(A) Business license required. Every business entity engaged in any business in the city shall apply for and obtain a business license from the city before the commencement of business. Licensees are required to notify the city of any changes in address or any other changes that render the information supplied to the city in the license application inaccurate.
(B) Business license tax required. The business license tax shall be based on the following chart:
Type of Business Entity | Business License Tax |
Wholesale | .05% of gross receipts |
Retail | .1% of gross receipts |
Professional | .3% of gross receipts |
The minimum business license tax shall be $50. The maximum business license tax for each wholesale business entity shall be $625. The maximum business license tax for each retail business entity shall be $1,250. The maximum business license tax for each professional business entity shall be $2,500.
(C) Apportionment. This section applies only to business entities doing business both inside and outside the city. Because the business license tax is due only for business conducted inside the city limits, this section provides the formulas to calculate what fraction of a business entity’s gross receipts is subject to the business license tax. Forms are available at City Hall to assist with these calculations.
(1) Gross receipts. Gross receipts shall be apportioned as follows:
(a) For business entities with both payroll and sales revenue in more than one tax district, by multiplying the gross receipts by a fraction, the numerator of which is the payroll factor, described in division (C)(2) below, plus the sales factor, described in division (C)(3) below, and the denominator of which is two; and
(b) For business entities with sales revenue in more than one tax district, by multiplying the gross receipts by the sales factor as set forth in division (C)(3) below.
(2) Payroll factor. The payroll factor is a fraction, the numerator of which is the total amount paid or payable in the city during the taxable year by the business entity for compensation, and the denominator of which is the total compensation paid or payable by the business entity everywhere during the taxable year. Compensation is paid or payable in the city based on the time the individual’s service is performed within the city.
(3) Sales factor. The sales factor is a fraction, the numerator of which is the total sales revenue of the business entity in the tax district during the taxable year, and the denominator of which is the total sales revenue of the business entity everywhere during the taxable year.
(D) Returns required.
(1) Every business entity shall submit a business license tax return for the preceding taxable year by April 15 each year except returns made on the basis of a fiscal year, which shall be made by the fifteenth day of the fourth month following the close of the fiscal year. Blank forms for returns shall be supplied by the city.
(2) Every business entity shall submit a copy of its federal income tax return at the time of filing its return with the city. Whenever, in the opinion of the city, it is necessary to examine the federal income tax return of any business entity in order to audit the return, the city may compel the business entity to produce for inspection a copy of all statements and schedules in support thereof. The city may also require copies of reports of adjustments made by the federal government.
(3) Every business entity shall, no later than 60 days following the enactment of this subchapter, provide to the city a list of all vendors with whom it conducts business within the city. Thereafter, every business entity shall furnish with its business license tax return an updated list of all vendors with whom it conducts business within the city.
(Ord. 08-01, passed 7-1-08; Am. Ord. 09-02, passed 3-3-09)