[§237-8.6]  County surcharge on statetax; administration.  [Repealed on December 31, 2022.  L 2005, c 247,§9.]  (a)  The county surcharge on state tax, upon the adoption of countyordinances and in accordance with the requirements of section 46-16.8, shall belevied, assessed, and collected as provided in this section on all grossproceeds and gross income taxable under this chapter.  No county shall set thesurcharge on state tax at a rate greater than one-half per cent of all grossproceeds and gross income taxable under this chapter.  All provisions of thischapter shall apply to the county surcharge on state tax.  With respect to thesurcharge, the director of taxation shall have all the rights and powersprovided under this chapter.  In addition, the director of taxation shall havethe exclusive rights and power to determine the county or counties in which aperson is engaged in business and, in the case of a person engaged in businessin more than one county, the director shall determine, through apportionment orother means, that portion of the surcharge on state tax attributable tobusiness conducted in each county.

(b)  Each county surcharge on state tax thatmay be adopted pursuant to section 46-16.8(a) shall be levied beginning in thetaxable year after the adoption of the relevant county ordinance; provided thatno surcharge on state tax may be levied prior to January 1, 2007.

(c)  The county surcharge on state tax, ifadopted, shall be imposed on the gross proceeds or gross income of all writtencontracts that require the passing on of the taxes imposed under this chapter;provided that if the gross proceeds or gross income are received as paymentsbeginning in the taxable year in which the taxes become effective, on contractsentered into before June 30 of the year prior to the taxable year in which thetaxes become effective, and the written contracts do not provide for thepassing on of increased rates of taxes, the county surcharge on state tax shallnot be imposed on the gross proceeds or gross income covered under the writtencontracts.  The county surcharge on state tax shall be imposed on the grossproceeds or gross income from all contracts entered into on or after June 30 ofthe year prior to the taxable year in which the taxes become effective,regardless of whether the contract allows for the passing on of any tax or anytax increases.

(d)  No county surcharge on state tax shall beestablished on any:

(1)  Gross income or gross proceeds taxable under thischapter at the one-half per cent tax rate;

(2)  Gross income or gross proceeds taxable under thischapter at the 0.15 per cent tax rate; or

(3)  Transactions, amounts, persons, gross income, orgross proceeds exempt from tax under this chapter.

(e)  The director of taxation shall revise thegeneral excise tax forms to provide for the clear and separate designation ofthe imposition and payment of the county surcharge on state tax.

(f)  The taxpayer shall designate the taxationdistrict to which the county surcharge on state tax is assigned in accordancewith rules adopted by the director of taxation under chapter 91.  The taxpayershall file a schedule with the taxpayer's periodic and annual general excisetax returns summarizing the amount of taxes assigned to each taxation district.

(g)  The penalties provided by section 231-39for failure to file a tax return shall be imposed on the amount of surchargedue on the return being filed for the failure to file the schedule required toaccompany the return.  In addition, there shall be added to the tax an amountequal to ten per cent of the amount of the surcharge and tax due on the returnbeing filed for the failure to file the schedule or the failure to correctlyreport the assignment of the general excise tax by taxation district on theschedule required under this subsection.

(h)  All taxpayers who file on a fiscal yearbasis whose fiscal year ends after December 31 of the year prior to the taxableyear in which the taxes become effective, shall file a short period annualreturn for the period preceding January 1 of the taxable year in which thetaxes become effective.  Each fiscal year taxpayer shall also file a shortperiod annual return for the period starting on January 1 of the taxable yearin which the taxes become effective, and ending before January 1 of thefollowing year. [L 2005, c 247, §3]