(Title and Section Amended by Ord No. 176,324, Eff. 1/16/05, Oper. 1/1/06.)
Commencing with the tax year 2006, the tax rates contained in this Article which are based upon gross receipts shall be reduced by up to 4% per year. The maximum total rate reduction shall be 15% from the rates imposed as of December 31, 2005. The yearly tax rate reduction shall be calculated by the Director of Finance on a percentage basis rounded to the nearest one-tenth percent (1/10%) from the net increase in business tax revenue above a baseline. Net business tax revenue shall be the amount credited as Business Tax in the Statement of Receipts published in the annual Controller's Preliminary Financial Report. The baseline shall be the revenue forecast for business tax receipts prepared in conjunction with the 2004-2005 City budget set forth as follows:
Fiscal Year Revenue Forecast
2004-2005 $384,815,000
2005-2006 $400,977,000
2006-2007 $417,016,000
2007-2008 $433,697,000
2008-2009 $451,045,000
2009-2010 $469,087,000
The baseline revenue forecast for each year beyond the 2009-2010 shall be calculated based upon a 4% per annum increase from the previous year.
There shall be no tax reduction in any year in which the net revenue increase is less than one percent (1%). Any percentage increase below one percent (1%) shall be carried over and added to the next year percentage increase for purposes of calculating the rate reduction for that year.
The Director of Finance shall issue a detailed annual report on the net business tax revenue received each fiscal year and the basis for all calculations and carryovers and shall publish or otherwise publicize the revised rates for each year.