At its previous meeting, Interim Finance Director Audra Kyle explained that the ordinance establishing a gross receipts threshold of $3.5 million was approved in 1986.
Once a business reached $3.5 million in gross receipts the excess would be subject to a rate of 0.00005. This new ordinance provides an increase to the threshold over a five-year period to restore equity to the business license tax system and account for inflation.
Beginning January 1st, the threshold increases to $5.13 million and by year five the threshold will be $11.65 million. Beginning in year six, further adjustments will occur annually based on the consumer price index.
Those who hold a business license and have gross receipts less than $3.5 million will not be affected by this ordinance change.
This ordinance also increases the minimum business license tax from $35 to $50.
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