The base gross receipts tax rate provided by this Section is applicable to the business activities of manufacturing, transportation and warehousing, information, biotechnology, clean technology, and food services. Commencing on the operative date of the Gross Receipts Tax Ordinance, the Controller shall compute the tax rate in accordance with Section 959, but the base tax rate provided by this Section is:
0.125% (e.g., $1.25 per $1,000) for gross receipts between $0 and $1,000,000
0.205% (e.g., $2.05 per $1,000) for gross receipts between $1,000,001 and $2,500,000
0.370% (e.g., $3.70 per $1,000) for gross receipts between $2,500,001 and $25,000,000
0.475% (e.g., $4.75 per $1,000) for gross receipts over $25,000,000
Manufacturing includes the activity of transforming materials, substances or components into new products by mechanical, physical or chemical means; it includes the activity of assembling component parts of manufactured products; it includes business activity described in NAICS codes 31, 32 and 33.
Transportation and warehousing includes the activities of providing transportation of passengers and/or goods, warehousing and storage for goods, scenic and sightseeing transportation, and support activities related to modes of transportation; it includes business activity described in NAICS codes 48 and 49.
Information includes producing and distributing information or cultural products; providing the means to transmit or distribute those products; and processing data; it includes business activity described in NAICS code 51.
For purposes of this Article, biotechnology includes the activity of biotechnology business as defined in Section 906.1 of Article 12-A, and clean technology includes the activity of clean technology business as defined in Section 906.2 of Article 12-A.
Food services includes the activity of preparing meals, snacks and/or beverages to customer order for immediate on-premises or off-premises consumption; it includes drinking places; it includes business activity described in NAICS code 722.
The amount of gross receipts from all business activities described in this Section subject to the gross receipts tax shall be one-half of the amount determined under Section 956.1 plus one-half of the amount determined under Section 956.2.
(Added by Proposition E, App. 11/6/2012, Oper. 1/1/2014)