§ 729.03. Producers of natural resource products.

(a)

Upon every person engaging or continuing within the City in the business of producing for sale, profit or commercial use any natural resource products, the amount of such tax shall be equal to the value of the articles produced as shown by the gross proceeds derived from the sale thereof by the producer, except as hereinafter provided, multiplied by the respective rates as follows: coal, 0.75 percent; oil, 1.75 percent; natural gas in excess of the value of $5,000.00, 3.25 percent; blast furnace slag, 1.75 percent; sand, gravel or other mineral products not quarried or mined, 1.00 percent; timber; 1.00 percent; other natural resource products, 1.25 percent.

(b)

A person exercising privileges taxable under this section and using or consuming the same in his business or transferring or delivering the same as any royalty paid, in kind or the like, shall be deemed to be engaged in the business of producing natural resources and shall be required to make returns on account of the production of the business showing the gross proceeds or equivalent in accordance with uniform and equitable rules for determining the value upon which privilege taxes are levied, corresponding as nearly as possible to the gross proceeds from the sales of similar products of like quality or character by other taxpayers.

(c)

Persons who produce natural resource products outside of this City and who make sale of the same within the City shall not pay the tax imposed by this section but shall pay the tax imposed by section 729.05 for the privilege of selling such products within the City.

(d)

A person exercising any privilege taxable under this section and engaging in the business of selling his natural resource products in this City shall be required to make returns of the gross proceeds of such sales and pay the tax imposed in section 729.05 for the privilege of engaging in the business of selling such natural resource products in this City.

(Code 1979, § 6-2-3; Code 1991, § 729.03; Ord. of 1-7-2008(1))