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In regards to qualifying for the 0.5% tax rate, what does “primarily engaged in wholesale or retail trade” mean?

April 26, 2017engaged primarily Qualifying rate regards retail tax Trade wholesale

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In regards to qualifying for the 0.5% tax rate, what does “primarily engaged in wholesale or retail trade” mean?

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A taxable entity is primarily engaged in retail or wholesale trade only if (1) the total revenue from its activities in retail or wholesale trade is greater than the total revenue from its activities in trades other than the retail and wholesale trade; and (2) less than 50% of the total revenue from activities in retail or wholesale trade comes from the sale of products it produces or products produced by an entity that is part of an affiliated group to which the taxable entity also belongs (this does not apply to SIC Division G, Major Group 58: Eating and Drinking Places); and (3) the taxable entity does not provide retail or wholesale utilities, including telecommunication services, electricity, or gas.