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, , <br /> MEMO <br /> 4i <br /> `x...., 4'24?, <br /> TY.r.A1. Finance Department 3 <br /> Lr.jt <br /> OF <br /> 1-kI\'1:RR�IDI, OCT Q9 2018 <br /> c.,1, x..37r>r .z~:,:ki <br /> DATE: 8/24/2018 ..,if C.i <br /> TO: COLLEEN NICOL, CITY CLERK <br /> FROM: NATASHA WOOLFORD, BUSINESS TAX SUPERVISOR <br /> CC: EDWARD ENRIQUE, INTERIM CHIEF FINANCIAL OFFICER <br /> MARIE RICCI, ASSISTANT CHIEF FINANCIAL OFFICER <br /> RE: BUSINESS TAX RATE CHANGES, NEW BUSINESS TAX CEILING AND ADDITIONAL <br /> FEES, DEPOSITS AND CHARGES IN ACCORDANCE WITH CHAPTER 5.04.330 OF THE <br /> RIVERSIDE MUNICIPAL CODE EFFECTIVE NOVEMBER 1, 2018. <br /> Please find attached the business tax rate changes, for your records, effective November 1, <br /> 2018, in accordance with Chapter 5.04.330 of the Riverside Municipal Code. Chapter 5.04.330 <br /> provides for an annual inflation/deflation adjustment of no more than 5%to reflect the change <br /> in the Consumer Price Index for the previous twelve months. The change in the CPI from <br /> August 2017 to July 2018 was 3.14%. <br /> Chapter 5.04.330 states "said change shall be rounded off to the nearest whole percent per <br /> hundred as follows: If the remaining fraction of a per cent is forty-nine one-hundredths of a <br /> percent or less such fraction shall be omitted. If the remaining fraction of a percent is fifty one- <br /> hundredths of a percent or more, the next highest percent shall be applied". Therefore, based <br /> on a CPI of 3.14%, all business tax rates have been updated by 3.00%. <br /> All base tax rates are rounded off to the nearest twenty-five cents, each multiple of gross <br /> receipts tax rates are rounded to the nearest one-cent, and all additional tax rate multiples are <br /> rounded to the nearest dollar in accordance with the provision of the Municipal Code Chapter <br /> 5.04.330.A Senior Business Tax Representative and Revenue Specialist in the Business Tax <br /> Division have verified the adjusted rate calculations are in accordance with 5.04.330 of the <br /> code. <br /> In addition to rate changes, the Municipal Code provides for an annual adjustment to the <br /> business tax ceiling and all fees, deposits and charges of no more than 5%to reflect the change <br /> in the CPI for the previous twelve months. Therefore, based on a CPI of 3.14%, all fees, <br /> deposits and charges have been updated by 3.00%. <br /> Attachments: <br /> 2018 Rates-Worksheet <br /> Riverside Area Economic Summary <br /> CPI-All Urban Consumers Riverside-San Bernardino-Ontario, CA <br />