Zortec Business Tax– 2015 Local Government Corporation

Business Tax Presentation created by Shanna Boyette – City of Shelbyville Local Government Responsibility & Tips

Changes in Business Tax ● Rate change in 2002 ● Public Chapter 530 (2009) ● Public Chapter 313 (2013) Uniformity and Small Business Relief Act of 2013 Change is Inevitable Progress is Optional –Tony Robbins

● To collect registration fee of $15.00 on Regular License and issue Regular License ● To issue Minimal Activity License, collect $15.00 Activity fee ● To invoice for Minimal Activity License yearly ● To issue Transient Vendor License ● To import and export computer files to and from the State ● To maintain accurate records-Clerk Responsibility What is the Local Government’s Responsibility in regards to Business Tax?

Potential Loss of Revenue at the Local and State levels Why is the process important?

How do Local Government(s) maintain accurate business tax records? What process can Clerks & Recorders use? Requires us to Think Different - Steve Jobs

Tips for Daily Business Tax Transactions ● Process Clearance Files sent from the State Daily ● Use the Reports to update computer records , Addresses, Phone Numbers, Owner info ● Use Note fields to document information specific to an account. ● Help Business Owners Register with the State

TIPS (continued) ● Create change files and send back to the State-Daily ● Send State New Files Daily when applicable

What do we do when information is missing from State files? Frustration although quite painful at times is a very positive essential part of success. - Bo Bennett

What do we do when information is missing from State files? ● View the Report and Identify the Error Message ● If account number of tax period is blank- Create a Spreadsheet

SCENARIOS What would you do?

Business Owner contacts the office demanding a business license for a tax period that hasn’t been to sent to the local office by the State. What do you do? A. Issue a business license as requested B. Issue a business license as the owner has proof of payment C. Tell the owner to call the State D. Contact the State and Request a Certificate of Clearance

A Business Owner contacts the office because the business classification is incorrect. What do we do? A. Ignore It B. Change It C. Notify the State

When importing/receiving files from the State, What do we do when the files contain missing information? A. Import and Ignore the missing information B. Call the State to inquire on missing information C. Create a spreadsheet using software to see missing information on new, change, and clearance files.

What do we do when we receive notice from the State that a Business is closed and it is in fact still Active? A. Import, Change, and Send Back B. Call the Business Owner and Notify C. Nothing

City Responsibility Minimal Activity License

Minimal Activity License ● Invoice beginning Jan ● Notice Option Added to Print License Notices ● Activity Fee

Minimal Activity License Can Business status change from Minimal to Regular? Yes Can State and Local office collect a Minimal Fee? Local yes, State no-In Progress *New and Change files are essential to eliminate duplicate payment

Printing Minimal Activity Notices Minimal Activity O for Only Minimal I for Include Minimal E for Exclude Minimal (Only Regular)

A little more about Minimal Activity Licenses 1.Can be collected by city or state 2. The $15 annual fee is kept by city (not on State Annual Report.) 3. For renewals, confirm that the business still grossed less than $10, Renewal letters will not be sent by the state.

A few more things 1.Verifying Periods and Dates 2. State FTP Storage 3. Duplicate Businesses 4. Screen 13 Reminder 5. State Website Access

Verifying Periods and Dates The majority of your renewals and new business licenses should be for 2016 period.

Period End = Paying on collections thru

State FTP Storage We’ve been told that the state would be clearing out files on the FTP site which are older than 60 days.

Duplicate Businesses When a business registers with you, the state will send the file back to you with the state account number. This often creates a duplicate business. You will always want to keep your record because it has the $15 Initial License and correct/complete information.

Businesses numbered with the next available number Missing Type – is a sure sign these were imported from the state file.

Businesses numbered above

. 1.Update your local record with the State Business Number and Fiscal Year End. 2.Check Screen 3 for any renewals 3.Delete the Business imported from the state file

Contact leftover imported businesses to come in and registered. After deleting the duplicate businesses, the remaining businesses have registered at the state but have not registered with the city.

Owner Type is the type of ownership for the owner. 1-Member 2-Officer 3-Partner 4-Owner/Individual 5-Owner/Company 6-Contractor ID Type specifies whether the federal employer ID number or the social security number is in the next field. 1-FEIN, 2-SSN Screen 13 Reminder

Do you need access to the state website for clearance website? The contact is Jane Lacy (615) You will need to fill out and sign disclosure forms and then Jane will forward their information to their IT department to generate login credentials.

This concludes our presentation for today Questions? Bye Bye!