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

2. Current Status Outdated Code - established 1948 –No comprehensive updates –Confusing, antiquated language –References to non-existent functions/businesses –Neither administrative, nor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

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

4. Tax rate simplification 4

5. 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 $1,000 ------------------------------------------------------------------------ Note: Retail, Wholesale & Manufacturing – still $0.90, $0.40 & $0.25 per $1,000 5

6. 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

7. 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

8. 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 $1,000 -------------------------------------------------- Real Estate Brokers and Agents From $2.00 per $1,000 to $1.25 per $1,000 8

9. Next Steps Business Community input – immediate Decision to place on ballot – July 2010 9 FIN_LIBRARY: 96144.1