(a) The tax rate
shall be at an amount equal to _______ percent (___%) of the gross
income from the business activity upon every person engaging or continuing
in the business activity of:
(1) publication
of newspapers, magazines, or other periodicals when published within
the City, measured by the gross income derived from notices, subscriptions,
and local advertising as defined in Section ___-405. In cases where
the location of publication is both within and without this State,
gross income subject to the tax shall refer only to gross income
derived from residents of this State or generated by permanent business
locations within this State.
(2) distribution
or delivery within the City of newspapers, magazines, or other periodicals
not published within the City, measured by the gross income derived
from subscriptions.
(b) "Location
of Publication" is determined by:
(1) location
of the editorial offices of the publisher, when the physical printing
is not performed by the publisher; or
(2) location
of either the editorial offices or the printing facilities, if the
publisher performs his own physical printing.
(c) "Subscription
income" shall include all circulation revenue of the publisher
except amounts retained by or credited to carriers or other vendors
as compensation for delivery within the State by such carriers or
vendors, and further except sales of published items, directly or
through distributors, for the purpose of resale, to retailers subject
to the Privilege Tax on such resale.
(d) "Circulation,"
for the purpose of measurement of gross income subject to the tax,
shall be considered to occur at the place of delivery of the published
items to the subscriber or intended reader irrespective of the location
of the physical facilities or personnel of the publisher. However,
delivery by the United States mails shall be considered to have occurred
at the location of publication.
(e) Allocation
of taxes between cities and towns. In cases where publication
or distribution occurs in more than one city or town, the measurement
of gross income subject to tax by the City shall include:
(1) that portion
of the gross income from publication which reflects the ratio of
circulation within this City to circulation in all incorporated
cities and towns in this State having substantially similar provisions;
plus
(2) only when
publication occurs within the City, that portion of the remaining
gross income from publication which reflects the ratio of circulation
within this City to the total circulation of all incorporated cities
or towns in this State within which cities the taxpayer maintains
a location of publication.
(f) The tax imposed
by this Section shall not apply to sales of newspapers, magazines
or other periodicals to a qualifying hospital, qualifying community
health center or a qualifying health care organization, except when
the property sold is for use in activities resulting in gross income
from unrelated business income as that term is defined in 26 U.S.C.
Section 512.
