage requirement set forth in subsection (3) within three years of the issuance of an occupancy permit or building permit in case of expansion. (6) Those manufacturers meeting the require-

ments of subsection 5 above who are granted an exemption waiver must apply for exemption status within three years of the issuance of an occupancy permit or building permit. The reportable taxable gross receipts for those manufacturers granted an exemption waiver will be subject to the rates provided for in section 10-92(b) until exemption status is granted.

(7) Those manufacturers receiving a certificate of qualification shall be entitled to a reduction on the amount of gross receipts taxed imposed as follows:

1st year - 30% reduction - payment of 70% of gross receipts imposed.

2nd year - 25% reduction - payment of 75% of gross receipts imposed.

3rd year - 20% reduction - payment of 80% of gross receipts imposed.

4th year - 15% reduction - payment of 85% of gross receipts imposed.

5th year - 10% reduction - payment of 90% of gross receipts imposed.

Every year thereafter - 0% reduction - payment of 100% of gross receipts imposed. (8) The reportable taxable gross receipts, for each manufacturer will be eligible for only one exempt status.

(9) To ensure compliance with this article the city administrator shall examine each exemption waiver or exemption status granted under this subsection at least every two years.