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INTEROFFICE MEMO Riverside ~.~ All-America City , I II I.' CITY OF RIVERSIDE People Serving Peo Ie 1998 TO: Colleen Nicol City Clerk DATE: October 5,1999 OCT n 7 1999 SUBJECT: Jerry Rogers ] Finance Director BUSINESS TAX RAT CHANGES, NEW BUSINESS TAX CEILING AND ADDITIONAL FEES, DEPOSITS, AND CHARGES IN ACCORDANCE WITH CHAPTER 5.04.330 OF THE RIVERSIDE MUNICIPAL CODE EFFECTIVE NOVEMBER 1, 1999. OFFICE OF THE CITY CLERK FROM: Chapter 5.04 of the Riverside Municipal Code provides for an annual adjustment of no more than 5% to reflect the change in the Consumer Price Index for the previous twelve months. The change in the CPI from August 1998 to August 1999 was 2.3%. Chapter 5.04.330 states "said change shall be rounded off to the nearest whole percent per hundred as follows: If the remaining fraction of a per cent is forty-nine one-hundredths of a percent or less such fraction shall be omitted. If the remaining fraction of a percent is fifty one-hundredths of a percent or more, the next highest percent shall be applied". Therefore, based on a CPI change of2.3% all business tax rates have been adjusted upward 2%. All base tax rates are rounded off to the nearest twenty-five cents, each multiple of gross receipts tax rates are rounded to the nearest one cent, and all additional tax rate multiples are rounded to the nearest dollar. In addition to rate changes, the Municipal Code provides for an annual adjustment to the business tax ceiling and to all fees, deposits and charges of no more than 5% to reflect the change in the CPI for the previous twelve months. Accordingly, the business tax ceiling, all fees, deposits and charges have been updated by 2%. cc: Tom Gehrken, Business Tax Supervisor attachments RA TE99