Business License Tax Proposed Ordinance June 21, 2010 Presented by Mark Moses Chief Financial Officer

Current Status Outdated Code - established 1948 –No comprehensive updates –Confusing, antiquated language –References to non-existent functions/businesses –Neither administrative, nor user friendly Many provisions in code cost more to administer than revenue generated 2

Goal for Update Simplification of code and process (fewer rates) Equity in tax policy Flexibility in implementation 3

Tax rate simplification 4

Key Changes Consolidation of Classifications and Tax Rates to avoid confusion and “rate shopping” Professionals–from$2.00 per $1,000 to$1.25 per $1,000 Misc. Services– from$0.90 per $1,000 to$1.25 per $1, Note: Retail, Wholesale & Manufacturing – still $0.90, $0.40 & $0.25 per $1,000 5

Key Changes Contractors – rate simplification more equitable for small contractor s Old - $45 or $75 plus $.50 per $1,000 (subcontractors / general contractors) New - $0.75 per $1,000 (all contractors) 6

Other Changes Annual Registration tax –Last changed 1991 –From $24 to $35 (with CPI adj) Adds provision for warehouses –Previously neglected –$10 per thousand square feet 7

Other Changes Real Estate Rate Simplification To be consistent with rates for all services (general/professional) Commercial & Residential Rentals From $0.90 per $1,000 to $1.25 per $1, Real Estate Brokers and Agents From $2.00 per $1,000 to $1.25 per $1,000 8

Next Steps Business Community input – immediate Decision to place on ballot – July FIN_LIBRARY: