§ 54-25. Property and service subject to tax.

The sales tax imposed herein shall apply to all sales and services including, without limitation, those described hereafter that are not specifically exempted in this article:

(1)

Retail sales . The sale, purchase, lease, rental or grant of license for use of tangible personal property, and any subsequent lease, rental or sale of tangible personal property by any person to any consumer or purchaser, regardless of whether the person purchasing, leasing, renting or selling the personal property paid the tax imposed on the initial purchase and use of the property so acquired which is subsequently leased, rented or sold. When a retail sale involves the exchange or trade-in of property, the tax shall be collected on the purchase price paid or charged, including the fair market value of the property exchanged or traded in at the time and place of exchange or trade-in, except as specified herein.

(2)

Leases or rental . If tangible personal property is purchased for use exclusively in the rental or leasing business and is not at any time used for the purchaser's general business or personal use, use tax is not due upon the purchase of the tangible personal property, but a sales tax is due upon the rental or leasing of tangible personal property used in the rental or leasing business, regardless of whether a sales or use tax has been paid upon a previous purchase of the property.

(3)

Telecommunications services . Upon sale of telecommunications services, whether furnished by public or private corporations or enterprises for all intrastate telecommunication services.

(4)

Energy sales . Upon the charge within the city for electrical energy and natural or manufactured gas sold for domestic or commercial consumption and not for resale.

(5)

Food and drink . Upon the amount paid for food or drink served or furnished in or by restaurants, cafes, lunch counters, cafeterias, hotels, drugstores, social clubs, nightclubs, bars, taverns, caterers, carry-out shops and other like establishments at which prepared food or drink is regularly sold, including pushcarts, motor vehicles and other mobile facilities. Any cover charge shall be included as part of the amount paid for any food or drink. Any retailer selling malt, vinous, or spirituous liquors by the drink may include the sales tax in the price of the drink sold. On the cost of meals, which are given to employees in return for their labor or services rendered or otherwise given away. This cost shall include all direct materials and labor costs associated with the production of the meals, and all indirect overhead costs associated and attributable to the production of the meals. Indirect overhead shall utilize "full absorption" as defined and utilized in U.S. Treasury tax statutes and Internal Revenue Service regulations.

(6)

Pay television . Pay, cable or subscription television equipment sold, purchased, leased, rented, furnished or used, and all and any other charges made for such equipment.

(7)

Vending machines . Every retailer or vendor vending items of tangible personal property through coin-operated vending machines shall be taxable and such retailer or vendor shall pay retail sales or use tax on the tangible personal property sold or vended in the coin-operated machine unless the sale shall be otherwise exempt as provided in this article. Owners of vending machines that vend articles of tangible personal property are subject to sales or use tax on the cost of the vending machines.

(8)

Sales to banks . On the purchase price paid for sales of tangible personal property purchased at retail to national banking associations and banks for use within the city.

(9)

Food . On the amount paid for all sales and purchases of food.

(10)

Clothing . On the entire amount charged for clothing purchased at retail.

(11)

Resale . Upon used merchandise which has previously been purchased and which has been manufactured or rebuilt and, as so manufactured or rebuilt, has been sold to a subsequent owner.

(12)

Farm equipment . Upon farm equipment not titled or registered as a motor vehicle.

(13)

Software services . On the design, development, writing, translation, fabrication, maintenance, lease or transfer of computer program (software) services.

(14)

Reserved .

(15)

Auction, farm or estate sale . On sales made at an auction, farm closeout sale or estate sale held within the city.

(16)

Tobacco products . The sale of any tobacco product, which is not a cigarette, is subject to sales tax.

(17)

Fund-raising organizations . The cost of all materials, equipment, supplies purchased and/or used or consumed by fundraising organizations, other than such organizations qualifying as exempt organizations, is taxable. Fund-raising organizations, whether or not qualifying as exempt institutions, must collect and remit sales taxes on any sales they may conduct.

(18)

Florists and food delivery . All retail sales by a florist or restaurant that delivers meals are taxable, and all orders taken by florists or delivery restaurants within the city and telephoned, faxed, electronically mailed, or otherwise communicated to florists or delivery restaurants outside the city are subject to city sales tax. When a florist or delivery restaurant within the city receives an order from a florist or delivery restaurant outside the city, the sale is exempt from city sales tax.

(19)

Hotel room, motel room or other such temporary occupancy accommodations.

(20)

Medical supplies and medical equipment . All medical supplies and medical equipment, as defined in this article, except those specifically exempted herein, shall be taxable, either as a sales tax to the ultimate consumer or as a use tax payable by either the health care facility, physician, dentist or veterinarian utilizing, making available for utilization or consumption by others, or consuming the medical supplies or equipment in the provision of health care services. In the event either the city's sales or use tax is paid on any nonexempt medical supply or item of medical equipment at the time of its purchase by the nonexempt health care facility, physician, dentist or veterinarian, there shall not be a sales tax imposed on any further sale or consumption of such medical supply or item of medical equipment, the intent being to subject all transactions involving nonexempt medical supplies and equipment to either the sales tax or the use tax, but not both.

(21)

Other services . On the consideration paid for any linen services, sound system services, alarm and/or security system services, and such other services specified by regulation promulgated hereunder.

(Code 1985, § 3-3-35; Ord. No. 07-02, § 1, 3-6-2007)