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<br /> <br />MEMORANDUM <br /> <br />City Manager <br /> <br />RECEIVED <br /> <br />SEP 2 7 2006 <br />City of Riverside <br />City Clerk's Office <br /> <br />DATE: <br /> <br />09/25/2006 <br /> <br />TO: <br />FROM: <br />RE: <br /> <br />COLLEEN NICOL, CITY CLERK /?.. ,..-------- <br /> <br />BRENT MASON, ASSISTANT FINANCE DIRECTOrt' '7P1 <br /> <br />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, 2006. <br /> <br />Chapter 5.04.330 of the Riverside Municipal Code provides for an annual adjustment of <br />no more than 5% to reflect the change in the Consumer Price Index for the previous <br />twelve months. The change in the CPI from August 2004 to August 2005 was 4.3%. <br /> <br />Chapter 5.04.330 states "said change shall be rounded off to the nearest whole percent <br />per hundred as follows: If the remaining fraction of a per cent is forty-nine one- <br />hundredths of a percent or less such fraction shall be omitted. If the remaining fraction of <br />a percent is fifty one-hundredths of a percent or more, the next highest percent shall be <br />applied", Therefore, based on a CPI change of 4.3% all business tax rates have been <br />adjusted upward 4%. <br /> <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 <br />are rounded to the nearest dollar. <br /> <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 <br />change in the CPI for the previous twelve months. Accordingly, the business tax ceiling, <br />all fees, deposits and charges have been updated by 4%. <br /> <br />cc: Tom Gehrken, Business Tax Supervisor <br /> <br />attachments <br />