BUSINESS TAX RATE CHANGES - Laserfiche WebLink

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t 1 MEMORANDUM RECEIVED LAFinance Department OCT 18 Clerks 2016 nine City City of Riverside - CITY CF Office RJVER`SIDE DATE: 10/05/2016 '` Y "r` TO: COLLEEN NICOL, CITY CLERK 7' ' FROM: CINDY BUECHTER, BUSINESS TAX SUPERVISOR " '' RE: BUSINESS TAX RATE CHANGES, NEW BUSINESS TAX CEILING AND ADDITIONAL ;;=Gf're FEES, DEPOSITS AND CHARGES IN ACCORDANCE WITH CHAPTER 5.04.330 OF THE '4 RIVERSIDE MUNICIPAL CODE EFFECTIVE NOVEMBER 1, 2016. t , Please find attached the business tax rate changes, for your records, effective November } . 1, 2016, in accordance with Chapter 5.04.330 of the Riverside Municipal Code. Chapter Ore ' `` 5.04.330 provides for an annual inflation/deflation 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 2015 to August 2016 was 1.4%. 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 of 1.4%, all business tax rates have been updated by 1%. 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 all fees, deposits and charges of no more than 5% to reflect the change in the CPI for the previous twelve months. Therefore, based on a CPI of 1.4%, all fees, deposits and charges have been updated by 1%. attachments