A. Every person primarily engaged in the business of manufacturing or processing any goods, wares, merchandise, food, article, substance or commodity at a fixed place of business within the City shall be classified manufacturing and pay an annual license fee as provided for in Section 9.04.240 for each thousand dollars of gross receipts, less the value of raw materials (including the cost of energy resources) or the value of the partially completed product at the time it enters the manufacturing process within the City.

B. Whenever (1) there are no gross receipts because the manufacturing process within the City does not result in a finished product, (2) where it is shown to the satisfaction of the Finance Department that the licensee’s present method of accounting, using generally accepted principles of accounting consistently applied, does not permit it to determine gross receipts, (3) where the costs of raw material cannot be determined, or (4) where the final product consists principally of raw materials or component parts manufactured elsewhere by the licensee, the following alternative method of calculating gross receipts under this section shall be used: the total of all expenses incurred in the manufacturing process at the business location within the City for payroll, utilities, rent and depreciation.

C. A business taxed under this section shall not be considered either a retailer or wholesaler with respect to the sale of goods manufactured by such business within the City.

D. Persons engaging in manufacturing and other business activities taxed on gross receipts under different rates, as provided by this chapter, may elect to combine gross receipts at one rate and obtain one license if the provisions of Section 9.04.225 of this chapter apply to the combined activities. (Ord. 5017-NS § I (part), 1977)